Aussie Painting Contractor May 2021

A NEW BUSINESS 5 Things you need to know before starting

I ' d rather watch Paint Dry Creating video content to advertise

3 Mistakes That Strangle

Growing Businesses

www.aussiepaintersnetwork.com.au

From the

Editor

CONTRIBUTORS

• Angela Smith

Hey Everyone, Welcome to the 103rd Edition of the Aussie Painting Contractor Magazine.

• Anthony Igra • Helen Kay • Jim Baker

This month has been a massive month for APN Members, we have secured a customised pricing for our Paid Members across a wide range of products to support their businesses from BUNNINGS. This is just the first step in increasing our Members Benefits. If you have any questions, feel free to contact us for more information.

• Jim Stanford

The First CSQ Trade Ready Program is just coming to completion after all the holidays and lockdown that effected it. We are excited to see that 6 of the participants are in the process of being signed up as apprentices. The feedback we have received for the program has been excellent. If you are interested in getting involved just contact us.

• Monroe Porter

Training has continued to grow with us visiting Sunshine Coast to Gold Coast to Emerald and everywhere in between. If you are looking for more flexible onsite training for your business, call us and we will be able to assist you.

• Jo Kirley • Leo Babauta

• Robert Bauman • Sandra Price • Vanessa Petch EDITOR Nigel Gorman

Till the next issue, Happy Painting!!

GRAPHIC DESIGNER J. Anne Delgado

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Advertise with us...

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

Contents 06

Casual Changes

10

Getting Good at Just Starting A DIFFICULT TASK

13

5 Mistakes Tradies Make when buying insurance

16

5 Things you need to know before starting a new business

21 24 28

Changes have been a welcome relief to Employers

Why Hire an APPRENTICE? I’d rather watch paint dry Reassess how and where you are searching for staff.

31

Resistance to raising the minimum wage reflects obsolete economic thinking

36 39

3 Mistakes That Strangle Growing Businesses

40

Key Strategies

46

Does Cutting Your Price Really Help You Make the Sale?

48 52 53

The 7 Habits of Highly Indebted People

CSQ TRP Program for Your 2020/21 Year-End Business Tax Plan

Industry Idiots Important Contacts

Pelham Painters

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.

Casual Changes Finally, there is some good news for employers. The Federal Government last month passed the Fair Work Amendment (Supporting Australia’s Jobs and Economic Recovery) Bill 2020 (the Bill) which has resulted in significant changes to casual employment.

Casual employment has been a hot topic over the last two years with a number of Full Court and Fair Work Commission decisions significantly impacting on how casuals were categorized. These decisions resulted in employers being at risk for significant entitlement claims if they incorrectly categorized casual employees.

These latest changes to the Bill introduce a definition of casual employment into the Fair Work Act 2009 (Cth). A casual employee is now defined as a person who accepts a job offer knowing that there is no “firm advanced commitment to ongoing work with an agreed pattern of work”.

This is a significant and welcome change for employers.

In stripped down terms this means that if a person is offered casual employment and accepts that offer then they are deemed to be a casual employee.

Finally, common sense prevails. Employers no longer

6 | Aussie Painting Contractor

need to be concerned about casuals working regular or systematic hours and their employment type being retrospectively determined as permanent.

When disputes arise about employment classifications, Courts will now only consider: • whether there is an offer of hours of work by the employer and the employee can choose to either accept or reject the offered work • that hours of work are offered when the employer requires work to be performed • that the employment is described as casual employment; and • the employee is paid a casual loading or a specific rate of pay for casual employees that is higher than rates provided to permanent employees.

An employee employed as a casual employee will remain a casual employee until: • they become a permanent employee through: • casual conversion, or • are offered and accept an offer of full-time or part-time employment, or • stop being employed by the employer.

Casual loading offset An important note here, is the mention of the casual loading. This loading has been a hot topic over the last 3 years and it is now a relief that it has been recognised and defined by the Bill. Again, common sense has prevailed here and it is now stated that if an employee is found to have been incorrectly categorized as a casual and they are in fact are a permanent employee at law, the Bill states that any casual loading paid to an employee can be used to offset any leave entitlements now deemed to be owing due to the new categorization as a permanent employee.

In order to claim this offset, it must be clear that a loading was paid and what entitlements the loading offsets ie personal and annual leave. Employers can meet this obligation by making this clear in their employment contracts.

Right to casual conversion In a win for small business owners, the Bill now states that casual conversion rights do not apply to employees of small business employers, who have less than 15 employees.

worked the equivalent of full-time hours) or part-time employment consistent with the casual’s regular pattern of hours for the last 6 months (where the casual has worked less than full time hours).

However, if there are “reasonable business grounds” to not make the offer then employers are not required to make the casual conversion offer. Reasonable business grounds are defined under the Bill to include: • in the next 12 months, it is reasonably foreseeable: • that the employee’s position won’t exist • that the employee’s hours of work will significantly reduce • that there will be significant change in the days and / or times to the employee’s hours of work and these changes will not be able to be met by the employee If making the conversion offer would require the employer to make significant adjustment to the employee’s hours of work in order for the employee to be employed either full or part time then this could also be considered as reasonable grounds in which not to offer the conversion.

Where an employer determines not to make an offer of conversion, they must give notice of the decision to employees within 21 days of when the right to be offered conversion arose. If an employer fails to give this notice, the employee retains a residual right to request conversion at a later date.

A key point for employers to note is that employers have an obligation to offer conversion regardless of whether your employee has requested it or not.

Losing the right to conversion For businesses with more than 15 employees, casual employees have retained their right to casual conversion. However, this right has now been streamlined and included in the National Employment Standards (NES).

Now employers must to convert a casual employee to permanent employment if the employee: 1. has been employed for 12 months 2. has worked a regular pattern of hours for the last six months 3. could continue working those hours as a permanent employee without significant adjustment.

The offer must be in writing and offer to convert to either full-time employment (where the casual has

Employees must respond to the offer within 21 days of receiving it. If they do not accept or respond to the offer, then the Bill states that the right to convert to permanent employment has lapsed and the employee can’t request to convert at a later date.

Similarly, if an employer had reasonable business grounds to not make an offer of casual conversion (and notified the employee of those reasons in accordance with the provisions of the Bill), then the employees also cease to hold a right to request conversion at a later date.

2021 April Issue | 7

New Casual Employment Information Statement A new Casual Employment Information Statement has been created and this is to be provided to each casual employee when they start employment with their employer or as soon as reasonably practical for existing casual employees.

This new statement will be in addition to the existing Fair Work Information Statement that employers already need to provide employees.

What should employers do next Employers with casual employees should review their existing employment contracts and ensure: • there is a clause detailing the casual loading and what entitlements it offsets • that the right to casual conversion has been detailed and outlined

Additionally, employers should: • provide all existing casual employees with the Casual Employment Information Statement and ensure this is integrated into their onboarding systems for new employees • implement procedures to ensure the employer is complying with the new casual conversions time frames and obligation to offer to convert.

Overall, these changes have been a welcome relief to Employers. There may be some short term pain in relation to reviewing existing contracts and ensuring they’re compliant but overall and in the long term this will enable employers to better meet their business’s day to day operational requirements.

If you would like assistance with reviewing your casual employment contracts, then please reach out to Vanessa from HR Maximised on 0418 190 106 or vanessa@hrmaximised.com.au

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

2021 April Issue | 9

Getting Good at Just Starting

A DIFFICULT TASK

The tendency to put off difficult tasks that we don’t want to face is almost universal.

pain — of course you’d put off opening the box! We want to protect ourselves from that kind of stress.

And it turns out, the moment of starting a task is often so much harder than actually doing the task.

We can force ourselves to touch the electric fence, but that can only last for so long. We only want to put ourselves through so much pain before we start to question why we’re making ourselves suffer.

Once we get started, there can be challenges (and we will want to switch to something else) … but if we can just start, then half the battle is already won.

So getting good at starting something tough can be a powerful skill to master.

Let’s talk about how to master it.

What Gets in the Way & How to Shift It

Why is it so hard to start? We feel uncertainty, fear, stress, overwhelm about the task. Or it makes us feel bad about ourselves, inadequate in some way. It’s like opening a box that you know is goig to cause you

10 | Aussie Painting Contractor

The opportunity is in finding a new way of seeing these tasks — instead of filled with overwhelm, stress and inadequacy… can we find a more powerful way of seeing the uncertainty of this task? Can it be an opportunity, an adventure, a playground, an expression of our art? Can it be a dance of joy, a powerful way to serve others with love?

Find that for yourself. What is the opportunity of this task? What would make it meaningful and joyful?

Connect to that before you start, and things will get easier.

How to Start

Once you’ve taken a look at how you’re viewing the task, and find a new way to view it … you’re ready to train yourself at starting!

Here’s what I recommend: Pick a task that’s important/meaningful, but that you’ve been putting off. Usually it’s easy to find one. Look at your list, think about what you’ve been avoiding. Pick one, even if it’s a fairly random choice, it doesn’t matter.

Find a way to make it meaningful & joyful. How can you view this task so that it serves others, that it’s an adventure or play, that it feels powerful opportunity? Even just a little bit is good. Connect to that.

Shrink down the task. YOu don’t have to do the whole thing. Just a bit of it. For example, instead of having to write this whole blog post, I can focus on just writing the first few paragraphs. This will help lower resistance, because

How to Practice the Art of the Start

An amazing way to practice this is to set yourself a challenge to do this once a day, 5 days a week, for a month. By doing it just once a day, you’ll relieve yourself of the pressure of trying to do it all day long. You can be deliberate about it and find a way of viewing the task that feels powerful and joyful.

By doing it most days in the week, for a month, you will get better at it quickly.

Here are some additional tips:

Keep a simple journal. Write down things that help and things that don’t help. Use it as a learning log.

Do a short review every week. I recommend having people you report to, so that you’re sharing it with others, like an accountability group.

Do it with others if it helps. That means you might meet someone on Zoom once a day where you each tackle the things that you’ve been putting off. It gives you the little push you need to start.

Clear everything away. Close your browser, disconnect your phone, close applications. Remove distractions. Give yourself the gift of simplicity.

Enjoy the practice! Don’t make this a sacrifice, another burden in your life. Make it a playful, joyful adventure.

Something that feels meaningful and delicious.

Dive in joyfully. You only need to start. You can work on staying with the task later. Just start! See it as a dance, a way to serve, a way to bring the full vitality of your being! Pour yourself in.

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

Leo Babauta ZEN HABITS

2021 April Issue | 11

12 | Aussie Painting Contractor

5

Mistakes Tradies Make when buying insurance

We’ve been helping tradies and builders with their business insurance for over a decade, and during that time we’ve seen a thing or two!

If you’re in the process of sorting out your business insurance for a start-up, or looking at the renewal for your established business, this guide should be of benefit.

What do tradies get wrong when buying business insurance?

1. Target fixation If you’re a motorbike rider you’ll be fully aware of target fixation. It’s where you’re so focused on an object that you increase your risk of colliding with the object.

A similar thing can happen when shopping for business insurance.

You might have been told that you need public liability insurance, so you go hunting for that specific type of insurance without considering anything else.

If an insurance company or broker (like Trade Risk) suggests any other type of cover, you assume we’re just trying to upsell you, or we’re distracting you from your target of finding public liability.

The truth is, we want to make sure you’re properly covered.

We never want to say to a client “sorry your policy doesn’t cover that” when you call us to lodge a claim for something that isn’t covered by public liability, but could have been covered by a different policy.

So you might think that public liability is the solution to all of your problems, but listen to the experts. You don’t have to accept our recommendations, but at least you can make an informed choice.

2. Assuming that all policies are the same Sticking with the public liability theme, a common mistake we see is that tradies (and business owners in general) think that all policies are basically the same.

They think that if two policies offer $10 million public liability cover, but one costs $500 and the other costs $800, clearly the more expensive one is a rip off.

A great example is the “worker-to-worker” excess.

If you cause injury to another worker on a worksite, some policies will charge you a standard excess of $250 or $500, whilst others may have a specific worker-to-worker excess.

How much are we talking? This excess can be anywhere from $5k to $20k, even for a very small policy!

So that couple of hundred you saved on premium could cost you thousands at claim time.

Plenty of good policies do have a worker-to-worker excess, so it’s not a bad thing, but it’s something you need to be aware of when comparing policies.

Another key difference in public liability policies, especially for tradies, is working at heights.

Many common policies have a height limit of 10 or 15 metres. If you’re working at heights greater than that, you won’t be covered.

But there are plenty of policies which have higher limits, or even no limits. Unless you dig into the policy wording you won’t know this.

Again, the difference in premium might only be a few hundred dollars a year, but could be the difference between a successful claim and a declined claim, which could be worth tens of thousands of dollars – or more.

2021 April Issue | 13

So never, ever assume that two public liability policies are the same. There will almost always be differences; sometimes very minor and of no real consequence, but sometimes they could be huge.

3. Thinking that having everything with a single insurer is cheaper We often have clients who insist on having all of their policies with a single insurance company.

They assume that having their public liability, tool insurance and personal accident insurance will be cheaper or somehow better.

The truth is that it is very rarely the best option.

A good broker will be able to let you know which other insurers they obtained quotes from, and why the one they recommended to you was the best option.

If they can’t do that, then find another broker.

5. Thinking they can DIY their business insurance As qualified tradies or builders, it’s easy to joke about “DIY disasters” or the client who says “I can do it cheaper myself”.

You’d never recommend that a client DIYs their building or renovation work, yet many tradies think that they can DIY their business insurance.

The insurer with the cheapest and/or best public liability policies won’t necessarily be the same as the best options for tool insurance or car insurance etc.

It’s easy though right? Just go online, punch in your details and choose the cheapest price. Or maybe to be safe you select the “middle option”. Not the cheapest, but not the most expensive either.

As an insurance broker, we can pick and choose which insurer or underwriter to use for each of the different risks in your business. This could be based on how good the policies are, and of course how competitively priced they are.

Unless you’re reading the policy wordings and exclusions for each policy, and fully understand what they mean, you’re no different to a home handyman doing his own plumbing work based on YouTube videos…

The good part about using an insurance broker like Trade Risk is that you can still have a single point of contact even if your policies are spread across a number of different insurers.

Our largest clients might have policies with four or five different insurance companies, but they have a single account manager at Trade Risk that handles everything for them.

4. Using multiple insurance brokers Whilst using multiple insurance companies can be a good thing, using multiple insurance brokers generally isn’t.

The assumption amongst tradies and other business owners is that “shopping” brokers against each other will result in a better deal.

The reality is that all insurance brokers have access to the same insurance companies and underwriters, and the pricing is essentially the same no matter where you go.

If you’re not happy with the service from your current broker that’s a completely different matter, and you should definitely find someone better (like us!)

14 | Aussie Painting Contractor

Sure, plenty get it right and will never have an issue, but sometimes it goes badly wrong and you can lose everything.

So think about how seriously you take you business.

If your business isn’t that important to you, go with the DIY approach and hope that you’ve gotten it right. After all, you might be just fine.

It might cost you a little more (or it could cost you a little less) but you’re going to sleep at night knowing that your business is properly protected.

Speak with a trade and construction specialists please call us on 1800 808 800 or contact us online.

K IC L C TO CH AT W

SEE IT IN ACTION!

3-in-1 Painters Tool Remove paint from your roller fast with the reusable, environmentally friendly Rolla-wipa.

Saves time, paint, money & water!

BUY ONLINE TODAY

rollawipa.com

2021 April Issue | 15

5 Things you need to know before starting

A NEW BUSINESS You want to make sure you start your new business off on the right foot and this means addressing quite a few things.

• DOMAIN IS AVAILABLE - If your business name is available in Australia, you then want to confirm the domain name (your website address) is also available.

There might not be a business name in Australia, but Bob in England may have already snagged www.bobthebuilder.com . You can still see if www.bobthebuilder.com.au is available and consider whether you may not mind the occasional mix-up.

As you’re setting up your business, you’ll need to make sure the name you’re thinking of isn’t already taken, that your website complies with Australian laws, and you have your legal ducks in a row ready to start working with your first client.

• REGISTER BOTH! - You can easily register a business name online by creating an ASIC Connect account and following their step-by-step questionnaire. (before you can register your business name, you’ll need an ABN mentioned in step 4)

So, before you jump in and offer your services,

You can register a business name for 1 or 3 years, costing around $37 or $87.

It may seem like a crazy time to start a business, but maybe you’ve had a brilliant idea during isolation boredom or redundancy has caused you to rethink working for someone else.

product, or expertise to your new clients, you’ll want to make sure you have thought about these 5 things:

1. Business & Domain Name • BUSINESS NAME IS AVAILABLE- You may have come up with the perfect name for your new business, but you’ll first need to check it isn’t already taken. You can do this by searching for the name on ASIC Connect.

16 | Aussie Painting Contractor

You can register a domain name with one of these providers or check with your website building platform (e.g. Wix, Squarespace, Kajabi etc.) as they may have free domain registration included in a premium subscription.

Registering a business name and domain doesn’t guarantee that no one else can use that name, the

only way to ensure that is to register the business name as a trade mark. You can search for trade marks already registered here, and then consider registering your business name and/or other business intellectual property here.

business runs as a separate entity and if things go wrong only business assets are at risk, not your personal assets. However, you’ll need to comply with additional legal requirements in running the company and company tax returns will need to be lodged.

2. Check licensing and insurance requirements

Partnership: This is usually used to establish a business where two or more persons are working jointly.

The partnership itself is also not its own entity, so if things go wrong you may be personally liable, though both profit and loss are shared jointly between the business partners. The partnership requires its own ABN and you will need to lodge partnership tax returns in addition to your own.

Whether you’re planning to run your business from home or be out and about between job sites, you’ll likely need to meet licencing requirements and obtain insurance. What insurances and licences you’ll need depends on your product or service. You can find the license(s) required by your local council through the Australian Business Licence and Information Service and it’s best to speak to speak with an insurance broker to ensure you’re properly covered by insurance.

3. Choose a business structure There are three main business structures to choose from, each providing pros and cons depending on how you plan to run your new business.

Sole trader: This is the simplest and most affordable structure to establish, however the business does not operate as a separate entity. Essentially, you are the business and the business is you! Tax returns are lodged under your personal TFN and all income is yours, though if you would like you can obtain an ABN and set up a separate business bank account.

Propriety Limited Company: This is slightly more complicated and costly to set up, but it means the

You can read more on business structures on the Business QLD website here.

4. Register your business Now that you’ve decided on your structure, you need to register your business with ASIC. Depending on which structure you’ve chosen, you may need an ABN, ACN, or TFN. If you intend to trade as a name other than the name on your ABN/ACN/TFN, you’ll need to register that as well.

For example, if a sole trader has an ABN under their personal name but wants to conduct landscaping services as ‘Leo’s Landscaping’, the business name will need to be registered and paid for as mentioned in step 1.

Also, if you expect turnover to exceed $75,000 in the first year, you need to register for GST.

2021 April Issue | 17

5. Get your essential new business legal pack Finally, it’s vital that the front-end legals of a new business, particularly with individual clients and website visitors are also sorted. This includes: • Terms and conditions You’ll need an agreement and/or disclaimer that each client you bring on board signs. Terms and conditions protect both you and the client. For example, you don’t want to spend hours landscaping a gorgeous yard only to have the client return in two weeks wanting their money back because all the plants died when they didn’t water them. Read “How to make sure you get paid – Top Tips from a Lawyer” for more about terms and conditions and how they can help your business.

• Privacy Policy While conducting business you’ll likely collect a range of personal information. This could include clients’ phone numbers and email addresses. Australian law requires that you keep and share this information in accordance with a Privacy Policy.

• Website terms of use Most modern businesses have a website which may contain a resource section like this one, links to other sites, and information on the business’s products and services. It’s important that users access your site pursuant to terms of use. This protects you from liability if, for example, a site visitor ends up with a virus from an external link or they injure themselves while following a ‘how to’ guide you have on the resource page.

18 | Aussie Painting Contractor

s you can see, there’s quite a few things to think about when starting a new business. This article is not intended to be definitive legal advice but just a handy checklist of the types of things you need to be thinking about. Just as you are an expert craftsman, we are experts in business law, so we can get you from brilliant idea to legally-sound reality. Book a chat with us here.

What you need to do ..

Let’s Talk! A free consultation with us can help to tackle your legal issues.

Typical Legal Disclaimer!…

Unfortunately, there is never a ‘one size fits all’ formula to apply. Every situation is unique and it can be tricky to wrap your head around some areas of the law. To ensure you are setting yourself and your business up for success, it is always best to consult a legal professional with expertise in the field.

If you require any assistance with starting a new business or any other commercial legal issue, please do not hesitate to contact me.

Helen Kay

07 5619 6858

www.riselegal.com.au

2021 April Issue | 19

20 | Aussie Painting Contractor

Why Hire an

APPRENTICE? The Painting Industry in Australia has hit a point where there are not enough qualified painters to keep up with the workload.

What do you do??

1. Hire an apprentice.

2. Hire a brush hand or labourer.

3. Hire someone with some experience.

4. Hire a qualified tradesperson.

5. Subcontract some of your work.

These are the 5 main ideas moving forward for any business expanding.

• Hire an apprentice: -- this is where you look at the long game for your business. You train them in how you want things done, your systems etc.

dollar and if you don’t pay them more, they will leave for the greener pastures after time.

• Hire someone with some experience:-- This can sometimes work however they generally have learnt how to do things and they might not suit your structure or plans on how you do things.

• Hire a qualified tradesperson: -- This can be an expensive exercise. They generally want top dollar and have their own systems that more than likely will differ from your systems.

• Subcontract some of your work: - This can work however there are some pitfalls. You must trust that the work that gets done it to the standard you require as at the end of the day its your name and reputation that goes with the project.

• Hire a brush hand or labourer:-- This is generally a short-term solution. They generally chase the

2021 April Issue | 21

There are 2 ways of hiring apprentices for your business so as its not impacted to heavily when work slows down or you are affected by the weather etc. You can employ an apprentice on a Part-time basis where you are required to pay them a minimum of 15 hours a week. That is less than 2 days a week.

Obviously if you have 38 hours of work fulltime is the way to go.

If you are affected in some way that you cannot keep the apprentice working or need to send them in for training when work is slow, there are options available. You just need to talk to our team.

I understand it is a commitment for you however it is also a commitment for the apprentice. The lower wages along with the understanding that at the end

22 | Aussie Painting Contractor

they will have a qualification that they are working towards is the bonus.

There are some great Government Incentives for putting on an apprentice.

If you are looking at hiring a painting apprentice contact Jo Kirley Recruitment Manager, Aussie Painters Network Team. jo@aussiepaintersnetwork.com.au 0413 345 595 1800 355 344

I’d rather watch

PAINT DRY

24 | Aussie Painting Contractor

Hiring is such a pain point for every trade business owner. It’s an experience we all dread because finding an employee that fits your business, and that you can put your trust in, feels bloody impossible.

Hiring becomes such a lethargic process, that you’d prefer to be doing ANYTING else. The applicants that respond to your advert aren’t quite right for the job, or worst of all, nobody applies for the role.

It’s unsurprising that many business owners lose motivation to find “the perfect candidate” and just accept “the best of the bunch” just to put an end to the hiring process, and get on with the job.

If this sounds like you, it might be time to reassess how and where you are searching for staff.

Using our tried and tested strategies, let’s review a few basic things to find out where the crux of your hiring issues might come from: Firstly, your job advert might be holding you back.

It’s possible that your advert just isn’t cutting it— maybe the description is falling flat, or you’ve advertised in the wrong place. You need to stand out from the crowd, and showcase your awesome painting business, in order to attract great employees.

Check out our kick-ass Dr. DRiP job advertisement by scanning the QR code! PLUS it holds bonus information on how to hire and retain top-notch staff.

Compare it to your own current job posting, or use it as inspiration to create your own hiring video. We get excellent results from videos and descriptions like this, and they are highly compatible with job sites like Seek, Jora and social media sites — these are all GREAT locations to post your job advertisement.

Creating video content like this to advertise for a role, solved so many of our hiring issues because it looks top-notch.

Once you’ve got those applications in, you need to ACT FAST. Once you’ve found your potential employee don’t twiddle your thumbs, MOVE QUICK, because the best tradies are in high demand.

If you think somebody has the potential to be a great employee, there’s a good chance another painting business thinks the same.

That’s why we love the saying “hire fast, fire fast.”

Because it’s WAY BETTER to hire somebody you think is the right fit, and then drop them if they’re not — compared to potentially missing out on a top-notch employee because you dragged your feet.

Use our six steps for converting a resume into an employee, so you never miss out on your pick again.

1. Call them asap! (within business hours) 2. Be excited on the call, bring some energy to the table.

3. Meet as soon as possible for an interview.

4. Paint a pretty picture of your business and offers.

5. Roll out the red carpet and make them feel important.

6. If you think they’re the right person, offer them the job!

So, now that you’ve assessed your advert, understand the benefits of a quick decision and solved your hiring issues, what’s next?

Let’s book in a Strategy Session with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps on where to take your business.

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

Andy Smith

A fellow trade business owner and co-founder of Lifestyle Tradie, a membership and community for tradies in business.

Written by Lifestyle Tradie

Lifestyle Tradie is an award-winning membership and community for trade business owners who want to make more profit and fast-track financial freedom.

2021 April Issue | 25

26 | Aussie Painting Contractor

Interested in becoming a painter & decorator?

Are you looking for a Painting Apprenticeship?

Find out how to get an Apprentice

Are you running a Painting Business?

We can assist you in growing your business with apprentices! paintingapprenticeships.com.au Painting Apprenticeships brings Apprentices together with Painting Business Owners.

2021 April Issue | 27

Pelham Painters

This is an article about Scott Pelham and his success as a business owner in Hobart, Tasmania.

I first met Scott when we were appointed to be on the ‘Dulux Accredited Advisory Board Committee’ in 2006. We had (and still have) the same business values and are both passionate about the painting industry. I guess this is why we have become great mates.

As I live in Brisbane, the only times we caught up with each was once a year at the Dulux Conferences, so when my wife and I went to Tasmania recently, I just had to catch up with him. We met at a coffee shop in the city, which just so happened to be a block away from one of the jobs he was about to start (the ‘Hobart Tourist Information Centre’). I asked for a few ‘before and after’ photos and some information on the product he was going to use to include in this article.

The building was first washed and thoroughly prepped before using a ‘Murobond Mineral Silicate Primer’. It was then ‘hand brushed’ with two topcoats of ‘Mineral Silicate Flat Finish’. The product was chosen as an alternative to using a limewash topcoat as it offers a better long-term finish, and if needed to be pressure washed down in the future, the material would not come loose or flake off. This is all due to the way that the mineral silicate cures and bonds as the silicate fuses and re-forms.

28 | Aussie Painting Contractor

I then wanted to ask some ‘in-depth’ questions about his business, as I have always admired his success as a business owner.

When and why did you start in the painting industry?

I left school at the end of Year 10 when I was 16 years old. I applied for a job as an electrician as I thought that would be the career I would like to pursue. While I was waiting to hear back about the electrical job, I started working in our family business, ‘Pelham Painters’ ( https://pelhampainters.com.au/ ). I was there for a month working with my dad and brother when I found out that my application for the electrician position was accepted, but I decided to stay working with my family.

Did you do an apprenticeship?

Yes! - I did an apprenticeship.

How long was it until you ran your own business?

My father retired from work in 2005 and my brother in the meantime, moved to Queensland, so I took over the running of ‘Pelham Painters’.

How many staff did you have when you first started and how many have you now, and what was the most employees you had at one time?

In 2005 there was only myself and 3 other painters.

We now have 18 staff, but we did get to 24 staff at one point.

When did you employ your first apprentice, how many have you trained, how many do you have now, and have you found it worthwhile?

‘Pelham Painters’ employed their first apprentice in 2005. We currently have three, mature aged apprentices working with us and find this works best for my business. I find them all very keen to be in the work force, they are reliable and able to relate well.

What is your view on licencing for painters?

I do find it very frustrating that in Tasmania, you don’t have to be licenced to be a painter. I am a big advocate of licencing as an essential part of our industry and as I have recently been accepted on the board of the Master Painters Tasmania/Victoria, I will put my views across and try to make this happen in the near future.

Who does the quoting, marketing, bookwork, and what software program have you found the best?

I do all the quoting on site. My wife works in the office and does the marketing alongside ‘Sarah’ from ‘Valentine Interiors’, who does our social media campaigns. We use ‘MYOB’ for our software program which we started using over 10 years ago and have found it perfect for our size business. We also introduced the job management software ‘ServiceM8’ into our workforce at the end of 2020. It has made the scheduling and management of our staff so much more efficient and manageable.

Why do you think your quotes are accepted?

I think the reason our quotes are accepted are: • people like the fact that Pelham Painters is a family run business, • we have been around since the 1950s and have a very, well established reputation. I do not think there is another company in Hobart that has been around ‘as long’ as Pelham Painters, • we have a very active presence on social media and a well accessed and resourced website, • that we work on the premise that my father taught me- one bad job will cost you ten other jobs. This is especially true in a place like Hobart.

How many work vehicles do you have, do have an off-site office or do you work from home?

We currently have six ‘Pelham Painters’ vehicles on the road and have a dedicated office space at home.

Would you say you are one of the largest companies in Hobart?

We are probably the 4-6th largest painting firm in Hobart.

How far ahead are you booked out?

We are booked out for at least the next 12 months.

How many hours per week are you working in your business and do you allow enough time for pleasure?

I estimate I would be working 50 hours per week. I try to switch off on the weekends as I have 3 children who I enjoy spending time with and going to their sporting and other events during the week and on the weekends.

In your ‘pleasure time’, can you ‘switch off’ and forget about work?

I make time during the week for exercise. I get up at 5am to fit this into my schedule and either run or go to a fitness class at the gym. This is the best way to clear my head and make a good start to the working day and found that it is the best escape from the pressures of work for me. I think that the secret for me to ‘switch-off’ is to turn off my phone whenever I can - especially when on the golf course! I also try not to take phone calls after 12 noon on Saturdays or on Sundays.

What has been your most pleasurable/interesting job you have worked on?

Tasmania has some lovely heritage buildings in many varied locations. I enjoy seeing these properties being transformed into show pieces for their owners, while respecting the heritage and history of the buildings.

What are your plans in the near future (5 years) and what plans are/will you put into for your retirement? How will you transition into it?

There are no immediate plans for retirement at present and can see ‘Pelham Painters’ continuing for many years to come. I like to keep myself busy and enjoy meeting all the people I do during the week.

This is the job I have done since I was 16. It is all I know, what I am good at, and what I love doing. I might revisit the structure of my business over the next decade or so and keep a smaller team working beyond then. It is a family business that started in 1953, and who knows - my son or daughters might look to continue in this industry. I will leave it up to them to decide.

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

Jim Baker MyTools4Business.com

2021 April Issue | 29

50 YEARS A HOUSE PAINTER 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.’

www.mytools4business.com

30 | Aussie Painting Contractor

Resistance to raising the minimum wage reflects obsolete economic thinking Fewer than 2% of Australian employees work for the minimum wage (now $19.84 an hour). But the federal Fair Work Commission’s annual decision on how much to increase the minimum wage also helps determine pay rises for up to a third of Australian workers.

That’s what happened after the Global Financial Crisis, with no change in the minimum wage in 2009, followed by an almost 5% increase in 2010.

The adjustment, which comes into effect on July 1, flows through to those paid under awards, many on individual contracts and even some enterprise agreements (whose wage increases effectively track the minimum).

The federal government has implicitly sided with them. Its submission to the Fair Work Commission last week warned a higher minimum wage could “dampen employment” and impose a “major constraint” on the post-COVID recovery.

Last year’s increase of 1.75% was the smallest in 12 years.

But this argument is based on outdated economic ideas. The evidence from economic research over the past few decades suggests boosting wages back to a normal trajectory would strengthen aggregate demand and consumer confidence, help keep the inflation on target, and bolster government revenues at a vital moment in the post-COVID recovery.

That modest increase, which was delayed several months for most workers, was justified by the dramatic fall-out of the COVID pandemic. But with employment now rebounding – the jobless rate in February was 5.8%, down from its peak of 7.4% in July 2020 – we should expect a stronger “catch-up” increase.

But many employer groups are pushing for an outright freeze.

2021 April Issue | 31

Consistently opposing increases

In the past two decades, however, this conventional wisdom has been turned upside down. Starting with groundbreaking US studies of minimum wages and employment in the fast food industry, studies have found higher minimum wages do not generally destroy jobs – and in certain conditions may actually boost employment.

It’s not often the union movement and the central bank sing from the same hymn book.

Reasons for this include:

The Australian Council of Trade Unions has argued for a 3.5% increase. This is well within the normal historical range. It also aligns with the historical view of Reserve Bank of Australia governor Philip Lowe, who in 2018 said annual wage increases of about 3.5% were necessary to meet the bank’s 2.5% inflation target.

As my colleague Alison Pennington (senior economist with the Centre for Future Work) has written, the Coalition’s position is consistent: it argues against wage increases “whether the economy is weak or strong”.

• higher labour force participation and productivity among low-wage workers

Long before COVID-19, Australia was already experiencing the weakest wage growth since the 1930s. Since end-2013, wage growth has averaged just 2.1% a year.

Rosy predictions of an imminent rebound, issued with each federal budget, have never come to pass.

• reducing the “monopsony” power of very large employers to suppress wages

Read more: So much for consensus: Morrison government’s industrial relations bill is a business wish list

A redundant economic orthodoxy

The federal government seems captive to an anachronistic belief that lifting the minimum wages will undermine job creation and competitiveness. This idea has been disproven by important developments in both economic theory and international comparisons.

The old economic orthodoxy, typically conveyed via simple supply and demand charts, argued unemployment was inevitable any time governments imposed a minimum wage above the natural “market-clearing equilibrium”.

32 | Aussie Painting Contractor

• better job retention and lower turnover, reducing costs of job search and training

• more money in workers’ pockets, leading to more consumer spending.

Once a leader, now a laggard

The Reserve Bank agrees recent minimum wage increases have had no visible negative effect on employment.

So the government’s submission to the Fair Work Commission is invoking a discredited shibboleth by suggesting an unavoidable trade-off between wages and employment.

It also ignores how much Australia’s minimum wage has been eroded in recent decades. Australia was once a world leader in minimum wage policy. This is no longer true.

www.oldfields.com.au

2021 April Issue | 33

1 - 8 8 8 - 4 9 - S T I N G | s t i n g e r b ru s h .c om S T I N G E R @ S T I N G E R B RU S H .C OM

"First innovation in a brush that works in a long time."

- Todd H Professional Painter for 35 Years

U.S. Patent 10,674,809

The best way to measure the labour market impact of the minimum wage is by its “bite” – the ratio of minimum wages to overall labour compensation (best measured by the median wage).

Australia’s minimum wage is now 54% of median wages. In 1992 it was 65%.

That decline has been accompanied by the weakening of other wage-supporting policies (including collective bargaining and awards).

It’s no accident Australia has experienced weak wage growth and a falling labour share of GDP, alongside record business profitability. That was the whole idea.

The fading ambition of Australia’s minimum wage policy is also evident internationally.

In 2002 Australia ranked third among OECD countries according to the minimum wage “bite”.

By 2019 we ranked 12th (out of 29 OECD countries with minimum wages).

As Australia treads water, other nations are acting on the new economic evidence and lifting minimum wages. In the US, the Biden administration wants to double the federal minimum wage.

The argument that lifting Australia’s minimum wage will necessarily cost jobs is outdated and unconvincing.

After last year’s very modest increase, a more generous increase will strengthen Australia’s post-COVID recovery, not jeopardise it.

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

Jim Stanford

Economist and Director, Centre for Future Work, Australia Institute; Honorary Professor of Political Economy, University of Sydney

Australia’s ranking in OECD by minimum wage ‘bite’ Centre for Future Work, from OECD data on minimum wages relative to median wages.

2021 April Issue | 35

3 Mistakes That Strangle Growing Businesses Businesses want to grow and help a larger audience, but too many make mistakes that cripple their growth.

Even worse, they keep repeating them! Don’t do the same; avoid the blunders outlined below.

Hiring Toxic Personalities Businesses hire more staff as they grow. But if they expand too quickly, they will feel pressure to fill positions on their team, even if the job candidates have a few personality flaws. While some people change, others don’t, and a few toxic personalities will poison your company culture.

This is why controlling growth is so important.

Though it is hard to predict, you can create a game plan when you exceed your projections. Creating a team of healthy personalities is another priority. If you don’t, toxic employees will look for coworkers

36 | Aussie Painting Contractor

with similar values. If they can’t find them, they will try to hire them!

But what personalities should your company avoid?

There are many, but micromanagers are one of the most common. Instead of letting their coworkers do their jobs, they bug them over minor details, sabotaging team goals. Managers do manipulate emotions as part of their job, but some abuse this power.

They will try to ruin people with gossip, or tell bosses what they want to hear, even when they know it is terrible advice.

Instead, always look for team members that value their coworkers and employer, and have enough emotional maturity to find and fix their own weaknesses. They will become better team members over time, and will face problems even when it makes them feel uncomfortable.

Changing Your Product Businesses always want to find new markets, and while they could woo customers in more places, creating new products is another way to reach a larger audience. Bringing a new product to market is an investment new businesses should consider, as long as they know the risks.

Instead of creating a new product from scratch, some businesses tweak their old ones. While this can work, change isn’t always an improvement. Testing your product with consumers will help mitigate risk, but tastes shift quickly; fads don’t stay popular forever.

Customers often develop an emotional connection to their preferred brands. Experimenting might feel like a betrayal of their trust, and it is almost impossible to win back a customer’s loyalty. Growing businesses don’t always have enough resources to create new products, and focusing on your successes might be your best strategy. You can even ask for customer feedback while you build capital.

Misinterpreting The Market Demand shifts randomly. People don’t always know what they want, and why, and products soar and

plummet in popularity for reasons no business can predict. Sadly, too many companies overestimate their brilliance, and pay for their arrogance when their predictions and investments fail.

Understanding your niche will help you create reliable strategies. Infrastructure helps; liquidating assets is better than storing them indefinitely. The more time you spend learning the intricacies of your niche, the more money you will save when a strategy fails.

Keep in mind, too, that predictions fail both ways. Some companies don’t release products that would become hits, while others spend millions advertising obvious failures. Every miscalculation is an opportunity; learn and take advantage! For example, use a failed product launch to discover more about your core audience.

If your business sells great products and services, it will grow if you get out of the way. Every business should ponder the blunders outlined in their article; their customers’ happiness could depend on it.

Sandra Price

www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions

2021 April Issue | 37

CSQ TRP Program And the story continues….

Week 1 of the on-site workplace was cancelled due to COVID and it was surprising how all of our participants were so disappointed by having to wait another week to get on-site. They were all very happy to receive the message from me to say they could all attend their work placement on the Monday prior to Easter.

Over the next 3 weeks, 6 of our participants have continued to attend the work-site and have nearly completed their required 120 hours, they are just a couple of days away, then they will all be signed into apprenticeships with the employers that are hosting them for their work placement.

I visited each of the sites and have been blown away by the praise that I have received for these participants.

•

All of our participants STILL turn up earlier than everyone else, ready to start their day!

• Mobile phone usage isn’t a problem (Yay! They did listen to me) • They understand that you CALL the boss if you’re unwell.

• And they have respect for their workmates and the workplace.

One employer has said to me “I can teach the skills of the trade, but I can’t teach attitude or enthusiasm” this is a personality trait. And all of our participants have these traits in spades.

All of us at Aussie Painters Network are so proud of our participants, they have listened, they have learnt, and are genuinely excited to gain an apprenticeship with the employers that have had them for their work placement.

Thank you to all the supporter’s of this program, CSQ for funding this great program to help those that need the basic skills and knowledge to get in the door with employer’s, Unipro for supplying their kits bags, Dulux for supplying goody bags and also the biggest thanks to our Employers – without you, these participants wouldn’t be able to have a chance – and at the end of the day, that is really what they needed.

We will be starting our next group of participants on May 17th , so if you’re an employer looking to employ an apprentice, think about utilising this program and host a CSQ Participant for a 3 week work placement from our next program. Contact Jo on 0413 345 595, for further information.

Susan Quatro - S.Q Painting

I would like to thank Aussie Painters Network for running the CSQ Trade Ready program for pathways into Painting Apprenticeships.

S.Q Painting were lucky enough to have a participant for the 3 week work placement and he has been a great asset to our team.

The life skills and the units of competency gained through the CSQ Trade Ready Program have been an asset to these participants. Aussie Painters Network have completed a great program and we are excited to be employing our work placement participant into a full-time apprenticeship.

For any employers looking to take on a new apprentice, this program is your best way to try them out with your team, at no cost and to teach them the way you want things to be done!

Give someone a chance – these participants are not paid for attending this program or during their workplacement, so this shows just how much they want to be an Apprentice Painter.

Congratulations Aussie Painters Network, you have achieved great outcomes.

Kath Doherty – Roll with it Painting:

Just wanted to say a big Thank you to Aussie Painters Network for running the CSQ Trade Ready Program. It is great that Louisa was able to gain some experience and basic knowledge during her time in the classroom that she was then able to bring with her to the worksite. Louisa has been an asset to our team.

Darren George – DKG Painting & Decorating:

Our business found the Aussie Painters Network CSQ funded Trade Ready Program a great tool in finding a new apprentice to take on. It took away the risk of hiring someone unreliable and we got the advantage of seeing how the recruit would fit into our business and with our employees before committing to the hire. We are very happy with our new apprentice and happy to welcome them to our team.

Hume Ronald- HLR PAINTING CO.

I have had the pleasure as an employer to participate in the Aussie Painter Network organised CSQ Trade Ready Program. From the get go, Jo and Nigel

answered all of my questions and were always a phone call away to assist with anything we needed.

We got to meet and greet each potential candidate to see who would suit our business, this process was smooth and a great way to see what the candidates had learned over their 2 weeks of training with Aussie Painters Network and CSTC. If you are looking to hire an apprentice I would give this program a shot, even if you don't go through the program, Jo is an absolute pleasure to deal with and will help you find the right person for your business.

Te_Anah Solien – TRP Participant

I’m so grateful for being apart of the Aussie Painters Network CSQ Funded Trade Ready Program. I’ve gained so much from the staff and training. They are genuine, patient and such kind people. I never thought I would be able to achieve becoming an apprentice, I was afraid of failing. However, this program made my career goals reachable and realistic. I have so much gratitude and appreciation to the people at Aussie Painters Network.

The experience and knowledge I have taken from their program has made the transition to an apprentice so easy. And thank you so much Jo for your support and kindness you have given me. You have gone above and beyond and there’s not enough words to tell you how thankful I am.

Wade Searle – TRP Participant

I was asked to put together something about how I found the CSQ Trade Ready program run by Aussie Painters Network. So, let’s start strong with escaping my life, getting to meet new people learn new skills and learn little tricks one wouldn’t see themselves doing. I had an awesome experience getting to know the team at Aussie Painters Network and their friendly attitude made things feel like I can do this. There wasn’t a day the team didn’t have a smile.

I would recommend the course to anyone wanting, and is committed, to see it through.

I will say though, if people decide to take part, they need a can do attitude and the mindset to say YES this is me and I’m going to go through the struggle just to see the rainbow.

The program was one of the best things I have ever done and for me personally, I haven't had too many of them come around, but I would do it all again. Knowing what I know now, is that I can see this through and run the world.

2021 April Issue | 39

Key Strategies

for Your 2020/21 Year-End Business Tax Plan The 2021 Tax Year could be a very important time for your tradie business. The stimulus packages to support businesses during the pandemic have changed the playing field just a little bit from what you’re used to every other year.

Now is the time to get working on your year-end tax planning strategies so you can take full advantage of the current tax saving opportunities. Let’s have a look at some of them to help you get started with your tax plan.

Business Income and Expenses Subject to cash flow requirements, consider deferring income until after 30 June, especially if you expect lower income for 2021/22 compared to 2020/21.

Most businesses are taxed on income when it is invoiced. Some small businesses may only be taxed when income is received. Income from construction contracts is generally taxed when progress payments are invoiced or received.

40 | Aussie Painting Contractor

Ensure that you have complied with the requirements to claim deductions in 2020/21: • Bad debts must be written off in your accounts before 30 June.

• Employer or self-employed superannuation contributions must be paid to, and received by, the super fund before 30 June and must be within the contributions cap ($25,000 for all individuals regardless of age).

• Depreciation can be claimed for assets first used, or installed ready for use, before 30 June.

• Small businesses (turnover less than $10m), can claim expenses prepaid up to 12 months in advance – for larger businesses, this is generally limited to expenses below $1,000.

• Wages paid to your spouse or family members must be reasonable for the work performed.

“The Temporary Full Expensing of Assets allows immediate deductions of assets purchased after 6 October 20 and before 30 June 22 for eligible businesses with turnover up to $5 billion.”

(Source: http://www.ato.gov.au) Small businesses planning major purchases or replacement of capital equipment should contact us for advice. Careful timing of those transactions can result in substantial tax savings.

Scrap any obsolete item in the asset register before 30 June. Consider delaying the sale of assets that will realise a profit on sale and bring forward any sales that will result in a loss.

Review valuations of trading stock in the lead up to 30 June. The best practice is generally to value stock at the lower of cost or market selling value.

These best practices should be revised if you expect a tax loss for 2020/21 or substantially higher income in 2021/22 compared to 2020/21.

Personal Income, Deductions and Tax Offsets

Subject to cash flow requirements, set term deposits to mature after 1 July, rather than before 30 June.

Consider realising capital losses if you have already realised capital gains on other assets during 2020/21.

Conversely, consider realising capital gains if you have unrecouped capital losses, or expect substantially higher income in 2021/22 compared to 2020/21.

Other Tax Planning Considerations Contact your accountant for advice if you have moved to or from Australia for an extended period.

You may need to review your residency status for tax purposes. There are important tax consequences if you change tax residency.

Trustees of trusts should ensure that all necessary documentation is completed before 30 June, especially where you intend to stream capital gains or franked distributions to specific beneficiaries or have beneficiaries who aren’t the default beneficiaries.

Family discretionary trusts may need to make a family trust election if the trust has unrecouped losses or has beneficiaries whose total franking credits for the year may exceed $5,000.

Be sceptical of year-end tax shelter schemes. You should not enter a scheme without advice regarding both its tax consequences and commercial viability.

Single Touch Payroll The Single Touch Payroll reporting framework is expanding from 1 July 2021 to include closely held payees. A closely held payee is one who is directly related to the entity which they receive payments, for example: • Family members of a family business; • Directors or shareholders of a company; • Beneficiaries of a trust.

Income Tax Changes – Small Businesses Tax Rate

If you expect lower income in 2021/22 due to retirement or any other reason, consider deferring income until after 1 July, when you will be in a lower tax bracket.

If you are a primary producer and you expect a permanent reduction in income, consider withdrawing from the income averaging system.

Arrange for deductible donations to be grouped in the higher income year, if you expect a substantially higher or lower income in 2021/22 compared to 2020/21. Make all donations in the name of the higher income earner.

For the 2020/21 year, the reduced corporate tax rate has been reduced to 26%, down from 27.5%, eligibility for the reduced corporate tax rate remains unchanged and applies to base rate entity companies with an aggregated turnover of less than $50m.

The lower company tax rate for base rate entities will reduce to 26% in 2020–21 to 25% for the 2021–22.

Small Business Income Tax Offset The small business income tax offset has been increased to 13%, up from 8%. The tax offset is a 13% discount of the income tax payable on the business income received from a small business entity (other than a company) with an aggregated turnover of less than $5m, up to a maximum of $1,000 a year.

2021 April Issue | 41

Expanded access to small business concessions From 1 July 2020, businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access an immediate deduction for certain start-up expenses and for prepaid expenditure.

until 30 June 2021, and purchased by 31 December 2020, cost less than $150,000 up from $30,000

From 1 July 2021, businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access these small business concessions: • simplified trading stock rules; and • PAYG instalments concession; and • a two-year amendment period; and • excise concession.

The threshold reverts to $1,000 from 1 July 2021.

Temporary Full Expensing of Assets From 7.30 pm AEDT on 6 October 2020 until 30 June 2022 the temporary full expensing allows: • Eligible business entities with an aggregated turnover less than $5 billion or corporate tax entities that satisfy the alternative test can immediately expense the cost of eligible new depreciating assets.

• Eligible businesses with an aggregated turnover under $50 million can immediately expense the business portion of the cost of eligible second-hand assets for • Businesses with an aggregated turnover under $10 million can immediately expense the balance of a small business pool at the end of each income year in the period.

The balance of the general small business pool is also immediately deducted if the balance is less than $150,000 on 30 June.

Income Tax Changes – Individuals Tax Rate

The key income tax bracket changes for the 2020/21 year, as a result of the federal budget, are: • the 19% rate ceiling lifted from $37,000 to $45,000; • the 32.5% tax bracket ceiling lifted from $90,000 to $120,000.

Low Income Tax Offset

Australian tax resident individuals whose income does not exceed $66,667 are entitled to the low income tax offset. The maximum low income tax offset is $700 for the 2020–21 and later income years. This has been increased from $445 as a result of the 2020–21 federal budget.

Low and Middle Income Tax Offset

Australian resident individuals whose income does not exceed $126,00 are entitled to the low and middle income tax offset. The low and middle income tax offset amount is between $255 and $1,080.

Limiting Deductions for Vacant Land

New legislation limiting deductions for the costs incurred in holding vacant land applies to costs incurred on or after 1 July 2019, even if the land was held before that date.

Amounts you do and do not need to include in your tax return

Accelerated Depreciation Turnover less than $500m An immediate deduction is available for entities with an aggregated turnover of less than $500m for assets first used or installed ready for use between 12 March 2020

There have been a range of new assistance and support payments made available to individuals in response to the natural disasters and other circumstances that have impacted us during the 2019-20 & 2020-21 financial year. There are specific requirements around reporting Disaster Recovery Payments (DRP), payments in relation to 2019-20 bushfires and some COVID-19 grants, please contact us for advice regarding these payments.

General speaking, emergency assistance in the form of gifts from family and friends is not taxable.

Find out if the things around you are safe for humans and pets.

CLICK HERE for videos on How to use the sampling kit For donations, CLICK HERE This Lead Safe World Project of The LEAD Group, aims to achieve a lead safe world by 2041

Buy your DIY- Sampling Lead Test Kit/Lab Analysis Lead Kit Lead Group’s lead Test Kit The only ones available in Australia.

Even LOW level of lead is HARMFUL You take the samples and send them to Sydney Analytical Labs.

1800 626 086

www.lead.org.au 2021 April Issue | 43

Business Management Courses FOR PAINTERS!

44 | Aussie Painting Contractor

Superannuation Changes

Capital Gains Tax

Personal Superannuation Contributions

Exempting Granny Flat Arrangements

Individuals with a total superannuation balance of less than $500,000 will be able to make catch-up superannuation contributions using their unused concessional contributions cap. The unused concessional contributions cap can be accessed on a rolling basis for five years.

The government has announced they will provide a targeted capital gains tax (CGT) exemption for granny flat arrangements where there is a formal written agreement. The exemption will apply to arrangements with older Australians or those with a disability.

Salary Sacrifice Legislation has been enacted to prevent employers from using employee salary sacrificed amounts to reduce their minimum superannuation guarantee.

Super Guarantee Non-Compliance Applications for the super guarantee (SG) amnesty closed on 7 September 2020. If you have any unpaid or late paid super to disclose after this date, you will need to lodge a Superannuation guarantee charge statement and pay the super guarantee charge (SGC).

Reducing Superannuation Minimum Drawdown Rates The minimum drawdown requirements have been reduced by 50% for 2019–20 and 2020–21 income years, to support retirees with account-based pensions and similar products from having to sell investment assets in their self-managed super funds (SMSF) to fund minimum drawdown requirements.

Small Business CGT Concessions

Be aware of the additional basic condition for the small business CGT concessions if the CGT asset is a share in a company or interest in a trust.

Fringe Benefits Tax FBT Rate FBT rate for the year ending 31 March 2020 is 47%.

If you need any support with your year end tax planning, call my office on 3399 8844 and we will be happy to help you with a FREE Tax Planning Session. You can also visit our website at www.straighttalkat.com. au and complete your details on our Home page to request an appointment.

2021 December Issue | 45

Does Cutting Your Price

Really Help You Make the Sale?

46 | Aussie Painting Contractor

There is no retail price for contracting. As much as we might think, as hard as we try, this is the case. Yes, many folks quote square footage guidelines but are they really accurate? I say no and so will any other experienced sales/estimator. Square footage prices are averages. If I had one foot in a bucket of ice water and another foot on a hot stove, by average I would feel ok.

Too many contractors solution of having little work, is to merely cut prices. While at first glance this makes economic sense, the reality is that cutting your price does not ensure you will be awarded the job. However, cutting your price does ensure that if you get the job, it will not be profitable.

With consumer sales, let’s suppose a professional contractor that knows his or her costs price a job at $10,000. Others who estimate poorly or may not know what their overhead costs are may be $7000 or $8000 for that same job. So if you cut your price 10%, you still will not be low bidder. It only ensures that if you get the job, your company probably will not be profitable.

If your company did $1,000,000 in sales at 30% gross profit and your overhead was $300,000, you would need 100 jobs at $10,000 to breakeven. $10,000 times 30% equals $3000 per job multiplied by 100 jobs and you have your $300,000. If you cut your price from by 10% to $9000, your gross profit would shrink to 20% or $2000 per job. You would now have to do 150 jobs to reach your $300,000 breakeven point ($2000 per job multiplied by 150 jobs equals $300,000).

One of the problems in cutting your price is that you also cut your price on customers who will buy the job anyway. Research shows that if you quote 10 jobs, 20% of those customers will probably buy from you as long as your price is within reason. In fact, some research shows that 1 out of 5 people only get one bid. So cutting your price on these two jobs, just ensures you will do the work at a non-profitable level. When bidding those 10 jobs there are another 2 or 3 jobs you had no chance to be awarded. The customer was not really interested, did not have the money to do the job or was just trying make sure the contractor relative he or she was going award the job to had a fair price.

Even cutting your price on commercial quotes does not ensure you win the contract. The CM or general contractor may have a favorite contractor that is asked to match the price or it may simply be a negotiation ploy and you are already the low price.

So what should you do rather than just lower your price?

1. Be more strategic. Understand the segments of the market and the customer base where you are most competitive. Stick to your core competency.

2. Don’t assume it is always about being low price.

Ever quote a job where you were not low price and you were still awarded the contract? Sure.

You probably won the job because the customer thought you were more competent than the competition. What did they tell the other bidders; you were better? Of course not, they said they had a different price or had to think about it.

3. Qualify better. Ask the caller questions. Probe.

If they are getting 4 or 5 quotes, it is doubtful you will be competitive. Look up the property on Google Earth and see what the value of their home is. Is it a target neighborhood where you do a lot of work? When bidding commercial work, ask more questions rather than wasting the time to throw out a price on a job you have no chance of winning. In many cases the person looking for a price has nothing to do with the actual awarding of the job.

4. Spend more time with jobs you have a chance to win. Sell better. Communicate better. Ask questions. Find out what the customer’s real needs are. Then offer product options and alternates that fulfill those needs. Get to know the customer and what they want.

5. Learn to be a better salesperson. Improving your sale skills is one of the few areas where you can increase profits without it taking more time and creating more stress.

6. Work existing customers harder and try to develop more referrals. Look for an in rather merely bidding public projects or blind internet calls.

Build quality leads by working your customer base.

In closing, cutting your price is a knee jerk reaction of your not marketing and staying on top of your backlog. You may find it much more effective to merely cut overhead or lay people off than to create a pricing structure where it is impossible to be profitable.

Monroe Porter

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

www.proofman.com

2021 April Issue | 47

The 7 Habits of

Highly Indebted People I spend all my time trying to get clients their money.

Inevitably sometimes you exhaust all avenues and cannot recover their money. This is very frustrating and can leave you feeling deflated. You ask yourself, “Where is the justice”? The most common thing I hear is business owners saying that “I did the work and I am entitled to every cent”.

One of the duties of a business owner is to mitigate and manage risk. Yet all too often business owners commit their companies to too much work, for too great a value, for very poor quality clients, under non-existent terms. If you do that you can hardly complain about entitlements and justice. The fact is that there are scumbags in the business world who will take your work and run. If you make it easy then you carry some of the responsibility.

When you find yourself with no way of getting your money, I advise you to learn from the episode by asking yourself 7 important questions: I had a bad feeling about it. Why did I do the work anyway?

48 | Aussie Painting Contractor

So often one’s 6th sense knows a scumbag when they see one. Pay attention to that inner voice and if it telling you that something is not right with your client/prospect then do further investigations before contracting with them or doing work. An early indicator is if your client is shy about giving you contact details, addresses, ABN’s and so on. Believe it or not, I have had clients do $20 000+ worth of work on the strength of a first name and a mobile phone number! So listen to the little voice inside.

I hardly had any details about my client. Why didn’t I background the client properly?

Once I had a client that was owed a five figure sum only to find that his client was run out of a rented townhouse. Before doing work you should be doing several searches and checks on your prospect. Check ABN’s, addresses, and contact details; especially the usual place of business. If it’s a residential apartment then tread carefully. Also Google the company name you are dealing with. Get an ASIC extract and see who the directors are and where they are.

Do you have an Apprentice?

Aussie Painters Network is the preferred industry consultation provider for Master Painters Decorators & Signwriters' Association of Queensland Union of Employers (RTO 30048) to provide an exceptional quality, convenient experience for apprentices.

We work closely with employers and their apprentice with access to thorough, easy to use, online training resources, combined with onsite tutoring and hands on simulated work environments in our custom built Painters Training Wheels.

We can come to you, on your site, with

Painters Training Wheels!

Anywhere/anytime they can get online.

We can provide individual guidance with any theory online or practical concepts on the job.

Call : 1800 355 344 / 0430 399 800 info@aussiepaintersnetwork.com.au www.aussiepaintersnetwork.com.au

2021 April Issue | 49

Join us and share your painting ideas!

50 | Aussie Painting Contractor

I did the work on a verbal agreement. Why didn’t I get the contract in writing?

Too often businesses are undertake high value work under either scant contract terms, or none whatsoever! This is inexcusable. It is part of your duty as a business owner to manage risk. It does not matter how comfortable you fell with your client, get the contract right! Make sure the terms are place solid payment terms around the work, and entitle you to stop work if payments are not made, or repossess your goods if you are not paid. Get your solicitor to sort this out. And more importantly, actually get the contract signed off by the client; don’t just send it over and then start work. It’s nothing to be shy about.

I was asked to do all this extra stuff. Why didn’t I get the request documented?

This is so common. It stems from a lack of clarity about what your ‘deal’ with the client is: you have promised to do a specified scope of work for a specified price. Anything above that is extra, and warrants extra payment. There is nothing wrong with doing extra work. Just get the client request or direction in writing. Never underestimate a person’s ability to lie about it later.

Often the additional work is worth more than the original contract. So get over how friendly you think you are with your client and get the additional request on paper. If they’re genuine this should not be a problem.

They are using you for credit. Things get worse when you keep working for the client until there are a pile of invoices unpaid. If there is one regret I hear all the time it is “Why did I keep working?” It comes down to misplaced trust. You are not a friend of your client, you are a supplier in a business relationship. That relationship is governed by fee for service. You need to remember that.

But she said she’d pay me for the extra work and the changes. Why didn’t I get any of that in writing?

I’m not going to labour the point, but if you are not getting every single change on paper, you are increasing the risk on your business’s cashflow. Remember that 6 months after the work was requested, when you’re chasing your money, you need to be in a position to show that agreement in writing.

I showed how patient I was for 6 months. Why did I wait so long to chase my money?

There is little reward for patience when it comes to getting paid. If you wait too long your client will go from having little money to no money at all. They may even go under! There is simply no excuse for not getting paid on time or within a reasonable time. If you do little to ratchet up the pressure, then you bear a lot of the blame. You should have a debt recovery plan in place which increases pressure as time goes on. However don’t let it drag in the first place. At 45 days overdue you should be well and truly in top gear: not just sending out another email about how much you’re owed.

The ultimate lesson you should be learning here is that the seeds of debt are sown from the beginning of the deal with your client. If you don’t tend to it carefully, you simply increase the risk of not getting paid for your work. Always remember that you are in a business relationship with your client. You are not mates. Keep that at the forefront of your mind, and that will make it easier for you to enforce your terms in good time.

My client did not pay me on time. Why did I keep working?

If you are not enforcing your own payment terms on your client then you are asking for it. If you do not have enough respect for your own due date for payment, then your client won’t. Do not keep working because your client has been friendly or related some anecdote as to why you haven’t been paid.

Now run your debtors and get after everyone in 45 days or over.

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

Anthony Igra

1300 669 075 www.contractorsdebtrecovery.com.au

2021 April Issue | 51

The Industry Idiots

52 | 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 April Issue | 53