Aussie Painting Contractor Magazine April 2022

How to prevent Employee Theft Your staff are the eyes and ears of your business

Systems are only as good as those who use them

The simplest way to do things

The onset of mental illness; How to recognize it and what to do!

Simplify Your Life Five (5) ways on how to...

www.aussiepaintersnetwork.com.au

From the

Editor

CONTRIBUTORS • Antonia Settle • Brendan Coates

Hey Everyone, Welcome to the lucky 113th edition of the Aussie Painting

Contractor Magazine.

• Caroline Miall • Henry Sherrell

As I write this, I keep hearing about more unprecedented events happening around the country. I send my thoughts to everyone effected and I know from my heart having personally had water through my home only a month ago this is a devastating time for many. Please stay safe.

• jeffpainterguy

In this month’s Mag we hear a great story based on what APN was started for and is all about. Helping others within the industry. It was fabulous to see Scott Sherwin come to the aid of Kevin through the Aussie Painters Network’s Facebook Group. Well done Scott, its fabulous to see the industry helping each other in a time of need.

• Leo Babauta

Last night the Government announced the Budget, there is some interesting things in it for Small Businesses in regard to training of staff and apprentices. If you are after more information, I would suggest you contact the APN office and talk to Jo.

'Til the next issue...

Happy Painting!!

• Jim Baker • Kevin Pindelski

• Monroe Porter • Robert Bauman • Sandra Price • Shelley McKinnon • Will Mackey EDITOR Nigel Gorman

Nigel Gorman

GRAPHIC DESIGNER

07 3555 8010

J. Anne Delgado

nigel@aussiepaintersnetwork.com.au

Advertise with us...

1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com

Contents 06

Systems are only as gooood as those who use them

09

SELL YOURSELF

12

ONE ADVENTURE A lifetime ofof Gratitude

15

Jennifer Gardner

16

The onset of mental illness;

20

How to recognize it and what to do.

5 Ways to SIMPLIFY YOUR LIFE

23

It’s time Australia dumped its bureaucratic list-based approach to temporary work visas

28

How to prevent EMPLOYEE THEFT

32

How record keeping can protect your trade business

38

Simple Financial Mistakes Contractors Should Avoid

41

After the floods comes underinsurance: We need a better plan

44 45

Industry Idiots Important Contacts

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.

Systems are only as good as those who use them Why Measure, Monitor and Evaluate?

Like in the building game, measuring is an important tool for monitoring your business finances and profits.

But it will only be of value if you actually do it. When was the last time you had a good look at your critical numbers, your costs and overheads, incomings and outgoings, and even your Profit & Loss statement?

To measure that you’re on track with reaching your business goals, you need to go right back to your business financials and your timely bookkeeping. Have you got the right systems and processes in place to be able to monitor your business performance in real time?

would not know that you’ve left the path to achieve your goals.

Systems to Make Life Easy Aside from financial monitoring systems, which basically are your bookkeeping and accounting systems, it’s always good to systemise your other work processes, too.

You may already be familiar with online job costing and workflow systems which make life easy to supervise a team of contractors. If not, talk to someone who knows and perhaps put your toe in the water.

It’s a good idea to document your crucial numbers every year, every month and every quarter, check that you are achieving your KPI’s as well as correct your course if you have actually lost track. When the numbers you are monitoring are changing in the wrong direction, then you tweak your strategy, too, to suit the altered scenarios.

The other area that is often forgotten about is communication systems with your customers. Where do your track your conversations and how is your follow up during the sales process? You can use standard CRM or email marketing systems to keep all client information and even automate parts of your communciations.

You can do all this, due to the fact that you’ve worked out a strategy that is your roadmap, your business plan. If you really did not have a strategy, you would not know where you’re going. If you haven’t got the monitoring and evaluation systems in place you

However advanced you are in using digital tools, even developing simple checklists and setting up regular review dates in your calendar to look at your numbers, will help you make good business decisions and change direction quickly if it’s required for the business.

6 | Aussie Painting Contractor

Implement & Monitor With elements like business plan and monitoring systems now in place, there is only one more thing left to do: implement and monitor. If you don’t implement what you’ve planned, you’ll get nowhere fast… and if you don’t monitor what you’re implementing, you won’t know how you’re travelling and if you are achieving your goals and milestones that you’ve set.

The best way to do this is to create a monitoring tool that allows you to compare your performance in the three areas of Sales & Marketing, Production and Finance. The simplest way to do this is by using a spreadsheet that you should update each week with the performance data from these three areas.

It needs to show: • How many orders in $ value you have placed, based on how many leads you’ve received (Sales & Marketing); • How many $ worth of product or services you have produced and delivered (Production); and

3. Finally, by monitoring cash income you can immediately see, if you have a problem keeping up with your business and production expenses. If your production $ figure is high and it is not reflected in your cashflow, you know you need to spend more time managing your debtors, ie checking which invoices have not been paid and systematically follow them up to encourage payment.

Let’s look at an example:

By tracking the performance in these major business areas in dollar figures, it’s easy to see at a glance, when you present these figures graphically, where the imbalance is. Only then, and armed with this knowledge are you able to make sound management decisions that are based on good, solid numbers.

1. Say you’ve created a successful marketing strategy and are bringing in 10 leads per week. You know that your gross margin is, say 53%, and when you convert all leads into sales you generate a turnover of $12,000.

Last, but not least, having a well set up monitoring business performance tool is something a potential buyer of your business will be looking for, if you’re in the market to sell.

2. Suddenly you’ve got orders from new customers to fulfil on top of your usual production quota. Your current output is only $6,000. Unless you don’t put in extra resources into your production, this area will be lagging behind the sales turnover figure. You know this because you have been monitoring your production output in dollar figures every week.

If you have any questions on monitoring your business performance, gross profit margins for your industry, or are just looking for a template that works, feel free to arrange a FREE Business Systems Review Session with me. Call my office on 07 3399 8844, or just visit our website at www.straighttalkat.com.au and complete your details on our Home page to request an appointment.

• How much money you have collected for your orders – Cash In (Finance).

If you can’t meet production targets now with the extra business you’ve generated because you simply can’t mobilise enough resources at short notice, you can decide to bring in less new customers in the next few weeks. You can easily do this by increasing your gross margin as this usually decreases the number of jobs or orders coming in while maintaining your marketing profile. More importantly, this will give your production area a chance to catch up, while you are still generating turnover.

Copyright © 2017 Robert Bauman.

2021 December Issue | 7

SELL YOURSELF What? Well, running your own painting business is not just about being able to paint (although that helps), But if you can’t sell yourself, you will not be doing a lot of painting.

Remember, you only get one chance for an excellent first impression.

Think about this, if a tradesperson was going to turn up at your mother’s house to do a quote, how would you like them to look and treat your mother?

By this, I mean to be respectful, don’t turn with a smoke hanging out of your mouth, don’t smoke even if the homeowner is smoking, don’t swear, and please take your boots off before entering the house. You will be surprised just how good these little things will make you look.

The more professional you look, the more of a premium you can charge for your services.

Most people are willing to pay a bit extra if they can see it worth it.

Are you worth it? If so great, if not, why?

jeffpainterguy Experienced Territory Manager with a demonstrated history of working in the Paint industry. Skilled in Negotiation, Sales, Customer Relationship Management (CRM), Team Building, and Construction. Strong sales professional with a cert 4 in Business Management and a Cert 4 in Colour consultancy.

2021 December Issue | 9

10 | Aussie Painting Contractor

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australia’s most trusted ladder

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2021 December Issue | 11

ONE ADVENTURE A lifetime of Gratitude It started out as a conversation on our Wednesday date night. My Partner Naomi and I were chatting about how inclement weather can be an opportunity and it was at that moment that we decided to pack up the kids, load up the UTE and head on an adventure to Byron Bay. A place we had both wanted to explore for a long time.

Little did we know that we were about to head into an event that would change the lives of many.

On 24th February we drove from the Sunshine Coast to Byron Bay, thinking we were leaving bad weather behind. We had two days of glorious sunshine and were feeling a tad smug about our current situation.

At the same time we knew Sunshine Coast was getting a hammering and we were beginning to worry about the safety of our family and friends. Phone calls at that time confirmed that everyone was ok so we decided to stay on in Byron.

Within an hour of a phone call to family, the skies started to change dramatically in Byron and the heavens opened up.

From this moment, the restful retreat we had planned was turning into an “adventure” exposing the most powerful chapter of growth for us. On the third night our rooftop tent began to leak, so we were forced to seek out alternative accommodation.

We drove to the Lighthouse at Byron bay, a car packed to the brim with supplies and kids and no room to move. As you can imagine, the kids were becoming a little “antsy” at being cooped up. Reflecting upon this situation now, it is ironic that we sought out the “lighthouse” to find our way.

As we got to the lighthouse, sitting in the car, wet and hungry, with screaming kids and funds running low, we received the news that the road was blocked to the Sunshine Coast …. We weren’t going anywhere in a hurry.

12 | Aussie Painting Contractor

PLAN B! There was no plan B, we had budgeted for three days away. We focussed on immediate needs of finding shelter and getting warm and dry. We phoned a number of places which were full so we decided to just drive. We turned up to Glen Villa, resembling drowned rats and I honestly think the hosts felt so sorry for us that they offered us a place for less than half the rack rate. They also offered the option of reciprosity. They gave us an opportunity for exchange.

Someone was looking out for us.

At this time Naomi was experiencing extreme toothache which was quickly becoming a medical emergency. We were shunted from dentist to hospital, both saying her situation was too dangerous for them to attend to. Her face was swelling rapidly and the situation could have potentially been life threatening. The roads were still closed and although our dentist back on the Sunshine Coast had assured us he could help, we could could not get there. The petrol stations were running low, but we had fuel onboard so we decided to head inland as a potential escape route through the mountains.

After multiple creek crossings (we were in a four wheel drive) we discovered that this was not a happening thing so we headed back to Byron Bay with a now near empty fuel tank and no fuel options available.

PLAN C… SOS! At this point, Naomi was in extreme pain, so we considered the option of an emergency rescue helicopter for her. Although this was possibly the best option, Naomi couldn’t leave her children. We headed into the “Arts Factory” which is an iconic hangout, for some respite.

Instantly we walked in, a stranger saw the baby and felt called to take her and relieve Naomi of the responsibility for a short time. Being around good people, healing energy and community spirit was quite possibility the positive reset we needed. Our situation didn’t feel so dire. This was the moment we let resistance go.

Like a scene from a movie, the next day there was talk in town of the water receding and the back roads opening up. It was looking like we could soon be heading north but there was still no fuel in town. As quick as the fuel trucks arrived from the North as the south was still closed for another few days, the fuel would be dispersed to emergency services first.

A lightbulb moment for us was that the assumption that having money is going to save us, is an illusion.

Love and community win every time.

In sheer desperation, we decided to hit the road hoping to find an open fuel station on the way. At this time I had put a SOS callout to Aussie Painters Network asking for help. We had to wait in the next town as we were now on empty. It was at this time that Scott Sherwin became our Painter in Shining Armour by bringing us fuel from Tweed Heads. The similarities to my dreams and the life Scott is living, was uncanny!

By writing this article, peace has come over me as I feel I have integrated the lessons shown to me.

It is now time to manifest and action the change to live the lifestyle I desire for my family and myself. It all comes back to love.

--------------------------------------------------------------------

Shelley McKinnon Kevin Pindelski The Barefoot Painter

We were on our way!

2021 December Issue | 13

50 YEARS A HOUSE PAINTER

To know more about this book, Visit our website today! www.mytools4business.com

This book contains 36 topics of industry related knowledge and information which will help you in the way you operate your business.Topics under headings of; Business Checklist, Staff, Marketing and Sourcing Customers, Professional Behavior, Successful Operation and Looking Ahead. Highly recommended by Jason Osborn, Dulux Business Development Executive as; ‘A very easy interesting read, that combines industry facts and great topics.’

14 | Aussie Painting Contractor

Jennifer Gardner t’s always interesting to know how people start in business so I get great pleasure in writing and sharing their stories. This particular lady is from England who started in one line of work to later becoming a painter.

My name is Jennifer Gardner At age 23, I left my hometown and went to the ‘Kent Institute of Art and Design’ because I wanted to get into Interior Design. However, becoming a single parent suddenly of two small children meant I couldn’t continue the degree. This meant I had to move back and settle into single mum life and working in retail.

Years of this just made me feel there was more to life than that, which made me want to get back into Design, especially Architecture. I was now 30 years old.

I set out in applying for ‘AutoCad’ (Computer aided design software) at a college to try and get an apprenticeship in an Architects’ firm but when I arrived, they had discontinued the course stating there was not enough interest. I asked what else they had on offer and was told ‘Painting & Decorating’, so I said ‘OK’.

It was a two-year course, and every half term and in the summer break, I worked for my Tutor on his jobs and gained my ‘on-site’ experience. As soon as I finished, I started up my own business ‘Jennifer Gardner Interiors’, using the experience I learnt in the previous two years.

I set up a Facebook business page and shared it on local groups within my friends and family. I also put myself on ‘Google Business’ and just left it to grow with likes, added my work photos and before I knew it, it was receiving more and more interest.

I usually work by myself and have employed the odd labourer here and there to help on larger projects, but it’s hard to find people with high standards to match mine.

With six years being in business, I fortunately don’t have to use paid advertising anymore as all my work now is generated by word of mouth. This is from previous clients and friends tagging my page when people ask for recommendations. I have so many jobs accepted now that I am presently working 60 hours a week.

Thanks Jennifer for sharing this with us and all the best for the future.

------------------------------------------------------------------------------------------

Jim Baker

www.mytools4business.com

2021 December Issue | 15

The onset of mental illness; How to recognize it and what to do.

Managing the poor health of a loved one is always hard, no matter what kind the illness. The beginning of a mental illness however is a whole other level of complexity and confusion because there may be no obvious trigger or clear path forward for those involved. Differentiating between ‘normal’ and disordered emotional disposition and behaviour, especially for those in adolescence or young adulthood (which is a time when we humans feel a bit like we’re going mad anyway), is no mean feat! Then, to be able to discern how to respond and what to do to best take care of the person in the long term, is a massive responsibility, particularly if required for someone who is unable to do it for themselves.

Mental illness can come about due to vast range of things like experiences of trauma, genetic disposition, or poor physical health can significantly increase the occurrence of things like anxiety and depression.

Anxiety and mood disorders are by far the most common. The late teens, early twenties are the ages one is most likely to start developing symptoms. So, what should you be looking for if you’re raising a young person or concerned about someone close to you?

Or yourself? What will you do if you think something is really wrong?

16 | Aussie Painting Contractor

If you find are concerned for your own or someone else’s immediate safety, you can access the Acute Care Team service by calling the 24 hour access number 1300 MH CALL (1300 64 2255) or call Emergency Services on 000.

For non-emergent cases, whether it is talk style therapies or other modality, medication, or a combined approach needed, your first of call is likely your GP. If it is someone close you are worried about, offer to go to the GP with them if it will help. Ask the GP for a mental health care plan and discuss worrying symptoms and what services or possibly medication might help. Thankfully, there are still free services available like Headspace and Kids Helpline and of course many private counsellors, psychologists and psychiatric services. You will likely need a GP referral and a care-plan to access these, particularly for any kind of subsidies.

There are many examples of alternative therapies and healthy lifestyle practices such as mindfulness that will help. Be open to learning what will work for the individual, for physical and mental health (and the two are inextricably linked), with an understanding of evidence base practices.

Help is here and now!

n

a d r o J

Mik

e

As the construction industry continues to grow around Australia, so too does the demand for skilled painters.

As a painter and decorator, you're exposed to some unique occupational hazards, so it's important to be prepared for any workplace emergency.

As a business based on the NSW Central Coast that specialises in first aid emergency solutions, SURVIVAL is on a mission to raise awareness about the importance of being prepared for medical emergencies while on the job.

SURVIVAL’s CEO, Mike Tyrrell, says that when you’re in the painting trade, the chances of a workplace accident or injury are very real.

"Painting is a physically demanding job. You are often on your feet for hours at a time, carrying heavy loads and working with ladders, and when you add the hazards of paint and paint-handling materials, the potential for an accident increases," says Mike.

“According to data from Safe Work Australia, there are over 10,000 serious injuries in the construction industry each year, with painters and decorators being some of the most at-risk due to the nature of their work.

“Providing immediate and effective first aid to people who have been injured or become ill on the job may reduce the severity of the injury or illness and, in some cases, could even save a life."

A family-run business, SURVIVAL was founded in 1988 by twin brothers Tim and Jerry Tyrrell in response to personal tragedy.

Over the ensuing 34 years, the company has become a leader in first aid innovation, education and empowerment for individuals and workplaces around the globe.

SURVIVAL is offering APN readers an exclusive discount: 13% off all products, sitewide!* Offer ends 30 April 2022.

Director of Marketing & IT, Jordan Green, explains that SURVIVAL is continually looking at ways to make first aid more accessible for people in 'hands-on' professions.

“We’ve just released the latest update to our free iFirstAid app, which features step-by-step instructions and video resources to guide people, including trade professionals, through common emergencies and help them remain in control,” says Jordan.

There are over 10,000 serious injuries in the construction industry each year, with painters and decorators being some of the most at-risk due to the nature of their work.

“We have also developed the SURVIVALSWAP audit compliance system to ensure workplaces remain stocked and compliant at all times, saving you time, hassle and money.”

It’s safe to say that work-related first aid is vital, and a SURVIVAL First Aid KIT can also save the day when it comes to workplace injuries.

“Our Workplace First Aid KIT contains the components you need to be workplace compliant, so you’re never caught short,” says Mike.

To get safety sorted on your job site, visit survival.net.au

VISIT survival.net.au and use code

APN13 at checkout.

Protecting workplaces for 34 years

2021 December Issuedefibrillators | 17 *Offer excludes

18 | Aussie Painting Contractor

Since Covid rendered us homebound, the online support for mental health has grown in design and accessibility. This means cost free help is literally at your fingertips, especially if you don’t wish to engage with a face-to-face service. There are free online chat, video and telephone options available from several services (https://www.lifeline.org.au/, https://blueknot.org.au/, https://www.beyondblue.org ).

Mental Health Online is an example of how far we have come. https://www.mentalhealthonline.org.au/ is supported by Swinburne University and is simple to sign up. There are programs for depression, anxiety, obsessive compulsion, post-traumatic stress and many more options. An extraordinary range of support is available, including therapist supported ‘e therapy’ and a Virtual Reality Mindfulness experience called Place.

If you are concerned about a child, provide resources they can access themselves, any time like https:// kidshelpline.com.au/ & https://kidshelpline.com.au/ teens These services can assist on the phone or online. This may be a much easier way for the screen obsessed, group chat, texting teen to ask for help.

Aussie Painters Network has secured the assistance of a qualified counsellor to aid us in student support

and wellbeing and to keep you on track to complete your apprenticeship (or even support you while you run your business).

Caroline can assist in providing tailored support that is based on having real and honest conversations about where you are at, so we can provide the best recommendations of the things you can do and access that will assist. Your apprenticeship will take several years to complete, and we think it’s important to have a person ready to talk with you along the way.

We are a team who are passionate about vocational education and our ethos is about striving to make your learning experience positive and empowering.

To make a telephone or face to face appointment with Caroline, please call us on 1800 355 344 or email Caroline@aussiepaintersnetwork.com.au --------------------------------------------------------------------

Caroline Miall

www.aussiepaintersnetwork.com.au

2021 December Issue | 19

5 Ways to

SIMPLIFY YOUR LIFE One of the great joys of my life is living simply, and every now and then finding ways to return to simplicity.

too much, leaving space so that the curated lovely activities feel spacious and not rushed.

Life tends to get complicated with time, and so I find ways to simplify.

Actions/tools: A simple document or notebook page where you make a curated list of what you want in your life will suffice. Take 20 minutes and really give this your attention.

I’ve done lists with 100 ways to simplify, but obviously that’s not very simple! So today I’ll share five ways.

These aren’t the “best” ways or the “right” ways but some of my faves.

Here they are in short form, I go into more detail below: •

Curate your day.

•

Start living in fullscreen mode.

•

Weekly clearing ritual.

•

Eat simple foods & move.

•

Slow down & enjoy quietude.

Curiosity piqued? Let’s look at each one.

Curate Your Day

This process starts with identifying the things you want in your day, as if you were curating a small but thoughtful collection.

What handful of things would make your day amazing?

For me: meditation, reading, writing, calls with team & clients, time with loved ones, simple foods and movement (more on the foods & movement below).

Live in Fullscreen Mode

My favorite way of going through my day is to do every activity in fullscreen mode. When I can remember. That means if I’m answering emails, I give myself full space to read and reply to each email instead of having a thousand tabs open. If I’m writing, I’m just writing. If I’m eating, I’m just eating.

Of course, I don’t always do this, but when I do, my life feels so much more simple. Each activity is generously given its own space, and I enjoy each more.

Fully be present for every activity, from brushing your teeth to washing a dish to reading a book.

Actions/tools: I like the Onetab extension for the Chrome browser, to clear away all the extraneous tabs and give full attention to one thing. Fullscreen writing apps. Close all apps on your phone but the one you’re reading. Turn off devices when you’re doing something analog.

Weekly Clearing Ritual

Each week, you might consider a ritual where you clear everything out. Sunday is a good day for it, but so is Friday.

What would your list contain? Yoga, calls with family, drinks with friends, tea, a bath? Whittle it down so your day isn’t overly full.

Spend a short time clearing out your various inboxes, getting them to zero. Clear out your desk and computer desktop/download folder. Get your todo list and calendar in good shape. Clear out clutter and papers.

Then start to let go of everything not on the list. Let go of social media and news sites and other distractions, if they don’t fit into your curated day. Let go of doing

This clearing ritual feels fantastic! You are ready to take on the world.

20 | Aussie Painting Contractor

Actions/tools: Set aside an hour on your calendar each week for a clearing ritual. Go through everything you can and get your digital and physical life cleared.

Bonus: have a ritual for finances as well.

Eat Simple Foods & Move

Health can be such a fraught area of our life, for so many reasons. So I find it calming when I can simplify.

I start with movement. Go out for a walk or run. Drop into a squat position, move around like an animal.

Stretch, hang, pull myself up, push myself up. Lift some weights, play some sports, play with the kids outside. I enjoy simple movement that doesn’t require a ton of equipment.

Then I fuel my body with simple food: •

Lentils and kale (with lemon juice, soy sauce, olive oil, nutritional yeast and cayenne pepper)

•

Bean tacos with guac and salsa and veggies

•

Beans and brown rice, tahini sauce and all kinds of veggies

•

Oats and berries with nuts and cinnamon

•

Coconut meat, avocados, berries, dark chocolate, tea

The food is simple, whole, and delicious. It fuels the temple of my body, doesn’t cost a crazy amount, doesn’t impact the earth much, and doesn’t harm animals.

Actions/tools: Make a list of simple foods you enjoy, and base your eating on these. Don’t be crazy strict about it, it’s about eating simply not being rigid. Move every day, throughout the day.

Slow Down & Enjoy Quietude

You don’t need any material things in order to slow down. You just do less, and savor each activity. Take some breaths, and give yourself more space. Leave space between things, and enjoy that in between space.

Notice when there are moments of quiet, and savor that as well. Create moments of quiet if needed.

This is the benefit of living a simple life, this slowness and spaciousness, but it can also be a path to the simple life. Slow down to simplify.

Actions/tools: This week, put a physical note for yourself to slow down, and see what that practice might be like for you.

Leo Babauta ZEN HABITS

2021 December Issue | 21

The Painters Podcast Aussie Painters Network and Painters Training bring you everything painting business related.

We will be interviewing and discussing all things you need for running a profitable painting business.

thepainterspodcast.com.au

22 | Aussie Painting Contractor

It’s time Australia dumped its bureaucratic list-based approach to temporary work visas Australia’s temporary skilled migration program is hard for businesses to use while still not protecting migrants from exploitation.

There is a better way, concludes a new report from the Grattan Institute on fixing temporary skilled migration.

The long-standing practice of restricting temporary sponsorship to occupations classified as “in shortage” should be abandoned. Instead, temporary sponsorship should be reserved for higher-wage jobs in any occupation.

Occupation classifications are inflexible There are more than 1,000 occupations in the Australian and New Zealand Standard Classification of Occupations (ANZSCO).

The government use these classifications of Australia’s 13 million jobs for a range of purposes.

The National Skills Commission (which advises the federal government on workforce skills needed) and the Department of Home Affairs (which oversees visa programs) use them to compile three lists of skills wanted by Australia’s skilled migration schemes.

One list is focused on short-term needs, another on longer-term needs and the third on skills needed in regional areas.

Defining needed skills by occupation, however, is an inflexible way to meet shortages in a rapidly changing labour market – and flexibility is the very thing temporary skilled migration programs are meant to provide.

This rigidity is becoming ever more of a problem as more highly skilled service industries develop. New tasks and roles take time to be classified as official occupations. For example, ANZSCO didn’t recognise the developing and in-demand profession of “data scientist” as an occupation until September 2019.

2021 December Issue | 23

An occupation ‘shortage’ is hard to measure For occupations that do exist, deciding which are “in shortage” isn’t clear-cut.

Temporary visas should prioritise high-wage jobs

For example, the National Skills Commission’s 2021 Skills Priority List defines a “shortage” as:

To get a better deal, Australia must rethink its approach. Temporary sponsorship should be reserved for higher-wage jobs in any occupation.

when employers are unable to fill or have considerable difficulty filling vacancies for an occupation, or significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment, and in reasonably accessible locations.

Our new report calls for the Temporary Skilled Shortage visa – which enables employers to sponsor a employee to stay in Australia for up to four years – to be replaced with a new visa, the Temporary Skilled Worker visa.

This is unsound. Wages change over time. Wages for a job where demand is greater than supply will probably increase relative to other jobs. Pegging the definition to “current levels of renumeration” will overstate the roles in which there is a genuine shortage.

This new visa would allow employers to sponsor workers in any occupation, provided the job pays more than $70,000 a year and at least equal to what an Australian doing the same job would earn.

This threshold reflects the median earnings of 2534 year olds working full-time in Australia, and the fact those on temporary visas earning more than $70,000 will experience bigger wage increases than those earning less.

But even with a better definition, Australian policy makers would still lack the data – such as timely vacancy and wage data for each of the 1,000 occupations – to identify skills shortages in real time.

Without this information it is difficult to see what, beyond input from industry lobby groups, determines which occupations become eligible for temporary sponsorship.

Not all jobs within an occupation are equal A system that looks at occupations rather than jobs also misses crucial parts of the story.

A senior accountant working for a multinational corporation in a capital city and a graduate accountant working for a local business in a country town have the same occupation. But the level of education and experience, responsibilities and remuneration offered for each job will vary dramatically.

Grattan Institute

By removing occupation lists, the proportion of fulltime jobs open to temporary skilled migrants would rise from 44% to 66%.

Conversely, the number of jobs that employers would no longer be able sponsor a temporary migrant to fill – those now on the list paying below $70,000) is tiny. In accommodation and food services, the sector that uses temporary skilled visas the most, these jobs make up just 1.5% of the labour force; in other sectors it’s less than 0.5%

24 | Aussie Painting Contractor

2021 December Issue | 25

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Given migrant workers in lower-paid jobs are most likely to be exploited, this reform should reduce employer abuses and increase public confidence in the temporary skilled program.

Targeting higher-wage migrants will better address most genuine skills shortages that emerge. Removing cumbersome and uncertain occupation lists will give businesses greater certainty and a simpler application process to access the skills needed in emerging industries.

Australia can get the best of both worlds from its temporary skilled migration program by making it simpler for everyone. It will to deliver more for Australian businesses, workers and the economy.

--------------------------------------------------------------------------------Will Mackey Senior Associate, Grattan Institute

Read more: We’ve let wage exploitation become the default experience of migrant workers

Brendan Coates Program Director, Economic Policy, Grattan Institute

High-skilled migrants pay more in taxes than they receive in public services and benefits. Targeting temporary migrants with higher skills will also increase the pool of high-quality candidates for Australia’s permanent skilled migrant intake.

Henry Sherrell Deputy Program Director (Migration), Grattan Institute

2021 December Issue | 27

How to prevent

EMPLOYEE THEFT The recent statistics on employee theft is shocking.

According to one US source, 75% of employees admit to having stolen at least once from their employer—and employee theft costs a company on average 7% of their annual revenues each year.

your instincts. If you sense someone might pose a risk to your business, don’t give them the benefit of the doubt. Hire someone else you feel comfortable with.

As a business owner you may not be aware of the many ways employees can steal from you. Some common methods include:

Think of opportunities where staff have unsupervised access to sensitive financial data, cash, or anything of value – then brainstorm how you can minimize the risk.

For instance, make sure no employee ever opens or closes the store alone, separating co-workers who are friends. Restrict access to financial records and change your secure company passwords often.

• redirecting company checks to personal accounts and altering entries to cover up the theft • undercounting change to customers and keeping the balance • seeking reimbursement for non-business related expenses or • pocketing inventory or supplies.

As a small business owner, you may not have the big security budget of a large company, but you can combat employee theft with these simple strategies.

Do your due diligence when hiring This may be one of the most important steps you can take to combat employee theft. Screen all potential employees carefully. Look into employment history, call references, and run a credit check. Above all, trust

28 | Aussie Painting Contractor

Identify and eliminate opportunities to steal

Conduct ongoing audits In addition to having an annual third-party audit, it’s wise to perform random internal audits every few months to spot fraudulent activity early. Your bookkeeper or accountant can help you maintain accurate numbers and flag transactions that appear suspicious.

Keep a close watch on inventory and supplies Invest in an automated real time inventory management system. It’s a good idea to hire an independent party to check your records on a regular basis, too, to catch any discrepancies in your physical inventory and recorded data.

Use a smart POS system Exception-based reporting systems for point of sale transactions are one of the most useful tools to come out in recent years for preventing employee theft.

These systems identify potential fraudulent transactions in real time—excessive refunds or voids, for instance—allowing business owners to investigate fraud quickly.

Invest in security measures

good will with the people who work for you. A friendly environment where people care about each other creates an atmosphere where criminal behavior is less likely to take place.

One final tip: give your staff a way to safely and anonymously report suspicious employee activity.

Your staff are the eyes and ears of your business, but they may not come forward with incriminating information unless they feel safe doing so.

It only makes sense that when staff know they’re being watched they’re less likely to steal from you. Key areas for video surveillance include storage space for inventory and supplies, offices where financial data is kept, and at the cash desk in-store.

Final thoughts Although it’s important to do everything you can to eliminate opportunities for staff to steal from you, one of the most effective ways to avoid employee theft is to nurture a positive relationship with your team.

It is much harder to steal from people you know. So take the time to interact with your employees, fostering

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How record keeping can protect your trade business Paperwork can be one of the least enjoyable aspects of running a trades business.

But you know what’s worse than paperwork? It’s dealing with a dispute or a public liability insurance claim, and still having to do all the paperwork anyway!

Even if you’re in the vast majority of tradies and builders who do the right thing and produce quality work, it doesn’t always stop a client from trying to lodge a claim or make a complaint against you.

So aside from doing your own quality checking and ensuring that your work is of a high standard, how else can you protect yourself from disputes? Especially those which could end up as a public liability claim?

The answer is good record keeping. We’re not just talking about your standard contracts, but various forms of record keeping and evidence that will help to prove your side of the story.

As well as being great for marketing, photos can also be a great way of protecting yourself in the event of a dispute.

Whilst it may be a pain to take before, during and after photos of each job, it’s a very effective way of recording evidence and settling disputes.

There was a recent insurance claim where an electrician scratched a glass splashback in a kitchen whilst installing a new rangehood.

In this case the electrician knew he caused the damage and was happy to lodge a claim via his insurance broker. Whilst his insurance covered the cost of replacing the splashback, he still had to pay a $500 excess, which is still better than having to cover the full cost of course.

But what if the electrician didn’t believe he caused the damage? Without any evidence it would be his word against the homeowner’s.

Here are a few good ideas that we’ve seen over the years, that could potentially be implemented in any trades or building business.

His insurance would still cover him, but he’d be paying a $500 excess and potentially suffer an increased premium at his next renewal.

TAKING PHOTOS We see plenty of builders and tradies taking photos of their finished work to share on social platforms such as Instagram.

If he’d have taken before and after photos however, it would be clear whether the scratches were caused by him or not, and it may never make it to a claim as he could prove he wasn’t responsible for the damage.

32 | Aussie Painting Contractor

recall a small detail from weeks, months or even years ago, he could always refer back to those notes.

There are services available now that can transcribe your speech notes to text, which could make searching them at a later date much easier.

You might feel a little odd at first walking about talking into your phone, but those recordings or notes could be invaluable in the event of a dispute or claim.

RECORDING VIDEO If you wish to take it a step further, you could consider video recording your work.

This is probably a step too far for most tradies, but it would certainly give you near irrefutable evidence that you did or did not do a particular thing.

SCOPE OF WORKS For larger jobs it’s a given that a detailed scope of works will be in place. But what about those smaller maintenance jobs?

By having a written document in place that clearly outlines to both you and the client what is being done, you’ll can help to avoid potential issues down the track.

TAKING NOTES No one wants to stop halfway through their work and start writing down notes, but have you considered using your voice?

Virtually all modern smartphones will have a voice recorder app that is preinstalled and easy to use.

Whilst no one wants to record a running commentary of every job, if you see something that seems noteworthy, you could grab your phone and record a quick note.

Should a dispute or issue of some sort arise in the future, your voice note recorded on the spot could prove to be pivotal.

We recently had building and landscaping work done at our house, and the builder would walk around the site talking into his phone making notes about the work and his observations. He might never need to refer to those notes, but if he did need to try and

Maybe you’re a plumber going out to replace a leaking tap. A fully detailed scope of works would seem overkill, but a quick single-page document could prove invaluable if something was to go wrong.

If something does go wrong which results in a claim on your business insurance, the insurer will often ask for a scope of works as part of the claim anyway.

Whether it’s a printed and signed document or just an email trail between you and the client, any type of written evidence is going to be better than none.

Contracts Having a building contract in place is obviously required in many cases. We’re not experts in that department and won’t be going into it.

Suffice to say though, if you’re doing work that requires a contract, make sure you have a signed contract before undertaking any work.

2021 December Issue | 33

CLAIM PROCESS If you do have a client who makes a complaint that could lead to a claim it’s always best to bring your insurance broker into the picture as soon as possible.

Even if you don’t believe it’s your fault or that you’ve done anything wrong, getting the insurance company involved earlier will typically lead to better outcomes.

Your insurance isn’t just there to protect you when you’re in the wrong. It’s also there to defend you when you’re accused of being on the wrong.

A public liability policy includes cover for defence costs, meaning that the insurer will pay for legal representation to defend you.

So don’t want until you’ve argued it out with your client or whoever is making the complaint against you. Get your insurance broker and insurance company involved, as we’re all on your side!

Whatever evidence you’ve collected along the way will be hugely beneficial as the claim progresses.

BONUS SECTION – TOOL INSURANCE This article has been all about protecting your trade business in the event of public liability insurance claims.

Those are claims involving property damage or personal injury caused by you (or your business) and suffered by a third party.

But we should also touch on the importance of record keeping when it comes to another popular form of tradies insurance – tool insurance.

34 | Aussie Painting Contractor

If you’re insuring your tools, it’s imperative that you keep a record of those tools so you’re prepared for a claim.

Typically you’ll need the following details regarding the tools: • • • •

A list detailing each item The replacement value of each item Serial numbers where applicable Tax invoices or other evidence of ownership

It won’t be good enough to just tell your broker or insurance company that you had $5k worth of tools stolen and expect to be paid that amount. You need to provide evidence of ownership.

So if you want to make sure a tool insurance claim will run smoothly, good record keeping is going to help you here too.

OTHER IDEAS Do you have any other ideas or methods for protecting yourself and your trades business from potential disputes and claims?

Of course having the right insurance backed by a great insurance broker is vital, but anything else you can do along the way can only help.

If you have any tips to share please get in touch.

www.traderisk.com.au

Listen to everything going on in the Painting Business World. with

Nigel Gorman

thepainterspodcast.com.au 2021 December Issue | 35

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Simple Financial Mistakes Contractors Should Avoid Many contractors do not have a strong financial background and do not like accounting. However, there are simple procedures and financial logics that can help contractors avoid negative financial situations.

This article is designed to identify simple errors contractors may make.

Worrying too much about cash. How much cash is in the bank can be a misleading factor when studying the health of a business. Cash makes us feel good and is deeply ingrained in our psyche. As a kid, if you made a few bucks mowing a yard or running an errand, it was great. You had money to spend. Business does not exactly work this way. Just because we have cash on hand does not mean the business is making money at that moment.

Every business needs cash. However, cash is more of a business tool that an actual measurement of success. You need cash to pay your bills and keep the business going but it is not necessarily a measure of profit. A good example of this is when contractors gear up in the spring. The business is making money but much of the actual cash is being eaten away by payroll, material bills, etc. Where in the fall, many contractors gear down for the winter. They may actually lose money in December but have plenty of cash on hand because they are collecting receivables from past work with no money going out.

Cash on hand might be compared to pulling a trailer.

If you are doing everything right, it is always following

38 | Aussie Painting Contractor

you. If you charge the right price, make a profit and collect your money, cash follows your business effort.

You can pay taxes on a cash statement if that is what your accountant advises but use an accrual statement for financial review. An accrual statement shows all costs including accounts receivable and accounts payable to show a true profit. A cash statement only shows what you have paid and collected. On that note, enter accounts payable into your accounting system as the bills come in. Even if you do not have enough money to pay the bill, it still is there to show a true profit or loss.

Don’t merely use your accounting system as a checkbook and only make entries when paying bills. Try to keep your financial records as current as possible.

Don’t put customer deposits into sales when you put deposits into the bank. Show them as a negative receivable or a liability. Deposits represent money you owe the customer until work is actually performed.

This is a little complicated but vital to creating an accurate statement. You also don’t want to spend your customer’s money and then not have the money left to do their job.

If you do repairs, you must either price them time and material with a minimum charge or if quoted, build enough into the repair quote to cover sales cost. No matter how you calculate sales expense, it costs a minimum of $100 to run a sales call. ($50 an hour times two hours is $100).

So how can you quote a $100 repair? You can’t. And this gets even more complicated. Suppose, you only sell 50% of the repairs you estimate.

Now you need $200 to recover the job you won and the job you lost. If you must give estimates, make sure you build something into the quote to cover sales costs.

Internal theft continues to be a problem with contractors. Through the years, we have found that over 10% of our customers had embezzlement and less than 1% a fire. Yet most contractors are insured for fire but not theft. The cost of this insurance varies greatly from state to state and you may want to “bond” your bookkeeper or office manager but bonding only applies to the person you have bonded. You want to talk with your insurance person about what options are available in your state.

Most banks today do not want to send you a copy of the checks. Pay more for this service and have the banking and credit card statements sent to your house. There are lots of ways for employees to steal but writing checks and charging items to your credit card is the easiest way to take advantage of you.

Look to crew size and don’t over staff jobs. A few years ago, we had a customer roof identical apartment buildings and track costs. The only factor that impacted production costs was crew size. The smaller the crew, the fewer hours it took to roof the job.

We have contractors who join our networking groups that have 6 or 7 people in an install crew. We tell them to drop one person and the production tends to take the same amount of time.

Have a monthly financial meeting each and every month. At the meeting review a profit and loss statement, a balance sheet, your accounts payable, your accounts receivable, your sales, closing ratios and your backlog. Want better accounting records? Then use them. As you ask questions and explore the data, it will become more and more accurate.

Financial discipline and understanding is imperative to running a business. Just because you don’t like to do something, don’t have an excuse not to do it. I don’t like to go to the dentist but I still go.

------------------------------------------------------------------------------

Monroe Porter

is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.

www.proofman.com

2021 December Issue | 39

40 | Aussie Painting Contractor

After the floods comes underinsurance:

We need a better plan The floods affecting Australia’s eastern seaboard are a “1 in 1,000-year event”, according to New South Wales Premier Dominic Perrottet. But that’s not what science, or the insurance industry, suggests.

Throughout Australia in areas prone to fires, cyclones and floods, home owners and businesses are facing escalating insurance costs as the frequency and severity of extreme weather events increase with the warming climate.

Premiums have risen sharply over the past decade as insurers count the cost of insurance claims and factor in future risks. The latest report from the Intergovernmental Panel on Climate Change, published this week, predicts global warming of 1.5℃ will lead to a fourfold increase in natural disasters.

Rising insurance premiums are creating a crisis of underinsurance in Australia.

In 2017 the federal government tasked the Australian Competition and Consumer Commission to investigate insurance affordability in northern Australia, where destructive storms and floods are most common. The commission delivered its final report in 2020. It found the average cost of home and contents insurance in northern Australia was almost double the rest of Australia – $2,500 compared with $1,400. The rate of non-insurance was almost double – 20% compared with 11%.

While the areas now experiencing their worst flooding in recorded history aren’t part of the riskiest areas identified by the insurance inquiry, the dynamics are the same.

Those not insured or underinsured will be financially devastated. Insurance premiums will rise. As a result, more people will underinsure or drop their insurance completely, compounding the social disaster that will come with the next natural disaster.

So, what do about it?

2021 December Issue | 41

Tackling insurance affordability There are two main ways to reduce insurance premiums.

One is to reduce global warming. Obviously this is not something Australia can achieve on its own, but it can be part of the solution.

the risk of crippling insurance payouts.

The idea is that discounted reinsurance will lead insurers to lower their premiums.

Read more: A national insurance crisis looms. The

Morrison government’s $10 billion ‘pool’ plan won’t fix it

The other is to reduce the damage caused by extreme events, by constructing more disaster-resistant buildings, or not rebuilding in high-risk areas.

There is no guarantee, however, that insurers will pass on their cheaper costs to customers. This means the benefits of the pool are unclear.

The federal government, however, has put most of its eggs in a different basket, with a plan to subsidise to insurance premiums in northern Australia.

So are its costs. Effectively, the government is shifting risk from insurers to itself, subsidising insurance premiums for those in some parts the country from the public purse.

The ACCC inquiry gave considerable attention to the idea of a reinsurance pool. While acknowledging there could be some benefits, it concluded the risks outweigh the rewards: We do not consider that a reinsurance pool is necessary to address availability issues in northern Australia.

Targeting and mitigating Above and beyond the aforementioned problems, there are two telling failures of the reinsurance pool plan.

First, subsidising insurance companies doesn’t target help to those who need it most: low-income households.

There is a growing body of research showing that natural disasters, and the ways governments respond to them, is contributing to greater inequality.

This won’t do much for those affected by the current floods. It won’t even do much to solve the insurance crisis in northern Australia.

The reinsurance pool, a blunt tool In the 2021 budget the federal government committed A$10 billion to a cyclone and flood damage reinsurance pool, “to ensure Australians in cycloneprone areas have access to affordable insurance”.

The legislation to establish this pool is now before parliament.

The ostensible rationale is that the government can drive down insurance costs for consumers by stepping in and acting as wholesaler in the reinsurance market, in which insurers insure themselves against

42 | Aussie Painting Contractor

As the South Australian Council of Social Service makes clear in a report published this week, improving insurance access for people on low incomes at risk from natural disaster requires targeted support, such as promoting non-profit “mutual” insurance schemes.

Read more: Natural disasters increase inequality. Recovery funding may make things worse Second, only mitigation can bring the overall cost of natural disasters down. Ways to do this include public works (building levees, upgrading stormwater systems, conducting planned burns) and improving buildings (reinforcing garage doors, shuttering windows, managing vegetation around homes, and so on).

The ACCC’s insurance report identifies a range of ways mitigation strategies can be tied into insurance pricing. Yet none of these has been incorporated into the Morrison government’s response to the insurance crisis.

There is little support for the reinsurance pool outside of the federal government. Neither the ACCC, the insurance industry nor community sector advocacy organisations support reinsurance as a meaningful solution.

A reinsurance pool for the whole of Australia?

For the areas of NSW and Queensland now flooded, as well as the rest of the country outside the ambit of the reinsurance pool, the relentless rise in insurance costs will continue, tipping ever more homes out of the insurance safety net.

We must find better solutions to the insurance crisis than what is being offered to northern Australia. A

The portable, inexpensive method to prevent paint waste-water polluting the environment.

reinsurance pool cannot be a national solution because it isn’t the solution for northern Australia.

There are no cheap and easy solutions, but the terrain is clearly mapped out across an array of inquiries and reports into insurance and climate vulnerability.

More than a blanket subsidy for the insurance industry, the time has come for climate vulnerability to be taken seriously by the federal government.

------------------------------------------------------------------------------

Antonia Settle

Academic (McKenzie Postdoctoral Research Fellow), The University of Melbourne

44 | Aussie Painting Contractor

IMPORTANT

Contacts

Aussie Painters Network aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating painters.edu.au

Ph. 1300 319 790

Australian Tax Office ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates fairwork.gov.au

Ph. 13 13 94

Fair Work Building & Construction fwbc.gov.au

Ph. 1800 003 338

Mates In Construction matesinconstruction.com.au

Ph. 1300 642 111

Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania

comcare.gov.au worksafe.act.gov.au worksafe.qld.gov.au vwa.vic.gov.au workcover.nsw.gov.au safework.sa.gov.au commerce.wa.gov.au/WorkSafe/ worksafe.nt.gov.au worksafe.tas.gov.au

1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322

actcancer.org cancercouncil.com.au cancercouncilnt.com.au cancerqld.org.au cancersa.org.au cancervic.org.au cancerwa.asn.au

(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333

Cancer Council Australia ACT NSW NT QLD SA VIC WA

2021 December Issue | 45

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