Aussie Painting Contractor September 2023

From the Editor

Hey Everyone, Welcome to the 129th edition of the Aussie Painting Contractor Magazine.

What a month it has been, with School Career Expo’s, training apprentices, helping painting business owners with restructuring their businesses, Worldskills National event and to see out the end of the month working with the participants in the ‘I Got Brushed’ Program.

As usual, the career expos are giving the industry exposure to school leavers looking at getting into the construction industry and hopefully into painting.

It’s great to see painting companies looking for assistance to work out how they can grow their businesses through specialising in areas. If you need any assistance, feel free to contact me.

The Worldskills National Competition, check out my article on the comp. It was a blast, and I can’t wait for the next one.

The I Got Brushed program is going well with the participants starting a new project at the Volunteer Marine Rescue Jacobs Well after completing the 2 painting projects at VMR Currumbin.

Over the next couple of weeks, we are launching some new Membership initiatives that I’m sure you will all be excited to hear about.

CONTRIBUTORS

• Aaron Gilbert

• Andrei Lux

• Ayesha Scott

• Helen Kay

• Jim Baker

• Leo Babauta

• Mary Cairns

• Nigel Gorman

• Robert Bauman

• Sandra Price

EDITOR

Nigel Gorman

GRAPHIC DESIGNER

J. Anne Delgado

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

'Til next month, Happy Painting!!

Contents

How to Stick to Long-Term

Changes

26

The Importance of Training (Part 5)

Successfully Selling

Your Business: Tips and Insights from Business Lawyers

7 ways your trades business can market its services

Australia is about to set its first full employment target and it will define people’s lives for decades

MASTERING THE BASICS: A guide to accounting principles for small business owners

Worried about holding on to your key staff?

30

Is Public Liability Insurance COMPULSORY?

5 Ways to Reduce Your STRESS LEVELS

33 34 37 38 42 43

Quotes and Quoting Worldskills Wrap Up

6 Tips to Paying Down your personal debt in 2023

HIGHER PRICES HAVE HIT MOST PEOPLE but homeowners have felt it harder than renters

Industry Idiots

Important Contacts

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you September 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.

How to Stick to Long-Term Changes

If you’re trying to lose weight or gain muscle, you can work really hard at it for a week … and see no change. The same goes for learning music or a language, or creating meaningful change in the world.

It’s hard to stick to long-term changes when you don’t get very immediate results. Seeing progress quickly can be very encouraging — so how do we find encouragement when we don’t see that quick progress?

Over the years, I have been able to stick to some big long-term changes: losing weight, working out to gain strength, training for marathons, creating a blog audience, and much more. I still don’t find this stuff easy!

Let’s look at some of the things I’ve found helpful in sticking to long-term changes when we aren’t getting immediate results.

The Mindset

It’s important to recognize when we’re in a fragile mindset, which is something along the lines of, “If I don’t see progress right away, I give up!” This leads to fragility — which is a human thing, but it’s good to be aware that this is going on.

A more resilient mindset might be something like:

• I’m inspired by what I want to create

• I’m committed to this for the long-term, because I care about what I’m creating

• I also love the activity that I’m doing to lead to my long-term goal

• Getting stopped is a part of this growth process, and I simply need to start again

• I should be clear that mindset takes practice. We don’t just decide to come from a new mindset, and it happens instantly. We will get stuck in the old mindset, and the practice is to recognize it, and practice the new one.

Ways to Encourage Yourself

If the thing you’re trying to achieve (improved health, learning a language, changing people’s hearts and minds) isn’t going to happen this week … then how do we find encouragement?

We need to look for more immediate ways to find reward, to sustain our long-term encouragement.

Here are some ways I’ve found helpful:

• Look for things in the activity to enjoy as you’re doing it. If you’re training for a marathon, can you enjoy the run as you’re running, rather than focusing on wanting to be able to run longer (which takes time).

• Give yourself the equivalent of a gold star when you’re done — checking it off a list, putting a sticker on a calendar, logging it on a meditation or workout app, etc. It feels good to be able to give yourself that star!

• Be in an accountability group. This allows you to report when you’ve done something (I’m currently doing a fitness challenge with my wife and kids, and it’s fun to report on what I did each day), and it feels rewarding.

• Find encouraging things to tell yourself. We rarely acknowledge ourselves, and usually find things to tell ourselves that are discouraging or critical. Switch that up! What could you tell yourself that would be loving and encouraging? “You got this.” “I’m proud of how hard you’re working.” “You are courageous!” It might feel silly at first, but that’s because we’re not used to it — we’re used to berating ourselves. Be encouraging for a change!

• Remind yourself daily of the possibility you’re creating. What’s the reason you’re doing this? Why is it important to you? What will be amazing about it once you’re done? This is the possibility you’re creating with this effort — remind yourself of why you care about this every day.

• Turn it into a game. When you’re running your long run for marathon training, can you set little targets for yourself and think of each target as an achievement during the run? Can you play music and let yourself feel silly and joyful as you run? When I was running on Guam, I would tell myself to pick up the pace until the next telephone pole, then run easy until the one after that, then run like a little kid for the one after that, etc.

• Feel how the activity is building the possibility you’re creating. As you’re doing the activity. For example, if I’m lifting weights, I can let myself feel the strength I’m building with every rep. Each time I lift the weight, it’s connected to the greater strength I’m creating for myself, and it feels powerful.

• Get people to be your cheerleaders. Who’s got your back? Who’s cheering you on when things get hard? When I ran my first marathon, I had friends who ran long training runs with me, a sister who would run with me at 5am in the dark, a wife and kids who told me they were proud of me and who made signs to cheer me on during my race. Some of those running friends ran the marathon with me, and didn’t let me quit when I wanted to give up. We need people — we can’t do this alone.

• Celebrate your small victories. We are so focused on the long-term outcome that we want to be a reality THIS MINUTE … but what about the smaller victories along the way? If you’re writing a book, finishing a chapter is a great victory! Find a way to celebrate along the way, instead of just at the end.

I hope these help. You don’t have to do all of them — I’d suggest playing with the ones that feel like they’ll encourage you. If those don’t work, try some of the others.

What long-term effort have you been struggling to stick to? Learn from the past failures, let them go, and give it another shot … but with more encouragement.

Leo Babauta ZEN HABITS

The Importance of Training (Part 5)

This edition focuses on the crucial aspect of Surface Preparation, a process that significantly influences the final outcome and longevity of a painting job. The two primary types of surface preparation, as outlined in the Painting and Decorating training guide, are:

1. Preparing raw, unpainted surfaces, and

2. Preparing surfaces that have been previously painted.

Regrettably, throughout their training, some apprentices only gain experience in a specific sector, like new construction. In such cases, the apprentices only ever work with raw surfaces, missing out on the skills needed to prepare surfaces that have already been painted.

The drawback here is that the skills required for each sector differ. Thus, an apprentice trained solely in new construction might falter when faced with a repaint job.

Surface preparation, in the context of painting and decorating, is a vital skill for an apprentice. Our industry has segregated the training into; preparation of raw surfaces; and; preparation of previously painted surfaces; emphasizing that they are distinct skills that require unique techniques and understanding.

Imagine a new, unpainted house—it's akin to a blank canvas. Here, the preparation involves cleaning the surface, ensuring it's free from dust or any other substance that may hinder the paint application. Furthermore, the surface may require sanding or priming, based on the material. Once completed, the surface is ready for the first coat of paint.

On the other hand, preparing a previously painted surface—usually for a repaint job—demands a different strategy. This process involves removing any chipping or flaking paint, sanding for smoothness, thorough cleaning, and possibly priming, depending on the con-

dition of the existing paint. The objective is to have a surface that can effectively bond with the new paint.

The fallout of improper surface preparation can be severe, affecting not only the aesthetics but also the durability of the paintwork. Problems such as peeling, blistering, or chalking paint might occur, compromising the visual appeal and reducing the lifespan of the paintwork. This leads to frequent repaints, escalating costs.

An apprentice used to working with raw surfaces may find a repaint job challenging due to the difference in techniques, tools, and even mindset. This highlights the need for comprehensive training across various industry sectors.

In sum, surface preparation is crucial for a successful paint job. It's vital that apprentices learn how to prepare both raw and previously painted surfaces. This will ensure they can tackle any painting assignment, maintaining high quality and longevity in their work.

Hence, It's clear that thorough training forms a key factor in achieving professional excellence. So, the next time you undertake a painting job, pay special attention to surface preparation. This will ensure your work stands out and endures the test of time!

The importance of training in painting and decorating can't be emphasized enough, and I hope this article has provided valuable insights into this subject.

So if your trainer or training provider aren’t teaching all you think you need to learn, reach out and contact me.

Nigel Gorman nigel@aussiepaintersnetwork.com.au

Successfully Selling Your Business: Tips and Insights from Business Lawyers

Selling a business is a significant decision that requires careful preparation to ensure a successful and smooth transaction. As a business owner, you play a crucial role in the process, and understanding the stages involved is essential for achieving a favourable outcome. Let’s explore the three main stages of selling a business and the key considerations in each phase with the guidance of experienced business lawyers.

Stage 1: Get Your Business Ready for Sale with the Help of a Business Lawyer

The first step in selling your business is to ensure that it’s ready for sale. Proper preparation is crucial to maximising the value of your business and attracting potential buyers. Engaging a business lawyer experienced in commercial law can be immensely beneficial during this stage. They can conduct a thorough Sellers Due Diligence early on, helping to identify and

address any issues that may negatively impact the sale price or cause problems down the line. Here are some tips to get your business ready for sale with the assistance of a business lawyer:

1. Conduct a Sellers Due Diligence: A business lawyer can investigate the business, its assets, and business relationships to address any legal issues before the business goes on the market.

2. Ensure Legal Compliance: A business lawyer can assist in registering the business name and trademarks in your name, discharging any old PPSR charges, and documenting all key contracts to add value to the business.

4. Review Financial Aspects: Collaborate with your business lawyer and accountant to review the financial aspects of the business, ensuring your finances are in order and attractive to potential buyers.

Stage 2: The Contract Stage with Expert Commercial Lawyers

Once your business is ready for sale, the Contract Stage begins, where the parties enter into a legally binding agreement. This stage is critical in solidifying the deal with the buyer and negotiating terms of the sale. It is highly recommended to work with expert commercial lawyers during this stage to protect your interests and ensure a smooth transaction. Key aspects during the Contract Stage include:

1. Document Agreed Commercial Terms: Your commercial lawyer can help document all main commercial terms of the offer, such as parties, price, settlement date, and conditions to be satisfied before completing the sale.

2. Negotiate Additional Terms: Commercial lawyers can negotiate other important issues not yet agreed upon, such as the period and geographic area of the Seller’s restraint of trade, employee entitlements, and apportionment of the purchase price.

3. Attachments and Matters: Your commercial lawyer will ensure that all necessary schedules, such as asset lists, intellectual property, leases, licenses, permits, and employees’ details, are included in the contract.

4. Exchange of Contract: Once the business sale agreement is agreed upon, the parties sign the contract, making it legally binding.

5. Fulfill Contract Obligations: Your commercial lawyer will guide you to meet key dates and obligations outlined in the contract to avoid breaching your responsibilities.

Stage 3: Settlement with the Support of Business Lawyers

The final stage of selling your business is Settlement, where the sale of your business becomes unconditional, and ownership is transferred to the buyer. This stage involves several legal and financial complexities that require expert advice from business lawyers. Here’s what you need to know about the Settlement stage:

1. Transferring the Lease: Your business lawyer will help prepare to transfer the lease to the buyer, including the necessary documentation and ensuring that you are released from any obligations after settlement.

2. Business Name and Licenses: Your business lawyer will guide you in transferring the business name and any necessary licenses required for operation to the buyer.

3. Plant and Equipment: Your business lawyer will assist in transferring ownership of any equipment or assets involved in the business.

4. Employees: Your business lawyer will ensure that employees are properly notified of the upcoming business sale, calculate their entitlements, and ensure the buyer is aware of their obligations regarding employees.

5. Transferring Business Contracts: Your business lawyer will handle the transfer or termination of agreements with third parties, such as suppliers and customers.

6. Settlement Statements: Your business lawyer will help you agree on settlement adjustments, such as rental payments, and provide payment directions to different parties receiving payments.

7. Stocktake: Your business lawyer can advise on conducting a stocktake to assess the value of the stock if it’s not included in the purchase price.

8. Settlement Day: On settlement day, the final transfer of ownership takes place, and you’ll hand over the keys to the business and any required documentation.

This blog provides the key insights and tips for business owners looking to sell their businesses successfully. By working with experienced business lawyers such as Rise Legal, you can navigate the complexities of selling your business with confidence, knowing that your interests are protected every step of the way.

To get further information as to how Rise Legal can assist you in selling your business, book in for a free 15-minute consultation with one of our lawyers.

When you go into business as a tradie, your focus is often on performing your trade to the best of your ability – as it should be. With time, the quality of your work will speak for itself, which is the most valuable testimonial of all.

However, any tradie accountant or bookkeeper will tell you there’s more to it these days. While your good reputation preceding you is undoubtedly essential, there are a few other ways that you’ll want to market your services to ensure that you have a steady stream of work. Read on to learn 7 ways you can market your trades business.

1. Appear in directories

Since setting up a new business is usually a digital experience these days, it’s easy to overlook the step of making sure you appear on a physical list where people can find you. Ensure your business is on whatever relevant trade directories run in your area.

Additionally, make sure you appear in the online equivalent. Yelp, Google, and Facebook each have business directories. And let’s not forget the old standby: the phone book. Yes, they still exist! They are valuable resources for some people looking to hire a tradie.

2. Have a website

Some website-building platforms are very user-friendly,

but if you feel that’s beyond you, hire someone to do it. Almost everyone does an online search before they hire a business, and not having a website is like waving a giant flag that says you’re out of touch, old-fashioned, or possibly not legitimate.

Meanwhile, having a website reassures people that you are who you say you are, and can provide the services they need.

3.

Leverage social media

Nothing is stronger than a good referral, and people naturally turn to social media to find out what your customers are saying if they don’t know someone who's used your services personally.

Keep your social media presence strong and engaged. If you’re uncomfortable doing this, hire someone to do it for you. It’s critical when doing business today.

4.

Offer referral promotions

When you wind up with a happy customer, provide them with an easy way to speak positively about you and suggest you to their friends. A card or a thankyou email with a discount code will do the trick.

5. Run ads

Tradie marketing can be tricky because, typically, your services aren’t always needed. But when you are needed, it’s usually urgent.

If your trades business doesn’t appear on the first page of Google, it might be worth your while to take out an online ad. That way, when someone searches for a tradie in your area, your business will appear next to their search. The only way someone can click on your information is if they see it – so make sure they have that chance, whether through an organic search or a paid ad.

6. Make yourself visible in the real world

Make sure your business’s name and logo appear on any equipment you use and make clothes for your team to wear when they’re out and about in the world.

It may be smaller than a billboard, but driving and walking around letting people know who you are, what you do, and how to contact you will go a long way to market your trades business. If people become familiar with your business name, they’ll be more likely to turn to you when they need you.

7. Good old-fashioned snail mail

Believe it or not, print campaigns are alive and well! If you operate a trades business whose services are sorely needed in a specific area, consider making a print ad to pop into mailboxes.

A word of warning, though – make sure your print ad is relevant, valuable, and eye-catching. You don’t want to spend money producing something that will immediately go to the recycling bin.

Marketing for trades businesses is a lot like any other type of business in that you have to understand your audience and their needs and show up when they’re looking for you. With some research and proactive planning, you can be sure your business will appear in the right place and at the right time.

If you want to embed simple marketing strategies into your current business plan and need a sounding board, feel free to arrange a FREE No-Obligation Meeting with me. Call my office on 07 3399 8844, or just visit our website at www.straighttalkat.com.au and complete your details on our Home page to request an appointment.

Copyright © 2023 Robert Bauman.

Australia is about to set its first full employment target and it will define people’s lives for decades

Stand by for one of the most important decisions Treasurer Jim Chalmers and the Albanese government will make.

That decision is to commit future governments and the Reserve Bank to full employment, and, more importantly, spell out what that means.

The Australian government hasn’t wholeheartedly and publicly committed itself to full employment since the 1945 Full Employment White Paper, released as the second world war was drawing to a close and Australia was gearing up for peace.

The definition Chalmers chooses – whether it specifies an unemployment rate of 3.5%, 4.5%, or the more ambitious target of 3% I would most like – could reverberate for as many decades as the white paper did in 1945.

Tuesday’s Reserve Bank decision not to increase interest rates further makes it more likely we could end up with a more ambitious target.

Australia’s daunting post-war challenge

The 1945 white paper was prepared for Prime Minister John Curtin by a committee led by the head of post-war reconstruction HC “Nugget” Coombs.

In the 20 years leading up to the war, more than 10% of workforce had been out of work, climbing to 25% during the depression. The committee wanted the allout mobilisation necessitated by war to be continued into the peace.

Their challenge was to find jobs for the 1 million defence staff who would be returning to civilian life.

HC Coombs in May 1942. He helped set Australia up for full employment. RBA

Achieving that would require governments to actively stimulate private spending, through their own spending and through monetary and other policies “to the extent necessary to avoid unemployment and the consequent waste of resources”.

That was an idea accepted by both Labor and Coalition governments right through to the 1970s, where unemployment remained as low as 2%. It was also one Coombs himself adopted as the first head of the Reserve Bank of Australia from 1960.

But the employment target Coombs helped write in to the Reserve Bank Act was fuzzy: it simply committed the bank to “the maintenance of full employment in Australia”.

Finally setting a jobs target

Fast forward to March 2023, when the treasurer was handed the review of the Reserve Bank, An RBA fit for the future.

That final report pointed out the bank’s target for inflation is specific – defined in a written agreement with the treasurer as “2-3% on average, over time”.

In contrast, the bank’s target for employment has no numbers attached – resulting in inflation getting prioritised.

While it is true that putting a number on a target doesn’t guarantee an outcome, the number put on the inflation target does seem to have helped bring it down.

The RBA review recommended the treasurer’s agree-

ment with the bank be updated, requiring it to adopt an explicit target for “full employment”. That would most likely be expressed via a range of indicators, including the unemployment rate, the underemployment rate, and the tenure of employment.

Chalmers says he will update the agreement and issue the direction by the end of the year. Before then, next month he will make public his own target for full employment via his employment white paper, now being prepared by the treasury.

Moving unofficial targets of the past

The numbers that the treasurer and the Reserve Bank adopt will matter enormously. And it’s worth clarifying that the target can’t be an unemployment rate of zero.

There will always be some temporary unemployment as people move between jobs. That’s also the case when people leave industries that are no longer needed – such as thermal coal mining in the years ahead, as our energy mix changes – and go on to retrain for jobs in emerging industries.

Read more: With unemployment steady at 3.5%, inflation fears shouldn't stop Australia embracing a full employment target

For a while in the 1990s, the Reserve Bank acted as if full employment meant an unemployment rate of 7%. That was its estimate of the “non-accelerating inflation rate of unemployment” (also known as NAIRU), the rate needed to stop shortages of useful workers pushing up inflation.

In 2017, the bank cut that estimate to 5% and then 4.5% in 2019. Then, about a year after COVID hit, it appeared to cut it further when Governor Philip Lowe said in 2021 there was a chance Australia could achieve and sustain an unemployment rate in the “low fours”, although only time would tell.

The lower our target, the more secure we will be

The unemployment rate is now 3.5% – a near five decade low.

If the government and the bank choose to adopt 3.5% as a target, it would put 150,000 more Australians into work than would a higher unambitious target of 4.5% – in perpetuity.

A lower target of 3% (not too far above the 2% Australia achieved from 1940 to 1974) would do much more than put people into jobs and better use our resources.

It would also help us adapt to change in the way we are going to need to.

Creating confidence to face change

The 1945 white paper was on to this, at another time of massive transition when the wartime industries were dying and the peacetime industries emerging.

It said an assurance of full employment would assure workers that the community has need of their services somewhere, and will restore the basic sense of security without which new risks will not readily be undertaken.

It’s a point echoed by Prime Minister Bob Hawke’s former economic advisor, Ross Garnaut, in an address to the Australian Conference of Economists last month.

He said unless there was confidence in high employment, every time an industry or employer was threatened with closure, there would be a cry of “jobs, jobs, jobs” as workers fought to protect what they had.

Read more: Australia is on the brink of ending interest rate hikes and an economic first – beating inflation without a recession

Garnaut told me it was a lesson he learned from Hawke when he signed on with the prime minister in 1983. Hawke agreed with him that the economy would have to change and some industries would have to die. But Hawke told him he wasn’t going to bring on those changes until unemployment was clearly coming down.

When people knew they could get another job, they would accept change.

Now, as in the 1940s and 1980s, we need that confidence. If Chalmers and the Reserve Bank adopt an ambitious target, they’ll create it and set us up for the challenges ahead.

Peter Martin Visiting Fellow, Crawford School of Public Policy, Australian National University

MASTERING THE BASICS: A guide to accounting principles for

small business owners

As a small business owner, you know that managing your finances is crucial to the success of your business. But with so many accounting principles and practices out there, it can be challenging to know where to start. That’s where we come in! In this guide, we’ll break down the essential accounting principles that every small business owner should know. We’ll discuss how these principles can help you keep track of financial transactions, create accurate financial statements, and make informed decisions for your business. So, let’s dive in, shall we?

Why Are Accounting Principles Important for Small Businesses?

Accounting principles are the foundation for any successful business. They provide a uniform framework for recording and reporting financial transactions, ensuring consistency and accuracy in your financial records. By adhering to these principles, you’ll be able to:

• Make better financial decisions based on accurate and reliable data

• Monitor your business’s performance and identify areas for improvement

• Meet legal and regulatory requirements for financial reporting

• Build trust with investors, lenders, and other stakeholders

Let’s explore some of the key concepts you need to know.

IFRS: International Financial Reporting Standards

International Financial Reporting Standards (IRFS) –as the name implies – is an international standard developed by the International Accounting Standards Board (IASB).

IFRS is used in more than 110 countries around the world and is a set of principles that help companies around the world show their financial information in a clear and consistent way. Think of it like a common language for money matters, so everyone can understand and compare how businesses are doing financially, no matter which country they’re from.

Accrual Accounting vs. Cash Basis Accounting

When it comes to accounting methods, there are two main options: accrual accounting and cash basis accounting.

Accrual Accounting is the more widely accepted method, where you record transactions when they are earned or incurred, regardless of when cash changes hands. For example, if you invoice a client for services provided in December but don’t receive payment until January, you would record the revenue in December under accrual accounting.

Cash Basis Accounting, on the other hand, records transactions when cash is received or paid. In the example above, you would record the revenue in January when the payment is received.

Double-Entry Accounting: The Backbone of Financial Record-Keeping

Double-entry accounting is a fundamental accounting principle that requires every transaction to be recorded in at least two accounts: one as a debit and one as a credit. This system ensures that your books are always balanced and makes it easier to detect errors or discrepancies in your financial records.

Practical Examples and Case Studies

To illustrate how these accounting principles can be applied in practice, let’s look at a few real-life examples:

Example 1: A local coffee shop owner uses accrual accounting to record sales and expenses. They track their daily sales and expenses, recording them as they are earned or incurred, rather than waiting for cash to change hands. This allows them to monitor their cash flow and make informed decisions about purchasing inventory, hiring staff, and investing in new equipment.

Example 2: A freelance graphic designer uses cash basis accounting for their business. They record income when they receive payments from clients and expenses when they pay for software, supplies, or other business costs. This simple approach helps them stay on top of their cash flow and ensures they have enough money to cover their expenses.

Here’s a simple example: When you purchase inventory for your business, you would record the transaction as a debit to your inventory account and a credit to your cash account.

By using double-entry accounting, you’ll have a clear and accurate picture of your business’s financial position, allowing you to make better financial decisions.

Becoming knowledgeable in accounting principles has the power to transform the way you run your small business. A strong grasp on your financials enables you to make informed decisions and accelerate revenue growth.

If you need assistance, book a strategy session HERE to see how we can improve your bottom line.

tradiebookkeepingsolutions.ourclienthub.com

Worried about holding on to your key staff?

Employee retention is currently a significant issue for a huge number of Australian businesses. In February 2023, job mobility remained at 9.5% for the second year in a row, the highest rate in a decade (ABS).

Whilst remuneration often plays a key role in an employee’s decision to seek new opportunities, we know more and more that it is only one factor, with other critical drivers also contributing to the decision to leave. Interestingly, these factors remain very consistent across different generations of employees too.

A white paper recently released by HR Coach Australasia which showed results from a study that covered 5000 employees across 140 workplaces between 2019-2022, reflected the extreme tightening in the labour market and the pressure from all generations concerning dissatisfaction levels around pay and remuneration. However, as seen below, knowing what people are accountable for; being trusted, and having flexibility in work arrangements, made up the top 3 satisfiers for almost every generation.

As employers we are not always able to compete on salaries, especially when new employees are seeking to join at highly inflated rates, above and beyond where existing employees are paid. Therefore, other retention strategies need to be considered to deliver on what employees are asking for.

Some of the things you can do to improve flexibility in the workplace, and ensure your employees feel trusted and know what is expected of them, are:

As an employer, even if you are only delivering in some of these areas, your general staff satisfaction will improve. Imagine what your business culture and employee satisfaction would be like if you were able to meet all of these satisfiers and address the dissatisfiers? If we can help with strategies to identify and address your challenges with staff retention, please reach out.

Is Public Liability Insurance COMPULSORY ?

If you’ve been told that you need public liability insurance, you’re probably wondering whether it’s compulsory or not.

The answer will depend on your business type, your licensing requirements, and the contracts that you are entering into.

Is public liability insurance required by law?

There is no specific law in Australia that states a business must have public liability insurance.

However, many Australian states have licensing rules for certain trades that require you to have public liability insurance in place.

Electricians and plumbers are the two trades most likely to have licensing requirements around public liability insurance.

For example, if you’re an electrician in Queensland you won’t be able to obtain or renew your electrical contractor’s licence without having public liability insurance in place.

When is public liability insurance compulsory? If public liability isn’t required by law, when and why is it compulsory?

There are a few different reasons why public liability may be mandatory for your business:

• For your contractor / building licence

• Required under a contract

• Required for leased premises

• When using subcontractors

• As part of an insurance package

We’ll now take a look at each of these in more detail.

Public liability insurance required for a trade licence As mentioned above, there are many examples where public liability insurance will be a compulsory requirement for obtaining a trade or building licence.

For many trade licences, such as electricians and plumbers, you will need to provide evidence of your public liability insurance when applying for or renewing your contractor’s licence.

Some states go even further, requiring specific options be added to the mandatory public liability insurance.

Electricians in Queensland must have an option for consumer protection insurance included in their public liability policy.

Plumbers in Victoria must have plumbers warranty included in their public liability insurance.

If you have a policy which doesn’t include those specific options for your state and trade, your licence application or renewal will be rejected.

Whilst the requirement for insurance is not a law as such, you would be breaking the law by operating an electrical business without a licence, and you can’t get the licence without the insurance!

To check if public liability insurance is mandatory for your specific trade and state, check with your local state licensing authority.

Insurance requirements on a lease

If you’re operating your business from a leased premises, such as a workshop or shopfront, you will generally find that public liability insurance is a requirement on the lease.

In this case the lease will stipulate that a minimum amount of public liability will need to be in place at the time of signing the lease.

You don’t need a specific policy for the premises. Instead, the public liability insurance for your business will cover the lease requirements, provided that the address of the premises is listed on the policy.

Along with public liability, most leases will also stipulate that glass cover is included in the policy.

Why is this? Often when something does go wrong on a worksite, the lawyers will bundle everyone into the legal action.

The old saying “throw sh** at the wall and see what sticks” is appropriate in this case!

In the end it may be found that multiple parties were responsible for the incident. For example it might be found that you were 30% responsible and your subcontractor was 70% responsible.

Your insurance company will want to know that your subcontractors have their own policy in place to cover their 70% of the claim.

If your subcontractor didn’t have insurance in place, the lawyers on the other side will likely try to make you responsible for a larger part of the claim, since they know you have insurance and are more likely to be able to pay than the other party without insurance.

Public liability required as part of an insurance package

When it comes to business insurance, you will often find that public liability is a mandatory component.

For example if you want tool insurance, most insurers will only offer it as part of a package which include public liability.

Public liability requirements for subcontractors

If you are subcontracting work out to others, you may need to consider making public liability insurance mandatory for those subcontractors.

Whilst you might think that the insurance requirements for your subcontractors are nothing to do with you, this is often not the case.

Many public liability insurance policies will require that you ensure any subcontractors you are using hold the same level of public liability insurance as you do.

The same is true for many other forms of business insurance, which aren’t available on their own, and must be bundled with public liability.

Public liability insurance is typically the cornerstone of any business insurance package, so it’s no great surprise that the insurance companies want to hold your public liability for adding any extras.

What is the required amount of public liability insurance?

It’s one thing to know whether or not the insurance is compulsory, but you also need to know what amount of cover is required.

The minimum amount of cover available in Australia is $5 million. This is typically the required amount under various trade and building licenses.

That doesn’t mean that $5 million is the appropriate amount. It is simply a minimum requirement.

You might find that your licence has a requirement of $5 million, your workshop lease has a requirement of $10 million, and one of your contracts has a requirement of $20 million!

In this case you would simply need one policy that covers $20 million. You don’t need three separate policies for different amounts.

If you had a licence requirement of $5 million and a contractual requirement of $5 million, that doesn’t mean you need $10 million in total. A single $5 million policy will cover both requirements.

In most cases, if you’re being told that you need the insurance, you’ll also be told an amount. If no minimum amount is stipulated, it’s generally safe to assume that $5 million is the requirement.

How to ensure you are compliant with the requirements

There are five main triggers for public liability insurance being made compulsory, and checking each of them is relatively straightforward.

Licensing requirements: Check with your state licensing authority. Contractual requirements: Read through any contracts you have in place. Lease requirements: Read through your lease. Using subcontractors: You can check your existing public liability policy to check if it requires your subcontracts to have their own cover, but best practice is to ensure your subbies have their own cover regardless.

Insurance package:

Your insurance broker will cover this off for you.

What insurance types are compulsory?

In terms of the law, the two most common forms of mandatory insurance are workers compensation and third-party personal injury insurance for motor vehicles.

Public liability insurance is not made compulsory under any law, it certainly is compulsory for certain trade licences and under certain contracts.

Should I have public liability insurance?

Regardless of whether or not public liability insurance is compulsory for your licence, your contracts or otherwise, having cover in place is a good business practice.

As a business owner there are so many risks that you face, and one of the biggest is the risk that your business causes property damage or personal injury to a third party.

By having public liability insurance in place you can take away this huge financial risk, for what is generally a very reasonable premium.

If you’d like a quote on public liability or any other form of business insurance, please call our team on 1800 808 800 or click here to request a quote online.

5 Ways to Reduce Your STRESS LEVELS

Stress is a part of life, and eliminating it is a fool’s errand. If you ever succeeded in eliminating all of stress, your life would be boring and you’d have removed yourself from anything meaningful.

That said … too much stress can be toxic. It can negatively affect our sleep, our health, our relationships, our happiness. If your stress levels are high on a regular basis, it’s like having a smoking habit — it will take its toll over time.

So how do we reduce stress levels to something manageable? I’m going to share some of the most important ways to shift stress in your life. They might not be new to you, but I strongly encourage you to view them as life-savers, and commit to putting them into practice.

• Relaxed State of Being: In each moment, we can be constricted and tight, or relaxed and open. Which are you right now? Can you breathe deeper and allow yourself to relax and open? This state of relaxed being is always available to us, but we have to recognize when we’re in a constricted state, and take responsibility for bringing ourselves to the open state. It’s a practice, and the more you consciously put yourself into this state, the easier it becomes. Can you walk around more of the day in openness and this relaxed state of being?

• Breathing Practice: When you’re stressed and feeling in a constricted state … take a moment to breathe deeper into your belly. When we’re constricted and

stressed, our breathing is shallow (we’re in a fight or-flight state). So breathing helps move your nervous system into a more relaxed state, as if you’re not in any danger (and you’re not, even if it feels like it a lot of the time). Practice this 5 times a day (or more) and you’ll see a huge difference in your stress levels.

• Simplify and Prioritize: Our lives are filled with endless choices and commitments, and simplifying can be liberating. Take a step back and evaluate your responsibilities. What truly matters? Can you reduce your commitments, put things on the back burner, and let go of things so you have less on your plate? Find clarity between what’s essential and what’s merely adding to your stress. Learn to say no to tasks that don’t align with your priorities. Embrace the beauty of a simplified schedule, allowing space for spontaneity and relaxation. Then practice doing one thing at a time — letting go of everything else that’s calling for your attention. This single-tasking mode helps you to focus more, and worry less.

• Nurture through Nature: Nature has an innate ability to soothe our minds and restore our spirits. Spending time outdoors, walking or otherwise being active each day, can have a profound impact on our stress levels. Disconnect from screens and immerse yourself in the natural world. Listen to the rustling of leaves, feel the warmth of the sun on your skin, and breathe in the fresh air.

• Awe & Gratitude Practice: While you’re out in nature, let yourself open to a sense of something bigger. Stress levels are high when we’re too focused on the disaster we feel is in front of us, but when we open to a sense of the wider world, it lets some of that stress go. When we practice awe at the world around us, it helps us to open. When we remember what we have to be grateful for, we feel a sense of appreciation for life. These might sound trite, but I encourage you to take them on as a true practice — something you explore with a sense of discovery, to learn what the practice has to offer. It will change your life.

Remember, reducing stress is not about eliminating challenges from your life, but about changing your relationship with them. By integrating these practices into your day, you can build resilience and find beauty in the midst of chaos. Start small, be patient with yourself, and allow these habits to gradually transform your experience. As you embrace mindful breathing, simplify your life, and reconnect with nature, you’ll find that stress loses its grip, making way for a more serene and fulfilling existence.

Leo Babauta ZEN HABITS

Quotes and Quoting

There are numerous procedures to follow when quoting a project. It’s not straight forward as many may think, and any factor could make the difference between a ‘Yes’ or ‘No’ answer. I want to discuss one part of it in this article, and that is, the ‘written quote’.

Before you get to that point though, you must first get the Lead. ‘Referrals’ are of course the best, as they come from people that have used your services before and are extremely satisfied with what you did. You will also have a much higher success rate from referrals than any other means of advertising, with the customer in many cases, accepting your services even before receiving the quote.

But what happens if the customer doesn’t know anyone that has had any painting done? Of course, they do a ‘GOOGLE’ search and check out their website.

The main things they will look for on a website are:

• Type of work you do.

• Information about yourself and the company (not too much though as it can get boring).

• Project photos

• Testimonials (as there is nothing better to sway a person’s mind in choosing someone or something, than a great recommendation).

Once a customer has decided that you’re one of the companies they want a quote from, a meeting is arranged. Now going to their property is the most crucial part of any quoting process. Get this wrong and you have stuffed up your chances of an acceptance. You must be punctual, polite, neat, and professional. Do this right and you will be 95% of the way to a ‘YES’ answer.

There is one more obstacle though, and that is your ‘written quote’.

Recently I put out a post on the ‘Aussie Painters Network’ Facebook page asking painters if they would like me to critique a quote they had written. I received around 25 which I was very happy with. Disappointingly when reading through them though, I felt 3 were fully acceptable. This really surprised me.

The main fault in most were the fact that the paint brand (Dulux, Taubmans, Haymes, etc) and type of products were not mentioned. If you read a quote with one saying they’re going to use ‘Bla-Bla-Bla-BlaBla’ and another says just ‘Bla’, you would question what type of finish you were going to get. The brand and product could make a difference of hundreds of dollars to a quote, and this is where you can explain to the customer that you’re using a Premium line of paint and why you are more expensive.

Some items that were a concern to me were:

i. Lack of detail in the preparation of the substrates.

ii. Basic set out of the quote structure.

iii. Substrates to be painted not fully mentioned.

iv. Exclusions in the quote, (eg, are the internal cupboards to be painted or not).

v. Their own name and contact details missing.

vi. Minor spelling mistakes (such as Eaves; spelt eves, and Fascia; spelt facia).

vii. The GST amount not separated from the Total amount.

This could really make a difference on an acceptance or not. So my advice to painters would be to really look into what you are writing, as although you know in your mind what you are talking about, the customer does not. Explain yourself fully in what you are going to do, and what you are going to use. There is nothing bad about a long detailed quote, (except for a long-winded ‘Terms and Conditions’ at the end).

If you would like me to have a look through a quote of yours, feel free to send me a copy on the email below info@mytools4business.com

Jim Baker www.mytools4business.com

Worldskills WrapUp

A remarkable week unfolded at Worldskills National Event where I served as one of the National Judges, overseeing Australia's top 13 painting apprentices.

Kudos to the winners - Lachlan Matheson (Gold) from WA, Antoinette Jackson (Silver) from WA, and Ruby Bennett (Bronze) from VIC. Ali Maher from QLD, Emmanuel Politis from SA, Toby Christen from SA, and Riley Fergusson from SA also received Certificates of Excellence. Congratulations to all the other competitors that completed in what can only be described as a stressful event for all.

Here's a recap of the event.

Judges Day 1 arrived to find a large bare room. Thanks to Holmesglen Tafe for supplying the walls for the booths. We had to protect the concrete floors with plastic and fibro before assembling the flat-packed walls.

Days 2 and 3, included painting, sorting, and reading everything for the competitors' arrival on Wednesday for orientation. They spent a few hours organizing their materials for Thursday's kick-off.

Day 4, the first competition day, had structured times and breaks. The first hour was crucial for each competitor to focus on their priorities.

Next came the Wallpaper Speed Test, a 90-minute challenge or the risk of losing significant points. It was encouraging that all competitors completed this task in the required time.

The Melbourne Convention Centre was the hub for the National Worldskills Event from 17th to 19th August 2023, attracting 13 competitors, all vying for the National Worldskills Champion title. Their journey began a year or so ago, winning their local Regional Worldskills events.

The competition was intense, testing the competitors in numerous facets of the industry. Six judges, including myself, were present- Steve Balinga (Chief Judge), Adam Teer, Allan Laird, Davin Nicholas, and Jarria Brooks.

Engaging with industry peers was enlightening, sparking ideas and experiences that I believe will enhance our mentoring and teaching capacities for future students.

Some months prior, all competitors received a plan to execute at the National Competition, involving a wall design that had to be drawn and painted freehandno tape allowed. Other tasks involved a colour match and shadings, a free wall featuring woodgraining and 3 other decorative paint finishes, and the application of a mirror or high gloss finish on the door using waterbased enamel.

After a lunch break, the competition resumed for another 3 ½ hours during that time all competitors had to do their colour match for judging that evening.

On day 2 of the competition, all competitors had 6 hours to complete their free wall and the colour stripes for the judges to mark after the day ended for the competitors.

On the final day, there was a challenge for the painting of the background around the design wall 15 minutes in the morning and 20 minutes to complete later in the day. This was also included in the 6 hours of competition.

Witnessing the upcoming generation of our industry and their exceptional skill levels was truly inspiring. If you're interested in participating or want to involve an apprentice, please feel free to contact Worldskills Australia or myself for more information.

Nigel Gorman nigel@aussiepaintersnetwork.com.au 07 3555 8010

6 Tips to Paying Down your personal debt in 2023

2023 is a costly year. The cost of living has reached new heights, and interest rates are steadily climbing. This has made it increasingly difficult to keep up with expenses, let alone make progress financially. As a result, many of us are carrying more debt than we’re comfortable with. So, how can you make progress while still trying to catch up? Here are some practical tips on how to reduce your personal debt this year:

Assess Your Debt Situation: To really understand where you stand, you need to take a close look at all your debts. Ignoring your financial statements and estimating your debt won’t help. Avoiding the reality of your debts won’t change them and can make it easier to keep overspending.

Focus on High-Cost Debts: With various types of debts like mortgages, loans, credit cards, and more, some debts cost more due to higher interest rates. After identifying your debts, determine the interest rate for each one. Prioritize paying off the debts with the highest interest rates first. This saves you money in interest over time and speeds up your debt repayment.

Think About Debt Consolidation: While working with a debt consolidation service can have a short-term impact on your credit score, it could be a good option in the long run. Managing multiple sources of debt can be overwhelming and can lead to missed payments, further damaging your credit. Consolidating your debt simplifies the process and may be worth the initial credit score dip if you’re struggling to manage your debts.

Create a Budget and Save: Once you’ve figured out how to repay your debts, create a plan that aligns with your financial situation. Calculate your monthly income and allocate it for essential expenses, entertainment, and debt payments. If you have any leftover money, start building a savings fund. Aim to save 3-6 months’ worth of living expenses to handle unexpected emergencies without relying on credit.

Manage Credit Card Use: Credit cards offer perks, but they’re valuable only if you can pay off your balance each month. Responsible credit card use boosts your credit score and allows you to enjoy card benefits. If you can’t afford to pay off your credit card immediately, put it away to avoid temptation. Using a credit card without backing it up with funds can lead you back into debt.

Increase Your Income: It’s not ideal, but if your financial assessment reveals that your income isn’t enough to cover your current spending, consider finding additional sources of income. This might mean taking on a side job or freelancing. Alternatively, you could cut down on living expenses, although this can be challenging given the high costs of 2023.

In conclusion, paying off personal debt might not be fun, but it’s crucial. Ignoring the debt won’t make it disappear. As you start seeing progress, you’ll be motivated to keep going until you’re debt-free. Consider seeking advice from a financial advisor to create a tailored strategy for paying down your debt this year.

Book a strategy session HERE to see how we can improve your bottom line.

Sandra Price

HIGHER PRICES HAVE HIT MOST PEOPLE but homeowners have felt it harder than renters

Cost of living pressures are acute for some, but in different ways for different types of household.

The Australian Bureau of Statistics consumer price index has climbed by 6% per year for each of the past two years.

In the decade before that, it only climbed by an average of 1.8% per year.

So, on the figures, cost of living pressures suddenly became acute, but if you had been paying attention to the media for those previous ten years you would have thought Australia had been in a cost of living crisis the entire time.

The bureau presents living cost indexes based on the spending patterns of:

• employees

• beneficiaries on pension-like payments

• beneficiaries on other payments including JobSeeker

• age pensioners

• self-funded retirees.

But it turns out the main factor that differentiates the new price pressures facing households is whether or not they have a mortgage, and in particular how recently they bought their first home.

At the Australian National University, my team has used the Bureau of Statistics’ methodology and data to calculate cost indexes based on the spending patterns of different types of households including those headed by:

first homebuyers and recent buyers who’ve bought in the past three years

Some people have been under financial pressure the entire time, but it’s instructive to look at whose living costs have increased the most.

The best guide is a different set of indexes to the consumer price index, also produced by the bureau.

Called selected living cost indexes, they are better because they include mortgage costs, which the consumer price index does not, measuring the cost of home ownership by the cost of purchasing a home instead of the upfront cost of building a new home.

• all homeowners with a mortgage

• outright owners

• renters.

Homeowners with a mortgage turn out to have experienced a very large cost increase over the past two years of 17.5% – much more than renters who have had an average increase of “just” 10.8%, and outright owners who’ve had 11.7%.

First homebuyers who bought within the past three years faced the biggest living cost increase, of 20.5%. Those who bought within the past three years but were “changeover” buyers had an increase of 18.4%.

against mortgage holders more than renters and outright owners, this isn’t the case in the longer term. The first years of COVID, 2020 and 2021, were especially good for mortgage holders (and renters), with mortgage rates (and rents) cut to long-term lows after years of very little growth.

The chart below shows that over the longer term, the living costs associated with all three types of housing have climbed more or less together, and have climbed by less than household income.

Younger Australians (under 35) are more likely to rent than have a mortgage. As a result, their costs increased by “only” 13.1% over the past two years, whereas the living costs of older Australians (aged 50–64) increased by 15.1%.

Perhaps for the same reason, the living costs of group households increased by “only” 13.1%, while the living costs of couples with children increased 15.2%.

Those on benefits are best protected

We found very little difference in the percentage cost of living increase based on income level alone, and also very little difference based on gender. But the source of income mattered.

Households whose main income was wages suffered cost increases of 14.6%, whereas households whose main income was government benefits had a lesser increase of 12.7%.

Read more: Rent crisis? Average rents are increasing less than you

might think

Each of these increases was far more than the average increase in incomes of 4.7%, but Australians on benefits got much bigger increases in incomes because their payments were linked to the consumer price index, meaning their incomes increased roughly in line with their costs.

Longer term, renters, homeowners treated the same

Although in the past two years costs have turned

This isn’t to say those households whose living costs have climbed sharply over the past two years (mortgaged households) are suffering. Many have built up significant financial buffers in the years when interest rates were ultra-low, and many have high incomes and substantial wealth.

Nor is it to say that those households whose living costs have increased less sharply (renters) are not suffering.

Lower-income households, single parents and welfare recipients’ households were in the greatest financial stress five years ago, 10 years ago and 20 years ago, and remain in the greatest financial stress today.

Ben Phillips

Associate Professor, Centre for Social Research and Methods, Director, Centre for Economic Policy Research (CEPR), Australian National University