Aussie Painting Contractor August 2018

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Hiring Strategically... Hiring new staff is something that can be exciting

The Debt Recovery Mindset It’s Standard Operating Procedure Insurance What do you need? Different types of insurance that a contractor will need

www.aussiepaintersnetwork.com.au



CONTRIBUTORS • Angela Smith • Anthony Igra • Christina Mair • Jim Baker • Julia Verdouw • Kathleen Flanagan • Leo Babauta • Monroe Porter • Richard Eccleston • Robert Bauman • Sandra Price

EDITOR

From the Editor Hey Everyone, Welcome to the 79th edition of the Aussie Painting Contractor Magazine, For those that aren’t aware, Aussie Painters Network started with an idea of what might be needed in our industry to share information and assist business owners in becoming more profitable. After 7 years of what started as an idea under a house and then followed by 5 years in Rocklea Brisbane, we are about to move to new premises. So in the coming weeks we will let you know where you will be able to find us. Nothing is going to change, just our location and a few extra surprises on how we will be working towards improving our industry and looking at how we can assist in professionalising all painting businesses. This month we have assisted in painters getting over $70,000 in money owed to them. Contact us if you are owed money and we may be able to assist or send you in the right direction to get paid for the work you do.

Nigel Gorman

Also, if you have apprentices or are looking at upskilling yourself in areas of the industry, contact us for the best direction for you to follow.

EXECUTIVE EDITOR

Until next month,

Caroline Miall

Happy Painting!!

GRAPHIC DESIGNER J. Anne Delgado

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010


Contents Hiring Strategically... WHEN BUSINESS PLANNING RING What insurance does a contractor need? THE DEBT Recovery Mindset

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8 12

SIMPLICITY AS SPIRITUAL PRACTICE: Declutter for Deep Personal Growth.

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24

ATTENTION: All Queensland Employers

Details to ‘QLeave’ about their workers’ service at the end of each financial year

It’s going to COST YOU SOME MONEY to get your money

Gradual reform to capital gains

Alcohol’s health benefits 15

We need a holistic, long-term plan to address the legacies

26

What Makes a GREAT BOOKKEEPER It’s Standard Operating PROCEDURE

29 33

Getting Unstuck

35

Industry Idiots

38

Important Contacts

39

Hard to prove, but harms are easy to document

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.


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

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Hiring Strategically... WHEN BUSINESS PLANNING RING

Work’s started to flow in, but you simply don’t have enough painters to cope, and a backlog of work is building up... You resort to hiring anyone with the skills to get the job done. After all, if the job’s not getting done, you’re not making the money. Right? Wrong.... Sure, finding someone fast, getting the job done and making money is all well and good. But what about the risks you are exposing your business to? Hiring fast will only result in one, some or all of the following; Employees that simply aren’t the right fit for the team resulting in low team morale, lack of motivation and the ultimate loss of money due to reduced productivity.

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-Employees that don’t understand the company and the values within it, and don’t have the pre-existing business loyalty. As a result, they show unreliability such as not turning up on time (or at all), and often buckle under the pressure of the busy workload - u ͞ p-and-leaving͟ putting you in the exact, tradesmanless position you started off in. The biggest issue is that trade business owners experiencing these challenges amongst such busyness don’t have the time to sort the issue out nor do they have the time to rehire. So, what can you do to avoid this? I understand first hand that sometimes it’s simply unavoidable. Employees unexpectedly leave, things can get busy and the timing isn’t always right. But, there are definitely times when it is predictable and for

these times there is no excuse to be hiring fast – hiring slow is key! When it comes to these predictable times, you must make friends with planning. When you consider your flow of work throughout the year, are there peak times? There certainly is in our trade business. Usually, towards the end of the year, we’ve found that customers are in a mad rush to get jobs done before the holidays set in. We know that we have to plan for these times – and this includes who we need to hire to cope with the predicted workload.

The benefits of doing this are enormous.


By knowing in advance that you will need to hire someone, you can hire slowly. This enables you to build the perfect job ad and place it in well thought out locations to attract the right painter. Time is on your side and you’re not pressured to take the first person that applies! It’s a great idea to advertise for a new staff at suppliers, in local newspapers (across your entire city not just your suburb), online and even through T.A.F.E. systems (that’s how we found our leading hand who has now been with us for 10 years!). This buffer period also grants you the time to train your new employee and increase their loyalty to the business. By doing this, you are equipping them will the necessities to ͞survive͟ the busy period without burning out and leaving.

Hiring new staff is something that can be exciting when the timing is right, but absolutely sucks when it’s not! We work hard in our trade business to promote healthy and open relationships with our staff. These relationships have resulted in long standing staff members and saved us masses of time that we’d otherwise be spending finding new tradesmen. Interested in learning the EXACT methods we use to hire and retain staff? Come check out The Next Level Tradie live event in August.

CLICK HERE to grab your free Aussie Painters Network ticket!

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Angela Smith

Co-founder – Lifestyle Tradie

“Helping Trade Business Owners Fast-Track Financial & Lifestyle Success”

2018 August Issue | 7


What insurance does a contractor need?

For contractors in the building industry, it’s important to know what insurance you need.

your negligence results in property damage or personal injury to a third party, you are liable.

This means if you’re unable to work due to injury or illness you’re going to be on your own.

As a contractor, you’re essentially self-employed, and this brings with it a number of different responsibilities, one of them being insurance.

Insurance Claim

Some companies you might contract to will recognise this risk, and will stipulate that all contractors must hold their own income protection insurance.

There are a number of different types of insurance that a contractor will need, and a number of others that are highly recommended. In this guide we’ll take a look at each of them, with the aim of giving you a better understanding of what you actually need and what else is recommended.

Public Liability Insurance This is the number one insurance type for a tradesman or trades business operating as a contractor or subcontractor. Many contracts that you enter into will have a requirement for public liability insurance, and they may even stipulate a minimum amount of cover required. If no minimum is stipulated you could go with the minimum available amount of $5 million, or the contract may set a higher amount of $10 million or $20 million. It’s because as a contractor you are responsible for your own actions. If

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The company or person that you are contracting to is not responsible, and on that basis their own public liability insurance would not cover any such claim. So it’s vital for contractor to have their own public liability insurance, not only because your contracts will often require it, but because without insurance you are exposing yourself to massive financial risk. Public liability insurance for contractors is typically quite cheap, although the cost will depend on your business activities and the size of your business. For a small contracting business (1-2 people) in the residential building industry, cover is available for most trades from under $500 per year for $5 million cover.

Even if your contracts don’t have a requirement for income protection, is still a vitally important form of tradesman insurance. The cost of income protection insurance can vary greatly depending on a number of factors such as your age, occupation, level of cover required and the options that you choose. Whilst it is typically more expensive than public liability insurance, it is well worth it for any self-employed contractor.

Contractual Liability Insurance

Income Protection Insurance

As a contractor in the building industry, you will generally be entering into contracts with companies larger than your own.

As contractor or subcontractor you will generally not have access to sick leave, and depending on your business structure and the state you operate in, even workers compensation will not cover you.

These larger companies generally have plenty of money to spend on lawyers, resulting in contracts designed in a way that shifts responsibility away from them and onto you.


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As a contractor trying to win contracts and get money in the door, you might overlook some of these types of clauses in your contracts. They can be scary though, and what some of these contracts do is pass large responsibilities onto to you that you might not be expecting. For example you might be undertaking a relatively small part of a much larger project, but the contract has you agreeing to take on responsibility for the entire project whilst you are on site.

Tool Insurance There is rarely any specific requirement that a contractor holds tool insurance, but it’s certainly a good idea for any tradie. As a contractor you will generally be using your own tools on site, but the company you are contracting to is not responsible for your gear whilst it’s on their site.

Total Tools Racing

You could end up being liable for a huge claim, even if you weren’t at fault.

If your gear is stolen on site, that’s your problem, the same as it would be if your tools were stolen from any other location.

Your public liability won’t cover such claims, as it only covers you when you are liable due to your own negligence. It doesn’t cover you if you’re being held liable only because of the contract you signed.

Tool insurance can cover your tools for theft and a range of other risks, such as fire damage, or damage caused in a vehicle collision.

What do you do? You can’t stop entering into such contracts, as you need to keep generating work for you and your team. This is where contractual liability insurance comes in. It is designed to cover you and your business in the event that a claim arises and you are liable due to the contract, and not due to your negligence.

Some insurers offer a policy commonly referred to as “open air” cover, however this is not the standard and the cost is considerably higher.

More Information Here at Trade Risk we insure thousands of contractors in the building and construction industry. Whether you need insurance for your electrical contractors licence, or for a big new contract that your carpentry business is taking on, we can assist with the right insurance. For public liability insurance we can offer instant quotes via our website, or you can speak with our qualified staff if you prefer dealing with a real person.

Regarding theft, it’s important to know that the tools are only covered if forced entry has been required to access the tools.

For all other business insurance types we recommend speaking with one of our account managers. You can call us on 1800 808 800 for a chat, or complete our quote form and one of our account managers will call you.

So if your tools are stolen from a worksite, but they were not secured within the worksite (in a locked tool chest for example) then you will not be able to claim.

Having the right business insurance is vital for all contractors and subcontractors, and at Trade Risk we are the experts in the building and construction industry.

If you’re concerned about any of the wording in the contracts you have entered into, we strongly suggest speaking to your solicitor who will review those contracts for you. Whilst you might not be able to avoid some of the clauses in these contracts, you can at least protect yourself against them with contractual liability insurance.

Visit our website www.traderisk.com.au 2018 August Issue | 11


THE DEBT

Recovery Mindset This is perhaps the most important article I have written because it points out what needs to be in place in your own mind before you try to get your money back. Most contractors do not have the right thoughts and attitudes when pursuing bad payers. The mindset is too passive and assumes that the power relationship is such that the contractor has no power and the Non Payer holds all the cards. If that is how you’re thinking you will not be too successful in getting your money. You need to clearly understand and pursue the value of your work, be determined to fight to get it back, and accept the reasonable expense in doing so. Let me explain what I’m talking about by giving you two recent examples of how Contractors Debt Recovery handled two matters:

Example 1 An earthmoving contractor carried out work on an hourly hire basis over 39 days, and invoiced the head contractor $46 000.00 for the work. The head contactor did not pay a cent and insisted that the earthmover

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chase the property owner for payment as there had been a “stuff up” saying it was not their project anymore and they had not been paid. The earthmover talked to the owner who provided a copy of the funds transaction showing that the head contractor had been paid in full for his work 3 weeks previously! Then for his efforts he also received a fine from the local council for $3000 for carrying out unauthorised work! How infuriating. Contractors Debt Recovery prepared and adjudication application and submitted a copy to the head contractor. Within 48 hours $44 000 was transferred to the earthmover’s account. [$2000 held on another job]. Contractors Debt Recovery also challenged the fine in court. We prepared a submission to the council setting out the case why the fine should be withdrawn. A day before the court case was due to be heard, they withdrew the fine. The opening position was a $46 000 debt and a $3000 fine. The closing position was $44 000 in the

bank and no fine. Total time for both outcomes; about 10 months.

Example 2 A plumber had been called in to a block of strata units to fix water leaking into the ceiling of the ground floor unit. As usually happens the investigations revealed the root cause to be a leaking sewer pipe on level 2. There was extensive damage to the walls and fittings of both units. The plumber carried out the work, including a full bathroom re-fit, with the full knowledge of the owners and the strata manager. On completion an invoice for $18 000 was rendered. After much delay the strata paid $10 000 and told plumber to ‘get stuffed’. Contractors Debt Recovery took the strata to adjudication and got a determination for the full amount owing. We then registered the judgment in court. The strata refused to pay. We then wrote to the Director General of the Department of Fair Trading arguing that the strata managers were in breach of their own Act as regards the running of the strata scheme.


This didn’t work but was done to put pressure on the managers. It also distracted from the fact that we had got a garnishee order from the court to take the money out of the strata’s account. But there was a hitch. The strata held accounts are held in Trust. They are Trust accounts. These accounts cannot be garnished. But given it was a court order the bank set aside the money until expiration of the agency period. So 4 months later the plumbers received a cheque for the whole amount owing plus all costs and interest.

Total time for outcome; 6 months. Now just think about the determination and ‘stick to your guns’ mentality that was required to get these payments. Without the right mindset this would not have been possible. But it was worth it, even on a purely ‘justice-has-beendone-taught-them-a-lesson’ level. There are three key things you need to get clear in your own mind when chasing your payments. Keep the FULL VALUE of your work front and centre. Accept that you are STARTING A FIGHT and you will

have to be determined to do what it takes to win.

It’s going to COST YOU SOME MONEY to get your money --------------------------------------Anthony Igra

For more great articles and video information about dealing with payment problems go to

www.contractorsdebtrecovery.com.au

or call us on 1300 669 075

2018 August Issue | 13


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Alcohol is the most widely used drug in the world, including in the United States. About 70 percent of adults in the United States report past-year alcohol consumption, with over 37 million drinkers reporting binge drinking (defined for women as four or more drinks per occasion, and five or more drinks per occasion for men) at least once a week. The prevalence of past-year drinking has increased in the past two decades, from 65.4 percent in 2001 to 2002 to 72.7 percent in 2012 to 2013.

industry, alcohol’s dangers may be underplayed and its benefits exaggerated. A study to examine the health benefits of moderate alcohol consumption, jointly funded by the National Institutes of Health and the alcohol industry, was recently halted for reasons including possible conflicts of interests. Now is a good time to review some things we do know about alcohol.

Is moderate drinking good for your health?

Partially because it is such a commonly used substance, heavily marketed and glamorized in pop culture, Americans’ comfort with and acceptance of alcohol is high. Should it be? I research alcohol use and the associations between drinking and a wide range of problems. While the rising opioid epidemic has been receiving a lot of attention in the past five years, it is important to remember that alcohol is involved in a greater number of deaths and physical and social problems. Backed by a strong

In the past two decades, the idea that moderate drinking may actually confer health benefits has taken hold, backed up by some preliminary

evidence. This led to the often mentioned notion in the popular press that a glass of red wine a day reduces the risk of cardiovascular disease and diabetes. There was one major flaw in many of the studies used to back up the claim that a glass of red wine is good for health. They compared moderate drinkers to non-drinkers – rather than comparing lighter to heavier drinkers. There is a phenomenon called the “sick quitter paradox,” however, that could affect study findings. “Sick quitter” means that non-drinkers tend to be less healthy than low-level drinkers, and that many people choose to not drink for health reasons. Therefore, some non-drinkers may be less healthy than moderate drinkers for reasons unrelated to alcohol. The question as to whether moderate drinking is beneficial remains open. The National Institutes of Health recently sought to initiate a large randomized control trial, the gold standard for understanding causal relationships, to look into the benefits of moderate drinking.

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This trial was designed to pick up the heart benefits of consuming one drink a day, but it was not designed to be able to detect the negative consequences of moderate alcohol use, such as increases in breast cancer. Many in the alcohol research community wondered what the recommendations from this study would be, since there are so many wellestablished problems with drinking even at moderate levels that likely outweigh any potential benefits. The study was recently canceled for a number of reasons, including inappropriate engagement between staff at the National Institute for Alcohol Abuse and Alcoholism (NIAAA) with both the study researchers and industry partners and the subsequent removal of funding from the alcohol industry. The now canceled study on the benefits of moderate drinking reminds us that it is important to remember all the physical and social consequences of alcohol consumption.

What we do know: Impacts of alcohol on our health and well-being Alcohol is the third leading cause of premature mortality in the United States, with an estimated 88,000 attributable deaths per year (10 percent of all deaths among working-age adults). Alcohol use disorder lifetime prevalence is 29.1 percent, with 13.9 percent of adults experiencing a past-year alcohol use disorder. Alcohol use, even at low levels, is linked to a number of cancers, including breast, colorectal, liver and esophagus. Alcohol causes a number of serious harms to others, many of them violence-related.

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A large proportion of all violent activities in the United States are associated with alcohol. These include increased risk of child maltreatment – primarily physical abuse, intimate partner violence (with an estimated 6 to 57 percent of all cases involving drinking), sexual assault, assaults and gun violence. While the rates of drinking after driving have fallen in the past two decades, it is still estimated that there were 178,795 alcohol-related motor vehicle fatalities between 2000 and 2015. Furthermore, the level of alcohol consumption considered “safe� has likely been overestimated for the majority of drinkers, with risks for a range of these outcomes associated with levels as low as three drinks a week and risks for many acute problems most common occasions consuming three drinks.

Disparities in alcohol-related consequences In addition, the impact of alcohol is not felt equally by all: The most vulnerable among us suffer the greatest consequences. In the U.S., African-American and Hispanic drinkers experience a greater number of social consequences of drinking, such as arguments or fights, accidents, and workplace, legal, and health problems, than white Americans, particularly among groups of low-level drinkers. While we still do not fully understand the reasons for these disparities, they may be partially due to racial or ethnic stigma and stress, the unique social and environmental contexts of minority populations, or decreased access to treatment and related support services.


Sexual and gender minority adolescents start drinking at younger ages and continue to binge drink more frequently as adults. These differences in alcohol-related problems at the same level of alcohol consumption contribute to disparities in many other health outcomes for these populations.

Raising taxes, drinking age could offset harms There are a number of things we can do to reduce the burden of alcohol through public policy. The most effective policies include alcohol excise taxes, restrictions on the number of stores that sell alcohol, and restrictions on hours of sale. A more restrictive alcohol policy environment is associated with fewer alcohol-related homicides, motor vehicle crash fatalities, and con-

sumption by underage drinkers. Raising the minimum drinking age has been shown time and again to be an effective way to curb alcoholrelated mortality and morbidity. While the alcohol industry often stands against many of these policies and regulations, these policies are relatively easy to implement. Also, they have been shown to be effective to reduce the negative consequences of alcohol use in the United States.

of physical and social problems related to drinking, even at low levels, than any other substance. Even if moderate alcohol consumption is linked to a slight reduction in cardiovascular disease - a question that remains open - the myriad other consequences of drinking make it unwise to recommend alcohol as a path to better health and well-being.

Alcohol plays a pivotal role in American culture, but it is important to remember that there are more alcohol-attributable deaths and a myriad

Assistant professor, Behavioral and Community Health Sciences, University of Pittsburgh

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Christina Mair

https://theconversation.com/alcohols-health-benefits-hard-to-prove-but-harms-areeasy-to-document-98813

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SIMPLICITY AS SPIRITUAL PRACTICE:

Declutter for Deep Personal Growth When we begin to declutter our lives, often it’s because we long for some kind of peace, some space, some relief from the chaos … or perhaps it’s to start to lead a more intentional, beautiful life. But something magical happens when we dive into the decluttering process. We start to learn about ourselves. And if we keep at it, decluttering can become a place of deep growth. I’ve seen this in my own life and in the lives of people I’ve worked with, countless times. Decluttering causes us to confront some key relationships we have to our stuff, and to the world around us: We learn that clutter often represents our procrastination and avoidance patterns, and if we are to address the clutter, we must shift those patterns.

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We realize that we place a lot of power in objects: the power to give us identity, a sense of value, a sense of who we are; the power to give use security, hopes for the future, memories, love, comfort. But then we realize that this power is within us all along, not outside of us. This takes work, to start to see this in an experiential (not just intellectual) way. We learn about our attachments to things, and how to let go. This takes a lot of mindfulness, and some realization that we have happiness within us, and letting go of objects is simply a practice of that realization. We start to pay attention to what is truly important to us, and that will shift over the course of this inquiry. When we ask this question of what’s important, we can start to live intentionally, and once we start living in line with those values,

we evolve our understanding of what we really value. It changes as we take action. We start to deal with the shame and guilt that come up from our clutter, from our procrastination and avoidance, from our years of mindless shopping. The shame and guilt get in the way, but they can also spur us to reconsider our patterns, to start the process of shifting them. In the end, one of the most powerful shifts is to let go of the shame and guilt while also embracing the truth of not avoiding. These are some of the things we might explore while we declutter — many more possibilities exists, and I think you’ll find your own realizations and growth that are unique to you.

Let’s talk about just a couple of these.


The Power We Give to Objects is Really Inside Us As we declutter, it’s amazing to ask exactly why we acquired all this stuff, and why we hold on to it with attachment. And then we realize how much power we give to all these objects. Imagine what would happen if we could realize that the power isn’t outside of us, but is in us all along. Some common cases:

Security: Buying a lot of stuff

makes a lot of people feel secure. If everything crashes, at least we have all this stuff, right? This is the idea that my grandparents’ generation, who were raised in the Great Depression, once had. But while I’m all for having an emergency fund savings account for security, possessions the best way to get security. Actually, security is within: being mindful of fear and meditating on it without being reactive to it, learning skills and developing options so that we can survive in many situations, staying lean so we aren’t deeply in debt or overburdened with bills, and in the end, developing the trust that we’ll be OK just as we are.

Approval: Lots of us try to buy

nice things to impress other people — we don’t usually admit that to ourselves, but in the end, we want the approval of others. Maybe you buy a nice house with beautiful furniture, maybe it’s a hip old-school record player or an impressive sound system, maybe it’s a huge TV or the latest gadgets, maybe it’s minimalism that is more minimal than anyone else. In

the end, it’s all about wanting others to approve. What if we just approved ourselves? Easier said than done, but the power to approve us is within us, if we stop looking for outside approval. Declutter to take care of yourself, for your own personal growth, not to get the approval of others. Do good things for yourself, and start to love yourself exactly as you are.

Comfort: Just the act of buying things can be a way of comforting ourselves, like eating comfort food when we’re stressed. But lots of times, we buy possessions to give ourselves comfort: a nicer mattress or sofa, a plush carpet or convenient kitchen gadgets. There is nothing wrong with these things, but it’s also useful to note that we’re giving these things the power to comfort us. What happens if they all get taken away, as my possessions once did in a typhoon on Guam? Instead, we might realize that we have the power to comfort ourselves from within: by meditating, by going for a walk in nature, by giving ourselves love, by resting when we’re tired or stressed, by creating and finding joy in living, by loving others and loving life. Identity & value: Possessions

can often give us a sense of identity and value — a trophy makes us feel accomplished, having nice ski equipment or a surfboard makes us feel outdoorsy, having lots of books can make us feel smart or intellectually accomplished. But the truth is, the way we feel about ourselves doesn’t really come from the objects — it’s an internal process, all coming from within. Want to feel amazing? Appreciate the amazingness that’s already within you. Demonstrate it to yourself

daily with 20 minutes of meditation and 100 pushups. Even just watching your mind, you can find an sense of awe about yourself!

Memories and love: We can’t

bear to get rid of things because they represent amazing memories, and the love of the people who gave them to us. But the memories aren’t in the objects! They’re in our heads, and a simple digital photo can remind us of the memories, especially if we remind ourselves to browse through the digital photo album regularly. And the love from these people aren’t in the objects! It’s in our hearts. We only need to feel that love from within, and no object can actually give us that.

Hope and aspiration: We hold

onto exercise or sports equipment we never use because we have hopes that we’ll do them in the future. We hold onto 100 books because we have aspirations to read them in the future. There are dozens of objects in our lives that represent our hopes and aspirations for ourselves (mine: magic tricks, juggling, chess, Go, hiking, camping, books for learning, literature). But what if we realized that we don’t need all of those hopes for our future selves? That we have greatness in us, right now, without needing to do any of that? We are exactly enough, right this moment, and while sure, it’s possible we’ll do some of that later, we don’t need it. We can let go of it. And just be content right now. Leaving open incredible possibilities for the future, but being realistic that we’ll only be able to focus on what’s truly important in the near future.

2018 August Issue | 21


Happiness: In the end, most of

the objects are intended to give us happiness — a new smoothie blender will make us healthy and fit, a new outfit will make us feel gorgeous and confident, a new bag will make us feel cooler, a new book will give us joy or insight. Those things might happen. But the happiness that results doesn’t really come from the things. It comes from our own connection to our loving, open hearts. The stuff might facilitate that, but mostly it’s just getting in the way. There is some great power in realizing the things we think our objects do for us. And there is even more incredible power in realizing that we have that power inside us, no objects required. Knowing that, we can let go of anything not giving us true utility. Living Life in Alignment with What’s Important, with Intention One of the magical things about decluttering is that it forces you to ask a wonderful question: What is important to me in my life? As you tackle a pile of clothes, a cluttered countertop, a shelf overflowing with books, there’s no way to get rid of clutter without answering that question. To toss anything out, you have to consider what you feel is essential, and what isn’t. Simplicity is simply identifying what’s essential, and letting go of the rest. When you start decluttering, you might not really know what’s impor-

22 | Aussie Painters Network

tant. You look at some clothes and decide that you have’t worn something in a couple years, so probably it’s not that important, right? But as you peel back the first layer or two, you start hitting against a harder layer. Is this something I should keep or not? Does it really matter to me? What do I consider important in my life? What kind of life do I want to live? What do I truly value? For me, this has started to boil down to a few key things. What I value the most: Meaningful work: helping people push into the uncertainty of their missions and their own meaningful work, shifting their habitual patterns using mindfulness techniques. This is what I care deeply about. Loved ones: my wife and kids, my mom and siblings, and other super important family members and friends who I love deeply. Spending quality time with them, loving them. Living a mindful, healthy, vegan life of compassion. This means eating delicious healthy vegan food, being active, meditating, playing with my kids. It means being compassionate as much as I’m able. It means growing, evolving, loving. That’s all that matters to me. I like to travel, but it’s no longer one of my top priorities unless it’s in service of one of the above priorities. I like to read, but unless it serves something above, it’s taken a bit of a back seat (I still love it!). I love good films, television, music, art.

I feel it’s important to understand the issues that affect us all, like politics and the environment and racism, sexism and the like. But for me, I have evolved my priorities into those items above. In short, my deepest priority is love. But those are just my answers. You’ll find yours, as you continue this inquiry into what’s important. When you start to figure that out, something awesome happens: you start to live in alignment with those priorities. You start to live your values. You start to live consciously, with intention. When you start to uncover your priorities … then you can start to let go of everything that doesn’t serve those priorities. What’s clutter becomes clearer, and it becomes easier to let go of these. You can start your days with intention. Who will you serve? What priorities will you hold in front of yourself? How will you show up? How fully can you love?

Join Sea Change today and get in on the challenge!

Leo Babauta

a successful ‘simplicity’ blogger and author from California, the creator of top 25 Blog,

ZEN HABITS

www.zenhabits.net/simplespirit/


Construction Industry Mentoring Flyer BUSY At Work and Construction Skills Queensland (CSQ) have teamed up to offer a new and exciting mentoring program for apprentices and trainees in the construction industry. Industry Specialist Mentoring for Australian Apprentices (ISMAA) provides individual support to Australian Apprentices and Trainees in the first two years of their apprenticeship or traineeship. The program is aimed at industries where automation, robotics and other new technology or influences are changing the future roles of apprentices and trainees, and tradespeople. BUSY At Work are proud to be delivering the ISMAA program on behalf of the Australian Government. We will work intensively with apprentices to help them stay engaged, complete their training and achieve great things in their careers and to become the great tradespeople of the future.

Our ISMMA mentors have a wide range of experience and understand the changing nature of your industry. Our Industry Specialist mentors will engage with the mentee to create a specific and individual mentoring plan to be implemented over a 6 month period. Visits will focus on workplace and industry changes, future career options and new skills that may be required. BUSY At Work believes this program will benefit all involved and help improve the retention rate of apprentices and trainees in the construction industry.

Tim Gillespie ISMAA Mentor - BUSY At Work 0438 869 227 Tim.Gillespie@busyatwork.com.au Visit busyatwork.com.au/ismaa

Industry Specialist Mentoring for Australian Apprentices (ISMAA) is funded by the Australian Government Department of Education and Training.

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2018 August Issue | 23


ATTENTION:

All Queensland Employers Have you filled out your QLeave Workers Service forms? In case you have no idea what I’m talking about; read on. It’s a legislative requirement that employers give details to ‘QLeave’ about their workers’ service at the end of each financial year.

What is QLeave? ‘QLeave’ was established on 1 July 1992 by the Queensland Government to provide ‘portable long service leave’ benefits for the state’s building and construction industry and the contract cleaning industry. They were established in response to decades of campaigning by industry bodies, unions and workers, who until 1992 were often disadvantaged as the nature of their work meant they were unlikely to be employed in the continuous service needed to earn long service leave.

What is portable long service leave? Portable long service leave is paid leave given to workers for their

24 | Aussie Painters Network

service to the industry, rather than continuous service to one employer. The scheme allows workers in these industries to continue earning long service leave benefits even if they change employers or move interstate. Similar schemes for the building and construction industry operate in all Australian states and territories (see below). Service accrued in other states may contribute to a worker’s overall benefit.

How is QLeave funded? The building and construction industry scheme is funded by a levy imposed on the total cost of all construction work in Queensland costing $150,000 or more (excluding GST). The levy is paid in conjunction with the Building and Construction Work Health and Safety (Queensland) levy and the Construction Skills Queensland levy. The contract cleaning industry scheme is funded by a levy paid by employers each quarter. The levy paid is calculated on the ordinary wages of their workers.

The money collected by both levies is invested and the accumulated funds then pay workers’ long service leave claims.

How does it work? Every year that you’re performing eligible work, your employer/s will report to ‘QLeave’ the number of days you worked for them during the financial year. You’ll receive one service credit for every day you work, up to a maximum of 220 credits each year.

When can I take long service leave? Once you’ve recorded 2,200 service credits (at least ten years in the Scheme), you’ll be able to claim 8.67 weeks of long service leave paid by ‘QLeave’. Any service you’ve recorded in another state can also count towards this total. You can choose to either take all your leave at once or to take it in smaller portions. As long as you’re performing eligible work, your entitlements will keep growing.


Can I be credited for previous work?

2. Inform ‘QLeave’ of your workers’ service each year.

ACT:  www.actleave.act.gov.au

‘QLeave’ may be able to backdate your membership to the start of the financial year (1st July) two years prior to your registration with the Scheme.

Click here for more information on registering with QLeave.

VIC:

www.coinvest.com.au

TAS:

www.tasbuild.com.au

WA:

www.myleave.wa.gov.au

SA:

www.portableleave.org.au

If your category of membership eligibility has been added to the Scheme following a change to the legislation, service can only be backdated to the date the legislation was introduced.

During the last 40 years, all Australian states and territories have passed legislation to provide building and construction workers with access to portable long service leave, regardless of whether they work on different projects for one or more employers.

NT:

www.ntbuild.com.au

How much does it cost? Membership is FREE for workers. Find out if you’re eligible to join QLeave.

Employer obligations: 1. If you’re an employer in the building and construction industry, you’re required to register with ‘QLeave’ if you: a.) employ eligible workers in Queensland b.) are a sole trader or member of a partnership and employ workers on wages to do building and construction work in Queensland.

Interstate Schemes:

A National Reciprocal Agreement has been entered into by every state and territory-based scheme to also enable interstate construction work to count towards a worker’s long service leave. Whilst the time accrued under one scheme cannot be transferred to another scheme, the time in each scheme is counted when a claim for long service leave is made.

NSW:  www.longservice.nsw.gov.au

I registered with ‘QLeave’ when it was first introduced in 1992. Since then my employees have claimed around 23 weeks in total of ‘Long Service Leave’ while they’ve been working for me. That equates to over $25,000 in wages. All it has cost me is around 15 minutes of my time each year in entering the workers employment records. If you haven’t done so already, make sure you register now.

Jim Baker www.mytools4business.com

For information on the interstate schemes, refer to the links listed below or go to the Ausleave website.

2018 August Issue | 25


House prices may have finally peaked, at least in Melbourne and Sydney. But a slight cooling in some overheated cities makes little difference to overall housing affordability in Australia, which has declined significantly over the past two decades. The politics around housing tax reform remains as difficult as ever. But reform to capital gains and negative gearing, alongside a shift to property taxes instead of stamp duty, would improve affordability while increasing government revenue. Our modelling shows the key is incremental change. Gradual reform over a decade or more minimises the impact on government budgets, households and housing markets. Read more: Three charts on: poorer Australians bearing the brunt of rising housing costs It’s important to adopt a holistic approach to housing tax reform that considers the combined impact of the tax treatment of income from housing investment, state and local government property taxes and

26 | Aussie Painters Network

the interaction between housing and retirement savings. This will take political leadership and cooperation between governments at federal, state and local levels. Although such coordination is a challenge, there are successful precedents, such as the introduction of the National Competition Policy in the 1990s. Capital gains and negative gearing Gradually – over the space of a decade – reducing the generosity of capital gains tax discounts from 50% to 30% would have little impact on average “mum and dad” investors. The exact impact depends on incomes, interest rates and capital growth.

The same applies to negative gearing where a cap on housing-related tax deductions could be phased in over a 10-year period, with an initial A$20,000 cap to be reduced by approximately A$1,500 per year (the precise amount would depend on market conditions) until it reached A$5,000.

The modelling suggests that in the first year, with a A$20,000 negative gearing cap, only 6.3% of all property investors (1.1% of all taxpayers) would be affected. Even after a decade, only 28.5% of high income property investors would pay more tax, with the majority of “mum and dad” investors paying no more tax. This reform would save the federal government more than A$1.7 billion from the annual A$3.04 billion cost of negative gearing deductions. This revenue could be reinvested in social and community housing. Over the long term, establishing a broad-based property tax is more efficient and fairer than state governments continuing to rely on stamp duty. Complementing the changes to stamp duty and negative gearing should be a short-term simplification of stamp duty, with this gradually (over 5–20 years) evolving into a broad-based property tax.


Phasing out stamp duties

Author provided

We modelled the property tax rates and thresholds each state would have to charge if they phase out stamp duties on residential properties over a decade.

It’s also fairer if the pension asset test reflects the value of the family home, although any changes to stamp duties or retirement savings policy should be complemented by a comprehensive deferral scheme to allow “asset rich, income poor” pensioners to be able to access the age pension and to age at home.

Annual tax rates in the first year of the transition vary from A$47 in Tasmania to A$129 in NSW which would fund a 10% cut in stamp duties. In order to fully fund the abolition of stamp duties, annual property taxes would have to increase to A$472 in Tasmania and A$1,293 in NSW over a decade. For the government this would be revenue neutral, but the overall tax burden would shift from prospective home buyers to those who already own residential property. This would not only improve intergenerational equity, but be more efficient and provide more stable revenue for state governments.

A staged and gradual change would have little impact on average Australians, but would improve access to affordable, secure and suitable housing. This would benefit not only Australia’s community well-being, but also the economy. However, the prospects of reform will depend on how the changes are communicated and perceived. Widespread support is more likely if state and national leaders move beyond the current narrowly focused debate over taxation and promote

the wider community benefits of a fairer property tax system. Now more than ever we need a holistic, long-term plan to address the legacies of the property boom and to deliver better housing outcomes for all Australians. ---------------------------------------------Richard Eccleston Professor of Political Science; Director, Institute for the Study of Social Change, University of Tasmania Julia Verdouw Research fellow, Housing and Community Research Unit (HACRU), University of Tasmania Kathleen Flanagan Research Fellow & Deputy Director, HACRU, University of Tasmania

https://theconversation.com/gradual-reform-to-capital-gains-negative-gearing-and-stamp-duty-will-makehousing-more-affordable-98933

2018 August Issue | 27


28 | Aussie Painters Network


What Makes a GREAT BOOKKEEPER Doing the books on your own can be challenging, and hiring just any bookkeeper just doesn’t cut it. Nowadays, if you want to be ahead of the curve, you need to work with a GREAT bookkeeper. The question then becomes what is it that makes a bookkeeper great? It’s healthy to be wary of who you’re going to hire. After all, there are many bookkeepers ready to take the job, but not all of them will fit your business and your personality. Imagine working with someone you don’t particularly sync with, or someone whose values are not aligned with your business. At best, that sounds… flat. Bookkeeping can then become a tedious chore and important information can be lost among the sea of numbers that flow through your business daily. If I could tell you all the stories I know of businesses who’ve lost money because they didn’t hire a great bookkeeper, I’d probably talk your ear off and I’ll make you worry unnecessarily. And that’s just not cricket (or cool). The bottom line is, finding the right bookkeeper is worth investing your time in. It’s okay to be choosy!

How can you set great bookkeepers apart from the rest of the pack? Here are fundamental traits you need to expect from your bookkeeper if you want your business to be successful: • They ask a lot of questions Think of it this way, you can’t be accurate if you just keep on making assumptions and guesses right? Great bookkeepers will ask the necessary questions if it means they’ll understand your business better. Plus, through these questions, you might discover something crucial that you’ve missed or have accounting irregularities that need to be addressed. So the next time your bookkeeper rings you up and ask a sh#t-load of questions, it’s a sign that accuracy is their top priority. • They want to understand your work process Every great bookkeeper must strive to understand how their clients operate and how work and money flows within the business. This is essential if you want your business to run like a well-oiled machine.

Your bookkeeper can make things far easier and efficient for you, plus bring to attention processes that can be improved. It also helps them with their job, by understanding how the business works. • They are not afraid to acknowledge what they don’t know Bookkeepers have a range of skills, but it doesn’t mean they know everything. Who does anyway? Of course there are still some people who can’t seem to admit this upfront because they don’t want their clients to think less of them. That’s just ridonkulous. Instead, your bookkeeper should point you to the right person to ask. This is particularly significant if there are some tax and legal issues involved, and you need to talk with a different expert instead. • They work hard to stay up to date Businesses constantly change, and bookkeepers should be willing to keep up with the demands these new changes bring. As industries evolve, great bookkeepers keep their fingers on the pulse so that they can revise the processes they are using accordingly. Have new laws been passed that would affect their clients’ businesses?

2018 April Issue | 29


Not only that, hire someone who’s going to consider developments in accounting and technology too. Work with someone who’s going to encourage you to adopt new but effective approaches that he or she has learned so that your business can save some time and money. • They will actively help you promote your business Having a great bookkeeper means you have someone who’s as invested in your business’ success as you. This means he or she is willing to promote your business whether it’s through referrals, connections

30 | Aussie Painters Network

or networking. Not many This kind of service isn’t usually offered by everyone, but you’re lucky if you’ll find someone who’s willing to help you achieve your goals. The list may seem overwhelming but hey, your business deserves the best. As I’ve mentioned before, there are many bookkeepers to choose from, so just remain persistent and keep these attributions in mind. If you’re serious about taking your business to the next level and you need a great bookkeeper you can

trust and be comfortable with, you should give Price Bookkeeping a call today… let’s have a chat and discuss how we can help you.

Sandra Price Phone: 07 33724554 VISIT US ON FACEBOOK


眀眀眀⸀氀攀愀搀⸀漀爀最⸀愀甀

2018 April Issue | 31


It’s Standard Operating

PROCEDURE

You can encounter many situations in business life that can quickly turn sour, unless you have a way of dealing with emerging trouble spots quickly and consistently. Especially in small teams where staff members often need to cover the usual absences like rostered days off or any other kind of leave, it is important that your Team knows what to do when this happens. Developing Standard Operating Procedures (SOP) for your business can save your bacon many times over. You may have the luxury of doing a proper handover on planned leave of absences, but what happens when a team member drops out unexpectedly. They are not in a position to hand over, which is exactly the kind of situation where having your work processes documented becomes invaluable and your saviour.

32 | Aussie Painters Network

Be prepared for anything The best way to make sure that operations in your business run smoothly is to have a policies and procedures manual for any type of work process in your business. For example, if you put new staff on your team there are legislative requirements you need to follow to ensure your duty of care as well as payroll requirements are being met. Potential litigation from safety breaches and HR legislation could ensue, unless you have set up the right information flow and documentation that’s required to manage recruitment processes. Another example would be how your business deals with customer complaints. Having an online business presence can be a double-edged sword these days. While it opens up infinite, low-cost

marketing channels for small business owners, it can be a PR disaster, if you get caught out with bad reviews on your Facebook fan page. How to respond to an incident like this, what steps to take to mitigate the fall out and how fast you can act is largely reliant on knowing what to do and in what order. Unless you develop systems, processes and procedures for every aspect of your business, you couldfind yourself having to “put out bush fires” each time something happens again and you have to think about what to do to rectify this situation. And what if you, the Fire Captain are not on duty on the day? How would your staff know what to do in this situation? With a simple Policies and Procedures Manual, you can sleep easier knowing that you’re well prepared.


Keep your SOPs up-to-date & accessible Questions are always asked. People make mistakes by simply not following procedure. Not having a procedure for people to follow is an even bigger mistake. Document everything, create check lists to help your staff stay on track, make sure you don’t overlook the smallest detail, which could be crucial. Aircraft pilots don’t ever get their aircraft off the ground unless they go through pre-flight check lists that are developed to make sure nothing gets missed and they are safe to fly. Set up a simple policy – If a question needs to be asked then write a policy. Allow your staff to contribute to creating Standard Operating Procedures and regularly review your processes. Whenever a sick leave, tax file no form, expense form or other

document is needed someone will always ask… “Where is that kept again?” Confusion arises over which is the latest document or form. That’s why we recommend that you have a central place for your staff to access information about the systems, policies and procedures you’ve created. It’s preferable to have a dedicated person who maintains version control and can action any updates to the Procedures Manual. Online systems can help you manage this information with the added advantage that you have control over the most up-todate version that’s made available to staff. Then there is no chance that an old paper copy is floating around in someone’s drawer that could be outdated and present an additional risk. You can see that it’s not only important to document your work processes, you also need to make sure

that you have a good system in place to keep your policies and procedures up to date. Ensure your policies are documented and accessible, and key procedures such as first-aid and emergency exits are clearly visible. Communicate your policies to your staff, and help them understand and why they are important, as well as procedures that are specific to a certain role. If you need more straight performance talk and business advice that works, feel free to arrange a FREE No-Obligation Meeting. Call my office on (07) 3399 8844, or visit wwww.straighttalkat.com.au and complete your details on our Home page to request an appointment. Copyright © 2018 Robert Bauman

2018 August Issue | 33


Public liability insurance for painters, from just $407 - Includes cover for spraying - Unrestricted heights option* - Cover from $5m to $20m - Monthly payment options - Easy online application

Premium of $407 is based on $5,000,000 public liability insurance policy paid annually for a painting business in QLD with one manual worker. * A 15m height limit applies, but can be removed for an additional premium. Insurance Services Pty Ltd t/as Trade Risk (CAR 422847) is a Corporate Authorised Representative of 34Westcourt | Tradesman Aussie General PaintersInsurance NetworkBrokers Pty Ltd, Australian Financial Services Licence No 238447. ABN 81 009 401 772.


Getting Unstuck Change is never easy. This is particularly true for contractors and small business people. We work hard. We are busy. We are production oriented. Many of us believe that hard work will fix things but sometimes hard work with our shoulder to the grind stone just ends up giving us a sore shoulder. If your business is not offering the rewards you are looking for, you must strive to make changes. There is an old contractor joke about the wage and hour auditor who could not find any employees who were not being paid fairly and was talking to the owner of the business following the audit. The owner said, “There is one person with an issue. He works 70 hours a week, does not get overtime, rarely takes a vacation and makes very little per hour.” The auditor replies, “I need to talk to

that person right away.” The owner replies, “You are, it’s me.” Why is change so hard? It all starts with our own attitudes. You just put in a 10 hour day and tomorrow looks the same, the thought of taking on the task of making things better can be overwhelming. When we are busy doing what is urgent, sometimes we forget that other things may actually be more important but just not as urgent. No one is screaming at you for a plan or new approach. People are screaming at you to finish their job, do an estimate or some other day to day task. Our network groups were founded on the concept of forcing people to get away from their business for 3 days to work priorities and build long term goals. That old saying, “fail to plan and plan to fail” really hold true.

Habits can also play a significant role. Think not? Try crawling into bed tonight on the side your significant other normally sleeps on and see how that goes. The problem is just because something is new does not mean it is wrong. So how can you change your business and make sure you are doing what you need to do? Start with an attitude rebuild. Denial and indecisiveness play a large role in getting people to change. “I will quit smoking next year, this year has been stressful.” “I am not into computers, email and stuff.” “Our customers don’t use the internet.” Start envisioning what your business would look like if you made a few changes.

2018 August Issue | 35


Last but not least, build a long term vision. Project what you would like your life and business to look like 10 years from now. Too many business owners think they will sell their business for a lot of money and retire. Such a plan includes two basics flaws. One, contracting businesses are hard to sell. Two, retired business owners get bored when they don’t have anything to do. Be realistic about your goals. Start with some simple questions. Five years from now:

Next build some new habits: Schedule just 3 hours of uninterruptable time every week to work on business goals that are not immediate. Turn your cell phone off and close your door. Keep a time card on yourself and determine how you are spending your time. Delegate things that are not a priority to someone else and substitute business building and planning time. Do a brand analysis. Search yourself on the web (from another computer) and see how you come up. Are you on all the free listings? Do a survey and see who would people recommend in your area? Are you in the top 3? Are your trucks wrapped and visible? Visit other contractors from trades other than yours and see how they do things. Mechanical contractors, drywall, air conditioning, flooring, etc. will not

36 | Aussie Painters Network

What would you like your work week to look like? see you as a competitor. See if your systems are ahead or behind theirs. Consider hiring some younger people into the organization. Their computer and tech ability will be better and can bring some new insight. Consider hiring a consultant or a best practices group to take a look at your business. If you do hire someone, make sure they are used to working with small businesses. May be you can find a successful contractor in a different trade and ask him to review his business and you review his. Have a financial planner help you with a financial plan. One of the problems contractors have is they tend to tie all their net worth up in the business. If the business fails or hits hard times, they are not diversified enough to survive. Worse yet it is hard for them to retire as they have no other income sources.

What will your financial needs be at that point? What changes in personnel will you have to make, to make this happen? What outside interests do you have that will keep you happy and active? One of the things I really like about contractors is that they are alive, active and working at it each day. I was at social gathering recently and many of the people there were government workers. They were all counting the days until they retired and it seems that most of their life was about working to retire. They plodded to work each and every day with little control of their own domain. Heck, live to work and work to live. Enjoy both. Change your business. Make the changes you need to make it more rewarding.

Monroe Porter

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

www.proofman.com


2018 August Issue | 37


The Industry

Idiots

38 | Aussie Painters Network


Important Contacts Aussie Painters Network www.aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating www.painters.edu.au

Ph. 1300 319 790

Australian Tax Office www.ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates www.fairwork.gov.au

Ph. 13 13 94

Fair Work Building & Construction www.fwbc.gov.au

Ph. 1800 003 338

Mates In Construction www.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

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

www.actcancer.org www.cancercouncil.com.au www.cancercouncilnt.com.au www.cancerqld.org.au www.cancersa.org.au www.cancervic.org.au www.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

2018 August Issue | 39



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