NSW Business Chamber 2013 Annual Report by Ashley Penny

NSW BUSINESS CHAMBER ANNUAL REPORT 2013

“At the end of the day, we are big on relationships. Clearly, being a member for 85 years indicates how valuable Chamber membership is to us.” Akubra

Invigorating business

1 NSW Business Chamber Annual Report 2013

Contents

In accordance with the requirements of the Workplace Gender Equality Act 2012 (Act), NSW Business Chamber (on behalf of NSW Business Chamber, Australian Business Lawyers & Advisors, Illawarra Business Chamber and Hunter Business Chamber) has lodged its annual public report with the Workplace Gender Equality Agency (Agency). This report is made available via www.nswbusinesschamber.com.au should you wish to read it. Annual Report production Production: Corporate Marketing & Communications, NSW Business Chamber Design: Rebecca Solberg and Tracey Orehov, Australian Business Consulting & Solutions Photography: Ashley Penny, Kiren Thandi, and images courtesy of Akubra

Chamber profile in statistics

Reports from the CEO and President

Advocacy

Thought leadership

Member services

Australian Business Solutions Group

NSW Business Chamber Councillors

Financial report

2 NSW Business Chamber Annual Report 2013

A year in the life ofâ&#x20AC;Ś The NSW Business Chamber can trace its roots over 188 years of operation. It has become NSWâ&#x20AC;&#x2122;s peak business organisation, and Australiaâ&#x20AC;&#x2122;s largest membership-based Chamber. During the last financial year, the Chamber achieved the following:

24,530 Business Hotline calls Resolving all types of member enquiries.

19,818 Workplace Advice Line calls Resolving enquiries about industrial awards, employment conditions and other workplace issues.

21,645 attendees to 309 events Events encompass networking, educational, political engagement and business awards.

NSW Business Chamber Members NSW Business Chamber 11,159

Canberra Business Chamber 347

Hunter Business Chamber 1,205

Defence 215

Illawarra Business Chamber 797

Local Chamber 118 Sydney Business Chamber 56

45,449 HR Advance downloads The award-winning product allows businesses to create legally compliant documents.

3 NSW Business Chamber Annual Report 2013

Office locations

74,000

The NSW Business Chamber has a nationwide presence through a series of direct and virtual offices. Below is a represtation of direct offices located in the eastern states of Australia.

certified trade documents Enabling Australian businesses to export to new markets overseas. Cairns

114,000 online voices for ‘Small Business – Too big to Ignore’ A public awareness campaign for small business ahead of the 2013 Federal Election.

Townsville Mount Isa Mackay

Rockhampton

Longreach

City (Felix St) City (Wickham Terrace) Annerley

600

Roma Toowoomba

entrants from 13 regions of NSW for the 2013 Annual Business Awards. A statewide celebration of business excellence.

143 articles published in the ‘Ask Us How’ online resource library. Written by members who are leaders in their respective fields, the library is a shared resource for all membership.

Moree Armidale Broken Hill

Dubbo

Tweed Heads Ballina Coffs Harbour Port Macquarie

Orange Newcastle Bathurst Central Coast Sydney City Wagga Wagga Wollongong Bankstown Canberra Liverpool/Casula Nowra Albury Batemans Bay Miranda North Sydney Bega Parramatta Melbourne Penrith Griffith

Adelaide City Mawson Lakes Marion

Tamworth

Brisbane Gold Coast

Moorabbin Blackburn

4 NSW Business Chamber Annual Report 2013

Building a better

Australia

2013 was a tough year for Australia as a whole – economically and politically. These changes have impacted the NSW Business Chamber, the wider Chamber network and the businesses we support. This was a year when the Chamber navigated through turbulence, implementing our vision to achieve strong outcomes. We specifically focused on our aspirations to: • build a united chamber movement; • strengthen the voice of business – large and small; • become the ‘go to’ organisation for business advice and support; • deliver world-class products and services that tangibly help business; Stephen Cartwright Chief Executive Officer NSW Business Chamber

• help business invest in developing talent and our youth. It’s personally rewarding to report on a number of historic milestones for the Chamber. For the first time in 188 years, membership surpassed 14,000 businesses. As a significant contributor to this growth, our Local Chambers of Commerce Alliance program has signed on 118 Local Chambers across NSW. Their support of the Chamber movement is keenly felt at a grassroots level where our advocacy is gaining traction. The Chamber movement has also clearly demonstrated its national influence

through the ‘Small Business – Too Big to Ignore’ campaign. A simple yet powerful message hit the mark with business owners, political parties, the media and the broader community. Supported by over 114,000 online voices, we will join the Australian Chamber of Commerce & Industry in holding the Federal Government accountable over the next three years. The Chamber’s ongoing advocacy program can attest to real wins. We’ve helped save NSW business owners and operators more than $500 million in the past financial year. Most of this has come from reductions in workers compensation premiums and payroll tax. The Chamber is the only regular voice calling for – and working with – the government on workers compensation and payroll tax reductions. Looking to the horizon, the ‘Thinking Business’ program sees the Chamber take leadership on issues that can unlock business potential, such as a second airport in Western Sydney. Our commercial services division, Australian Business Solutions Group (ABSG), continues to grow in capability and reach, supporting businesses across the nation. In plain terms, the commercial division’s goal is to offer products, services and expertise that tangibly help business.

Professor Trevor Cairney

Ellie Brown

Brett Manwaring

Karen Howard

Russell Balding

The Board

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What’s unique about ABSG is that any surplus is funnelled back into supporting Chamber initiatives and delivering world-class products and services at an affordable cost. ABSG is in business to help business. During 2013, I had the privilege of travelling the length and breadth of NSW, talking to hundreds of Chamber members. They spoke of tough economic conditions, but their spirits remained high. It’s in the interests of these businesses that we, the NSW Business Chamber, will continue to fight on through the coming year. We are here for business – large or small – to help them maximise their potential, because prosperity creates new jobs, greater social wealth, and better communities in which to live. On a personal note, I would like to thank the Chamber’s President, Terry Wetherall, and the other Board directors, for their leadership. I would also thank the many business people who support the Chamber movement by sitting on our boards, councils and committees.

Tony Dormer

Roger Hood

Ian Penfold

Terry Wetherall

It is my honour to lead the Chamber, and will do my utmost to ensure that we remain true to our mission in 2014.

Megan Motto

“...because prosperity creates new jobs, greater social weath, and better communities in which to live.”

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A year of

collaboration

Terry Wetherall President NSW Business Chamber

2013 was a watershed year for the Chamber movement in Australia, and the NSW Business Chamber showed the way forward.

State Chambers of Commerce working for a common good, and I’m more than a little proud of our Chamber’s role in producing the event.

It was a year of landmark collaboration. Chambers at Local, State, National and International levels came together for a variety of important reasons, from sharing global trends and innovations in business, to uniting a voice ahead of the Australian Federal Election.

Another highlight of 2013 occurred in April when I attended the World Chambers Federation Congress in Doha, Qatar. The Chamber formally launched its bid for Sydney to host the Congress in 2017. The bidding process is underway, with the winning host city to be announced in November 2014. Bringing the world to Sydney will deliver so many opportunities to the business community domestically and abroad. We will do our utmost to make that happen.

The national ‘Small Business – Too Big To Ignore’ election campaign highlighted the enormous challenges facing business communities right across Australia. The ‘SkyBoard’ roadshow undertaken through NSW was a tremendous way of demonstrating that a line had been drawn in the sand, and that small businesses would no longer accept being ignored in government decisions and policies. A number of Board members and I were fortunate enough to travel with the roadshow from town to town, meeting with hundreds of local businesses and members. This experience vividly illustrated how the collective determination of a people can influence the nation, and those who seek to govern it. It was deeply humbling to be a part of this most fundamental of democratic practises. I was also greatly impressed by this year’s Australian Business Congress, which saw a thousand attendees converge on Sydney Convention Centre in August. Now in its third year, the Congress examines the key issues confronting Australian organisations, with input from a number of the world’s brightest business minds. It was conceived by

While in Doha, the NSW Business Chamber won the prestigious ‘Best Small Business Project’ award from the World Chambers Federation. While international recognition for the Chamber’s products and services shows that we are worldclass innovators, the true test lies in the tangible results they yield for business owners and operators every day. There is no doubt that 2013 was another tough year for our members, but I look back with great pride at what the Chamber has achieved for business, and ultimately, the communities they operate in. 188 years on, our purpose and mission remains unchanged and I hope you enjoy reading the stories that attest to how we deliver on that promise every day. On behalf of my fellow Directors, I would like to thank the management, staff and volunteers that support the Chamber’s operations, and I would also thank you for your continued support.

Malcolm Hagen, and his son Bryce, in the family business ‘Country High Tea’, located in Wagga Wagga. “Keep it up, I’m with you” says Malcolm, voicing his support of the ‘Small Business – Too Big to Ignore’ campaign.

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Advocacy

Never give up How do you convince governments to make it easier and less costly to do business? NSW Business Chamber has learnt to stay the course, remain resolute and never give up. Advocating on behalf of business requires good ideas, effective communication, and a focus on key issues over the long term. But it also needs the power of numbers to create genuine clout. This is happening through better engagement with Chambers of Commerce and Industry associations across NSW, energetic advocacy, bigger awareness campaigns, and record levels of membership in NSW. It’s about fearless advocacy on behalf of business, but also recognising that results come through partnership with other advocacy groups and governments on constructive solutions. NSW Business Chamber has helped save business owners and operators well over $500 million in the past year. Most of these savings have been achieved from reductions in workers compensation premiums and payroll tax. The Chamber is the only regular voice calling for – and working with – the government on payroll tax reductions.

Milestones In tough economic times there is no substitute for big orders and strong demand, which is why the Chamber is intent on fixing the systems that create headaches for business. “To be really valuable to members, as well as fixing day-to-day problems, the Chamber must change the government systems that create the problems, or advocate for changes which generate new business opportunities,” says Paul Orton, Policy Director for NSW Business Chamber. This is why the Chamber created a thought leadership program, ‘Thinking Business’. This year it has quantified the business growth, jobs and community benefits to Sydney, Western Sydney and NSW of an airport at Badgerys Creek. Last year it showed how the non-government sector could deliver better and more productive public services. Both examples highlight the role of the Chamber in facilitating discussions between government and business with the goal of delivering better outcomes for the community. “We’ll continue to drive the debate and never give up,” says Paul.

“It’s about fearless advocacy on behalf of business”

$500 million saved NSW Business Chamber saves business owners over $500 million in the past year

It was a landmark public awareness campaign to get small business heard in the 2013 Federal Election. The daily burden of two million small business owners was falling on deaf ears in Canberra, yet impacting the greater community. A voice was raised.

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Too Big to Ignore

Small business roars Life was getting harder for Australia’s two million small business owners and operators, but Canberra wasn’t listening. The onset of a Federal Election offered a vital opportunity to unite business communities for the purpose of influencing Australian voters and our political representatives.

The NSW Business Chamber further empowered Local Chambers of Commerce by supplying collateral and sponsoring a range of activities, including signage on regional airlines, business radio shows, ‘meet the candidates’ forums, targeted advertising and customised banners.

And so for the first time, Australian Chambers of Commerce united for a national campaign, launched in Western Sydney on 10 April to over 600 supporters. Coast-to-coast advertising and high-profile media engagements made the initial breakthrough. Grassroots support followed, as Local Chambers of Commerce and business communities rallied behind the campaign in the months that followed.

In the five weeks leading up to the Election, the Chamber embarked on a state-wide tour to engage voters. Featuring the Southern Hemisphere’s largest mobile billboard, the SkyBoard roadshow made over 50 stops on a 7,000 kilometre journey. Thousands participated in the tour, with small business owners having their say via the campaign video booth, and political candidates – including then Opposition Leader, Tony Abbott – welcoming the public forum.

Harnessing a dedicated website and social media channels, the campaign enabled supporters to voice their opinion, share content, and connect with like-minded supporters in an online community. Much of this debate centred on the campaign’s ‘BIG 4 You can’t Ignore’, which outlined initiatives to: cut down on red tape, simplify the tax system, make it easier to employ people, and improve infrastructure. In main streets and town centres, the familiar yellow-and-black logo appeared en masse: from posters in shop windows, to flags in shopping centres.

By Election Day, the ‘Small Business – Too Big to Ignore’ campaign had surpassed 100,000 active voices via toobigtoignore.org.au. A new Government has since been formed in Canberra, and in the days ahead, the task of monitoring the Government’s implementation of its commitments will be continued by the Australian Chamber of Commerce & Industry, with support from the NSW Business Chamber.

Social media support “Proud to be a part of the campaign. United we can make a difference!” Tracey Krahenbring “Fantastic effort! Now we have a mighty voice!” Cheryl Leue

Milestones

114,000

active voices via toobigtoignore.org.au

25,535

likes on facebook

7,000

kilometre journey

50+

stops from Tweed Heads to Canberra

NEWS

1,000+ media stories

270,000+

businesses contacted directly by NSW Business Chamber

Responding directly to NSW Business Chamber’s advocacy efforts, NSW Government reduces workers compensation premiums by an average of 7.5 per cent. What does it mean to a small business? “It means a thousand things,” says Café owner Vicki Daley. “We can have more staff on. We don’t have to work as many hours as we already do.” “So it takes pressure off me, and it takes the pressure off the staff. “And we can inject more money into our business. Just the small things like a paint job, or better facilities in the kitchen.”

“...we can inject more money into our business. Just the small things like a paint job, or better facilities in the kitchen.” Vicki Daley, Morning Glory Café, Coogee

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Top advocacy wins Real-dollar savings to business

Campaign

Outcome

Reform the workers compensation system to: • Protect business operators from a 28% hike in workers compensation premiums.

Workers compensation scheme reformed to reduce unfunded liabilities, enabling premium rates to be maintained at existing levels.

• Improve the workers compensation system.

NSW Government introduces changes which provide a greater focus on return to work, increased support for injured workers and significant savings for employers across the state.

Bottom line for business Over $700 million in premium increases stopped. Protected 12,600 jobs, and further job opportunities from being lost.

Businesses save $200 million a year through average premium reductions of 7.5 per cent. This benefits approximately 167,000 employers across the state for policies renewed on or after 30 June 2013. No tariff rates will be increased. The definition of a ‘small business’ for workers compensation purposes has also been expanded, meaning 95 per cent of NSW employers will now have a very simple premium calculation, and premiums will not be directly impacted by any claims. They will also receive incentives to improve workplace safety and encourage employees to return to work.

Reduce the payroll tax burden.

In the 2013 Budget, the NSW Government announced that the payroll tax threshold will rise from $689,000 to $750,000.

NSW businesses save $54 million.

Reduce the cost of doing business.

NSW Government commits to achieving red tape reduction target of $750 million by 2015.

Over 2012, savings from these initiatives were estimated to total $210 million.

Eliminate light vehicle registration stickers.

From 1 January 2013, registration stickers are no longer required to be displayed on vehicles less than 4.5 tonnes.

Estimated savings of $5 million a year for NSW businesses, or 160,000 hours of unnecessary red tape.

1,300 additional businesses are now exempt from payroll tax and every current payroll tax liable business saves an average of $3,325.

Estimations by the NSW Business Chamber as of 30 June 2013

The value of membership

“It’s the comfort of having a big brother speak for you.” says Ross Roberts, Harwood Marine, Yamba

17 NSW Business Chamber Annual Report 2013

Top advocacy wins Real-dollar savings to business

Campaign

Outcome

Bottom line for business

Reduce proposed Sydney Water price increases.

IPART reject Sydney Water’s proposal to increase water and sewerage prices by an average of 15% above CPI over 2012-16.

Sydney Water’s charges over 2012-16 will now fall in real terms, which will lead to an average decrease in real water and sewerage costs for businesses.

More scope for private and non-government sector delivery of government services.

NSW Government undertakes financial and management audits of government finances and services. New opportunities for savings and private sector involvement identified.

NSW Government has committed to the better use of the private sector in the delivery of services.

Fund the F3 to M2 Road Link.

The 2013 NSW Budget announced $15 million to help finance the commencement of the link. NSW has also reserved a contribution of up to $400 million in the Restart NSW Fund which will be matched by the Federal Government once the project moves ahead.

Cutting travel time for the Central Coast, CBD and Western Sydney, the Road Link would avoid 22 traffic lights, and reduce operating costs for freight carriers both to and from Sydney.

Greater competition and contestability in the NSW vocational education and training system.

From July 2014, the NSW Government will implement reforms to create a demanddriven vocational education and training system, where training organisations will compete for government funded training entitlements.

Employers will be able to choose the training organisation that best meets their needs.

Ban elected representatives from holding dual roles of Local Government Councillor and Member of Parliament simultaneously.

Legislation enacted.

Councillors and MPs will be fully engaged in their respective roles and possible conflicts of interest arising from holding dual offices have now been removed.

Premier O’Farrell commits NSW Government to better use of the private sector, stating “I believe government is morally and economically obliged to consider it.”

Employers may also be able to up-skill existing workers through targeted funding.

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Publications

Policy

Thought Leadership The NSW Business Chamber’s ‘Thinking Business’ program identifies existing issues and builds a platform for business to contribute its perspective on how these issues might best be resolved. This year, the program launched three reports reflecting real issues impacting on members and identifying solutions on how they might best be addressed. Liveable Sydney – How would HighSpeed Rail Change Sydney and NSW?

Small Business Barometer – What’s impacting the Illawarra?

Current state and federal infrastructure planning needs to be coordinated in a way that ensures that the future delivery of an integrated east coast High Speed Rail (HSR) network remains affordable. The report found that integrating HSR into Sydney’s existing rail network would significantly reduce costs and increase the likelihood that HSR could be delivered within the next 15 years. Small Business Barometer – What’s impacting the Illawarra?

Economic Impact of a Western Sydney Airport

In conjunction with the ‘Small Business Too Big To Ignore’ campaign, this report analyses how small businesses in the Illawarra are bearing the brunt of changes in the wider economy, exacerbated by a challenging regulatory environment. Inefficient taxes and inflexible workplace laws are highlighted in the report as contributing unnecessarily to the stress of running a small business.

Economic Impact of a Western Sydney Airport While its population continues to grow and diversify, Western Sydney is facing a dramatic jobs deficit. Estimates have put this shortfall to reach 320,000 by 2036. This report identifies that by 2050, an airport at Badgerys Creek could support up to 33 million passenger movements and help create more than 30,000 additional jobs for this important region.

“I want to thank the NSW Business Chamber for all of their efforts in keeping us up to the mark of reforming the Work Cover Scheme … to assist us in delivering benefits to employers who are doing the right thing in the workplace.” The Hon. Barry O’Farrell NSW Premier

“The reason why we are listening to the Chamber is because they represent the voices of businesses across the state.” The Hon. Mike Baird, NSW Treasurer

Member Profile Located on the outskirts of Kempsey, Australian Architectural Hardwoods has been manufacturing a variety of products from recycled hardwoods since 1993. The co-owner, Robyn Brodie, subscribes to the Workplace Advice Line, which provides direct phone access to workplace specialists. “I rely on the Workplace Advice Line for Modern Awards, industrial relations and annual leave,” says Robyn. “I can go home and sleep at night, knowing that I don’t need a law degree to run the business. My staff are receiving the right entitlements.”

Robyn Brodie, Australian Architectural Hardwoods

“The Chamber’s Western Sydney First Program provides a unified and effective voice for the region.” Western Sydney Wanderers FC ??

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Sydney Business Chamber

A vision for Sydney Ranked within the top ten cities by the world’s leading indices, Sydney is growing in stature and possibility. The city has a powerful advocate in Sydney Business Chamber (SBC), as led by The Hon. Patricia Forsythe. As part of the NSW Business Chamber, SBC advocates for policies and initiatives that elevate Sydney’s international status, promoting the city as a global destination for business and leisure. The last year saw a strong focus on Western Sydney as a competitive economic region, with the establishment of the Chamber’s Western Sydney office – Western Sydney First. SBC successfully brought together business and community leaders to partner with government in prioritising activities for the betterment of Sydney. The leading voice on planning reforms SBC has been the leading voice in promoting the need for planning reforms in NSW that will facilitate economic prosperity for Sydney residents. NSW Government partnered with SBC to deliver its industry stakeholder engagement and feedback program for reforms.

SBC

Sydney in the Asian Financial World SBC, in collaboration with NSW Government, was instrumental in bringing together leading international players in the financial services sector. The Chairman of Bloomberg, Mr Peter Grauer, joined the group to discuss the opportunities and challenges facing Sydney’s financial sector in the ever-expanding Asian markets. The findings from this forum have strongly influenced the NSW Government initiative on making Sydney a Global Talent Hub, with SBC playing a role as an advisory board member. Focus on Western Sydney SBC has placed key Western Sydney concerns at the heart of the public and political landscape. The Chamber’s Future of the Western Sydney Economic Forum, attended by more than 200 stakeholders, put the need for social and economic infrastructure firmly on the agenda, including the development of a Western Sydney Airport. As a result of the Chamber’s advocacy, the Federal Government and opposition have both publicly acknowledged the need for an airport.

“SBC has been a powerful advocate in promoting initiatives that will ensure the prosperity of Sydney.” Lend Lease

The Hon. Patricia Forsythe Executive Director, Sydney Business Chamber

David Borger Western Sydney Director, Sydney Business Chamber

“Our membership has allowed us to create a network with many other businesses across corporate Australia.”

Corporate Member in Focus Qantas was founded in the Queensland outback in 1920. Since then, the iconic company has grown to become Australia’s largest domestic and international airline. It is widely regarded as the world’s leading long distance airline and is one of the nation’s strongest brands. Peter Collins, Regional General Manager NSW, draws a comparison between the airline and Sydney Business Chamber (SBC). “Just like SBC, Qantas must ensure that its brand is well positioned on the world stage.” The challenge, says Collins, is for Qantas and SBC to not only maintain a global status – but to constantly make it better.

“It is for this reason that Qantas is a key partner with SBC. Our membership has allowed us to create a network with many other businesses across corporate Australia. “It has also allowed us to meet with key decision makers and help promote major issues facing the state and the Australian economy. It is through this partnership that we feel we’re able to make a genuine contribution and help shape the future of Sydney and NSW. “Our membership has allowed us to create a network with many other businesses across corporate Australia.”

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Corporate Member in Focus

Business Events Sydney Business Events Sydney (BES) promotes the city and NSW as destinations for business events. The organisation competes to secure events that attract the world’s best and brightest. In the past 10 years, the organisation has secured events that have generated almost $1.6 billion in economic revenue for the state. But there’s more at stake than financial outcomes, says Lyn LewisSmith, Chief Executive Officer, BES. “A strong business events program – comprising the many conferences, congresses, symposia and incentive programs – strengthens Sydney’s standing as a global city,” says the CEO. “They create opportunities to profile our expertise, to share knowledge, and create and strengthen international collaboration, trade and investment.” The organisation’s membership of Sydney Business Chamber, which includes a unique level of engagement through the Sydney First Group, is described as “invaluable”. “We are collaborative and believe in the power of networks,” says Lewis-Smith. “That’s why I believe the Sydney First group can play a great role in the success of the revitalised Darling Harbour precinct. “Together, we can secure international events that will bring global leaders to Sydney and NSW to meet with our people, to collaborate with our researchers, to trade with our businesses and more.”

“...the Sydney First group can play a great role in the success of the revitalised Darling Harbour precinct.”

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Australian Business Congress

Business insight

Workplace Advice Line

Fiona Corbett

Many of the world’s brightest minds gather for the Australian Business Congress. Now in its third year, the annual event was conceived by State Chambers of Commerce to remedy the unprecedented complexity facing local business men and women. Discussion is shaped by prominent thinkers, many of whom are household names. In August of 2013, the Congress was staged in Sydney and featured the likes of Jim Collins (best-selling author), Chad Hurley (co-founder of Youtube), and Rahaf Harfoush (digital strategist for Obama’s ‘Yes we can’ presidential campaign). From the inaugural Congress until now, NSW Business Chamber has managed and delivered the event through its commercial services division, Australian Business Consulting & Solutions.

“It really has highlighted how the (business) world is changing and the need to adapt. Jim Collins was amazing. I was so inspired I went straight to the bookshop and bought his book.” Woolcock Institute of Medical Research

The Workplace Advice Line provides members with direct phone access to workplace specialists who can resolve enquiries about industrial relations and employment issues. Fiona Corbett leads the team. “Businesses have different needs,” says Fiona. “For large organisations with HR teams, we often propose different viewpoints to complex situations. While a lot of small businesses often require educational support with their IR and HR issues.” “But all enquiries are fundamentally about helping the business to perform better.” Fiona says there’s real pride in the team. “It’s kind of nerdy, but I love working with a team who are slightly obsessive compulsive! They’ll do the research, trawl through legislation, and tailor the information to form the best advice.” Most frequent topics 1. Wage Rates

6. Parental Leave

2. Redundancy

7. Annual Leave

3. Termination of Employment

8. Disciplinary Procedures

4. Personal Leave

9. Contract of Employment

5. Long Service Leave

10. Notice of Termination

Member Profile Mark is a 25-year member of NSW Business Chamber. He subscribes to WorkplaceInfo, which keeps HR/IR professionals updated with news and information. The industrial engineering company specialises in stainless steel products, with clients stretching from central Queensland right down to Melbourne, and across the South Australian border. Mark’s personal story is remarkable, joining the business in 1980 as an apprenticeship metalworker, only to rise through the ranks to become General Manager, and eventually owner in 2005. “We probably don’t realise day-to-day just how many times we actually use the Chamber,” says Mark. “I can remember the big issues that we’ve had over the years. It hasn’t always been smooth sailing with staff. “We used the Workplace Advice Line and WorkplaceInfo through those times, very successfully and with the right outcomes.”

“I look forward to a long term relationship with the Chamber, because I’d never be in business without them.” Mark Thompson, Orange Precision Metalcraft

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Member Services

Connections that matter It’s leaner times for the economy. Small business owners are working harder to stay in front – whether paying employees, meeting overheads, servicing customers or complying with regulations. The list goes on. “It can feel like a hard and lonely slog,” says Roy De Visser, a small business owner in South Sydney. He’s not alone. But there is a community for the two million business owners in Australia. The Chamber movement is a network comprising Chambers of Commerce to support business, and represent their interests at every level of government. NSW Business Chamber is proud to be a part of that vital movement. The Chamber traces its origins back to 1825, and a time when Australia’s early manufacturers needed a firm voice in a British colony. That independent spirit has endured, with the Chamber playing a key role in shaping the chamber movement in Australia. In 188 years, NSW Business Chamber has come a long way. With over 550 staff, this large and multi-faceted organisation is dedicated to helping businesses – big and small – achieve their potential. Membership lies at the heart of the Chamber, connecting businesses to each other, and to a wealth of award-winning products and services. And there’s never been a better time to join. The Chamber has surpassed 14,000 members, which is an increase of over 150 per cent since January 2011. This growing membership adds weight to the Chamber’s advocacy, and presents economies of scale when delivering member services.

Milestones

Member benefits NSW Business Chamber can benefit from programs that are created and offered exclusively to them. In 2012, the Member Benefits Program was introduced to great acclaim, responding to feedback from members. The Chamber harnesses the collective bargaining influence of Chamber members, to deliver savings on a number of core business expense areas such as energy, sustainability, business insurance, and office supplies. And the Chamber foregoes financial return, returning best possible value to the member.

14,000 members NSW Business Chamber celebrates reaching 14,000 members.

Above and beyond Good people are essential to great member service. They form every facet of the Member Services division, whether answering the phones, visiting workplaces, servicing the regions, producing events or developing new solutions to help business. On the ground In the past year, NSW Business Chamber has continued a policy to grow its presence in urban and regional NSW. Four teams service the greater Sydney basin, while in regional NSW, the formation of new teams, and upsizing of others, has culminated in the comprehensive service of the state.

118 Local Chambers of Commerce in alliance with NSW Business Chamber, including Penrith Valley Chamber of Commerce.

The Chamber’s alliance with the Hunter Business Chamber, Illawarra Business Chamber, and Canberra Business Council, only serves to strengthen this coverage.

600 entrants to the 2013 Annual Business Awards, representing 13 regions of the state.

Business Awards The Annual State Awards Gala is widely regarded as the ‘jewel in the crown’ by members of NSW Business Chamber. In 2012, over 600 attendees filled the Hordern Pavilion, with Julia Morris (Master of Ceremonies) bringing the house down.

Networking at Night The ‘Networking at Night’ event series is a perennial favourite, often selling out weeks in advance. Members especially relish the ’60 Second Soapbox’.

Blue Bloods Go the Blues! The second NSW State of Origin Luncheon, in collaboration with the NRL, saw legends of the game regale over 400 fans of the game.

Corporate events Corporate members are treated to dedicated events. CEO-exclusive affairs have included a private viewing of the Archibald Exhibition at NSW Art Gallery, and a colourful evening with Cirque du Soleil.

29 NSW Business Chamber Annual Report 2013

Member Services

Connections that matter

Milestones

Standing shoulder-to-shoulder through tough times

“The task of resolving all types of business problems is deeply satisfying”

When floods swept through the Northern Rivers and Mid North Coast in 2012, business communities were impacted by the natural disaster. Shop doors were closed, while others lacked adequate insurance to recoup damages. To assist them get back on their feet quickly, NSW Business Chamber provided a total of over 40 flood grants, totalling $200,000, to flood affected businesses in the region. Liane Kay, owner of the Brushgrove Hotel, received a grant for $5,000. In her words: “It was just a great salvation to us for the Chamber to help us in that way.” Growing the grassroots The Chamber movement is growing from the grassroots up. NSW Business Chamber launched the Chamber Alliance Program in 2011 to engage with the 270-plus Local Chambers of Commerce and their members. Its success is remarkable, with 118 Local Chambers now on board, and many others engaged. As a result, NSW Business Chamber now supports over 8,000 Local Chamber members as an added benefit to their Local Chamber membership, at no additional cost to them. Importantly it also allows and encourages Local Chamber members to have their voices heard on the important issues affecting business today.

“Our Alliance Partnership is simply the best marketing tool we have on offer to our membership,” says Jill Woods, CEO of Penrith Valley Chamber of Commerce. “It represents integrity in a crowded, challenging marketplace. Best of all, the ability to be heard by decision makers at every level of government.” Coming together Events are a cornerstone of membership. People wish to connect through the age-old ritual of networking, source new relationships and opportunities, seek recognition for their achievements, and learn how to do things better. These ambitions drive constant evolution in the events program. A highlight for many, the State Annual Awards program has successfully introduced a new tier of regional awards, multiplying the pathways for businesses across NSW to progress as finalists to the State Gala in November. The Awards Alumni Program has also bolstered ongoing recognition for past winners, who go on to become mentors for members. And with the introduction of webinars, educational events are no longer hamstrung by time or distance. Participate online from a desk or phone – in real time – or view at a later date with notes in hand.

“NSW Business Chamber now supports over 8,000 Local Chamber of Commerce members at no additional cost to them.”

Stella Hanson lives on the Northern Beaches of Sydney. She has worked 12 years with NSW Business Chamber, and is the team leader for the Business Hotline (13 26 96). Stella and her team responded to 24,530 enquiries in the last year. “No two days are ever the same,” she says.

30 NSW Business Chamber Annual Report 2013

Milestones

Regional Chambers of Commerce

Affiliated strength NSW Business Chamber is affiliated with larger regional Chambers of Commerce spanning the Hunter, the Illawarra, and ACT.

150+

businesses enrolled in the Energy Hunter Program

1,200+

Hunter Business Chamber members

797+

Illawarra Business Chamber members

The Hunter Business Chamber (HBC) represents Australia’s most prosperous and diverse regional economy. Among a long list of achievements, HBC partnered with the City of Newcastle and Hunter TAFE to enrol more than 150 Hunter businesses in the Energy Hunter Program, as a result of $1.2 million in Federal Energy Efficiency Information Grant funding (pictured top right). With more than 1,200 members, HBC is a hive of activity. In the past year, 5,000 local business attended 60-plus events. Further south, The Illawarra Business Chamber (IBC) represents over 870 members across the Illawarra. IBC is renowned for popular events which enable members to network, share knowledge and develop their business. For many, the Origin Energy Illawarra Business Awards is a calendar highlight. This year, it was attended by NSW Treasurer Mike Baird, with 88 finalists and 885 attendees.

Above: ‘Business after hours’ is a popular networking event series for Illawarra Business Chamber. In this instance, the theme of ‘Food Philosophy’ tantalises the tastebuds.

Member Profile

Ben Casey’s business specialises in milling minerals for different industries, including agriculture, mining and manufacturing. He subscribes to WorkplaceOHS – an online resource which delivers news, tools and guidance on workplace health and safety, straight to your inbox. “It’s a tool you can use in identifying a risk,” says Ben. “I’ll forward it to my managers so that we can all read about incidents and the impact of legislation. It shapes the agenda of Monday morning’s safety meeting, where we look at how to consistently improve our work method.” “The email is short and succinct, so you can quickly scan it and expand on full articles that take your interest.”

Ben Casey, Central Milling, Cowra

In the past year, the ABDIU has made significant contributions to the development of defence industry policy, including a proposal for improvements in the handling of technological innovation adopted within the 2013 Defence White Paper.

33 NSW Business Chamber Annual Report 2013

Member Profile

Amanda Cox, VAADA Defence Industry Unit The Australian Business Defence Industry Unit (ABDIU) has a national membership that aims to develop a sustainable defence industry in Australia by helping members and business identify opportunities in the defence market. The ABDIU performs this role through advocacy, market information and assistance in the provision of relevant products and services, primarily for the defence industry, but also to the broader national security markets in Australia and overseas. In the past year, the ABDIU has made significant contributions to the development of defence industry policy, including a proposal for improvements in the handling of technological innovation adopted within the 2013 Defence White Paper. The ABDIU has also undertaken a detailed – and continuing – analysis of Defence Materiel Organisation (DMO) contracting trends. This valuable information has been shared with members to support their business development activities. Defence Reservists The NSW Business Chamber is a Supportive Employer with the Defence Reserves Support (DRS). The relationship extends beyond the normal Supportive Employer relationships in that the Chamber encourages other members and businesses to participate. The Regional Manager for the Northern Rivers, John Murray, and Chamber Board Director, Ian Penfold, are also both sitting on the DRS State Council. Murray and his fellow Regional Managers regularly invite members to participate on excursions to Darwin, Townsville, Solomon Islands and other locations where the Defence Reserves operate.

Amanda is a Graphic Designer and owner of VAADA (Visual Arts and Design Agency). After a career in Sydney, Amanda sought a ‘tree change’, moving back to Orange to start her own business. “VAADA grew quickly, so I had to step up from being a sole trader to becoming an employer,” recalls Amanda. Amanda subscribes to HR Advance,which provides customisable HR, IR and Safety documents. “I didn’t realise how much is out there to know about compliance. For me, HR is nerve wracking, so the online documents and templates make life easier.”

“There are a lot of hats to wear. The chamber wears a lot of them for me!”

Roy Wilkinson has worked 16 years for the hat-making business, Akubra. The fifthgeneration family business is based in Kempsey and has been a member of NSW Business Chamber for over 85 years. “Look, I know employers who have been paying incorrect rates, subsequently discovered that, and had to back pay employees for periods of 6 to 12 months,” says Roy. “They’re not mistakes you can afford to make. Through the Chamber, I’ve got the ease of mind to know that I’m paying my employees the correct rates.” Akubra also participated in the 2012 Trade Delegation to China, organised by the International Trade Unit of Australian Business Consulting & Solutions (a commercial services division of the Chamber).

“At the end of the day, we are big on relationships. Clearly, being a member for 85 years indicates how valuable Chamber membership is to us.”

35 NSW Business Chamber Annual Report 2013

Australian Business Solutions Group

Part of something bigger Every year, NSW Business Chamber helps thousands of business to grow. And it happens without the majority of customers even realising it was the Chamber at work. That’s because a comprehensive range of products and services are offered through its commercial services division, Australian Business Solutions Group (ABSG).

Australian Business Solutions Group consists of:

ABSG operates from 45 offices around Australia, offering commercial services through a number of brands.

• Australian Business Consulting & Solutions

The group embeds the same duty of care to all clients, from family-owned businesses in the local community, to some of Australia’s largest household names. It has led to award-winning products and services, many of which are staples of Chamber membership. Everything is designed to simplify, manage and grow business in tangible ways. Over the past 18 months, ABSG has witnessed significant growth in a difficult market. This can be attributed to the expertise and motivation of a multidisciplinary team. In the year ahead, the commercial services division will continue to invest heavily in its people, technology and brands. It is somehow reassuring to know that a large and modern commercial enterprise draws from 188 years of experience in helping business. Alignment with the Chamber shapes the focus onto delivering real benefits to business above all else. Any surplus is funnelled back into initiatives that support the business environment, and in the long run, build a better nation. The Chamber’s heritage is a living thing, guiding ABSG’s commitment to fostering healthier business communities, which ultimately create a better Australia.

• Australian Business Lawyers & Advisors • Australian Business Recruitment Solutions

• Australian Business Apprenticeships Centre • Australian Business Training Solutions

It is somehow reassuring to know that a large and modern commercial enterprise draws from 188 years of experience in helping business.

â&#x20AC;&#x153;We have seen their lives improve and outlook change from the learning and training... our net profit has skyrocketed by 20 per cent.â&#x20AC;? Milspec Manufacturing

37 NSW Business Chamber Annual Report 2013

Australian Business Apprenticeships Centre

Investing in youth Australian Business Apprenticeships Centre (ABAC) celebrates 15 years in helping build and sustain rewarding working relationships between employers and their apprentices or trainees. ABAC is a contracted provider of apprenticeship and traineeship services to industry on behalf of the Federal Government. With 29 offices across NSW, ABAC actively works with members and business communities across NSW to raise the profile of industry and help train the workforce of the future. Faced with an ageing population, this service has never been more relevant to the nation’s welfare. In celebrating 15 years of continuous operation, ABAC is distinguished as NSW’s longest running service provider. As further endorsement of ABAC’s good work.

Milestones

Mentoring Services ABAC’s Mentoring and Career Advisory programs have continued to grow, with Federal Government indicating that the future policy direction will include greater emphasis on mentoring new apprentices and trainees to help improve completion rates. Priority groups ABAC responds to the needs of indigenous, mature-aged workers, and those with disabilities. This year, the Centre supported 1,343 indigenous trainees and over 500 workers with disabilities. While changes to Federal Government policy impacted the engagement of mature-aged workers, around 2000 participants were still supported in training.

15th Birthday NSW’s longest running provider of apprenticeship and traineeship services on behalf of Federal Government.

Community It’s also about encouraging the skills community at large. That’s why ABAC partners with National Skills Week, sponsors the NSW Training Awards, and attends a myriad of careers information events and expos, educating students on career opportunities on behalf of business.

Member profile, Milspec Manufacturing For Milspec Manufacturing, a precision engineering company based in Albury, the challenge to find and keep skilled people became an urgent priority. Australian Business Apprenticeships Centre (ABAC) was engaged, and training was quickly identified as core to the solution. ABAC provided an assessment of the training requirements and expert advice on the most appropriate courses and training providers. What’s more, they handled all of the paperwork to ensure Milspec received the full range of government funding benefits available. Sixteen apprentices were successfully employed, and more than 60 staff were enrolled in on-the-job training programs. The bottom line? “Our net profit has skyrocketed by 20 per cent,” says Wendy Cooper, Commercial Director of Milspec.

1,343 Indigenous trainees and over 500 workers with disabilities were supported by ABAC in the past year.

â&#x20AC;&#x153;We have effectively doubled our business in the last few years.â&#x20AC;? Peter Duncan, Parilla Fresh

Danny Phu, Assistant Purchasing Manager, Parilla Fresh, Sydney

39 NSW Business Chamber Annual Report 2013

Australian Business Consulting & Solutions

Empowering business In a hyper-connected world, businesses are drowning in information – but starved of real knowledge. This increasing rate of change is a burden on business. How do you find the time and resources to innovate successfully, change your business model, implement new technologies, streamline operations and adopt industry best practice – while juggling business as usual? This is where Australian Business Consulting & Solutions enters the fray. Offering multi-disciplinary professional services, ABCS helps businesses rise to any challenge, by focusing on reducing complexity. While the team is behind award-winning online tools and resources, the consultancy is grounded in face-to-face customer service. These experts live and breathe business, for the sake of helping other businesses reach their potential.

Milestones

Members and clients can access solutions in Marketing, International Trade, Business Growth, Work Health & Safety, Human Resources and Industrial Relations. Award winning tools The team’s focus on delivering client based solutions has resulted in a number of accolades including: • Winner of ‘Best Small Business Project’ at the 2013 8th World Chambers Federation Congress held in Doha, Qatar for the development of Business Vitality Check, an online diagnostic tool that assesses a business’s operational health.

Winner ABCS accepts the ‘Best Small Business Project’ at the 2013 8th World Chambers Federation Congress held in Doha, Qatar.

• Winner of the ‘2012 WebAwards B2B Standards of Excellence’ for HR Advance – a complete HR documentation management system.

Member profile, Parilla Fresh Parilla Fresh grows, packages and distributes sprouts, bean shoots and crunchy combo health snacks from its processing facility in Sydney. The business struggled with an image problem – sprouts were considered old school ‘hippy’. General Manager, Peter Duncan, engaged with ABCS (as a provider of the Federal Government’s Enterprise Connect program). The relationship with Business Advisor, Terry O’Riordan, laid the foundations for a marketing strategy, product regeneration, and a fresh approach to branding. “He helped us access finance from the Government, and advise us on how to expand our product range.” To maintain high quality standards, the business has trained staff to exceed industry standards in food processing skills. And with a largely multicultural workforce of non-English speaking backgrounds – Vietnamese and Chinese – Peter has facilitated English literacy skills to great acclaim. “Their level of esteem has lifted so much. It’s a magic moment when they look me in the eye in the morning, say ‘hello’ and mean it.” Parilla Fresh is an ‘Employer of Choice’ finalist in NSW Business Chamber’s 2013 Annual Business Awards.

Winner of the ’2012 WebAwards B2B Standards of Excellence’ for HR Advance – a complete HR documentation management system.

Ken O’Keefe, Ultimate Suspension, Ingleburn

Member Profile Ken began his family business in 1975, customising suspension for all kinds of vehicles. Today, Ultimate Suspension exports to the world, with customers including NATO, the World Food Program, the ParisDakar international rally, and to war zones such as Afghanistan. The business draws on the International Trade Unit of the Chamber, as managed by its commercial services division, Australian Business Consulting & Solutions. “We need our certificate of origin, plus we have to check whether it’s legal for us to sell to that area,” Ken explains. “So we rely heavily on the information provided by the Chamber.” He beams with pride. “My son’s in the Australian Navy and has seen our vehicles in action!”

41 NSW Business Chamber Annual Report 2013

Australian Business Consulting & Solutions

Empowering business Harness the innovation

Going global

To assist business owners improve their skill base and business output, ABCS has launched these products and services:

In a tough economic environment, ABCS has continued to grow. In addition to the successful delivery of two major government initiatives that help business improve their domestic and global success, Enterprise Connect and TradeStart, ABCS has launched a new HR consulting capability to assist businesses improve staff performance, retention and metrics.

• HR HealthCheck – an online check of HR practices against the lifecycle of the business’s maturity, packed with recommendations and a prioritised action plan. • Website HealthCheck – a review of your online presence, complete with recommendations and tools needed to increase traffic to your website. • ExportCheck – Developed specifically for Australian exporters, ExportCheck provides exporters with an essential review of export capability and vital intelligence designed to assist export in countries where Australia has a Free Trade Agreement. • HR Advance sophisticated enhancements including a document storage capability, online tutorials and a document wizard. • HR Webinars – with registrations exceeding 800 people, HR webinars help members receive important support for managing the performance of their staff. • APEC card – working with the Department of Immigration and Citizenship, ABCS now offers a pathway to gaining an APEC Business Travel Card, which aims at streamlining the entry to other economies within the Asia-Pacific region

The International Trade Unit expanded to the Middle East boosting existing capabilities in China, India and Latin America. The Australian Chamber of Commerce and Industry contracted ABCS to produce Australiantradelinks.com.au, an online portal that assists business to connect with international import and export trade opportunities, including a business matching tool, export diagnostic, and other tools and resources. The International Trade Unit of ABCS also represented NSW Business Chamber by participating in the IndonesiaAustralia Business Partnership Group. A key outcome of the group involved delivering a substantial paper to the Heads of Government, putting forward the recommendations on how Australian and Indonesian businesses can achieve the best outcomes from the IndonesiaAustralia Comprehensive Economic Partnership Agreement (IA-CEPA). “It was a great privilege,” recalls Ian Bennett, the Chamber’s representative at negotiations in Australia and Indonesia.

“In the year to come, we will continue to help redefine the way Australians ‘do business’” Paula Martin, General Manager, ABCS

Milestones 265 business improvement measures delivered by Enterprise Connect to manufacturers across NSW and Qld.

45,449 legally compliant documents were created from HR Advance.

74,000+ export documents were personally certified and processed by the export documentation team.

3,634 subscribers use the news and information services of WorkplaceInfo.

42 NSW Business Chamber Annual Report 2013

Milestones

Australian Business Lawyers & Advisors

Experts make things simple

Finalist of the ‘Employment Law Firm of the Year’ at the Australian Legal Business Awards.

< 24 hours Alerts distributed to the client community within a day of important legal developments.

On a daily basis, business owners are faced by increasingly complex issues that impact their bottom line, and in many situations – their very livelihoods. Australian Business Lawyers & Advisors (ABLA) shoulders that burden, whether creating cost-effective outcomes for individual clients, or spearheading the movement for legislative reform on behalf of all business. As experts in workplace relations, commercial law and property law, the team abides by a clear motto: Experts make things simple. “Making our clients’ lives easier is at the heart of our service ethos,” says Nigel Ward, CEO and Director of ABLA. Working closely with clients, the team not only explores realistic solutions, but guides clients on managing potential risks. Good communication and common sense also eliminates any kind of over-servicing – a common pitfall of non-specialist law firms. As a value-added service, ABLA regularly publishes two newsletters, “Workplace in Review” and “Business Law in Review”, highlighting issues stemming from changes in legislation and issues of interest to their clients. ABLA also produces the video series “From the Couch”, which further explains and simplifies changes and developments in the law. ABLA distributes alerts to

its client community within 24 hours of significant legal developments. This has been of particular importance throughout 2013 given the implications of the 2013 Annual Wage Decision and amendments to the Fair Work Act. The past year has seen ABLA grow its reputation as advocates at the forefront of business interests, working with NSW Business Chamber and Australian Business Industrial on major industry cases throughout the 2012 Modern Award Review. The law firm has also broken new ground with its inclusion on a number of legal services panels at local, state and federal levels. These wins were instrumental in ABLA being nominated as a finalist for “Employment Law Firm of the Year” at the prestigious Australian Legal Business Awards. “More than ever, employers need an advocate to protect their interests, and ensure they get a fair go,” says Ward. The 2014 Review of Modern Awards is looming and likely to present even greater implications to employers than the 2012 Review. Specialist jurisdictions also need attention to protect employer interests. Bullying and Harassment law changes, which come into effect on 1 January 2014, will allow employees to a make a complaint of bullying to the Fair Work Commission.

Luis Izzo is Special Counsel with ABLA. He visited many of the cafés and restaurants across the state, as part of NSW Business Chamber’s investigation of current penalty rates paid by employers. A fair go for all. Overturning penalty rates for restaurants and catering. It’s a harsh reality facing many small businesses. Cafés and restaurants are closing doors on weekends because employers simply can’t afford to pay staff weekend penalty rates. But as flexibility continues to shape modern living, many Australians prefer to work on weekends. So why should law prevent a café owner and one of their staff from reaching a genuine agreement over working arrangements? On 8 March 2012, Australian Business Industrial (the Chamber’s registered industrial affiliate represents the interests of members in the federal industrial relations jurisdiction) and Restaurant and Catering Victoria filed an Application with Fair Work Australia to vary the Restaurant Industry Award 2010. A core recommendation involved replacing the current penalty rates system with a penalty rate that only operates if an employee is required to work on more than five consecutive days. ABLA built on this foundation, embarking on a nationwide tour of restaurant and catering owners. Over 30 operaters were visited, with their concerns recorded as witness statements. Additionally, PricewaterhouseCoopers and an academic expert from the University of Canberra were engaged to provide a detailed report on the industry, and the impact of proposed changes on the economy. The matter was heard over two weeks in June 2013 by Deputy President Gooley, and ABLA is waiting on the outcome.

44 NSW Business Chamber Annual Report 2013

Milestones

700+ on-hire placements each week.

Australian Business Recruitment Solutions

People power Tapping into skilled labour is a nation-wide problem facing Australian business. Loss of capability, stunted growth, and nagging operational costs are daily headaches for business owners and HR managers. To bridge this gap, Australian Business Recruitment Solutions (ABRS) was established to help these organisations find the best people, with a cost-effective outcome.

Talent Options has the capability to advise, guide and support businesses ranging from Blue Chip CBD clients to small businesses.

ABRS delivers dedicated expertise through its specialist divisions. Choose from permanent, temporary and contract recruitment solutions.

Industrial and Aged Care roles

Social responsibility

1,200+ nursing shifts filled each week.

ABRS is committed to addressing social issues in the broader community. In the last year, Extrastaff Apprenticeships won a major grant to fund places in a Pre-Apprenticeship Training Program. This program involves selecting youth from the high-youth unemployment area of Western Sydney and running them through a six week training program. The successful participants are then placed as apprentices with subcontractors, working on some of Sydney’s largest construction projects. One People HR also demonstrates that staffing solutions can be achieved while simultaneously addressing key social issues of youth and indigenous unemployment.

1,500+

TalentOptions

customers Australia-wide.

Executive, professional and business support roles. Industry experienced consultants focus on specialised industry sectors including health, mining, engineering and commercial, coupled with a national branch network spanning Australia.

With extensive experience, the team believes in long standing relationships where trust and knowing the business leads to improved outcomes. Extrastaff Extrastaff partners with organisations that share a social vision for service quality and professionalism. With a focus on the local community, Extrastaff empathises with client’s needs to operate around the clock by offering a 24/7 service. Staffing solutions can include temporary, casual, short and long term placements. Extrastaff customers enjoy some of Australia’s highest retention rates, with an average of over 700 on-hire placements a week. Belmore Nurses Bureau Nursing roles A leading nursing agency with extensive industry experience, Belmore works with some of Australia’s peak public and private health care institutions and facilities, sourcing a highly-trained workforce from a database of nearly 5,000 nurses and care staff. Few competing agencies – if any – can match Belmore’s fill rate of 98 per cent. By offering a number of tailored packages to suit client needs, from ad hoc requirements to a full platinum service. The agency regularly completes upwards of 1,200 shifts per week. This year, Belmore expanded from its base in Blackburn, Victoria, into NSW and Qld, with plans for WA and SA.

45 NSW Business Chamber Annual Report 2013

Extrastaff Apprenticeships Apprentices and trainees Put simply, the no fuss way of employing apprentices and trainees. Extrastaff Apprenticeships shoulders the responsibility, taking on the apprentices and trainees as permanent employees – and then placing them with ‘host employers’. A business taking on an apprentice or trainee benefits as administrative headaches such as payroll, enrolment in a Registered Training Organisation, and Workers Compensation and Work Health and Safety are undertaken by Extrastaff Apprenticeships. The on-hire model works for everyone, with the addition of mentoring and career guidance boosting completion rates far beyond national averages for directly employed apprentices. One People HR Aboriginal and Torres Strait Islander employment One People HR works closely with some of Australia’s most recognisable organisations and the Indigenous community to drive change and build a diverse workforce. The agency focuses on employee integration and retention. To this end, One People HR also provides cultural awareness training, mentoring and employee assistance services, in addition to a tried-and-tested recruitment model.

“One People HR helped me with everything. They supported me in the interview, and afterwards, until I was performing the job. “I don’t want to leave Sydney Water. Everyone is encouraging me to do better.” Rania Hamilton, placed into Sydney Water by One People HR

Student Profile Kate Nicholas is studying Mechanical Engineering at UTS. She is currently completing a seven month internship with Central Milling in Cowra, Central West NSW, before returning to complete her studies.

47 NSW Business Chamber Annual Report 2013

Australian Business Training Solutions

Learning on your terms Running a day-to-day business is hard enough. Finding the time to train yourself – and staff – can be another job, even though it grows the business in the long term. Australian Business Training Solutions (ABTS) responds in two ways: flexible modes of learning that put people first, accommodating the realities of life; and tailored courses that target clear business outcomes. Taught by people who ‘get’ business, these courses break down complex information and legislation into what the business needs to know, enhanced with practical tips and direct implementations.

You’re in charge Learn online and at your own pace, or pick a course from the public calendar. And from as little as 10 participants, in-house delivery offers even better value. As a Registered Training Organisation, ABTS adheres to stringent levels of content development and delivery, which is reflected in customised professional development and accredited training programs. ABTS continues to innovate through industry partnerships. New programs include a customised Safety Leadership blended program designed for the Aged and Health Care industries, and an innovative Executive Leadership Development program available for the first time in Australia in partnership with The Levinson Institute, an adjunct of Harvard University, Boston USA. ABTS has a long history of supporting the Chamber community, and specifically recognises members of the NSW Business Chamber and the Chamber of Commerce & Industry Qld.

“ABTS has assisted many employees from Ergon Energy with their Workplace Health & Safety Representatives training. They are always willing to assist and deliver a solution that suits our organisation’s needs.” Sharlene Smith, Ergon Energy

Milestones

3,369 total individuals trained in FY12/13

48 NSW Business Chamber Annual Report 2013

Past Presidents in memorium

Brian Smith 1990-1992

Anthony (Tony) Bates 1998-1999

NSW Business Chamber Councillors as at 30 June 2013

Mr Terry Wetherall (President)

Mr Dirk Hertford

Mr Tony Dormer (Deputy President)

Mr Roger Hood

Mr Richard Anicich

Ms Karen Howard

Mr Ken Baker

Mr Stephen Joyce

Ms Sue Baker-Finch

Ms Donna Kildea

Mr Tom Bowers

Dr Robert Lang

Mr Russell Balding, AO

Ms Lyn Lewis-Smith

Ms Ellie Brown

Mr Brett Manwaring

Ms Leigh Bryant

Mr Kevin McCaffrey

Professor Trevor Cairney, OAM

Mr Greg McNamara

Mr Michael Capezio

Mr Graham Morgan

Mr Tim Coates

Ms Megan Motto

Ms Janine Cullen, OAM

Ms Anne Parnham

Mr Les Dion

Mr Ian Penfold

Ms Judith Field

Mr Ian Pedersen

Ms Kate Gunn

Mr David Segrott

Mr Paul Goonan

Ms Nola Watson

Ms Samantha Hain

Mr Kerry Wilson

Mr Brand Hoff, AM

Mr David Willcocks

Mr Simon Harrop

Honorary Life Governors as at 30 June 2013

Mr Warren D Adcock OBE

February 1986

Mr John T Cameron

November 1999

Mr Neville Sawyer AM

November 2005

Financial report

NSW Business Chamber Limited Directors’ report 30 June 2013

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter

member/client engagement and product/service delivery

as the ‘consolidated entity’) consisting of NSW Business

and innovation;

Chamber Limited (referred to hereafter as the ‘company’ or ‘parent entity’) and the entities it controlled for the year ended 30 June 2013.

Directors The following persons were Directors of NSW Business Chamber Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: T C Wetherall A F Dormer R L Hood T H Cairney K A Howard I B Penfold E T Brown B A Manwaring M L Motto R S Balding (appointed on 23 May 2013) A D Seaton (resigned on 25 March 2013)

• Focusing on research and business engagement to develop thought leadership reports that address issues impacting on business; • Profitable growth through a concentration on core activities and competencies and through targeted acquisitions; • Considered, effective and relevant governance to maximise the value provided to members, clients and the business community; • Maximising returns from a diversified investment portfolio to support its activities and to fund strategic projects as well as capability development to anticipate and proactively deliver on members/clients’ needs; and • Championing a collaborative chamber network to exert impactful influence on government at all levels, local, state and federal, to benefit the business and wider community.

Principal activities During the financial year, the principal continuing activities of the consolidated entity continued to be an employer association, to promote, encourage, maintain and assist manufacturing industry, trade and commerce in Australia through the provision of business services, support and advocacy.

Strategy and objectives

Performance measures

The consolidated entity’s core mission is to create

The consolidated entity’s performance is constantly

a better Australia by maximising the potential

measured against the following key performance indicators:

of Australian businesses. The vision encompasses being NSW’s ‘go-to’ peak business organisation for SME, mid-sized and large businesses; the

• Financial performance to budget, forecast and benchmark • Member and client satisfaction

recognised strong and respected voice for business in NSW;

• Policy and advocacy outcomes

the pre-eminent Thought Leader and advocate for business;

• Media exposure

and, to invigorate business through the delivery

• Various operational metrics appropriate to specific

of a wide range of relevant, quality and innovative advice and solutions. The consolidated entity’s strategy to deliver on the vision includes: • Attracting, developing and retaining the best and the brightest talent in the market;

• Investing in enabling technology to support stability,

business activities

Other matters On 1 July 2012 the consolidated entity became the sole member of Australian Business Foundation Limited (‘ABF’). From 1 July 2012 ABF has been reported as a subsidiary of the consolidated entity.

NSW Business Chamber Limited Directors’ report 30 June 2013

In July 2012 the consolidated entity entered into arrangements with Illawarra Business Chamber Limited (‘IBC’) and Hunter Business Chamber Limited (‘HBC’) to hold the

Name: Anthony F Dormer

Title: Deputy President - Non-executive

Qualifications: CA, FCTA

majority membership rights of these Chambers.

Experience and expertise: Tony is the Managing Director of

Accordingly, IBC and HBC have been reported as

a multi-discipline business advisory firm that he established

subsidiaries of the consolidated entity from 1 July 2012

over 30 years ago. Kreston Dormers has developed over that

and 13 July 2012 respectively.

period to a point where there are now divisions in business

On 16 December 2012 the consolidated entity acquired the remaining 50% interest in Australian Business Training Solutions (‘ABTS’) from its joint venture partner, Queensland Chamber of Commerce and Industry Limited. ABTS is a registered training organisation and delivers a wide range of business and safety training in Brisbane, Sydney and major regional centres in Queensland and New South Wales.

advisory and development, taxation and compliance, IT, law and financial planning. Tony’s personal specialist skills are around taxation services, mergers and acquisitions as well as business development issues generally for small and medium sized entrepreneurs. He is the current Chairman of Kreston Australia and New Zealand. He has been a Board Member and Councillor with the NSW Business Chamber since 2007. He was former Chairman of one of the largest seminar

On 15 February 2013, the consolidated entity acquired the

companies in Australia.

business and certain business assets of Belmore Nurses

Special responsibilities: Chair, Audit and

Bureau (‘BNB’), a specialist nursing staff recruitment agency. BNB services over 650 healthcare providers with nearly 5,000 active nurses registered on its database and operates across a range of healthcare facilities throughout Melbourne, regional Victoria, regional New South Wales, Queensland and Tasmania.

Compliance Committee Member, Investment Committee Name: Roger L Hood

Title: Non-executive director

Experience and expertise: Roger was President from February 2010 to February 2012 and was previously President

Information on Directors

of Australian Business Industrial (‘ABI’) for nearly eight years.

Name: Terence C Wetherall

He was again elected President of ABI on 15 April 2013.

Qualifications: Graduate Diploma in Urban Planning,

or Chamber of Manufactures of NSW as it was then, in 1962

Title: President - Non-executive

Associate Diploma in Property Valuation, Graduate Australian Institute of Company Directors, Justice of the Peace Experience and expertise: Terry was elected President in February 2012, was Deputy President for two years prior to that and has been a councillor of NSW Business Chamber since 2001. He has over 25 years’ experience in providing a range of specialist town planning and property valuation services. Terry joined JBA Planning as a Partner in 2007, following the merger of JBA Planning with Terry’s firm TCW Consulting of Wollongong. He has held numerous senior positions in the Illawarra, including President of the Wollongong Chamber of Commerce and President of the Illawarra Business Chamber. He is a member of various professional associations, including the Australian Property Institute (‘API’) and Planning Institute of Australia (‘PIA’), Terry is a respected opinion leader within the property industry, particularly for his understanding of regional issues. He is also a director of Australian Chamber of Commerce and Industry and Australian Chamber Alliance. Special responsibilities: Ex officio member of all Committees

Roger began his association with NSW Business Chamber, as an Industrial Officer advising members on IR and other employment matters. In 1969 he was appointed Industrial Officer of Gordon Edgell Pty Ltd, where he worked for two years prior to returning to the Chamber in 1971 as a Senior Industrial Advocate representing members in award and industrial dispute matters before Federal and State Industrial tribunals. In 1981 joined Unilever, before retiring from Unilever Australasia at the end of 2003. Roger held numerous senior management positions within Unilever including HR director of the Food business and Home & Personal Care business, and head of Transformation and Communications. In 2004, Roger began a consulting and training business concentrating in the area of the planning, organisation and building of internal change management capability using a well-known change model and tools. He trained and advised large numbers of managers in Australasia, China, India, Thailand and the UK and successfully introduced the model into OneSteel in Australia. From time to time, he advises and represents small business on industrial relations and WHS matters. Special responsibilities: Member, Human Resources and Succession Committee

NSW Business Chamber Limited Directors’ report 30 June 2013

Name: Professor Trevor H Cairney OAM Title: Non-executive director

Qualifications: BA, M. Litt, PhD, GAICD

Hunter Business Chamber (2002-2009). She served as the first (and to date only) female President of the Hunter Business

Experience and expertise: Trevor is Master and Chief

Chamber in that organisation’s 120 year history. Karen was

Executive Officer of New College at the University of NSW

appointed to the board of Hunter Development Corporation

(‘UNSW’), where he is responsible for all operational matters,

in November 2009, elected to the board of NSW Business

pastoral care, stakeholder management and development. In

Chamber in February 2010, and appointed to the board of

recent years he has led the expansion of the College through

Hunter Medicare Local (formerly GP Access) in August 2009,

the creation of the New College Village that is home to 315

where she currently serves as Chair.

postgraduate students from over 50 nations. As an academic,

Special responsibilities: Member, Audit and

Trevor has been a researcher and writer on education,

Compliance Committee

training and regional development. His current role at UNSW

Member, Human Resources and Succession Committee

and his previous leadership roles as Pro Vice-chancellor (Research & Development), Dean of Education, and Director of the Centre for Regional Research and Innovation at University of Western Sydney (‘UWS’) have also led him to active involvement in the business community. He has contributed to business and industry in many ways including directorships and chairmanships of various technologybased companies and industry bodies, the judging of industry awards and as an advocate for the economic and social development of Greater Western Sydney. He was first elected as a director of the State Chamber of Commerce (NSW) in 1997 and was President from 2001 to 2009. He was instrumental in leading the former State Chamber of Commerce (NSW) to merge with Australian Business Ltd (‘ABL’) in 2007. He has been a director of the NSW Business Chamber since 2007 and has served the organisation in varied ways including as a member of the Investment Committee, the Audit and Compliance Committee and as a director of the Australian Business Foundation. Special responsibilities: Chair, Human Resources and Succession Committee Member, Investment Committee

Name: Ian B Penfold

Title: Non-executive director Qualifications: FAICD

Experience and expertise: Ian was appointed to the Board of Australian Chamber of Commerce and Industry in 2007. He was the past President and has been a councillor of NSW Business Chamber since 1997. An experienced Chairman and Chief Executive, Ian’s particular skills and experience were acquired as the head of major corporations with licenses for well-known international retail brands. Ian is a former Chairman and Managing Director of Speedo Australia, and Chairman and President of Pentland Australia, which in addition to Speedo, owned the license for other international brands including Lacoste and Ellesse. He is also a former Managing Director of Cork International, a leading consumer products business with international brands and of Charles Parsons & Company Pty Ltd, a major subsidiary of the Charles Parsons Group - a multi-faceted supplier and converter of textile products in Australia. Ian is also Defence Reserves Support Council Sydney Metropolitan Regional Chairman, director of Australian Business Lawyers & Advisors, and Committee Member, Corrective Industries

Name: Karen A Howard

Consultative Committee.

Qualifications: FAICD

Member, Audit and Compliance Committee

with some of the region’s largest public and private

Name: Eleanor T Brown

Title: Non-executive director Experience and expertise: After a 16 year career working organisations Karen established the NineWays Business Centre on 8 March 1999 and transitioned the business to sale on 1 July 2013. She maintains ownership of Newcastle Business Solutions, a boutique consultancy business. Karen began her board career upon appointment to Nova Credit Union (2001-2004). Other past directorships include Westpac Rescue Helicopter Service (2003-2009), NSW Small

Business Development Corporation (2004-2007) and the

Special responsibilities: Member, Investment Committee

Title: Non-executive director

Qualifications: BBus: Marketing, Cert IV TAA, Cert IV Beauty Therapy, GAICD Experience and expertise: Ellie was until recently the

owner-operator of a well-established multi-site/multidiscipline small business in regional NSW in the retail, event management, health and wellbeing, hospitality and

NSW Business Chamber Limited Directors’ report 30 June 2013

industrial supply sectors. Joining the Chamber movement

of the company since 2011. She has previously held roles

over 15 years ago, Ellie was the President of the Orange

on the Sustainability Task Force, Sydney North Regional

Business Chamber for five years, the founding President of

Council and Sydney South Regional Council. Megan has

the Central West Business Chamber and joined the NSW

extensive board experience and is currently a director of

Business Chamber as a councillor in 2005. Ellie was named

the Australian Construction Industry Forum, member of the

Orange Electorate Woman of the Year in 2011, for her work

Australia Sustainable Built Environment Council, councillor

within the business community and her involvement with the

of the Australian Chamber of Commerce and Industry and

Business Chamber. Recognised for combining her tertiary

sits on the NSW State Advisory Council for the Committee

business qualifications with real-life, hands-on experience

for Economic Development of Australia (CEDA). She holds

and examples, Ellie is contracted by TAFE Western Institute

positions on the Department of Infrastructure and Transport’s

to develop and deliver small business programs and facilitate

National Urban Policy Forum, the Department of Finance

management workshops. She regularly delivers seminars

and Deregulation’s Procurement Consultation Committee,

to regional areas to assist businesses and communities

and Roads Australia’s Steering Committee of the Transport

to grow and embrace change and innovation in the retail

Funding and Pricing Reform Network. Megan is a skilled

environment. Ellie is currently Chair of Racing Orange,

public speaker and facilitator, and regularly participates

Chair of CCTV Audit Committee, a member of the Police

in high profile events such as the annual international

Community Safety Precinct and a former member of the

FIDIC Conference and the NSW Infrastructure Summit.

Board of the Business Enterprise Centre Central West.

She frequently features on the speakers program at events

Ellie maintains ownership of Ellie Brown Business Solutions,

convened by the Committee for the Economic Development

a business consulting company.

of Australia and the Millennium Forum. Since 2005 she has

Special responsibilities: Member, Audit and

been the Chief Executive Officer of Consult Australia and

Compliance Committee

spearheads Consult Australia’s extensive policy and lobbying

Member, Human Resources and Succession Committee

activities and has achieved enormous success on behalf of its

Name: Brett A Manwaring

Title: Non-executive director

Qualifications: Bachelor of Economics (Accounting)

Experience and expertise: Brett joined NSW Business Chamber as a councillor in 2009 before being elected to the Board in 2012. Brett is a director of the Illawarra Business

members on issues such as sustainability, workplace diversity and infrastructure planning. Special responsibilities: Member, Investment Committee Name: Russell S Balding, AO Title: Non-Executive director

Qualifications: BBus B.Bus, Dip.Tech (Com), FCPA, MAICD

Chamber and a director of an Australasian advisory firm

Experience and expertise: Russell became a councillor

PPB Advisory. Prior to joining PPB Advisory in 2008, Brett was

of NSW Business Chamber in 2013. He is currently Deputy

the Chief Operating Officer and Chief Financial Officer of

Chairman, Board of Destination NSW, Member of the Board

a major Australian based textiles manufacturing, wholesale

of Racing NSW and non-executive director of Cabcharge

and distribution group. In addition, Brett has in excess of ten

Australia Limited. He recently chaired the Visitor Economy

years banking and finance experience, including roles with

Taskforce, established by the NSW Government to develop

GE Capital, St George Bank and the Commonwealth Bank

a tourism and events strategy to double overnight visitor

of Australia.

expenditure to NSW by 2020. Previously he also served

Special responsibilities: Chair, Investment Committee

on the Board of Tourism NSW as well as the Transport and

Member, Audit and Compliance Committee

Tourism (‘TTF’) Advisory Board. He was CEO of Sydney

Name: Megan L Motto

Title: Non-executive director

Qualifications: BBus BA and BEd Teaching, Masters in Communication Management, GAICD, JP Experience and expertise: Megan has been a councillor

Airport Corporation Limited (2006-2011) and Managing Director of the Australian Broadcasting Corporation (ABC) (2002-2006) after being the Director of Funding, Finance and Support Services. Before joining the ABC Russell was the Director of Finance of the NSW Roads and Traffic Authority. He is the past State President of the CPA Australia.

NSW Business Chamber Limited Directors’ report 30 June 2013

Special responsibilities: None

Meetings of Directors The number of meetings of the company’s Board of Directors (‘the Board’) and of each board committee held during the year ended 30 June 2013, and the number of meetings attended by each director were:

Terence C Wetherall Anthony F Dormer Roger L Hood Trevor H Cairney Karen A Howard Ian B Penfold Eleanor T Brown Brett A Manwaring Megan L Motto Russell S Balding Andrew D Seaton

Full Board Attended Held 7 7 7 7 7 7 6 7 7 7 6 7 7 7 6 7 7 7 1 1 5 5

Investment Attended Held 5 * 5 5 4 5 1 * 4 5 4 5 5 5 1 *

Terence C Wetherall Anthony F Dormer Roger L Hood Trevor H Cairney Karen A Howard Ian B Penfold Eleanor T Brown Brett A Manwaring Megan L Motto Andrew D Seaton

Human Resources and Succession Attended Held 3 * 1 * 3 3 3 3 3 3 3 3

Council Attended Held 5 5 4 5 5 5 2 5 4 5 5 5 4 5 4 5 3 5 4 4

Audit and Compliance Committee Attended Held 3 * 3 3 3 * 3 3 3 3 3 3 1 3 3 3

Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee. * Attended the meeting, but not a member of the relevant committee The President is an ex officio member of all Committees. The Chief Executive Officer is an ex officio member of all Committees except the Audit and Compliance Committee.

NSW Business Chamber Limited Directors’ report 30 June 2013

Contributions on winding up In the event of the company being wound up, ordinary members are required to contribute a maximum of $10 each. The total amount that members of the company are liable to contribute if the company is wound up is $56,730, based on 5,673 current ordinary members. The Constitution does not permit the return of capital or the distribution of surplus by way of dividend to members.

Rounding of amounts The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page. This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the Directors

T C Wetherall

A F Dormer

Director Director 19 September 2013

NSW Business Chamber Limited Directorsâ&#x20AC;&#x2122; report 30 June 2013

NSW Business Chamber Limited Directors’ report 30 June 2013

This statement outlines the main Corporate Governance practices of NSW Business Chamber Limited (the ‘company’) and its consolidated entities, which were in place throughout

Directors provide feedback to the President. Composition of the Board

the financial year, unless otherwise stated. These practices

In accordance with the constitution, the Board shall consist of

are dealt with under the following major headings: Board of

not less than eight and not more than ten persons.

Directors and its committees, Risk management and internal control framework, Ethical standards and Environment.

Currently there are ten Directors on the Board all of whom, including the President, are independent non-executive

Board of Directors and its committees

Directors.

Role of the Board

Details of the members of the Board, their experience,

The Board of Directors (the ‘Board’) acknowledges its

expertise and qualifications are set out in the Directors’

primary role is the protection of total members’ equity and

report under the heading ‘Information on Directors’.

the creation of long term membership value. To fulfil this role, the Board has overall responsibility for the corporate governance of the company including strategic direction, the establishment of objectives for management and monitoring

The following matters are relevant when considering the composition of the Board: • the NSW Business Chamber Council elects the President,

the achievement of those objectives, the review of Chief

deputy President and up to seven Directors every two

Executive Officer and senior management performance,

years;

establishing a framework for the management of major business risk and ensuring that policies and procedures are in place to satisfy the company’s legal and ethical responsibilities. Board processes

• the company’s constitution prescribes that all Directors shall be elected councillors and retire biennially, except for the past President who continues as a board member for a further two years; and • the Board should contain an appropriate blend of skills,

The powers of the Board are determined by the company’s

attributes and experience having regard to its needs at any

constitution and the Corporations Act 2001.

given time.

The Directors meet as a Board on a regular basis throughout

Board committees

the year. The Directors also participated in additional

Details, including function and membership of the Board

corporate governance and strategy meetings. The number

Committees are set out below. The number of meetings of

of meetings of the Board and of each Board committee

each Board committee held during the year ended 30 June

held during the year ended 30 June 2013, and the number

2013, and the number of meetings attended by each director

of meetings attended by each director is disclosed in the

is disclosed in the Directors’ report under the heading

Directors’ report under the heading ‘Meetings of Directors’.

‘Meetings of Directors’.

An Audit and Compliance Committee, an Investment

Audit and Compliance Committee

Committee and a Human Resources and Succession

The committee is responsible for monitoring the

Committee are in place. These committees operate under

management of operational, financial and business risks in

the Charters approved by the Board. The Board has also

the company.

established a special purpose Governance and Nomination Committee which meets as required.

It ensures the reliability of management and financial reports and compliance with the relevant legislation and regulations.

The Chief Executive Officer, in consultation with the

It is also responsible for reviewing the efficiency and

President, prepares the agenda for each Board meeting and

effectiveness of the external audit and internal controls.

papers are circulated in advance of each meeting.

All members of the committee are independent non-

The Board undertakes a review of its own performance and

executive Directors. Management, including the Chief

processes on a regular basis. Periodically, non-executive

Executive Officer, director finance and operations, and the relevant PricewaterhouseCoopers (‘PwC’) partner, attend

NSW Business Chamber Limited Directors’ report 30 June 2013

by invitation.

maximum of ten years.

The responsibilities of the committee include:

The Audit and Compliance Committee currently comprise of

• ensuring the quality and accuracy of the financial report and other externally-distributed financial information;

A F Dormer (Chairman)

• reviewing significant accounting issues and judgments;

E T Brown

• ensuring the maintenance of an appropriate internal

K A Howard

identified, ensuring prompt remedial action is taken by

B A Manwaring

management;

I B Penfold

control framework and where any deficiencies are

• reviewing accounting policies to ensure compliance with all relevant Australian Accounting Standards and generally accepted accounting principles;

The external auditor meets separately on a yearly basis with the committee, without management present, to ensure full and frank discussion of audit issues. The external auditor

• reviewing the annual external audit work plans;

is requested to attend the annual general meeting and be

• reviewing the performance of the external auditor and

available to answer member questions about the conduct of

recommending appointment as appropriate; • considering whether the non-audit services provided by the external audit firm are consistent with maintaining the external auditor’s independence; • ensuring any matters outstanding with the external auditor or regulatory authorities are appropriately addressed; • reviewing the workplace health and safety procedures of the company; • reviewing the risk management procedures of the company; and • reviewing its performance as an Audit and Compliance Committee.

the audit and the preparation and content of the audit report. The committee chairman reports to the Board subsequent to each committee meeting. Investment Committee The committee was established by the Board and is responsible for complying with the Investment Committee Charter. The committee is responsible for the management of the company’s substantial investment portfolio to ensure strategic plan outcomes by maximising the return on investment and adherence to the Investment Policy.

The Board has adopted a policy addressing the issue of audit

The Investment Committee currently comprise of the

independence and the undertaking of non-audit consultancy

following independent Directors:

work by the company’s external auditors, PwC, to ensure

B A Manwaring (Chairman)

the company and its management and Directors. The policy

T H Cairney

identifies services which are considered to be in conflict with

A F Dormer

provided by the external audit firm. The external auditor is

M L Motto

required to make an annual declaration of independence to

I B Penfold

that at all times the external audit firm is independent of

the role of the external auditor and as such should not be

the Board and submit a written statement to the committee outlining the relationships with the company. The external audit partner is required to rotate after a

the following independent Directors:

Human Resources and Succession Committee: The committee was established by the Board and is responsible for complying with the Human Resources and

NSW Business Chamber Limited Directors’ report 30 June 2013

Succession Committee Charter. The committee is responsible for the development and monitoring of the company’s employment and remuneration policies. The Human Resources and Succession Committee currently comprise of the following independent Directors:

information and, subject to prior consultation with the President, is entitled to seek independent professional advice in relation to matters pertaining to the performance of their role, at the company’s cost. Risk management and internal control framework Financial risk management The Board acknowledges that it is responsible for the

T H Cairney (Chairman)

overall internal control and risk management framework

E T Brown

of the company. To assist in discharging this responsibility,

R L Hood

K A Howard

the Board has put in place a control framework that can be described as follows: Financial reporting - a comprehensive budget is prepared

Non-executive Directors’ remuneration

annually by management and approved by the Board.

Non-executive remunerations are reviewed by the Human

Management reports results monthly against that budget

Resources and Succession Committee and determined by

and revised forecasts are prepared regularly. The company

the Board, in accordance with the company’s constitution,

reports regularly to the NSW Business Chamber Council.

within the maximum aggregate annual amount of $1,000,000 which was approved by members at the 2009 Extraordinary General Meeting.

Investment appraisal - the company has clearly defined guidelines covering capital expenditure. These include annual budgets, detailed appraisal and review procedures,

The fees for the President, committee chairs, regional

and authority levels and structured due diligence procedures

Presidents and the other non-executive Directors are

prior to business acquisitions or divestments and post audits

determined by having particular regard to fees paid to

of significant capital expenditure items.

non-executive Directors of peer companies and other similar organisations.

Business risk management, compliance and control Management of risk is an essential component of the

Conflict of interest

company’s strategy. This involves management of

Directors are required to keep the Board advised, on

operational, financial and business risk.

an ongoing basis, of any interests that could potentially conflict with those of the consolidated entity. The Board has adopted procedures covering disclosure of interests by Directors which establish how actual or potential conflicts of interest are to be addressed. In any instance where the Board believes that a conflict exists, the director concerned would not receive the relevant Board papers and would not participate in that part of the meeting where the item is considered. Independent professional advice and access to company information Each director has the right of access to all relevant company

The company’s approach to investment risk overseen by the Investment Committee is as set out earlier in this Corporate Governance Statement and the exposure to risk is stated in the notes to the financial statements. Comprehensive practices are in place to ensure: • workplace health, safety and environment, quality standards and management information systems deliver high standards of performance and compliance with regulations; • business transactions are properly authorised and executed;

NSW Business Chamber Limited Directors’ report 30 June 2013

• appropriate internal compliance and control procedures are operating effectively; • appropriate retention and succession planning; • trade practices and fair trading regulation compliance; and • property loss control measures at business sites are effective. Ethical standards The Directors acknowledge the imperative of maintaining the highest standards of ethical conduct and legal compliance by all Directors and employees of the company. The company has in place a Code of Conduct and a number of codes and policies in areas such as discrimination, harassment, ‘whistle blower’, related party and disclosure of interests. Environment and sustainability NSW Business Chamber Limited is committed to the protection of the environment, to the health and safety of its employees, members, customers and the public at large, and compliance with all applicable environmental laws, rules and regulations in the jurisdictions in which it conducts its business. The company has determined that it complies with all relevant environmental legislation. Management is committed to reducing the company’s carbon footprint and has established a Sustainability Committee to improve its environment rating which is currently at bronze level.

NSW Business Chamber Limited Financial report 30 June 2013

Contents

Page

Financial report Statement of profit or loss and other comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

Directors’ declaration

Independent auditor’s report to the members of NSW Business Chamber Limited

General information The financial report covers NSW Business Chamber Limited as a consolidated entity consisting of NSW Business Chamber Limited and the entities it controlled. The financial report is presented in Australian dollars, which is NSW Business Chamber Limited’s functional and presentation currency. The financial report consists of the financial statements, notes to the financial statements and the Directors’ declaration. NSW Business Chamber Limited is a not-for-profit unlisted public company limited by guarantee, incorporated and domiciled in Australia. Its registered office and principal place of business is:

Level 15

140 Arthur Street

North Sydney NSW 2060

A description of the nature of the consolidated entity’s operations and its principal activities are included in the Directors’ report, which is not part of the financial report. The financial report was authorised for issue, in accordance with a resolution of Directors, on 19 September 2013. The Directors have the power to amend and reissue the financial report. All press releases, financial reports and other information are available on the company website: nswbusinesschamber.com.au

NSW Business Chamber Limited Statement of profit or loss and other comprehensive income For the year ended 30 June 2013

Note

Revenue

102,152

80,679

Gains (losses) and other income

37,199

(19,024)

(1,198) (30,798) (3,608) (54,071) (2,535) (1,461) (1,138) (1,779) (3,336) (736) (611) (6,175) (331) (1,810) (1,362) (10,987) 17,415

(860) (11,391) (3,160) (40,988) (2,095) (1,583) (573) (1,227) (1,864) (2,708) (588) (563) (4,075) (405) (1,385) (1,175) (10,641) (23,626)

17,415

(23,626)

17,415

(23,626)

(37) 17,452 17,415

(250) (23,376) (23,626)

(37) 17,452 17,415

(250) (23,376) (23,626)

Expenses Advertising and marketing expense Direct salary costs of providing services Consultants Employee benefits expense Events and training Depreciation and amortisation expense Provision for non-recovery loan to sponsored entities Maintenance expense Management fees - investments Motor vehicle expense Parking and tolls expense Printing and stationery expense Rent, building and occupancy costs Sponsorship Telecommunication expense Travel expense Other expenses

Surplus/(deficit) before income tax expense Income tax expense

Surplus/(deficit) after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the members of NSW Business Chamber Limited Surplus/(deficit) for the year is attributable to: Non-controlling interest Members of NSW Business Chamber Limited

Total comprehensive income for the year is attributable to: Non-controlling interest Members of NSW Business Chamber Limited

Consolidated 2013 2012 $’000 $’000

NSW Business Chamber Limited Statement of financial position As at 30 June 2013

Note

Consolidated 2013 2012 $’000 $’000

Assets Current assets Cash and cash equivalents

Trade and other receivables Financial assets at fair value through profit or loss Other Total current assets Non-current assets Property, plant and equipment

Intangibles Total non-current assets

7 8 9 10

81,556 16,123 221,599 2,000 321,278

37,591 13,008 258,924 2,681 312,204

12 13

4,973 17,981 22,954

4,465 7,253 11,718

344,232

323,922

14 15 16 17

9,012 5,680 5,168 8,596 28,456

9,593 3,061 5,792 8,744 27,190

1,731 1,731

1,332 1,332

30,187

28,522

314,045

295,400

312,852 312,852 1,193 314,045

295,400 295,400 295,400

Total assets Liabilities Current liabilities Trade and other payables

Employee benefits Provisions Other Total current liabilities Non-current liabilities Employee benefits

Total non-current liabilities Total liabilities Net assets Equity Retained surpluses

Equity attributable to the members of NSW Business Chamber Limited Non-controlling interest

Total equity

NSW Business Chamber Limited Statement of changes in equity For the year ended 30 June 2013

Retained surpluses Consolidated Balance at 1 July 2011 Deficit after income tax expense for the year Other comprehensive income for the year, net of tax

Total comprehensive income for the year

$’000

Noncontrolling interest

Total equity

$’000

318,776

(23,376)

(250)

(23,626)

(23,376)

(250)

(23,626)

250

295,400

Transactions with members in their capacity as members: Non-controlling interest on acquisition of subsidiary Balance at 30 June 2012

Retained surpluses

Total equity

$’000

295,400

17,452

(37)

17,415

17,452

(37)

17,415

Transfer from Illawarra Business Chamber Limited

575

Transfer from Hunter Business Chamber Limited

655

312,852

1,193

314,045

Consolidated Balance at 1 July 2012 Surplus/(deficit) after income tax expense for the year Other comprehensive income for the year, net of tax

Total comprehensive income for the year

$’000

Noncontrolling interest

Transactions with members in their capacity as members:

Balance at 30 June 2013

NSW Business Chamber Limited Statement of cash flows For the year ended 30 June 2013

Note

Cash flows from operating activities Receipts from customers (inclusive of GST) Receipts from members Net withdrawal from managed investment

Consolidated 2013 2012 $’000 $’000

Net cash from/(used in) operating activities

56,716 5,381 79,164 141,261 (86,555) 54,706

Cash flows from investing activities Payment for purchase of business, net of cash acquired Payments for property, plant and equipment Payments for intangibles

28 12 13

(8,541) (1,592) (721)

(3,463) (3,828) (304)

(189)

(214)

95 207 (10,741)

250 13,792 6,233

43,965 37,591 81,556

3,947 33,644

Payments to suppliers and employees Income taxes paid

Payment of deferred consideration in relation to acquisition of businesses in prior year Proceeds from sale of property, plant and equipment Proceeds from issue of shares to non-controlling interest Repayment of loans by other related party Net cash from/(used in) investing activities

58,464 3,677 14,771 76,912 (78,695) (503) (2,286)

Cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

37,591

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 1. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New, revised or amending Accounting Standards and Interpretations adopted The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Any significant impact on the accounting policies of the consolidated entity from the adoption of these Accounting Standards and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity. The following Accounting Standard is most relevant to the consolidated entity: AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income The consolidated entity has applied AASB 2011-9 amendments from 1 July 2012. The amendments requires grouping together of items within other comprehensive income on the basis of whether they will eventually be ‘recycled’ to the profit or loss (reclassification adjustments). The change provides clarity about the nature of items presented as other comprehensive income and the related tax presentation. The amendments also introduced the term ‘Statement of profit or loss and other comprehensive income’ clarifying that there are two discrete sections, the profit or loss section (or separate statement of profit or loss) and other comprehensive income section. Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for not-for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’). Historical cost convention These financial statements are prepared under the historical cost convention, except for financial assets at fair value through profit or loss. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of

applying the consolidated entity’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 27. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of NSW Business Chamber Limited (‘company’ or ‘parent entity’) as at 30 June 2013 and the results of all subsidiaries for the year then ended. NSW Business Chamber Limited and its subsidiaries together are referred to in these financial statements as the ‘consolidated entity’. Subsidiaries are all those entities over which the consolidated entity has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The effects of potential exercisable voting rights are considered when assessing whether control exists. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. Refer to the ‘business combinations’ accounting policy for further details. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit balance. Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of allowances, rebates and amounts collected on behalf of third parties. The consolidated entity bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Membership fees Membership fees comprise annual subscriptions for the year and are recognised as revenue on a monthly basis over the period of membership. Recruitment services Recruitment services income is brought to account when on-hire staff provide services in accordance with the recruitment contract. Training services income Training services income is brought to account when the training is provided. Service income Fee for service income, including apprenticeship placement fees and legal services income, are brought to account on delivery of service in accordance with engagement letters or other relevant contracts or agreements. Sponsorships Sponsorships are brought to account when control is obtained over sponsorship funds. A liability is recognised for any amounts received for which the sponsorship obligation has not been discharged. Government grants Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the consolidated entity will comply with all attached conditions. Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Rental income Rental income is brought to account in the month the rent is due and receivable. Other products income Other products’ income is brought to account when goods are despatched to a customer pursuant to a sales order and the associated risks have passed to the customer. Income tax The parent entity, as an employer association, is exempt from the payment of income tax and capital gains tax. In respect of non-exempt controlled entities, tax effect

accounting procedures are followed whereby the income tax expense for the period is the tax payable on the current period’s taxable income based on the income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and other receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days. They are presented as current assets unless collection is not expected for more than 12 months after the reporting date. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments (more than 60 days overdue) are considered indicators that the trade receivable may be impaired. The amount of the impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. Other receivables are recognised at amortised cost, less any provision for impairment. Associates Associates are entities over which the consolidated entity has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the consolidated entity’s share of net assets of the associates. Dividends received or receivable from associates reduce the carrying amount of the investment.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

When the consolidated entity’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. Investments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. They are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on the purpose of the acquisition and subsequent reclassification to other categories is restricted. The fair values of quoted investments are based on current bid prices. For unlisted investments, the consolidated entity establishes fair value by using valuation techniques. These include the use of recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are carried at amortised cost using the effective interest rate method. Gains and losses are recognised in profit or loss when the asset is derecognised or impaired. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss are either: i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit; or ii) designated as such upon initial recognition, where they are managed on a fair value basis or to eliminate or significantly reduce an accounting mismatch. Fair value movements are recognised in profit or loss. Impairment of financial assets The consolidated entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator that the assets are impaired. The amount of the impairment allowance for loans and

receivables carried at amortised cost is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. If there is a reversal of impairment, the reversal cannot exceed the amortised cost that would have been recognised had the impairment not been made and is reversed to profit or loss. The amount of the impairment allowance for financial assets carried at cost is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for similar financial assets. Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over their expected useful lives as follows:

Leasehold improvements

3-10 years

Furniture, fittings and equipment

3-10 years

Motor vehicles

2-5 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter. An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits. Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or if lower, the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining balance of the liability. Leased assets acquired under a finance lease are depreciated

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the consolidated entity will obtain ownership at the end of the lease term. Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease. Intangible assets Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period. Goodwill Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed. Client lists Client lists acquired in a business combination are amortised on a straight-line basis over the period of their expected benefit, being their finite life of 3 years.

annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. Trade and other payables These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Provisions Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Employee benefits

Software development

Wages and salaries and annual leave

Costs incurred in developing products or systems and costs incurred in acquiring software and licences that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised. These costs include the external direct costs of materials and services. Amortisation is calculated on a straight line basis over periods generally ranging from 3 to 5 years

Liabilities for wages and salaries, including non-monetary benefits, and annual leave expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Long service leave

IT development costs include only those costs directly attributable to the development phase and are only recognised following completion and where the consolidated entity has an intention and ability to use the asset.

The liability for long service leave is recognised in current and non-current liabilities, depending on the unconditional right to defer settlement of the liability for at least 12 months after the reporting date. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government

Intellectual property Intellectual property is amortised on a straight line basis over a period of 3 years. Impairment of non-financial assets Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Defined contribution superannuation expense Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred. Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The consolidated entity recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the reporting date are discounted to present value. Government grants Grants from government are recognised at their fair value where there is reasonable assurance that the grant will be received and the consolidated entity will comply with all attached conditions. Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match them with the costs that they are intended to compensate. Business combinations The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired. The consideration transferred is the sum of the acquisitiondate fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree’s identifiable net assets. All acquisition costs are expensed as incurred to profit or loss. On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity’s operating or accounting policies and other pertinent conditions in existence at the acquisition-date. Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss. Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of contingent consideration

classified as an asset or liability is recognised in profit or loss. The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer’s previously held equity interest in the acquirer. Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value. Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Comparatives Comparatives have been restated where necessary to conform to current presentation. Rounding of amounts The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2013. The consolidated entity’s assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below. AASB 9 Financial Instruments, 2009-11 Amendments to Australian Accounting Standards arising from AASB 9, 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 and 2012-6 Amendments to Australian Accounting Standards arising from AASB 9 This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1 January 2015 and completes phase I of the IASB’s project to replace IAS 39 (being the international equivalent to AASB 139 ‘Financial Instruments: Recognition and Measurement’). This standard introduces new classification and measurement models for financial assets, using a single approach to determine whether a financial asset is measured at amortised cost or fair value. The accounting for financial liabilities continues to be classified and measured in accordance with AASB 139, with one exception, being that the portion of a change of fair value relating to the entity’s own credit risk is to be presented in other comprehensive income unless it would create an accounting mismatch. The consolidated entity will adopt this standard from 1 July 2015 but the impact of its adoption is yet to be assessed by the consolidated entity. AASB 10 Consolidated Financial Statements This standard is applicable to annual reporting periods beginning on or after 1 January 2013. The standard has a new definition of ‘control’. Control exists when the reporting entity is exposed, or has the rights, to variable returns (e.g. dividends, remuneration, returns that are not available to other interest holders including losses) from its involvement with another entity and has the ability to affect those returns through its ‘power’ over that other entity. A reporting entity has power when it has rights (e.g. voting rights, potential voting rights, rights to appoint key management, decision making rights, kick out rights) that give it the current ability to direct the activities that significantly affect the investee’s returns (e.g. operating policies, capital decisions, appointment of key management). The consolidated entity will not only have to consider its holdings and rights but also the holdings and rights of other shareholders in order to determine whether it has the necessary power for consolidation purposes. The adoption of this standard from 1 July 2013 may have an impact where the consolidated entity has a holding of less than 50% in an entity, has de facto control, and is not currently consolidating that entity. AASB 11 Joint Arrangements This standard is applicable to annual reporting periods beginning on or after 1 January 2013. The standard defines which entities qualify as joint ventures and removes the option to account for joint ventures using proportional consolidation. Joint ventures, where the parties to the

agreement have the rights to the net assets will use equity accounting. Joint operations, where the parties to the agreements have the rights to the assets and obligations for the liabilities will account for the assets, liabilities, revenues and expenses separately, in accordance with the standards applicable to the particular assets, liabilities, revenues and expenses. The adoption of this standard from 1 July 2013 will not have a material impact on the consolidated entity. AASB 12 Disclosure of Interests in Other Entities This standard is applicable to annual reporting periods beginning on or after 1 January 2013. It contains the entire disclosure requirement associated with other entities, being subsidiaries, associates and joint ventures. The disclosure requirements have been significantly enhanced when compared to the disclosures previously located in AASB 127 ‘Consolidated and Separate Financial Statements’, AASB 128 ‘Investments in Associates’, AASB 131 ‘Interests in Joint Ventures’ and Interpretation 112 ‘Consolidation - Special Purpose Entities’. The adoption of this standard from 1 July 2013 will significantly increase the amount of disclosures required to be given by the consolidated entity such as significant judgements and assumptions made in determining whether it has a controlling or non-controlling interest in another entity and the type of non-controlling interest and the nature and risks involved. AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The standard provides a single robust measurement framework, with clear measurement objectives, for measuring fair value using the ‘exit price’ and it provides guidance on measuring fair value when a market becomes less active. The ‘highest and best use’ approach would be used to measure assets whereas liabilities would be based on transfer value. As the standard does not introduce any new requirements for the use of fair value, its impact on adoption by the consolidated entity from 1 July 2013 should be minimal, although there will be increased disclosures where fair value is used. AASB 119 Employee Benefits (September 2011) and AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) This revised standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The amendments make changes to the accounting for defined benefit plans and the definition of short-term employee benefits, from ‘due to’ to ‘expected to’ be settled within 12 months. The later will require annual leave that is not expected to be wholly settled within 12 months to be discounted allowing for expected salary levels in the future period when the leave is expected to be taken. The adoption of the revised standard from 1 July 2013 is expected to reduce the reported annual leave liability of the consolidated entity.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirement

AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle

These amendments are applicable to annual reporting periods beginning on or after 1 July 2013, with early adoption not permitted. They amend AASB 124 ‘Related Party Disclosures’ by removing the disclosure requirements for individual key management personnel (‘KMP’). The adoption of these amendments from 1 July 2013 will remove the duplication of information relating to individual KMP in the notes to the financial statements and the Directors’ report. Corporations and Related Legislation Amendment Regulations 2013 and Corporations and Australian Securities and Investments Commission Amendment Regulation 2013 (No. 1) now specify the KMP disclosure requirements to be included within the Directors report for annual reporting periods beginning 1 July 2013.

The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The amendments affect five Australian Accounting Standards as follows: Confirmation that repeat application of AASB 1 (IFRS 1) ‘First-time Adoption of Australian Accounting Standards’ is permitted; Clarification of borrowing cost exemption in AASB 1; Clarification of the comparative information requirements when an entity provides an optional third column or is required to present a third statement of financial position in accordance with AASB 101 ‘Presentation of Financial Statements’; Clarification that servicing of equipment is covered by AASB 116 ‘Property, Plant and Equipment’, if such equipment is used for more than one period; clarification that the tax effect of distributions to holders of equity instruments and equity transaction costs in AASB 132 ‘Financial Instruments: Presentation’ should be accounted for in accordance with AASB 112 ‘Income Taxes’; and clarification of the financial reporting requirements in AASB 134 ‘Interim Financial Reporting’ and the disclosure requirements of segment assets and liabilities. The adoption of the amendments from 1 July 2013 will not have a material impact on the consolidated entity.

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The amendments make numerous consequential changes to a range of Australian Accounting Standards and Interpretations, following the issuance of AASB 10, AASB 11, AASB 12 and revised AASB 127 and AASB 128. The adoption of these amendments from 1 July 2013 will not have a material impact on the consolidated entity. AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities The amendments are applicable to annual reporting periods beginning on or after 1 January 2013. The disclosure requirements of AASB 7 ‘Financial Instruments: Disclosures’ (and consequential amendments to AASB 132 ‘Financial Instruments: Presentation’) have been enhanced to provide users of financial statements with information about netting arrangements, including rights of set-off related to an entity’s financial instruments and the effects of such rights on its statement of financial position. The adoption of the amendments from 1 July 2013 will increase the disclosures by the consolidated entity. AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities The amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The amendments add application guidance to address inconsistencies in the application of the offsetting criteria in AASB 132 ‘Financial Instruments: Presentation’, by clarifying the meaning of “currently has a legally enforceable right of set-off”; and clarifies that some gross settlement systems may be considered to be equivalent to net settlement. The adoption of the amendments from 1 July 2014 will not have a material impact on the consolidated entity.

AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039 This amendment is applicable to annual reporting periods beginning on or after 1 January 2013. The amendment removes reference in AASB 1048 following the withdrawal of Interpretation 1039. The adoption of this amendment will not have a material impact on the consolidated entity. AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments These amendments are applicable to annual reporting periods beginning on or after 1 January 2013. They amend AASB 10 and related standards for the transition guidance relevant to the initial application of those standards. The amendments clarify the circumstances in which adjustments to an entity’s previous accounting for its involvement with other entities are required and the timing of such adjustments. The adoption of these amendments will not have a material impact on the consolidated entity. AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets The amendments are applicable to annual reporting periods beginning on or after 1 January 2014. The disclosure requirements of AASB 136 ‘Impairment of Assets’ have been enhanced to require additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposals. Additionally, if measured using a present value technique, the discount rate is required to be disclosed. The adoption of the amendments from 1 July 2014 may increase the disclosures by the consolidated entity.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 2.â&#x20AC;&#x201A; Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Provision for impairment of receivables The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtors financial position. Fair value and hierarchy of financial instruments The consolidated entity is required to classify financial instruments, measured at fair value, using a three level hierarchy, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). An instrument is required to be classified in its entirety on the basis of the lowest level of valuation inputs that is significant to fair value. Considerable judgement is required to determine what is significant to fair value and therefore which category the financial instrument is placed in can be subjective. Estimation of useful lives of assets The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Goodwill The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate impairment,

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 1. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions, including estimated discount rates based on the current cost of capital and growth rates of the estimated future cash flows. Impairment of non-financial assets other than goodwill The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs to sell or value-in-use calculations, which incorporate a number of key estimates and assumptions. Long service leave provision As discussed in note 1, the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. Business combinations As discussed in note 1, business combinations are initially accounted for on a provisional basis. The fair value of assets acquired, liabilities and contingent liabilities assumed are initially estimated by the consolidated entity taking into consideration all available information at the reporting date. Fair value adjustments on the finalisation of the business combination accounting is retrospective, where applicable, to the period the combination occurred and may have an impact on the assets and liabilities, depreciation and amortisation reported.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 3. Revenue Consolidated 2013 2012 $’000 $’000 Sales revenue Fee for service and other related income Recruitment services Membership fees Training services

Other revenue Dividend income from managed investments Rents and sub-lease rentals Interest income from managed investments Interest income from current accounts in the bank Interest income from other related parties

Revenue

45,616 36,712 4,999 2,568 89,895

43,354 13,480 3,688 2,350 62,872

8,860 1,076 1,505 159 657 12,257 102,152

14,660 681 1,024 189 1,253 17,807 80,679

Members of Illawarra Business Chamber, Hunter Business Chamber and the Canberra Business Council are also members of NSW Business Chamber Limited. 2013 membership fees excludes $335,000 (2012; $1,404,000) of membership fees received by Canberra Business Council.

Note 4. Gains (losses) and other income Consolidated 2013 2012 $’000 $’000 Net fair value gain (loss) on investments Government grants

32,597 4,602

(20,843) 1,819

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

37,199

Gains (losses) and other income

(19,024)

In addition to the above, the consolidated entity’s managed funds are traded by the appointed Fund Managers in the financial markets for the purpose of deriving further investment returns. The total proceeds arising were then reinvested into marketable securities. Government grants Grants of $4,602,000 (2012: $1,819,000) were recognised as other income by the consolidated entity during the financial year. A number of these grants extend into 2014 and will be acquitted in accordance with the terms of the grants. There are no unfulfilled conditions or contingencies relating to the 2013 year attached to these grants. The consolidated entity did not benefit from any other forms of government assistance.

Note 5. Expenses Consolidated 2013 2012 $’000 $’000 Surplus/(deficit) before income tax includes the following specific expenses: Depreciation Leasehold improvements Plant and equipment Motor vehicles

Total depreciation Amortisation Client lists Software development Intellectual property Total amortisation Total depreciation and amortisation

751 301 58 1,110

467 230 40 737

133 135 83 351 1,461

133 630 83 846 1,583

Net loss on disposal Net loss on disposal of property, plant and equipment

7,291

6,056

5,895

3,785

Rental expense relating to operating leases Minimum lease payments Superannuation expense Defined contribution superannuation expense

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 6. Income tax expense Consolidated 2013 2012 $’000 $’000 Numerical reconciliation of income tax expense and tax at the statutory rate Surplus/(deficit) before income tax expense

Tax at the statutory tax rate of 30%

17,415 5,225

(23,626) (7,088)

(5,476) (251) 251 -

7,013 (11) (86) 86 -

Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Tax exempt income Sundry items

Current year tax losses not recognised Income tax expense

Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit @ 30%

10,031

8,547

3,009

2,564

The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed. These tax losses reside in a subsidiary of the company that itself is subject to income tax.

Note 7. Current assets - cash and cash equivalents Consolidated 2013 2012 $’000 $’000 Cash at bank Cash equivalents

6,555 75,001 81,556

6,958 30,633 37,591

Cash equivalents represents monies invested in the short term by fund managers.

Note 8. Current assets - trade and other receivables

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Consolidated 2013 2012 $’000 $’000 Trade receivables Less: Provision for impairment of receivables

14,010 (207) 13,803

8,500 (173) 8,327

Loans to other related entities - ABF Less: Provision for non-recovery of ABF loan

573 (573) -

780 (573) 207

1,612 708 16,123

2,192 2,282 13,008

Grants receivable Other receivables

Impairment of receivables The consolidated entity has recognised a loss of $46,000 (2012: $58,000) in profit or loss in respect of impairment of receivables for the year ended 30 June 2013. Movements in the provision for impairment of receivables are as follows: Consolidated 2013 2012 $’000 $’000 Opening balance Additional provisions recognised Provision for non-recovery of ABF loan Receivables written off during the year as uncollectable

746 46 (12) 780

Closing balance

Note 9. Current assets - financial assets at fair value through profit or loss

130 58 573 (15) 746

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Consolidated 2013 2012 $’000 $’000 Shares and units in public entities

147,137

187,652

Shares and units in unrelated entities (including equity and pool trusts)

38,016

37,698

Other investments (including corporate bonds and investment trusts)

36,446

33,574

221,599

258,924

Refer to note 21 for further information on financial instruments.

Note 10. Current assets - other Consolidated 2013 2012 $’000 $’000 Prepayments Lease incentives

975 1,025 2,000

635 2,046 2,681

Note 11. Non-current assets - investments accounted for using the equity method Refer to note 30 for further information on investments in associates.

Note 12. Non-current assets - property, plant and equipment Consolidated 2013 2012 $’000 $’000 Leasehold improvements - at cost Less: Accumulated depreciation

8,021 (4,469) 3,552

7,628 (3,808) 3,820

Furniture, fixtures and equipment - at cost Less: Accumulated depreciation

3,794 (2,406) 1,388

2,844 (2,380) 464

71 (38) 33

221 (40) 181

Motor vehicles - at cost Less: Accumulated depreciation

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

4,973

Reconciliations

4,465

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Leasehold improvements Consolidated Balance at 1 July 2011 Additions Additions through business combinations (note 28) Write off of assets Depreciation expense Balance at 30 June 2012 Additions Additions through business combinations (note 28) Disposals Depreciation expense Balance at 30 June 2013

Furniture, fixtures and equipment

Motor vehicles

Total

$’000

588 3,699

277 129

865 3,828

308

221

529

(467) 3,820 485

(20) (230) 464 1,107

(40) 181 -

(20) (737) 4,465 1,592

121

(2) (751) 3,552

(3) (301) 1,388

(90) (58) 33

(95) (1,110) 4,973

$’000

Note 13. Non-current assets - intangibles Consolidated 2013 2012 $’000 $’000 16,966 16,966

6,623 6,623

Client lists - at cost Less: Accumulated amortisation

400 (321) 79

400 (188) 212

Software development - at cost Less: Accumulated amortisation

3,613 (2,726) 887

3,410 (3,124) 286

Intellectual property - at cost Less: Accumulated amortisation

250 (201) 49

250 (118) 132

17,981

7,253

Goodwill - at cost

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Goodwill Consolidated Balance at 1 July 2011 Additions Additions through business combinations (note 28) Amortisation expense Balance at 30 June 2012 Additions Additions through business combinations (note 28) Amortisation expense Balance at 30 June 2013

Client lists

$’000

3,132 -

345 -

3,491

Software development

Intellectual property

$’000

Total

$’000

612 304

215 -

4,304 304

3,491

6,623 -

(133) 212 -

(630) 286 721

(83) 132 -

(846) 7,253 721

10,343

10,358

16,966

(133) 79

(135) 887

(83) 49

(351) 17,981

Note 14. Current liabilities - trade and other payables Consolidated 2013 2012 $’000 $’000 Trade payables Refundable carnet premiums Other payables

1,249 7,763 9,012

2,697 1,412 5,484 9,593

Refer to note 21 for further information on financial instruments.

Note 15. Current liabilities - employee benefits Consolidated 2013 2012 $’000 $’000 Employee benefits Redundancies

4,573 1,107 5,680

2,893 168 3,061

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Amounts not expected to be settled within the next 12 months The current provision for employee benefits includes all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount is presented as current, since the consolidated entity does not have an unconditional right to defer settlement. However, based on past experience, the consolidated entity does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following amounts reflect leave that is not expected to be taken within the next 12 months: Consolidated 2013 2012 $’000 $’000 Employee benefits

1,091

645

Note 16. Current liabilities - provisions Consolidated 2013 2012 $’000 $’000 Deferred consideration Deferred lease incentives

1,303 3,865 5,168

1,448 4,344 5,792

Deferred consideration The provision represents the obligation to pay deferred/contingent consideration following the acquisition of a business or assets. It is measured at the present value of the estimated liability. Deferred lease incentives The provision represents operating lease incentives received. The incentives are allocated to profit or loss in such a manner that the rent expense is recognised on a straight-line basis over the lease term. Movements in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below: Deferred consideration

Consolidated - 2013

$’000

Deferred lease incentive $’000

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Carrying amount at the start of the year Additional provisions recognised Amounts used Payments Amounts transferred to other income Carrying amount at the end of the year

1,448 750 (189) (706) 1,303

4,344 (479) 3,865

Note 17. Current liabilities - other Consolidated 2013 2012 $’000 $’000 Deferred revenue Revenue received in advance Subsidies and grants received in advance

1,789 5,095 1,712 8,596

2,510 4,042 2,192 8,744

Note 18. Non-current liabilities - employee benefits Consolidated 2013 2012 $’000 $’000 1,731

Employee benefits

1,332

Note 19. Equity - retained surpluses Consolidated 2013 2012 $’000 $’000 Retained surpluses at the beginning of the financial year Surplus/(deficit) after income tax expense for the year Retained surpluses at the end of the financial year

295,400 17,452 312,852

318,776 (23,376) 295,400

Note 20. Equity - non-controlling interest Consolidated 2013 2012 $’000 $’000 Retained surpluses

1,193

Note 21. Financial instruments 83

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Financial risk management objectives The consolidated entity’s activities expose it to a variety of financial risks, market risk (price and interest rate risk), credit risk and liquidity risk. The consolidated entity’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable and leases. The consolidated entity’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the long term financial performance of the consolidated entity. Risk management for the consolidated entity is carried out by a centralised finance and treasury function under policies approved by the Board of Directors. An Audit and Compliance Committee operates under a charter approved by the Board, monitoring the management of operational, financial and business risk in the consolidated entity. Risk management policies are approved and reviewed by the Board on a regular basis. The consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of price risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk. Investment policy The Investment Committee, a committee of the Board, is responsible for monitoring the performance of the appointed investment consultant, custodian and investment managers. The Investment Committee reviews the investment policy to assess the ability of the portfolio structure to successfully meet the objectives of the portfolio and recommends changes to the Board. The consolidated entity maintains an investment portfolio for the purpose of providing an annual sustainable distribution to finance ongoing activities, including operational expenses and strategic investments. The investment strategy and asset allocation recognises the tax status of NSW Business Chamber Limited as an employer association which is exempt from Australian income tax and which derives no economic benefit from imputation credits attaching to dividends from investments in shares of Australian companies. The investment objectives for the portfolio is to generate a total return which, when averaged over the total lifetime of the portfolio, will exceed the rate of inflation, as measured by the CPI, by at least 4% per annum. Maximisation of this long term return is subject to preserving the real value of the portfolio in perpetuity. The portfolio is diversified by asset class and active management process to reduce the risk from failure of individual investments and managers and to reduce volatility of the portfolio valuation. Diversification is in accordance with asset allocation ranges as set forth in the Strategic Asset Allocation as approved by the Investment Committee. Investment managers which make use of derivatives within the investment strategy used by the consolidated entity are required to state the purpose of such use and the impact on risk and to provide copies of Risk Management Statements and other relevant documentation approved by the Directors of the investment manager regarding use of derivatives of that manager. Ongoing professional advice is sought in respect of the structure of investment mandates, the performance and continued suitability of externally appointed fund managers, the adequacy of the returns achieved and the continuing suitability of the investment policy. The consolidated entity has appointed a custodian and investment consultant to enhance the security of the consolidated entity’s investments, advise on an appropriate investment strategy and to report on the performance of the fund managers. The Board has implemented a strategy of drawdown from the investment portfolio to finance ongoing activities of the consolidated entity whilst preserving the real value of the portfolio in perpetuity. Currently, the long term rate of distribution is 4%. 70% of the distribution for the financial year is calculated as a composite of the average of previous years’ distributions (adjusted for inflation) and 30% relating to the portfolio value (valued at March 31 of the previous financial year). The Board may vary the drawdown for the year in exceptional circumstances at its discretion. Such abnormal additional drawdown causes future drawdowns to be adjusted to reflect the changed capital base. The portfolio of asses at the reporting date is cash and cash equivalents and financial assets at fair value through profit or loss, as detailed in the statement of financial position.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Market risk Foreign currency risk The consolidated entity does not have any assets or liabilities denominated in foreign currency. The investment portfolio held by the consolidated entity and disclosed at fair value through profit or loss does contain securities that have underlying exchange rate exposures, however as any exchange rate fluctuations impact the price of the securities, this risk category is considered to be price risk. Price risk The consolidated entity is exposed to equity securities price risk. This arises from investments held by the consolidated entity and classified on the statement of financial position at fair value through profit or loss. The consolidated entity is not exposed to commodity price risk. In accordance with the Investment Policy, to manage its price risk arising from investments in equity securities, the consolidated entity diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the consolidated entity.

Consolidated - 2013

Financial assets at fair value through profit or loss

Consolidated - 2012

Financial assets at fair value through profit or loss

Average price increase Effect on Effect on profit equity % change before tax $’000 $’000 22,160

10%

22,160

Average price increase Effect on Effect on profit equity % change before tax $’000 $’000 10%

25,892

Average price decrease Effect on Effect on profit equity % change before tax $’000 $’000 (22,160)

10%

(22,160)

Average price decrease Effect on Effect on profit equity % change before tax $’000 $’000 10%

(25,892)

Interest rate risk The consolidated entity’s interest bearing assets expose it to risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The risk is measured using sensitivity analysis. In accordance with the Investment Policy, a sufficient percentage of the investment portfolio is held in interest bearing securities to enable the consolidated entity to meet its cash flow requirements. These interest bearing securities have underlying fair value interest rate risk exposures; however as any interest fluctuation impacts the price of the securities, this risk category is considered to be price risk. The Investment Committee constantly monitor the diversity of the portfolio mix. Basis points increase Consolidated - 2013

Cash Cash equivalents

Basis points change 100 100

Effect on profit before tax 66 750 816

Basis points increase

Basis points decrease Effect on Basis points equity change 66 750 816

100 100

Effect on profit before tax

Effect on equity

(66) (750) (816)

Basis points decrease

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Consolidated - 2012

Cash Cash equivalents

Credit risk

Effect on profit before tax

Basis points change 100 100

Effect on Basis points equity change

70 306 376

100 100

Effect on profit before tax

Effect on equity

(70) (306) (376)

Credit risk primarily arises from investments in debt securities. None of these assets are impaired nor past due but not impaired. The consolidated entity and parent entity invests in debt securities which have an investment grade as rated by reputable independent rating agencies. At the time of the initial investment, all debt securities must have a minimum rating of ‘A’. The Investment Committee approves the investment in any debt securities before any investment is undertaken and monitors the ongoing performance of the security. Other credit risks arise from cash and cash equivalents, as well as credit exposures to members, non-members and government organisations, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted for initial investments. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. The credit risk of members and non-members are regularly monitored by line management. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount net of any provisions for impairment of those assets, as disclosed in the statement of financial position and the notes to the financial statements. The provision of member services is withdrawn to members who are un-financial for more than 90 days. For non-member entitlements, goods and services are not generally rendered until full payment is received. For some receivables the consolidated entity may also obtain security in the form of guarantees which can be called upon if the counterparty is in default under the terms of the agreement. The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings, if available, or to historical information about counterparty default rates. The maximum exposure for investments is the carrying amount of the financial assets at the reporting date.

Consolidated 2013 2012 $’000 $’000 Credit quality of financial assets held at the reporting date A rated cash and cash equivalents Trade receivables counterparties without credit rating

81,556 13,803

37,591 8,327

Current unsecured other receivables without external credit rating

708

2,282

221,599 317,666

258,924 307,124

Financial assets at fair value through profit or loss

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of financial assets mentioned above.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of available cash equivalents. The consolidated entity manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Further, the Board has adopted a distribution policy to finance the short term cash flow requirements of the consolidated entity. The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Surplus funds are generally only invested in instruments that are tradeable in highly liquid markets. The consolidated entity does not have any exposure to borrowings or finance leases. Remaining contractual maturities The following tables detail the consolidated entity’s remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.

Consolidated - 2013

Non-derivatives Non-interest bearing

Weighted average 1 year or less interest rate %

$’000

Between 1 and 2 years $’000

Between 2 Over 5 years and 5 years $’000

$’000

Remaining contractual maturities $’000

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Other payables Deferred consideration Total non-derivatives

Consolidated - 2012

Non-derivatives Non-interest bearing Trade payables Other payables Deferred consideration Total non-derivatives

7,763 1,303 9,066

Weighted average 1 year or less interest rate

Between 1 and 2 years

7,763 1,303 9,066

Between 2 Over 5 years and 5 years

Remaining contractual maturities

$’000

2,697 5,484 1,448 9,629

$’000

2,697 5,484 1,448 9,629

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above. Fair value of financial instruments The following tables detail the consolidated entity’s fair values of financial instruments categorised by the following levels: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs) Consolidated - 2013

Assets Cash equivalents Financial assets at fair value through profit or loss Total assets Consolidated - 2012

Assets Cash equivalents Financial assets at fair value through profit or loss Total assets

Level 1 $’000

Level 2 $’000

Level 3 $’000

Total $’000

147,137 147,137

70,001 74,462 144,463

70,001 221,599 291,600

Level 1 $’000

Level 2 $’000

Level 3 $’000

Total $’000

187,652 187,652

30,633 71,272 101,905

30,633 258,924 289,557

There were no transfers between levels during the financial year. Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature. The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial instruments.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 22. Key management personnel disclosures Directors The following persons were Directors of NSW Business Chamber Limited during the financial year: T C Wetherall

President - non-executive

A F Dormer

Deputy President - non-executive

R L Hood

Non-executive director

T H Cairney

Non-executive director

K A Howard

Non-executive director

I B Penfold

Non-executive director

E T Brown

Non-executive director

B A Manwaring

Non-executive director

M L Motto

Non-executive director

R S Balding (appointed 23 May 2013)

Non-executive director

A D Seaton (resigned 25 March 2013)

Non-executive director

Other key management personnel The following persons also had the authority and responsibility for planning, directing and controlling the major activities of the consolidated entity, directly or indirectly, during the financial year: S M Cartwright

Chief Executive Officer

S P Spicer

Director - Finance and Operations

D J Cocks

Director - Commercial Services

P H Orton

Director - Policy and Advocacy

P Forsythe

Executive Director - Sydney Business Chamber

A Tustin

Chief Financial Officer

A Berzins

Company Secretary/Treasury Manager

Z Diab

General Manager - Human Resources

M Koon

Senior Manager - Marketing

P A Martin

General Manager - Australian Business Consulting & Solutions

R S Millar

General Manager - ICT

G B Pattison

General Manager - Workplace Solutions

M C Stedfut

General Manager - Member Services

D M Stewart

General Manager - Australian Business Recruitment Solutions

N J Ward

CEO - Australian Business Lawyers & Advisors

A J Williams

General Manager - Australian Business Apprenticeships Centre

Compensation The aggregate compensation made to Directors and other members of key management personnel of the consolidated entity is set out below: Consolidated 2013 2012 $ $ Short-term employee benefits Post-employment benefits Termination benefits

4,828,365 343,086 52,113 5,223,564

4,120,703 328,495 4,449,198

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

The key management personnel whose remuneration from entities in consolidated entity was within the specified bands are as follows: Consolidated 2013 2012 $’000 0 to 50 50 to 100 150 to 200 200 to 250 250 to 300 300 to 350 350 to 400 450 to 500 550 to 600 600 to 650

3 10 2 5 1 2 2 1 1 27

8 4 2 6 1 1 3 1 26

Short term employee benefits Short term employee benefits include taxable income and performance payments, superannuation guarantee payments and the grossed up value of any salary packaging arrangements. Related party transactions Related party transactions are set out in note 26.

Note 23. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by PwC, the auditor of the company: Consolidated 2013 2012 $ $ Audit services - PwC Audit of the financial statements

Other services - PwC Other audit and assurance services Other accounting services Taxation compliance services

315,000

263,000

38,500 158,970 20,350 217,820 532,820

49,000 186,461 12,500 247,961 510,961

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

It is the consolidated entity’s policy to employ PwC on assignments additional to their statutory audit duties where PwC’s expertise and experience with the consolidated entity are important. These assignments are principally tax advice and consulting services. PwC is awarded assignments on a competitive basis. It is the consolidated entity’s policy to seek competitive tenders for all major consulting work.

Note 24. Contingent liabilities The consolidated entity had a contingent liability at 30 June 2013 in respect of potential redundancies payable upon the non-renewal of the apprenticeship placement contracts held by NSW Business Chamber Limited with the Commonwealth Government of Australia. The consolidated entity has a stated policy, confirmed in agreements with individual employees, which entitles these employees to redundancy payments in the event that the contracts are not renewed or otherwise terminated. Should the contracts have been terminated at 30 June 2013, the total redundancy amount payable would have been $2,571,000 (2012: $3,155,000). The obligation for the payment of redundancies will only arise in the event that: (i) the contracts are not renewed; and (ii) existing staff are unable to find employment with one of the successful contractors; and (iii) the consolidated entity is not able to provide the remaining employees with suitable alternative employment. The existing contracts have a term until June 2014 at which time the consolidated entity intends to retender for contracts. The consolidated entity has been successful on a number of occasions with past tenders. It is not practical to estimate the potential effect of this contingency at June 2013 in the event that the contracts are not renewed or new contracts awarded, as it cannot be determined how many current employees will remain in employment at that time.

Note 25. Commitments Consolidated 2013 2012 $’000 $’000 Lease commitments - operating Committed at the reporting date but not recognised as liabilities, payable: Within one year One to five years More than five years

7,027 17,230 665 24,922

4,646 17,237 1,926 23,809

26,626

32,924

Investing commitments A commitment for an investment in securities pursuant to the provisions of Trust Deeds dated 3 February 1998, 24 September 2003, 30 November 2005, 19 December 2007 and 21 February 2012 managed by Macquarie Bank Limited. Due after one year dependent upon drawdowns

The consolidated entity leases various offices under non-cancellable operating leases expiring within one to ten years. The leases are for varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are negotiable. The consolidated entity leases various motor vehicles, office and computer equipment under non-cancellable operating leases expiring within one to three years. These leases are for varying terms. On renewal, the terms of the leases are negotiable.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 26. Related party transactions Parent entity NSW Business Chamber Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 29. Associates Interests in associates are set out in note 30. Key management personnel Disclosures relating to key management personnel are set out in note 22. Transactions with related parties The following transactions occurred with related parties: Consolidated 2013 2012 $ $ Provision of services: Provision of ICT support services to the following: - Canberra Business Council Limited - Hunter Business Chamber Limited* - Illawarra Business Chamber Limited* Provision of office support services: - Canberra Business Council Limited Provision of sponsorship - Canberra Business Council Limited

20,904 -

22,800 13,298 9,504

(61,031)

(42,100)

(55,000)

(105,000)

80,617

424,381

77,417

200,000

Payment for other expenses: Purchase of legal services from Truman Hoyle - director related, net of payments made to Barristers Purchase of consulting services from other related parties Precision Consulting Group Advance payment to Andrew Seaton (refer to note 31) *Forms part of the consolidated entity in 2013. Receivable from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date. Loans to/from related parties The following balances are outstanding at the reporting date in relation to loans with related parties: Consolidated 2013 2012 $ $ Current borrowings: Loan from other related party

206,661

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Terms and conditions All transactions were made on normal commercial terms and conditions. Outstanding balances are unsecured and are repayable in cash.

Note 27. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income

Parent 2013 2012 $’000 $’000

Surplus/(deficit) after income tax

17,889

(22,906)

Total comprehensive income

17,889

(22,906)

Statement of financial position

Parent 2013 2012 $’000 $’000

Total current assets

325,959

310,152

Total assets

338,811

322,065

Total current liabilities

31,357

32,750

Total liabilities

32,869

34,012

305,942 305,942

288,053 288,053

Equity Issued capital Retained surpluses Total equity Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2013 and 30 June 2012. Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2013 and 30 June 2012, except for as disclosed in note 24. Capital commitments - Property, plant and equipment The parent entity had no capital commitments for property, plant and equipment at as 30 June 2013 and 30 June 2012. Significant accounting policies The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following: • Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity. • Investments in associates are accounted for at cost, less any impairment, in the parent entity. • Dividends received from associates and subsidiaries are recognised as other income by the parent entity and their receipt may be an indicator of an impairment of the investment.

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Note 28. Business combinations Illawarra Business Chamber Limited On 1 July 2012, the consolidated entity entered into an arrangement with Illawarra Business Chamber Limited (‘IBC’) to hold the majority membership rights of this Chamber. The consideration paid was nil. The acquired Chamber contributed revenues of $1,116,000 and a deficit of $72,000 to the consolidated entity for the period from 1 July 2012 to 30 June 2013. The combination is final at 30 June 2013. Details of the acquisition are as follows: Fair value $’000 Cash and cash equivalents Receivables Furniture, fittings and equipment Other assets Other payables Net assets acquired Goodwill Acquisition-date fair value of the total consideration transferred

773 261 6 59 (524) 575 575

Representing: Non-controlling interest

575

Hunter Business Chamber Limited On 13 July 2012, the consolidated entity entered into an arrangement with Hunter Business Chamber Limited (‘HBC’) to hold the majority membership rights of this Chamber. The consideration paid was nil. The acquired Chamber contributed revenues of $1,972,000 and surplus of $35,000 to the consolidated entity for the period from 13 July 2012 to 30 June 2013. If the acquisition occurred on 1 July 2012, there would be no material difference in revenue or surplus. Details of the acquisition are as follows: Fair value $’000 Cash and cash equivalents Receivables Furniture, fittings and equipment Other assets Other payables Employee benefits Net assets acquired Goodwill Acquisition-date fair value of the total consideration transferred

1,006 250 22 38 (637) (24) 655 655

Representing: Non-controlling interest

655

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

Belmore Nurses Bureau On 15 February 2013, the consolidated entity acquired the business and certain assets of Belmore Nurses Bureau (‘BNB’), a specialist nursing staff recruitment agency. BNB services over 650 healthcare providers with nearly 5,000 active nurses registered on its database and operates across a range of healthcare facilities throughout Melbourne, regional Victoria, regional NSW, Queensland and Tasmania. The goodwill of $10,343,000 represents the expected synergies from allowing the consolidated entity to grow its existing temporary and permanent placement recruitment activities particularly in the health and aged services sectors. The acquired business contributed revenues of $10,271,000 and surplus of $1,437,000 to the consolidated entity for the period from 15 February 2013 to 30 June 2013. If the acquisition occurred on 1 July 2012, the full year contributions would have been revenues of $31,467,000 and a surplus of $4,346,000. Details of the acquisition are as follows: Fair value $’000 Furniture, fittings and equipment Software Other assets Employee benefits Net liabilities acquired Goodwill Acquisition-date fair value of the total consideration transferred

93 15 8 (139) (23) 10,343 10,320

Representing: Cash paid or payable to vendor

10,320 430

Acquisition costs expensed to profit or loss Business combinations (comparative year) In the comparative year the consolidated entity acquired the following businesses: 1 November 2011 - various businesses and assets from the Chamber of Commerce & Industry Queensland (‘CCIQ’), an employer association. 14 November 2011 - business and assets of Extrastaff, a recruitment company. 9 February 2012 - workplace legal practice and staff of Mills Oakley, a legal practice (renamed Australian Business Lawyers & Advisors). Details of the acquisition are as follows:

Fair value $’000 Furniture, fittings and equipment Plant and equipment Other assets Employee benefits Net liabilities acquired Goodwill

308 221 10 (567) (28) 3,491

NSW Business Chamber Limited Notes to the financial statements 30 June 2013

3,463

Acquisition-date fair value of the total consideration transferred

Representing: Cash paid or payable to vendor

3,463

Acquisition costs expensed to profit or loss

1,545

Note 29. Subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1:

Name of entity

Country of incorporation

Equity holding 2013 2012 % %

Australian Chambernet Pty Limited

Australia

100.00

Australian Business Limited Apprenticeships Centre Pty Limited

Australia

100.00

Australian Apprenticeships Alliance Pty Limited

Australia

100.00

Workplaceinfo Pty Limited

Australia

100.00

Australian Business Pty Limited

Australia

100.00

Sydney Chamber of Commerce (1)

Australia

Australian Business Lawyers & Advisors Pty Limited

Australia

100.00

First People HR Pty Limited

Australia

50.00

Australian Business Training Solutions Group Pty Limited (2)

Australia

100.00

50.00

Recruitment Solutions Group Australia Pty Limited

Australia

100.00

Australian Business Foundation Limited (3)

Australia

Hunter Business Chamber Limited (4)

Australia

Illawarra Business Chamber Limited (4)

Australia

NSW Business Chamber Limited Directors’ declaration

Sydney Chamber of Commerce is a company limited by guarantee and NSW Business Chamber Limited (‘NSWBC’) owns a special membership which entitles NSWBC to control of Sydney Chamber of Commerce.

(1)

During the current financial year, NSWBC acquired the remaining 50% interest in Australian Business Training Solutions Group Pty Limited for $2.

(2)

Australian Business Foundation Limited is a company limited by guarantee and NSWBC owns a special membership which entitles NSWBC to control Australian Business Foundation Limited.

(3)

In the current financial year NSWBC entered into agreements with Hunter Business Chamber Limited and Illawarra Business Chamber Limited which enabled it control of these Chambers, without holding an equity interest.

(4)

Note 30. Investments in associates Interests in associates are accounted for using the equity method of accounting. Information relating to associates is set out below:

Associate

Principal activities

Australian Chamber Alliance

Professional services

Consolidated Percentage interest 2013 2012 % % 14.00

14.00

Note 31. Events after the reporting period On 1 July 2013, the consolidated entity acquired the commercial legal practice of Andrew Seaton (director of NSW Business Chamber Limited until 25 March 2013) for $300,000. Under the Business Sale Agreement further payments are due to Andrew Seaton on each anniversary for three years based upon fees received in the preceding 12 months. The total further amounts payable will not exceed $300,000 in the aggregate. On 6 August 2013, the consolidated entity acquired 100 B Class shares in First People HR Pty Limited (“First People”) for $100. The consolidated entity previously owned one A Class Share and this acquisition results in the consolidated entity owning 100% of all First People shares. First People was established to facilitate the recruitment of indigenous apprentices and trainees across Australia. No other matter or circumstance has arisen since 30 June 2013 that has significantly affected, or may significantly affect the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in future financial years.

Note 32. Reconciliation of surplus/(deficit) after income tax to net cash from/(used in) operating activities Consolidated 2013 2012 $’000 $’000 Surplus/(deficit) after income tax expense for the year Adjustments for: Depreciation and amortisation Net loss on disposal of property, plant and equipment Provision transferred during acquisition of new business Change in operating assets and liabilities: Increase in trade and other receivables

17,415

(23,626)

1,461 -

1,583 20 (557)

(2,811)

(8,362)

NSW Business Chamber Limited Directors’ report 30 June 2013

Decrease in other operating assets Increase/(decrease) in trade and other payables Increase in other provisions Net cash from/(used in) operating activities

38,111 (1,553) 2,083 54,706

19,930 8,335 391 (2,286)

In the Directors’ opinion: • the attached financial statements and notes thereto comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; • the attached financial statements and notes thereto comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements; • the attached financial statements and notes thereto give a true and fair view of the consolidated entity’s financial position as at 30 June 2013 and of its performance for the financial year ended on that date; and • there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the Directors

T C Wetherall

A F Dormer

Director Director 19 September 2013 Sydney

NSW Business Chamber Limited Directorsâ&#x20AC;&#x2122; report 30 June 2013

NSW Business Chamber 140 Arthur Street North Sydney NSW 2060 ABN 63 000 014 504

Locked Bag 938, North Sydney NSW 2059 DX 10541 North Sydney t 13 26 96 f 1300 655 277 e business.hotline@nswbc.com.au

nswbusinesschamber.com.au

MEM 1555

Invigorating business