B2B in Canberra Magazine by B2B magazine

CAnBeRRA’S BUSIneSS & GOVeRnMenT MAGAZIne

THE 3 STAGES OF BUSINESS IMPROVEMENT

SEE YOUR BUSINESS IN OUR 60TH ISSUE!

Andrew Sykes partner at RSM Bird Cameron shares how to improve your business.

Reach all businesses and government departments every month. 0402 900 402 / b2b@b2bincanberra.com.au

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APRIL 2011

Dizzy

Office Furniture

GET BUSY.

CALL DIZZY.

INCOME PROTECTION INSIDE SUPER:

THE ONLY 7 WAYS TO GROW YOUR BUSINESS

DO EMPLOYERS HAVE RIGHTS?

The pros and cons from Brett Billington from Hillross Wealth Management

Wayne Bolin from 10X tells you the 7 profit making tips.

Craig Painter partner at Elringtons explains the importance of ‘garden leave’.

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CONTENTS PUBLISHER’S NOTE The times they are a changin’ ... Out with the Labor Government and in with the Coalition in NSW. It wasn’t a surprise that Labor was turfed out - but the size of the swing and number of rusted on Labor seats that have gone to the Coalition is staggering. What did surprise me was the language of now Premier Barry O’Farrell on the night of the election. I had to keep shaking my head to make sure my ears were working. He sounded just like an old style Labor leader. All that talk of investment in infrastructure to get the economy going and make NSW number one again - and commitments to implement election promises no matter what. But of course true to form the new Coalition hasn’t let my cynical soul down. Shock horror - the cupboard is bare there is at lease a $4 billion hole in the NSW budget. My faith is restored.

TIM BENSON Publisher UPFRONT 06 Nominations open to Our Heritage at Risk 2011 National Library takes leading role in digital age

OPINION 08 Sweating the small stuff

When a relationship breaks down the first casualty is usually communication ... By Juliette Ford, Director, Consensus Family Lawyers

FEATURES 10 Stretching workplace wellbeing to the limits

Why Corporate Breath is the essence of business success By Antoniette Gomez, Exhale Coaching & Consulting and Suzie Williams, Essence Healing & Yoga

12 The 3 Stages of Business Improvement by Andrew Sykes, Director, Business Solutions at RSM Bird Cameron

COVER STORY 14 Dizzy Office Furniture. Get Busy. Call Dizzy.

14 COVeR STORY Dizzy Ofﬁce Furniture. Get Busy. Call Dizzy.

Conference Planning Tip # 71

Make it interesting. Choose a venue that can organise decorations, unique seating arrangements and entertainment or hold group activities or team-building exercises across several of their venues. Visit cscc.com.au or call 6283 7200 now! Best Functions Provider for 2010! For the information of members and their guests

CONTENTS 17 ADVICE FROM THE EXPERTS 18 ACCOUNTING FAMILY BUSINESS TOOLS – The Three Circle Model By RSM Bird Cameron ACCOUNTING SERVICES The pros and cons of income protection through your super By Hillross Wealth Management Centre Canberra 20 BUSINESS LAW Employer’s rights: is there such a thing or is the tide turning By Elringtons Lawyers

BUSINESS COACHING The ONLY 7 ways to grow your business ... By 10X 22 COMMERCIAL LAW The ‘Theft Principle’: Thieves as Trustees of Stolen Property By Trinity Law CORPORATE GOVERNANCE The benefits of formal reporting By Australian Institute of Company Directors 24 CORPORATE HEALTH Flu vaccination provides 1000% ROI By Corporate Medical Options ESTATE PLANNING Family Provision and the Notional Estate By Certus Law 26 GRAPHIC DESIGN Electronic vs Print By Paper Monkey Graphic Design INFORMATION SECURITY The 80/20 Way Worry less, Work less, Enjoy more By CommsNet Group 28 INTELLECTUAL PROPERTY Marked out as special: unusual trade marks types By Aruna Trade Mark Attorneys INTERIOR PLANTSCAPING Now’s the time to improve your plant life balance… By Ambius 29 PERFORMANCE ARCHITECTS We all have a part to play By Yellow Edge Performance Architects

32 G2B: GOVERNMENT TO BUSINESS

Innovation the Key to Skills By Business & Industry Development

A2B: ASSOCIATIONS TO BUSINESS 33 COLLABIT:

Effective Risk Management in Tendering for Government IT Contracts 34 CANBERRA BUSINESS COUNCIL: A Budget That Means Business 35 ACT EXPORTERS NETWORK: A snapshot of events run by the ACT Exporters’ Network 36 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: Adverse action claims by employees BUSINESS NETWORKING 39 B2B @ CBC Connect at National Library of Australia

B2B @ Installation of John Mackay as Chancellor of University of Canberra 40 B2B @ SuperSplitting book launch at University House

30 REAL ESTATE

Maria Selleck Properties Good marketing does make a difference RISK INSURANCE Insurance ain’t Insurance: Total and Permanent Disability By Capital Wealth

31 WEBSITES

10 tips to make your website more visible By Synapse Worldwide

PUBLISHER I EDITOR

Tim Benson editorial@b2bincanberra.com.au 02 6161 2751

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UPFRONT

Nominations open to Our Heritage at Risk 2011

The Chairman of the Australian Council of National Trusts, Dr Graeme L. Blackman OAM, speaking on behalf of all eight National Trust organisations and their 80,000 members, has invited nominations to its annual “Our Heritage at Risk” program. Dr Blackman warned Australians of the many risks their heritage is facing. “Throughout the country important heritage is in danger of being lost to future generations of Australians.

This program, by working with other heritage, conservation and community groups aims to engage all Australians and work with all levels of Government to seek for solutions.” Our Heritage at Risk includes built, natural and multi- cultural, including indigenous, moveable and intangible heritage. “Our heritage is important in understanding our past and who we are,” said Dr Blackman. “By raising awareness of the value of and the risks to our heritage, we hope to avert losses for the benefit of all.” This national two-tiered program now in its fifth year replaced the earlier Endangered Places Program but was expanded to allow partnerships with other organisations and to be more inclusive of all heritage. Dr Blackman noted that despite this, most nominations to the program were places, including cultural and natural landscapes and ecosystems, with the vast majority being our important built heritage. “But it is not only places that can be nominated,” said Dr Blackman, “Our

threatened heritage also includes moveable and intangible heritage. Many important collections in small museums around the country are in danger of being lost due to lack of resources to conserve them, before they are even catalogued. Much of our intangible heritage is also threatened as our oral history, folklore and traditional skills, including Indigenous culture and languages, fall into disuse and disappear.“ “Our burial places and cemeteries, which featured in the 2010 list, are important repositories of Australian social heritage as well as many holding architectural and scientific significance.” “I would like to see more moveable heritage and intangible heritage nominated to the 2010 program.“ Nominations will be accepted until 10 June 2011. Nominations of heritage that can be shown to be at real risk should be submitted directly to State and Territory National Trusts or through the nomination form on the Our Heritage at Risk website: www.heritageatrisk.org.au

National Library takes leading role in digital age

The newly appointed Director-General of the National Library of Australia, Anne-Marie Schwirtlich (pictured above), said the role of libraries in this digital age had never been more important. “I look forward to the work of positioning the National Library to serve Australians now and longer term,” she said. Ms Schwirtlich, who took over the top job in Canberra on 11 March, came to the National Library after eight years as CEO of the State Library of Victoria and is delighted to return to the nation’s capital. She has previously held senior roles at the Australian War Memorial and the National Archives. Announcing her appointment Federal 6

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Arts Minister Simon Crean said, “With Ms Schwirtlich’s appointment, the National Library will be well placed to realise the opportunities of new technology and the National Broadband Network, while developing the Library’s role as a highly valued centre for learning, knowledge creation and understanding of Australian life.” Collecting the documentary heritage of Australia remained at the heart of what we do, Ms Schwirtlich said. “We also have a strong commitment to supporting the information needs of people across Australia. Through technology, innovation and collaboration the Library pursues strategies to enable Australians to discover, explore and use our collections.” Ms Schwirtlich said the Library’s free online discovery service Trove had already received wide acclaim both in Australia and overseas. “It has revolutionised research by providing a single place for people to discover a wealth of information. For example, over 4.7 million digitised newspaper pages, including

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the first 28 years of The Canberra Times, is freely available to search and browse.” Ms Schwirtlich recognises the support the community shows for institutions such as the National Library. “Leading into the Centenary of Canberra we want to build on this support locally and explore opportunities to work together with the Canberra business community”. “Without generous support from donors Australia wide we would be hard-pressed to fulfil the dream of putting the best of our best on permanent show for everyone to see.” As a result of such support the Library’s new Treasures Gallery will open in October this year, with many of its iconic, rare and important items to go on permanent display. “After all,” she said, “the National Library’s collection belongs to all Australians.” Ms Schwirtlich said she was looking forward to meeting members of the Canberra business community as she settled into her new role. www.nla.gov.au www.trove.nla.gov.au

We’ve been spending time listening to what Australians would like to grow and we’ve found that both personal and professional development is high on the agenda. It’s a strong desire and willingness to learn and prepare for the opportunities that lie ahead. We’d like to know if this is important to you too.

See yourself as a development project.

What would you like to grow? Join the conversation at whatwouldyouliketogrow.com.au

OPINION

Sweating the small stuff When a relationship breaks down the first casualty is usually communication ... By Juliette Ford, Director, Consensus Family Lawyers

hen a relationship breaks down the first casualty is usually communication. This can lead to all sorts of misunderstandings and each person can lose sight of where their interests truly lie. As one misunderstanding breeds the next, the deal the couples may end up with can look completely different from the one they had initially envisaged. The core of the deal can get more and more lost in arguments about the minor details. Consider a scenario where a couple have a shared care arrangement for their two schoolaged children. Both of them want what is best for their children and both believe that it is best for their children to spend time with each of them and that they be able to provide financially and emotionally for them. Given their shared interests, the couple feels they can reach agreement over child care arrangements themselves. They have a typical child care arrangement. The father (“Sid”) has the children for five nights a fortnight and the mother (“Nancy”) for nine nights a fortnight. In hours this equates to 94 hours a fortnight for Sid and 240 hours a fortnight for Nancy. What is less typical about this arrangement is that on Sid’s nights, for example a Wednesday, he has the children from 5pm until 9am on Thursday morning. They then go onto Nancy’s time at 9am, at which point she takes them to school. Now that Sid has moved out Nancy starts getting worried about the bills that are piling up and how she will pay them. She talks to the Child Support Agency who tell her that sometimes child support is calculated on hours with each parent, sometimes nights.

Nancy asks the Child Support Agency to recalculate on the basis that the time that the kids are in school they are really with her. Sid gets a letter from the Child Support Agency with the new calculation. He’s annoyed about a number of things. Firstly he doesn’t think he can afford it, but also he feels like his parenting isn’t being recognised. In order to resolve the dispute, Sid and Nancy do what people in these situations generally do when they are unable to communicate with each other - they get lawyers to argue over the legal detail of calculating child support payments. The lawyers write letters about exactly where the authority comes from for child care to be measured in hours as opposed to nights and about the legal precedents which support their view. In reality the couple have completely lost sight of the fact that they

... This can lead to all sorts of misunderstandings and each person can lose sight of where their interests truly lie. As one misunderstanding breeds the next, the deal the couples may end up with can look completely different from the one they had initially envisaged.

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have the same interest, which is doing what is best for their children. An alternative to this approach would have been for Sid and Nancy to engage in Collaboration. Collaboration would allow them the opportunity to discuss these issues in an open forum. Instead of focusing on who is right according to the law (often “a moveable feast”), the couple would be encouraged throughout the entire process to keep their focus on their shared interests. Instead of wasting time “sweating the small stuff” they would be assisted to come to a creative arrangement which would ensure that all the family members’ time, resources and efforts were maximized to make certain that the children’s best interests were served. In the Collaboration, Nancy doesn’t feel worried that she can’t pay the bills because Sid commits to assist her, and Sid doesn’t feel like his role as a father is being ignored or undervalued.

Juliette Ford is a director of Consensus Family Lawyers. For an Out of Court Solution contact Consensus Family Lawyers, 17-21 University Avenue, Canberra T: 02 6290 9898 or www.cflaw.com.au

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F E AT U R E

Stretching workplace wellbeing to the limits Why Corporate Breath is the essence of business success By Antoniette Gomez, Exhale Coaching & Consulting and Suzie Williams, Essence Healing & Yoga

nly a fortunate few could claim to have not experienced a bad day at work. Pressure from our employers, demands from our family and friends, as well as our own personal needs, can all combine to make us feel overwhelmed or stressed. Workplace stress is an emotional experience and is often associated with anxiety, nervousness, strain, tension and depression. Such stress is caused by workplace conditions including responsibilities, physical environment, organisational practices, workplace change and relationships. If left unmanaged, the financial and human cost of workplace stress can be multiplying on the organisation’s bottom line, through lost productivity and employee turnover. In 2008, Medibank-commissioned research found that stress-related presenteeism (at work but not fully functioning due to illness) and absenteeism in Australia was directly costing employers $10.11 billion a year and 3.2 working days of productivity per worker. Research has indicated that healthy employees are three times more productive than unhealthy employees. Typical wellness programs, however, often fall short of being well-rounded. Social events, annual health checks, subsidised consumer products, or the provision of a fruit box are superficial treats that skirt around the key issues. For lasting change, an effective workplace wellness program needs to address all facets of the human being – mental, physical, emotional and dare we say, spiritual. Employee wellbeing can be enhanced through greater understanding of behavioural characteristics and experiencing the benefits of yoga. And

that valuable combination is precisely what our Corporate Breath program offers – a blend of behavioural understanding and mental and physical wellness through yoga. Our Corporate Breath Program aims to give you a physical experience of true relaxation through gentle, easy to do stretches, yoga and breathing. It will also assist in giving you a new level of awareness in regards to effective communication strategies. There will be an introductory training day, on the 23rd of May at the Kamberra Wine Company, to launch the program. As well as this you will also have a clear understanding of how different personality types interact and a practical understanding of the flexibility of behavior required to adapt to workplace demands and environment. Behavioral characteristics can indicate how employees will perform, make judgments

The event will leave you feeling clearer, calmer and re-energised. You will have a real understanding of simple effective techniques to help you manage your stress levels at work and at home that can be immediately implemented into your daily routine.

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and interact with others. Tools such as the Extended DISC can provide behavioural roadmaps of employees, giving organisations the power to improve productivity, minimise conflict in the workplace, and minimise employee turnover. From understanding your employees’ strengths, motivators, development areas and management styles they best respond to, through to identifying behavioural gaps and strengths in teams, your organisation can be structured to capitalise on its human capital. Research has long indicated the extensive benefits of yoga to the individual. Applied to the workplace, it can have a sustainable impact on team building, workplace morale, reduced absenteeism, and work satisfaction. Our Yoga instils a feeling of calm, bringing with it clarity of thought and the ability to focus on the task at hand. Through relaxation and improved flexibility, employees have reported to experience increased confidence, enhanced decision-making capabilities, and improved stress management. By eliminating inner tension and frustration, employees are able to manage their work/life balance better. The Corporate Breath program provides an opportunity for employers to demonstrate to their staff that they are a valued an integral part of their organisations structure and vision for the future.

For Further information or to book you place in the Corporate Breath Training Day please phone 0431 006 747.

SETTLE FAMILY DISPUTES OUT OF COURT It’s hard enough when a relationship ends. So the last thing you need is soaring legal costs, protracted, public court proceedings, and your personal affairs being determined by a judge. Consensus provides a better alternative to the Courts. We use collaboration, arbitration and negotiation between the couple to find open-minded solutions that work. It’s discrete. It’s fair. And everybody leaves in agreement. For a new style of dispute resolution which puts you back in control, turn to Consensus. Canberra ACT 2601 T 02 6290 9898 F 02 6257 4382 info@cflaw.com.au www.cflaw.com.au

F E AT U R E

The 3 Stages of Business Improvement Our 7 part business planning series touched on the tools to plan and improve your business. A fitting follow on from this is to look at the stages of business improvement. The good news is that the steps to developing a successful business are relatively straightforward. The 3 stages are illustrated in the diagram below.

by Andrew Sykes Stage 1: STRUCTURE Most people are aware the first stage in a business improvement process is to get the business structure right. The right structure means the right customers, the right products, the right prices, the right processes and the right people. The structure involves dealing with the “visible” elements of the business. We don’t usually look for the hidden wastes, costs and drivers at the structural level. Most managers don’t realise that once the structure is mostly in place, they should move to Stage Two which is to get the “waste” out of the structure or improve your efficiency. They continue to keep working on stage structural issues!

Stage 2: WASTE

STRUCTURE

stage 1

visible invisible

stage 2

WASTE

BELIEFS ‘3 Stages of Business Improvment’

Waste there are seven key areas of waste or inefficiency: overproduction, waiting, transport, inappropriate processing, inventory, motion and defects. We have developed processes to help you identify these wastes and inefficiencies easily and quickly. Experience indicates that waste usually accounts for 15% to 30% of your total costs. There are huge savings to be made here! Once both the structure and the waste (inefficiencies) are largely addressed, the biggest issue in the organisation can be addressed.

For business planning advice and how to apply Mind Maps to improve your business performance, contact the Business Solutions team at canberra@rsmi.com.au.

Stage 3: BELIEFS Belief Systems of the people. If a person believes that they are not worthy of success then they will prove themselves right. If they are an employee or family member (or you) then they will probably use your business as the vehicle to prove themselves right! Showing a person how to develop a belief system of being worthy of success will result in them proving themselves right using, again using the organisation as a vehicle. Both the individual and the organisation wins. It usually takes several years to work through each stage, the last stage requiring the most time. 12

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Andrew Sykes is Director, Business Solutions at RSM Bird Cameron For information on business improvements contact our experienced team, 103–105 Northbourne Ave, Canberra. T: 02 6247 5988, www.rsmi.com.au

Take all the credit Remove all the stress With conference packages starting at just $36pp*. Includes: 4 Free undercover parking 4 Freshly brewed coffee and tea on arrival 4 Morning and afternoon tea 4 Working lunch 4 Conference stationary 4 Iced water and confectionery 4 Access to state-of-the-art technology For bookings or more information, please call Kate Oâ&#x20AC;&#x2122;Brien on 6283 7200.

*Room hire is separate. For the information of members and their guests

Altogether more rewarding

COVER STORY

Dizzy Office Furniture.

GET BUSY.

Words: Tim Benson Photogrpahy: Andrew Sikorski

CALL DIZZY. In the 21st Century many businesses are buying their furniture: with their coffee; through catalogues and online. And, according to Brian Hunter founder and sales manager at Dizzy Office Furniture, in doing this many small businesses are missing out on product expertise and experienced assistance with office layout and storage options.

nter Dizzy Office Furniture (Dizzy). Launched six months ago with a new website and dazzling caricature, Dizzy Office Furniture is rapidly filling a gap for the regions 20,000 plus small businesses’ commercial furniture needs. “We rebranded to Dizzy from Design Systems Office Interiors because ‘design systems’ has become more associated with computing and we wanted a shorter, sharper, fun name,” Brian said. “We wanted a character that looked professional, enjoyed life and was approachable and easy to work with - basically a character that reflected our values and approach to running our business.” This philosophy has flowed through to the new Dizzy website at www.dizzyoffice.com.au. “The Dizzy website is straightforward. The price you see is the total price including: GST, credit card charges, freight, delivery and installation,” Brian explained. The new website has been live for six months and has been well received by many small to medium businesses in the Canberra region. “Customers have found the Dizzy website is simple to use and meets their needs when it comes to researching, getting quotes, purchasing and having delivered, their office furniture needs,” Brian said. The new website has also prove to be a great sales tool as the Dizzy team can refer people to the website, whilst talking to them on the

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phone, and discuss products and provide answers to their questions. Dizzy also has a great showroom where people can come and see the products they may have viewed on the website. “We have sold everything from reception desks to workstations through the website. We also put regular ‘specials’ on the site that have been a big hit with our customers,” Brian said. Dizzy Office Furniture is also able to assist businesses organizing their offices and interior design. “We know that many small businesses, and people with home offices, can’t afford to get an architect in to assess their office. At Dizzy we will do a drawing to show people how furniture will look, and work, in their office. We then keep this on file and can drag it out whenever a client wants to upgrade,” Brian said. Interior Designer, Susan Harris can assist people with the design of a home office or right through to a multi-story building. Brian hasn’t just breezed into the commercial furniture industry. He has 16 years experience in the business. He started with Norman Ross, then with his own business in the fabric protection industry and then after working for Design Systems Office Interiors he bought the business. “We have built our business by providing our customers with a broad range of choices, produced locally and cut to size within a modular range,” Brian said proudly. They started on the corner of Collie Street with one office behind

Brian Hunter - Dizzy Founder

“Can we give a free quote? Yes. Can we come to your home? Yes. Can we cut a modular unit to your particular size? Yes. Can we offer more than four colours? Yes. Can we deliver and install the product? Yes. Can we service the product? Yes. And will it look the part and be within budget? Yes.”

Photo Caption

their reception area. Growth meant they rapidly ran out of space and a move to Canberra Avenue and Geelong Street in 1998 - and finally to their much larger current premises at Yass Road Queanbeyan in 2002. In 2005 Brian was successful in winning the local Dexion franchise. “We were fortunate to win the Dexion franchise and have since expanded into selling their full range of pallet racking and Compactus units – which are fully manufactured in Australia,” Brian explained, “This opened up the opportunity for us to provide the complete package - from storage to office furniture to local businesses,” Brian said. “Over the years we have built up a group of suppliers that supply products that have, good warranty, are locally made – wherever possible - and are value for money.” According to Brian electric rise and fall desks and workstations are the way of the future. “I think this is because they meet occupational health and safety requirements by allowing people to stand up for part of the day. This is good for alleviating lower back pain – and can now be provided for the same price as manual rise and fall,” Brian said. Electric rise and fall desks are great for builders and architects to show their plans as well as for people that are into scrap booking and other hobbies. Brian also believes that in the near future most businesses will rent their furniture not buy it. “I believe most businesses will rent their furniture and have their office products custom made to their size and colour combinations,” Brian said, “In fact we can provide this service to our customers today.” He says that this means that the rent is tax deductable and the business gets to update its colours, design and technology on a regular basis Brian says what makes Dizzy Office Furniture different is that they like to ‘get involved with their clients, rather that just sell them a product’. “Moving premises or redesigning an office can be a stressful time for a business. We can assist businesses during this time of upheaval to get the job done without too much disruption to their business,” Brian said with confidence.

When it all came down to it Brian set up his own office furniture business because he didn’t like saying ‘no’ to people. “Can we give a free quote? Yes. Can we come to your home? Yes. Can we cut a modular unit to your particular size? Yes. Can we offer more than four colours? Yes. Can we deliver and install the product? Yes. Can we service the product? Yes. And will it look the part and be within budget? Yes,” Brian said enthusiastically. If you own or work in a small or medium size business and want the same level of service larger businesses get from big commercial furniture suppliers, then Dizzy Office Furniture is for you. For more information contact Dizzy Office Furniture: w www.dizzyoffice.com p 1300 349 999 or visit the showroom at 34 Yass Road Queanbeyan. B2B In CAnBeRR A

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“The concrete business is one of the toughest in town. We need the best advisors, equipment, people and products. We rely on RSM Bird Cameron for our ﬁnancial strength.” Barry Innes, Manager, Monaro Mix Speciﬁed Concrete

Since 1971 Monaro Mix Speciﬁed Concrete has provided quality concrete solutions to the Canberra region. Rock solid business advice is the key to long term business success and competitive advantage. When Monaro Mix Speciﬁed Concrete needs sound and objective business advice, RSM Bird Cameron is there to help them achieve exceptional results. RSM Bird Cameron Ph: (02) 6247 5988 103-105 Northbourne Avenue Canberra, ACT

Exceptional service, Exceptional results

www.rsmi.com.au

A D V I C E

F R O M

B U S I N E S S

E X P E R T S

C O n T e n T S

18 ACCOUNTING

GRAPHIC DESIGN

FAMILY BUSINESS TOOLS – The Three Circle Model.

Electronic vs Print

By Rodney Miller, RSM Bird Cameron Chartered Accountants

By Lester Bunnell, Paper Monkey Graphic Design

18 ACCOUNTING SERVICES The pros and cons of income protection through your super By Brett Billington, Hillross Wealth Management Centre Canberra

20 BUSINESS LAW Employer’s rights: is there such a thing or is the tide turning By Craig Painter, Elringtons Lawyers

20 BUSINESS COACHING The ONLY 7 ways to grow your business ... By Wayne Bolin, 10X

22 COMMERCIAL LAW The ‘Theft Principle’: Thieves as Trustees of Stolen Property By Maurice Falcetta, Trinity Law

22 CORPORATE GOVERNANCE

26 INFORMATION SECURITY The 80/20 Way Worry less, Work less, Enjoy more By Boaz Fischer, CommsNet Group

28 INTELLECTUAL PROPERTY Marked out as special: unusual trade marks types By Shaun Creighton, Buchanan Law and Technology Pty Ltd

28 INTERIOR PLANTSCAPING Now’s the time to improve your plant life balance… By Jon Elphick , Ambius

29 PERFORMANCE ARCHITECTS We all have a part to play By Andy Gregory, Yellow Edge

30 REAL ESTATE

The benefits of formal reporting

Good marketing does make a difference

By Phil Butler, Australian Institute of Company Directors

By Maria Selleck, Maria Selleck Properties

24 CORPORATE HEALTH Flu vaccination provides 1000% ROI By Dr Jennifer Loughman, Corporate Medical Options

30 RISK INSURANCE Insurance ain’t Insurance Total and Permanent Disability (TPD) By Hugh Crawford, Capital Wealth

24 ESTATE PLANNING Family Provision and the Notional Estate By Stephen Bourke, Certus Law

31 WEBSITES 10 tips to make your website more visible By Sam Gupta, Synapse Worldwide

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ADVICE

FAMILY BUSINESS TOOLS – The The pros and cons of income Three Circle Model. protection through your super by Andrew Sykes

ACCOUNTING

We believe that one of the best ways for us to deliver value to our clients is to provide practical solutions to your problems. Our approach is to give you new ways of thinking about existing situations so that you can arrive at exciting new outcomes. One of the best tools we have found for understanding the dynamics that occur in a family business, and the impact that decisions can have on all stakeholders, is the Three Circle Model. The three circle model highlights that the family business is a composite of three systems that involve family, business and ownership. As shown in the diagram, stakeholders in the business can fall into any one of seven categories • Family members who • work in the business and own shares (Sector 7) • own shares but don’t work in the business (Sector 6) • work in the business but don’t own shares (Sector 5) • neither work nor own shares in the business (Sector 3) • Non-family employees who • own shares (Sector 4) • do not own shares (Sector 1) • Shareholders • who are neither family members nor employees (Sector 2) Each sector has its own perspective and issues arise when people have conflicts and obligations that cross the boundaries between sectors. Often how information is presented and understood can depend on which sector an individual sits in. By identifying where various stakeholders fit into the system we are able to improve communication and develop strategies for dealing with the issues. If you are responsible for operating a family business, think about the members of your family. Where are they situated? What are their expectations of the business? What is your reaction to these expectations? Are they justified? Can you respond to them? What can you do about them? Talking about them is probably a good place to start. Looking at issues this way can ease the strains of operating a family business.

Andrew Sykes is a partner at RSM Bird Cameron For more information and updates on this accounting standard, contact RSM Bird Cameron, 103-105 Northbourne Ave Canberra, T.6247 5988, Canberra@rsmi.com.au, www.rsmi.com.au

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B2B In CAnBeRR A

by Brett Billington

ACCOUNTING SERVICES

A person’s income is often their greatest asset, so it is vital to protect it. If cash flow is tight, a cost effective way for a person to get income protection may be through their superannuation, as the premiums come out of the super fund rather than their post-tax salary. Income protection inside super has become more attractive in recent years, since some funds have started offering a benefit to the age of 65 after changes to the Australian Taxation Office regulations. Previously it was only possible to receive a two year benefit inside super and this is still the case with some super products. The pros and cons: Pros • Preserves your cash flow – a good option if you need to control cash flow, as the premiums are taken out of your super. Ideal if you are unable to afford income protection. • Super-based income protection is generally cheaper. • Group policies offer ‘automatic acceptance’ up to a set level of cover with no medical required. Cons • Erodes your retirement savings – as the premiums are deducted from your super you will be dipping into your investment balance. • The benefit you receive is based on what you were earning prior to your illness or accident – so if you were temporarily unemployed or on maternity leave, you will not receive a benefit. • Beware of offsets – your benefit may be reduced or offset against income from other sources such as rent from an investment property, workers compensation, or other insurance providers. • Watch out for restrictions –full benefits can be paid up to age 65 for Total Permanent Disability, Temporary Total Disablement and Total Salary Continuance insurance, while it can be up to 70 for death cover. Partial disability benefits may only be paid for two years. • There are no tax benefits in your own name • Income protection policies inside super don’t have the as many bells and whistles – while many policies outside super offer special trauma insurance features such as cover for rehabilitation costs, medical treatment, and house and car modifications. • Can you continue the cover if you change jobs or leave the fund? As well as safeguarding future earnings, it also gives a person peace of mind they will be able to pay their bills and mortgage if they lose their income. When weighing up all the pros and cons of how best to get your insurance, remember it always pays to get some independent advice from a qualified financial adviser. Hillross Wealth Management Centre Canberra – providing professional wealth management services to clients of our alliance partners. Brett Billington is a financial adviser at Hillross Wealth Management Centre Canberra. Level 7, AMP Building, 1 Hobart Place, Canberra City, T: 02 6263 9200, info.wmcc@hillross.com.au, www.hillross.com.au

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ADVICE

Employer’s rights: is there such a thing or is the tide turning by Craig Painter

BUSINESS LAW

The ONLY 7 ways to grow your business ... by Wayne Bolin

BUSINESS COACHING

Consider the following scenario. A senior employee signs a two year fixed term contract but, eight months later, he tenders his resignation after accepting alternative employment with a competitor. Should the employer accept the resignation and potentially lose the valuable client networks that the employee may have? Or refuse the resignation and enforce the terms of the employment contract. In a recent NSW case a stock brokerage refused to accept a stock broker’s resignation and successfully obtained an injunction preventing the broker from working for the competitor for his notice period of six months (Purcell vTullett Prebon (Aust) Pty Ltd [2010] NSWCA 150). The broker was placed on “garden leave” for that period, and just before the six months expired, the brokerage directed the broker to return to work. The broker refused and the brokerage successfully sued the broker for damages. The decision signals a real change in the direction of the courts in protecting employers’ interests under employment contracts. For Employers, this case means that where an employee breaks their employment contract the Court may enforce a non-solicitation restraint and may stop an employee working with a competitor for a specific timeframe. A properly drafted employment contract containing a ‘garden leave’ provision can be used to stop an employee moving straight to a competitor, thereby protecting client networks and confidential trade and client information on behalf of employers. A “garden leave” clause is one that allows an employer to direct an employee to cease all duties during their period of notice - their employment and their pay continues. This prevents an employee working with a competitor or acting against the employer’s interests until their contract expires. Garden leave is generally enforceable if an employment contract has been carefully worded to allow it. However, it may be unenforceable if the employee has particular skills that he or she needs to keep in practice or if remuneration is dependent on work performed. For Employees who are entering into an employment contract, they should negotiate any restraints carefully, and check whether their contract contains a ‘garden leave’ provision. Such a provision may require an employee to take leave following notice of termination for the remaining period of the employment contract, preventing the acceptance of new employment. Elringtons can assist you with advice or information regarding employee and employer rights and responsibilities under employment contracts.

It doesn’t matter what business you are in or where you are located, fundamentally there are just seven ways to increase the profitability of your business. - that’s right – just seven. Which is a relief, really, when you think about it. If there’s only seven ways to grow your business then there’s only really seven things that you need to focus on in your business to have it grow and put more cash into your back pocket. Not twenty, not two hundred... thankfully! Let’s start by exploring the seven ways to grow your business ... 1. Attract new potential customers (lead generation) 2. Turn more of those potential customers into customers (sales conversion) 3. Keep more of those customers from defecting to your competition (retention rate) 4. Get those customers to do business with you more often (transaction frequency) 5. Encourage them to spend more money with you each time they buy (‘average sale’ or ‘transaction value’) 6. Reduce the Cost of Goods Sold (profit improvement) 7. Reduce the Expenses (profit improvement) If you’re like most people, you spend most of your time focusing on point number 1 – attracting new potential customers or generating leads. And while you focus all your attention on this area, you can end up neglecting other areas which are potentially even more profitable for their business. Moreover, while you focus all your time on attracting new leads, you’re actually missing ‘big picture’ sales and profit opportunities that often take far less effort but can have a much bigger impact. That’s because small, incremental increases across several of the seven ways listed above actually leads to a disproportionately large increase in total revenue and/or profit. The business growth formula looks something like this: Leads generated X Conversion rate X Retention rate = Total customers; Total customers X Transaction frequency X Transaction value = Total sales and Total sales minus Cost of goods minus Expenses = Profit. If you’d like to learn more about how small increases to each component of the above formula can lead to absolutely MASSIVE business growth, simply request our free report, “10X Ways to Grow Your Business and Increase Your Profitability... Dramatically.”

Craig Painter is partner at Elringtons in litigation services Contact Elringtons T: (02) 6206 1300, Level 3 Colonial Mutual Building, 17-21 University Avenue, Canberra or T:(02) 6128 1200, 122 Monaro Street Queanbeyan visit: elringtons.com.au

Wayne Bolin is the principal at Bolin Accountants and the 10X Canberra South owner. For more information, please call 02 6295 9800 visit Unit 3/71 Leichhardt Street Kingston or www.10x.com.au/canberrasouth

FREE: take a look at our 10X Results Ezine via: www.10X.com.au/news

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ADVICE

The ‘Theft Principle’: Thieves as Trustees of Stolen Property by Maurice Falcetta

COMMERCIAL LAW

Stemming from the century old decision of the High Court of Australia in Black v S Freedman & Co (1910) 12 CLR 105, the ‘theft principle’ refers to the established proposition that a thief holds stolen money or property on trust for the benefit of the victim of the theft. The case involved an action by Freedman & Co to recover money stolen by an employee named John Black who had deposited some of the funds into a bank account held by his wife and purchased circular notes (a type of traveller’s cheque) in her name. The court held that subsequent to the theft, the company received an equitable right to the stolen money in addition to any common law property rights and remedies. Though the principle was first stated in relation to money, the courts later applied the same rationale to stolen goods and the misappropriation of value from bank accounts. The ‘theft principle’ has numerous implications. It firstly reduces the rights of a thief and provides the victim with additional proprietary rights. Although the perpetrator of the theft acquires a recognised common law right to the stolen property by virtue of the fact that it is in their possession, the principle limits this by denying them the beneficial interest in that common law property right and ensuring that the victim acquires equitable ownership of any proceeds from the sale of the property. This is especially advantageous for the victim if the perpetrator of the theft becomes bankrupt or if the property has been transferred to a third party. In the latter scenario, barring a few exceptions, the victim of the theft is able to assert their proprietary rights over those of an innocent third party who is in possession of the stolen property. If the perpetrator of the theft becomes bankrupt, the victim will also be in a better position given the fact that the Bankruptcy Act 1966 expressly states that “property held by the bankrupt in trust for another” is not divisible among their creditors for the satisfaction of any pending debts. While the application of the ‘theft principle’ and the doctrinal problems it poses has been the subject of some debate in academic circles, it must be noted that it has never been successfully challenged in Australian courts. It continues to serve a legitimate objective of private law by ensuring that the victims of theft have an additional safeguard.

Maurice Falcetta is a partner at Trinity Law. Trinity Law is a boutique firm which is focused on providing business and corporate legal services and is motivated by long term business relationships. 2/214 Northbourne Avenue, Braddon ACT T: 6163 5050 www.trinitylaw.com.au

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The benefits of formal reporting by Phil Butler

CORPORATE GOVERNANCE

While there is a great deal written about effective communication with shareholders and stakeholders by large corporations, not-for-profits and public sector entities, there is much less focus on the reporting and communication expectations of smaller, private businesses. However, this issue was investigated in more detail in a recent Company Director article by Domini Stuart. What is often not understood by many directors and owners of small private businesses is that as they grow and mature, their shareholder base may change. While they are not expected to comply with the same level of disclosure as ASX-listed companies, there can be some advantages in establishing a more formal approach to communication. Brand Hoff, Company Directors’ ACT Division President, for example, pointed out in the article that his own company “placed great emphasis on producing very high-quality annual reports”. He added that, “Obviously the financial part is important, but we also had the information about what was happening in the company, including a list of our new customers. We could then use it to communicate with shareholders, but also as a marketing tool.” As growing companies move towards Initial Public Offerings (IPOs) to raise capital, an established discipline of good reporting can be of great value. Obviously, organisations spend a huge amount of time and money in getting ready for an IPO and communication is a critical phase of this process. As Ian Matheson, CEO of Australasian Investor Relations Association points out, “We see plenty of newly listed companies with appalling investor relations. They still think of themselves as a family with a business, so they are not open to being transparent and disclosing information.” The other critically important factor is making sure that reports are accurate and not misleading. Hoff recommends that reports reflect the status of the company and not to be too “enthusiastic and optimistic”. He says shareholders will always be happy if you overachieve and unhappy if you underachieve. Likewise, be cautious not to share commercially sensitive information that is included in reports, “Assume that everything you tell your shareholders will reach your competitors, even by accident.” While formal reporting takes time and may add a greater level of complexity to a business, the rewards can make it a worthwhile investment.

Phil Butler is state manager of the Australian Institute of Company Directors’ ACT Division. For more information about AICD ‘s course programs and events, T: 02 6248 5954.

This free seminar will cover:

Join our team of experienced business lawyers for an in-depth and practical discussion of how two of the most significant commercial law changes of recent years will affect your business.

2. Australian Consumer Law • misleading and deceptive conduct under the new australian consumer law

• unfair contract terms • consumer guarantees • how your business can adapt to comply

Wed 11 May 2011 5.30 – 7.00pm snedden hall & gallop offices 43 – 49 geils court deakin acT 2600 Admission is free

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The Two mosT imporTanT legislaTive changes ThaT will affecT your business in 2011: personal properTies securiTies and The new ausTralian consumer law

once operational the pps will provide a single register for all securities in personal property. • how will this affect your business? • which security interests are covered? • what implications will this have for existing securities?

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B2B BUSINESS SEMINAR 6 Just why have SMSFs taken off in Australia? Over $390 billion held in SMSFs in Australia, why? Join Michael O’Hehir, Principal and Lindsay Walker, Financial Planner from RSM Bird Cameron to discuss the reasons behind the growth of Self Managed Superannuation Funds in Australia. They will also provide a budget update on recentchanges to SMSF compliance rules.

THURSDAY 12 MAY 2011 6pm – 8pm canapés and drinks included

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A P R I L 2 0 11

ADVICE

Flu vaccination provides 1000% ROI by Dr Jennifer Loughman

CORPORATE HEALTH

When staff get sick, so too does business. The 2011 flu will cost Canberra businesses substantial loss of income, staff down time and disrupted production. The impact is especially harsh for small to medium enterprises (SMEs). A new mobile vaccination service—the VaxVan—is helping businesses stay healthy. VaxVan travels around the ACT and professional nurses vaccinate staff at or close to their place of work, providing 90% protection from the flu. Run by Canberra’s Corporate Medical Options, the VaxVan is an easy, quick and extremely cost-effective way of boosting staff wellbeing. VaxVan stays in each business precinct for an extended period. Staff simply pop down to the van and get vaccinated. It takes only minutes and VaxVan handles all paperwork. As a doctor, I see the massive impact the flu has on business. The Australian Government reports influenza costs business millions of dollars and recommends that all Australians get vaccinated each year. Corporate Medical Options already vaccinates staff from government and big business at the workplace. It’s an easy decision for employers, with a return on investment of at least 1000% for each case of influenza prevented as, typically, workers take 2-7 days off work and sometimes longer. VaxVan offers SMEs the same great service that big business already enjoys. Most staff —without employer support—don’t get vaccinated. It’s a time-consuming process—an appointment to a GP for a prescription, to the pharmacy to fill the prescription and then back to the GP to be vaccinated. Some staff can’t find the time and others don’t want the hassle. So they hedge their bets and hope they don’t get sick. The reality is that healthy, vaccinated staff take around half the number of sick days of unvaccinated workers. Protecting staff is smart business especially since the flu is highly contagious. Workers who ‘soldier on’ taking no time off work, may well infect others in your organisation, costing you even more. Flu vaccines can be given year round, but are most beneficial before winter and the VaxVan has already hit the road with the 2011 Fluvax. Corporate Medical Options specialises in all types of vaccines, including Fluvax, Hepatitis A, Hepatitis B, all travel vaccinations and whooping cough. Whooping cough—known as the 100-day cough—dramatically rose in 2010. While most staff were vaccinated through childhood immunisation, a booster at any age over 10 is now recommended. Finally, vaccinations improve productivity and send staff the message that employers care. Dr Jennifer Loughman is the managing director of Corporate Medical Options. Suite 4 Clinical Services Building, 173 Strickland Crescent Deakin T: 02 6282 1100 Jennifer.loughman@corporatemedical.com.au www.corporatemedical.com.au

A P R I L 2 0 11 B 2 b I n C a n b e rra

Family Provision and the Notional Estate by Stephen Bourke

ESTATE PLANNING

Each State and Territory has legislation called Family Provision laws. The aim is to remedy unfair treatment of those who have been left without proper provision being made for them in a will whether you have been left out completely or have not been adequately provided for. But I thought my will was sacrosanct and I could give what I own to whoever I like: Usually that is the case. However, there is need to provide a balance between a person’s testamentary freedom and ensuring that people are not abandoned upon the death of someone on whom they were dependent so that they do not become a burden on the public purse. The class of people that are eligible to make a claim can be summarised as: • The spouse (married or defacto) of the deceased; • Child; • Grandchild living in the same household; • Former spouse; and • Person with a whole or partial dependence on the deceased. What happens? If there is someone who falls into the above category they may apply to the court provided they can satisfy two tests: 1. That they have an expectation of having provision made for them. 2. That they have a need. Once those tests have been satisfied the court then considers whether adequate provision has been made and what provision ought to have been made taking into account the provision that has been made for the other beneficiaries. Beware New South Wales: If you tried to give away your assets while you are alive this will not defeat a claim especially if you live or have any assets in New South Wales. This is called the Notional Estate. The Notional Estate allows the court to claw back into the estate assets which may not be included in the estate. This includes superannuation. An applicant only needs a tentative connection to be eligible to make such an application in New South Wales. For example, if an ACT resident died holding a bank account with a bank with a head office registered in NSW, this may be enough for an applicant to apply in NSW. The court could deem that the ACT resident’s death benefit forms part of the deceased estate and order that provision be made. Is there an answer? The above is only a very simple summary of some of the issues. The only answer for someone who faces the risk that someone could make a family provision claim is careful estate planning to insulate your estate against a claim.

Stephen Bourke is a director of the boutique firm, Certus Law, which specialises in superannuation, trusts and estate planning. Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au

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B2B In CAnBeRR A

A P R I L 2 0 11

ADVICE

Electronic vs Print by Lester Bunnell

The 80/20 Way Worry less, Work less, Enjoy more GRAPHIC DESIGN

At the turn of the century I knew people that were preparing for a major global catastrophe — Y2K was coming and it was taking no prisoners! I had several friends that bought massive water tanks and had cupboards full of baked beans. They told me it was all going to come down to those who had land, weapons and petrol. Y2K came and went, I didn’t even get a single computer problem and fresh water was still flowing from my taps — I was very disappointed! In the following months I had many dinner invites from friends who force fed me those baked beans. We had a few laughs over the amount of misinformation we had been served and I still hassle them to this day. Misinformation exists in our own industry! A persistent misinformation campaign that’s been running for a while is that of electronic media vs print media. There is a perception that electronic media leaves less of an environmental footprint than printed media. It turns out that this isn’t true. The 2006 Stern Review makes some interesting comparisons between the carbon generated in making a copy of the Stern Review and that of its electronic counterparts. Each copy of the printed Stern review generates a maximum of 85 grams of CO2. Because it’s printed, that is the maximum amount of carbon it will use. You can read it and re-read it many times over the next 100 years. It can also be passed around to others with no increase in carbon emissions. If you were to read the electronic version on your computer you would use 226 grams of carbon for each hour viewing it on-screen. If you were to copy it and pass it around on CD or DVD you would generate 300–350 grams of carbon for every copy. This doesn’t include the amount of hours that would be used viewing it on-screen by each reader. I’m finding that the more we get electronic versions of everything, the more I crave the printed version. In a recent survey of e-readers 85% said they’d buy a book again. We love the tangible. I do a lot of drawing and have a lot of anatomy books on my shelves. It’s convenient placing these books all over my desk rather than having multiple tiny windows on my computer screen obscuring the view of each reference photo. I won’t argue that electronic ‘stuff’ isn’t cool and easy. It is and it has a lot going for it. I think that the argument from a CO2 point of view is slowly losing ground. But I love carrying my entire music collection with me — that’s cool.

Lester Bunnell is a senior graphic designer and writer. For creative design solutions, contact Paper Monkey Graphic Design, 72 Townshend St Phillip, T: 6285 2400, www.papermonkey.com.au

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by Boaz Fischer

INFORMATION SECURITY

The 80/20 way enables anyone to get extraordinary results without extraordinary effort. The 80/20 principle states that roughly 80 precent of results stems from 20% of effort Here are some examples: • Five people sit down to play poker. Its likely that one of them (20%) will walk away with at leats 80% of the stakes; • 20% of the sales staff will make 80% of the revenue; • More than 80% of scientific breakthroughs come from fewer than 20% of scientist; • 20% of countries, containing fewer than 20% of the world population, consume 70% of energy, 75% of its metals and 85% of its timber; • Less than 20% of all recorded music is played more than 80% of the time; • More than 80% of food comes from less than 20% of land; The 80/20 principle says that a small minority of cause leads to a large majority of results. If you know what results that you want, therefore you can look for a super productive way to get results. Let me ask you a question: Have you applied MORE WITH LESS within your business? Have you applied the 80/20 principle to your ICT systems? If more with less works for organisations and economies, it should also work for you. It’s not enough to seek improvements by means of greater effort or the same effort as today. A much better outcome can be obtained by a lower but more targeted effort. Special Offer CommsNet Group is offering the first three qualified organisations with a free network and security assessment. This assessment will identify whether your current ICT matches your business needs and ascertains your GAP. We will then provide you with a report that shows the steps required too address the GAP between your IT and business requirements in line with the 80/20 principle. To register for this FREE assessment, please register your interest to myinterest@commsnet.com.au by no later than end of May 2011. PS. This assessment suits organisation that have multiple staff, possibly experiencing technical challenges and looking for the 80/20 principle to garner greater results. PS2. Also, attend our free security seminar – Understanding the Risk in Social Media on the 5th of May, 2011 at 8.30am to 9.30am. Register - myinterest@commsnet.com.au Boaz Fischer is the managing director of the CommsNet Group. For more information, contact T: 02 6282 5554 or visit Level 1, 67-69 Dundas Court Phillip, mail@commsnet.com. au, www.commsnet.com.au

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companydirectors.com.au/foundationsofdirectorship

Foundations of Directorship

Strategy and Risk for New Directors Creating awareness of directorship Strategy and Risk for New Directors outlines the role and responsibilities of directors and boards in relation to strategy development and risk assessment. As a new director, senior executive or manager this course will assist you in identifying, formulating and monitoring your organisations strategy; the link between strategy and financial performance; and how to measure strategy and risk against an organisation’s objectives. Course details Date: Thursday 5 May 2011 Time: 9.00am – 5.00pm Venue: Federal Golf Club, Red Hill

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For more information or to enrol contact Phil Butler t: 1300 764 633 or visit companydirectors.com.au/foundationsofdirectorship

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A P R I L 2 0 11

ADVICE

Marked out as special: unusual trade marks types by Shaun Creighton

INTELLECTUAL PROPERTY

Regular trade marks are easy to spot: word, graphical images (‘devices’ in the jargon) or a combination such as a logo mark. However, other things can qualify as trade mark subject matter today. Under the Trade Marks Act 1995 (Cth.) (TMA), a trade mark is defined as: “... a sign used, or intended to be used, to distinguish goods or services dealt with or provided in the course of trade by a person from goods or services so dealt with or provided by any other person.” (section 17, TMA) A sign, in turn, is defined as: “includ[ing] the following or any combination of the following, namely, any letter, word, name, signature, numeral, device, brand, heading, label, ticket, aspect of packaging, shape, colour, sound or scent.” (section 6, TMA, noting that the definition is not exhaustive – in theory at least, tastes, textures and gestures might also be registrable subject matter on this wording). So, in addition to regular trade marks, such ‘exotics’ as shapes, colours, sounds or smells can, potentially, be registered as trade marks. However, there are a number of catches which make getting registration of such special marks very difficult, even ahead of satisfying stringent requirements in respect of distinctiveness of the mark in respect of goods/services applied for. In the case of colours, sounds or smells, one major issue is adequately depicting and describing the mark for application purposes. Although guidance exists on the IP Australia website, trying to ‘explain’ a colour, sound or smell in an application so as to satisfy IP Australia requirements can be difficult – if in doubt, expert advice should always be sought. In the case of shapes, although graphical representation is also an issue, the bigger difficulty is avoiding or overcoming examiner objections based on the shape being commonplace (i.e. something which other traders would legitimately wish to use) or that the shape has significant functional features which, in relation to the article(s) applied to: a) are essential to use or purpose; b) necessary to achieve a particular technical result; c) have an engineering advantage in superior performance; or d) result from simple, cheap methods of manufacture (per IP Australia). So, in summary, special marks can provide an unusual, striking addition to branding but can be difficult to register. Here at ARUNA Trade Mark Attorneys, we have the experience and expertise to assist with your special trade mark needs.

Shaun Creighton is a director of ARUNA Trade Mark Attorneys. Level 3, 54 Marcus Clarke St, Canberra T: 1800 705 680 or 02 6221 9555 www.aruna.com.au

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B2B In CAnBeRR A

Now’s the time to improve your plant life balance… by Jon Elphick

INTERIOR PLANTSCAPING

Plants don’t just bring freshness and colour to an office, but also help to elevate mood, productivity and performance while improving overall health and wellbeing. This is reinforced by a recent Newspoll survey of office workers in Australia that showed that two thirds would prefer to work in an office that has plants. More than half the workforce surveyed felt that offices with plants have cleaner air and that they feel more positive at work with plants around them. One in three went so far as saying they have more energy at work when plants are around and they’re certain plants help them work more productively. Jon Elphick Ambius Business Manager Canberra, comments that the results are not surprising. “We have been noticing the trend towards workplaces designing creative plantscaping into corporate fit out for some time now, as employers become more informed about the health and wellness benefits that indoor plants bring to workplace productivity.” Professor Margaret Burchett and her colleagues at the University of Technology Sydney have measured how effective plants are at removing pollutants from the air and give foliage “two green thumbs up”. “Volatile Organic Compounds (VOCs) emitted from plastic or synthetic materials in office furniture, fittings, computers and printers can cause headaches, loss of concentration and eye, nose and throat problems, while carbon dioxide (CO2) has been linked to drowsiness,” Professor Burchett said. “Our research has proved that office plants can reduce VOCs by 80 percent and CO2 by up to 25 percent, so the health benefits are significant”. Employers take note. Cleaner air leads to happier workers with clearer thinking, promoting greater productivity and efficiency. Office plants can cut down staff sick leave by up to 60%. Professor Burchett said a leafy office relieves stress and reduces negative mood states by up to 60% and just one plant is enough to make a positive difference in the workplace. The Nursery and Garden Industry Australia (NGIA) has responded to the recent Newspoll survey on workplace plants, by creating a new facebook page which includes ideas for top performing workplace plants, how to keep them alive, games, and a host of relevant information can be found on a new fan page at: www.facebook.com/ plantlifebalance.

Interested in this area? For more information call Ambius on T: 02 6241 1451 or visit the Ambius website: www.ambiusindoorplants.com.au .

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The recent Hawke Report on the review of the ACT administration is about much more than changes to the bureaucracy. Allan Hawke wants to “unlock the capacity of the ACT PS” to enable it “to respond in genuinely innovative ways to the policy and service delivery challenges confronting the government”, now and in the future. Hawke sketches a challenge, which if met, would radically change the model of administration in place for the 21 years of self government. He wants structures and operating arrangements that are better suited to servicing the demands of Canberra’s city-state government. In other words it is time to change aspects of the traditional public service model inherited from the Commonwealth to better suit our distinctive form of local government. His starting point is that to be effective, the ACT administration must be ‘fit for purpose’. If we are a boutique and unique administrative entity, then let’s have those distinctive needs drive the structure and operating arrangements of the ACT public service. The Hawke Report is refreshing , in part because it looks to learnings from other hybrid models, such as Singapore and Scotland. This is a challenge for the whole ACT community, but particularly its legislators and public servants. He urges that the ACT Legislative Assembly engage with the challenge and that we leverage the city’s rich array of learning institutions and other expertise. Underneath these broad brush strokes are a series of recommendations for practical cultural and capability building initiatives. These are central to giving life and substance to the drier, yet headline grabbing, proposals for structural change. Ultimately Hawke wants an administration that is engaged, empowered and performing to meet agreed needs and priorities. He wants change that benefits both government and public sector workers. Most importantly he wants benefits for the citizens of the ACT. Realising those benefits will be challenging at many levels. The ACT government has endorsed the broad thrust of the report. Implementing its recommendations will be challenging and exacting. Ultimately all can play a part, and have an interest, in the emergence of a truly ‘fit for purpose’ Canberra model.

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Andy Gregory is chief executive and a founding director of Yellow Edge. He has extensive leadership experience in both the public and private sectors. andy.gregory@yellowedge.com.au.

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A P R I L 2 0 11

ADVICE

Good marketing does make a difference by Maria Selleck

REAL ESTATE

You’ve decided to sell your property, you’ve chosen an agent, and your agent has shown you why a marketing campaign will help you in your prime objective: selling your property for the best possible price. But how do you decide which, among all the elements that can constitute a successful property marketing plan, are right for you and your property? There are many aspects to consider; among the most important is the advertising campaign, and who is to pay for it. Your agent may have offered to “absorb” all advertising costs, which may sound a great deal - until you discover your property is receiving two lines of text in the weekend classifieds. Don’t expect to see your home displayed prominently in the press property sections, or professionally photographed in glossy colour brochures, unless you pay your agent to make it appear so attractively. Another aspect of the marketing campaign is the opening of your property to public viewings and this is one factor in which you as vendor should have significant input. The number of open inspections won’t affect your hip pocket, but will affect how many people view your home and when. The key to successful marketing There is a saying in real estate, “you can’t sell a secret’’. It may seem a bit like a justification for the money that agents suggest the sellers should pay to advertise, but when you think about that, it makes a lot of sense as no one will know what you have to sell unless you tell them about it. However, when you discuss with your agent how your home will be marketed, you shouldn’t simply think about the advertising dollar. Successfully marketing your property is about describing your property effectively, and about where and how often it should be advertised for maximum results. A good agent will know how to plan a marketing program that is flexible, effective and will suit you and your lifestyle - not just your property. Online advertising with Domain, Allhomes and our own web page <Maria Selleck.com.au> is an essential part of the sales process at Maria Selleck Properties. A best-practice agent knows how to plan a marketing campaign suitable for the property he or she is attempting to sell - and should be able to advise you why one method may work for you, while another may not. But it is your property - just as you’d consider a general cleanup before each inspection, part of your role in selling your home, so should a contribution to the overall marketing plan be, too. Maria Selleck is the owner/director of Maria Selleck Properties. For more information, contact T: 6162 1234, 30 Bougainville St, Manuka, info@mariaselleck.com.au, www.mariaselleck.com.au

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Insurance ain’t Insurance Total and Permanent Disability (TPD) by Hugh Crawford

RISK INSURANCE

Is this a can of worms! Not only in the various definitions but also the tax payable if in a superannuation plan. Firstly the definitions. With the vast majority of contracts there are two parts to the TPD definition: The first part relates to losing the use of two hands, or two feet or two eyes or any combination of loss of hand and foot, foot and eye etc; The second part of the definition is the part usually relied on. There are two main types: 1. Any occupation and 2. Own occupation. With both definitions a claimant is required to be not working and following doctors directions etc. The ‘ANY occupation’ requires that the claimant is unable to work in their occupation or any other occupation for which they are reasonably qualified by way of training; education or experience for a qualifying period which is generally six months and the insurer believes they will never be able to work again. When you have a good look at this definition it is fairly broad and encompassing. Who in their youth didn’t wait on tables, pull petrol, work in a bar, do cleaning work, drive a taxi or truck or work in a shop. This clause is often referred to as the ‘vegetable’ clause. The danger is that this definition has no relevance to your current income. So you may be earning a six -figure income but if you can do any sort of menial work there is no payout. So how do you clear the mortgages, cover medical bills, maintain life style etc. ‘OWN’ occupation definition - Is related to your inability to carry out your OWN occupation ever again. A very different outcome. Tax Implications if in a superannuation fund The advantage is that the premium is tax deductible. Whenever there is a TPD payout from a superannuation fund a component of the payout is taxable. The taxable component is a function of a number of variables relating to time in the workplace and accumulated funds etc Every situation is different but needless to say that in the vast majority of situations the tax payable with having the TPD in superannuation far outweighs the tax saved through a deduction on the premium. A further complication is that even though the TPD claim may be paid by the insurer the payment to the insured still has to meet the conditions of release as outlined in the SIS Act. TPD outside super has no tax implications. In summary the TPD should not be placed within superannuation.

Hugh Crawford is a director/adviser at Capital Wealth. Contact Hugh on T: 02 6239 1566, 14 Dundas Court Phillip 2606, www.capwealth.com.au

ADVICE

10 tips to make your website more visible by Sam Gupta

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WEBSITES

The process of tweaking a website to help attain better ranking is known as ‘Search Engine Optimisation’ and is commonly referred as ‘SEO’. Here is a quick checklist to help you with SEO: 1. Choose your keywords carefully; remember quality not quantity. 2. Make sure your keywords are properly listed on your webpages. Do not try to target too many keywords for one page. Start with 2-3 keywords per page. 3. If you are using a content management system and manage the website yourself, don’t forget to change the meta-tags for each page. If you have static website, check with your developers to ensure that correct meta-tags are applied on all pages of your website. 4. Check with your developers that they have given attributes to all images on your website. 5. For any site with 7 or more pages, sitemap is essential. This is especially required for all CMS based websites. 6. Add something new to the website at least twice a month. The more the better. Accordingly ask for a regular search engine submission service from your web developers so that they can submit the site on search engines at least every quarter.

www.art-atelier.com.au I info@art-atelier.com.au I t. 6288 3626 corporate I events I editorial I portrait I product I architecture I fashion

7. Make sure your business is listed on Google Places (Google Map) and other local directories.

Let your

8. Ask other websites to link back to your website. Remember, quality is preferred over quantity.

customers

9. Have a good social media linkage. Give your website links in your twitter, facebook or blogs.

buy online!

10. Every six months get comprehensive SEO analysis done for your website. Use the findings to keep improving your website. SEO is a slow process but when done correctly, it can help your website crawl its way to the top and open door to unlimited possibilities. Try it once, and let me know how you go.

Sam Gupta is the managing director of Synapse Worldwide. Sam would love to hear your thoughts on this advice column. Please contact him on 1300 785 230 or admin@synapseworldwide.com

Call 02 6262 3011 for all your website needs.

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G2B

GOVERNMENT TO BUSINESSS

Innovation the Key to Skills ON 14 APRIL, THE ACT GOVERNMENT WILL HOST ITS FIRST SKILLS SYMPOSIUM – A DAY LONG PROGRAM THAT WILL FOCUS ON THIS IMPORTANT AREA.

n 2007 the ACT Government established a high level advisory body called the ACT Skills Commission chaired by the former Vice Chancellor of the Australian National University, Professor Ian Chubb AC. The Skills Commission was given two years to crack open some of the issues and impediments impacting on Territory employers in this area, and it provided advice to Government over this period on many short term skills issues and other matters as well. The Skills Commission was also very effective in generating conversations across the business and skills provider communities. It brought people together, it promoted shared understanding on issues, and it released two key reports and sponsored new demographic research. The Skills Commission’s Final Report was highly successful in shaping the ACT Government’s 2008 Skills Futures package released in mid 2008. ACT Skills Futures laid out a range of policy and program responses in areas as diverse as skilled migration, paid maternity leave, public sector capability, funding for additional training outputs, increase in the school leaving age, leveraging the skills of international students, general skills attraction and retention initiatives, investment in new training infrastructure, and many more. Skills Futures committed $51m in new Government funding over four years to address skills issues across the Territory – a very significant investment for the ACT Government. In 2009 the GFC seemed to come and go pretty quickly for many Territory employers. While business and consumer confidence was brittle through the period, employment generally held up well with employers doing everything they could to keep their workforces intact, ready for the upswing. In fact, the speed of the post GFC recovery in the Territory caught many employers by surprise and it was around this time again last year that the Chief Minister hosted a broad Skills Roundtable to again take the temperature on this resurging issue. What emerged from the 2010 Skills Roundtable was a clear view that a lot had been done, but a moving target requires new approaches and constant rethinking. For example, many of the key performance metrics had improved over the two years: strong population growth; record numbers of skilled migrants; record training outputs from Territory providers; further improvement in the participation rate; and strong support through accelerated land release for residential building. The Roundtable also agreed that important information and intelligence was unevenly shared among the stakeholders and better ways of measuring, communicating and engaging was also necessary.

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2010 also saw two important review processes the ACT Tertiary Education Taskforce review and a dialogue on improving public high schools and colleges in the ACT. The Tertiary Education Taskforce has reported and articulated a future looking vision for tertiary education and proposes that Canberra become the nation’s learning capital. The ACT Government’s response to the Tertiary Education Taskforce review is expected shortly. The two review processes have run in parallel and have dealt with some common issues. The response by the Department of Education and Training to the report on the consultations on high schools and colleges will address some of the recommendations of the Tertiary Taskforce, including on the delivery of Vocational Education and Training (VET) in schools and colleges and on career advice and counselling. The Department of Education and Training report on improving ACT public high schools and colleges is due to be completed in April 2011. The ACT Government has also negotiated an MOU with the Australian Government around skill migration. Under the MOU the ACT Government has a more active role in the process of demand and skills matching. It will assist the ACT to target, attract and sponsor skilled migrants, with a wider range of occupations than those included on the new Australian Government Skilled Occupation List, to migrate to Australia and live and work in the Territory. And on 14 April, the ACT Government will host its first Skills Symposium – a day long program that will focus on this important area. Over 100 key thinkers from business, community, government and educational providers have been invited to participate in the Symposium. Expertise and perspectives will be shared, information flows and base-line data will be exchanged, and collaborative approaches will be explored. The Chief Minister and Minister Barr will both participate in the Symposium program. The Symposium will draw together a range of responses for consideration by Government, employers and education providers.

EFFECTIVE RISK MANAGEMENT IN TENDERING FOR GOVERNMENT IT CONTRACTS In order to develop the new skills that allow a business to grow, every so often smalland-medium enterprise (SME) owners need to take time out from working IN their business to work ON their business — and this is such an occasion. With information technology (IT) so integral to the operations of Government, procurement officers are placing greater importance on the risk management practices of the IT firms they engage. Government customers often seek details of company’s risk governance and risk assessments in tenders, the quality of which significantly influence their judgements of overall value-for-money. While larger firms can resource sophisticated risk management frameworks, SMEs are often less ready to respond to the risk management requirements of Government. Feedback from Government customers suggests SMEs undervalue the importance of addressing risk in tenders, often do not have established risk management processes and sometimes have difficulty communicating their approach to risk management. With that in mind, CollabIT ACT and the Supplier Advocate Program has partnered to bring local IT SMEs a tailored training program to help them better manage risk as well as better communicate their risk management capabilities to customers. If you’re an SME that wants to improve the way you engage with Government, this training is for you. It’s about helping you put your best foot forward while also taking account for the Government’s appetite for risk. I encourage SMEs to embrace this opportunity to work ON the business.

TRAINING PROGRAM OUTLINE The one-day training program is aimed at IT SMEs who feel that they can improve the quality of their responses in risk management and risk assessment, and hence their tender success rates in the government market. The program considers the basics of risk management, looks at the growing importance of risk management to Government IT procurement and explores the simple techniques that SMEs can employ to improve the quality of their proposals. The course has been prepared by two risk management professionals from Broadleaf Capital International who both have a great depth of experience in Government procurement, from both the Commonwealth and private sector perspectives. To ensure the program is tailored to SME needs, Broadleaf have been guided in their course preparation by members of the local IT industry, CollabIT, subject matter experts, as well as by government customers. The course will cover the following broad topics:

Additionally, the course will include a:

Don Easter IT Supplier Advocate

RISK MANAGEMENT TRAINING SESSIONS WILL BE HELD ON TUESDAYS 19 APRIL, 17 MAY, 21 JUNE AND 19 JULY 2011 in Theatre 1, Microsoft, Level 2, Walter Turnbull Building, 44 Sydney Avenue, Barton ACT 2600.

A background to risk management – policy and needs; The new risk management Standard – AS/NZS ISO31000:2009; Risk management and its use in Government procurement; Risk management and risk assessments in tendering – tenderer and customer perspectives; and Typical IT procurement risks and how these may be addressed in the tenderer’s response.

Guest speaker Chief Information Officer from a Commonwealth agency; Copy of the AS/NZS ISO 31000:2009: Risk Management – Principles and Guidelines (valued $100); Worked case study relevant to IT SMEs; and Set of reference material, sites and templates suitable for IT SMEs

Sessions will run from 9am to 5pm, with morning and afternoon tea and a working lunch provided. Normally valued at $800.00 per person, CollabIT ACT and the Supplier Advocate Program are delighted to offer the training to IT SMEs for only $150.00 per person.

TO REGISTER OR FOR FURTHER INFORMATION: contact Nanette Richert, AIIA ACT Branch Manager: n.richert@aiia.com.au This tailored training for IT SMEs has been developed with the support of:

A2B

A S S O C I AT I O N S T O B U S I N E S S

The 2010-11 Federal and ACT Budgets will be released next month and both face major challenges.

A Budget That Means Business CHRIS FA U L K S

CEO Canberra Business Council

AFFILIATED WITH

UPCOMING EVENTS 4 May 2011 ACT Budget Breakfast The ACT Budget Breakfast is co-hosted by CBC & the Council’s Kindred Organisations, and moderated by Ross Solly, 666 ABC Canberra Breakfast Presenter. It will be broadcast live on 666 ABC Canberra between 8.30am – 9am TIME: 7.30am-9.00am VENUE: National Press Club RSVP: Friday 29 April 2011 Sponsored by Meyer Vandenberg

11 May 2011 Federal Budget Breakfast TIME: 7.30am-9.00am VENUE: Great Hall, Parliament House RSVP: Wednesday 4 May 2011

The 2010-11 Federal and ACT Budgets will be released next month and both face major challenges. In the ACT a forecast deficit of $135m was improved by a one-off tax gain and an $80m improvement in the bottom line leaving a $50m forecast deficit. The subsequent loss of $30m a year in GST revenue from the Federal Government left the ACT with a forecast $80m deficit. While the ACT Budget will remain in deficit for the next few years, the plan is still to return to surplus in 2013-14 and the news is not all bad. CommSec’s State of the States Report in January 2011 showed that the ACT economy is out-performing the rest of the country in a number of key economic indicators with housing activity, construction, population growth and economic growth all above average. At the same time the ACT has one of the lowest unemployment rates in Australia and low inflation. The report states ‘three months ago it was clear that the ACT and Western Australian economies were out-performing other states and territories. Now it is just the ACT that leads the pack. The ACT economy may be small, but effectively all engines of growth are firing.’ In drawing up our ACT and Federal Budget submissions, Canberra Business Council always takes the position that we must be economically responsible in any request we make of Government. We understand the responsibility of the Federal Government to rebuild in Queensland and we support both levels of Government adopting fiscally responsible approaches to their Budgets by identifying savings and staying on track to return the Budgets to surplus over the next two to three years. Canberra Business Council welcomes the Government’s response to the Review of the ACT Public Service and suggests that there are further efficiencies that could be achieved beyond the structural changes by rolling functions together within the proposed directorates and reducing layers of supervision.

The Council continues to encourage the ACT Government to focus on its core business: strategic planning, policy development and regulation and not compete in the provision of non-core services which can be delivered more efficiently and costeffectively by the private sector. Of equal importance, the ACT Government should continue to invest into areas of the economy which have the potential to diversify and expand the revenue base for the ACT - specifically in the Tourism Industry, Infrastructure, the Knowledge Economy and the Creative and Export-orientated industries. Tourism is a critically important industry in the ACT contributing over 5.5% of the ACT’s Gross State Product. Investment in events and infrastructure in the lead-up to and leveraging off the Centenary of Canberra celebrations will position the ACT for the future is a highly competitive market. Specifically the Council has recommended investment in the next stage of the Australia Forum, in further developing the Arboretum and in positioning Canberra both nationally and internationally to maximise the potential contribution of cultural, business and recreational tourism to our economy. Knowledge-based, innovation and creative industries are part of what makes Canberra a unique place to live, but they are also a significant contributor to the economy. Education earns the ACT around $200m a year; creative businesses account for around 11% of businesses in the Territory - almost double the national average; and the ACT’s ICT industry conducts more than $3.5b in sales of goods and services each year. The growth potential in these industries is virtually limitless given the right financial and regulatory environment. This includes Export-orientated industries, many of which simply need to be given assistance in opening the right doors overseas whereupon they launch into rapid and successful expansion.

Principal Members ACTEW Corporation, ActewAGL, Bank West, Blue Star Printing Group, Canberra International Airport, Cre8ive, Elite Sound & Lighting, Ernst & Young Services Trust, eWAY, Hindmarsh, HolisTech Pty Ltd, KPMG (Canberra), Master Builders Association (ACT), Medibank Health Solutions, National Australia Bank Ltd (Turner), National Museum of Australia, NEC Australia Pty Ltd, Staging Connections (ACT), The Village Building Co, Thyssen Krupp Marine Systems Australia, TransACT Communication

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A S S O C I AT I O N S T O B U S I N E S S

A2B

ACT Exporters’ Network is all about sharing experiences and knowledge and encouraging each other while drawing on assistance from other professionals

A snapshot of events run by the ACT Exporters’ Network

he ACT Exporters’ Network continues to provide opportunities for exporters to network , share knowledge and expand their export activities. Recent Network events have included a workshop on the new Incoterms® 2010; and networking and briefings on doing business in Singapore, Malaysia and Brunei, and the United Arab Emirates (UAE). The International Chamber of Commerce has suggested that certain terms now be used for container shipments. These new terms, Incoterms® 2010, are universally recognised standard definitions of trade terms and set out terms and conditions for buyers and sellers. Having a better understanding of these terms minimises the risk of misinterpretation and possible dispute between seller and buyer. This workshop, presented in conjunction with the Australian Institute of Export (AIEx) and hosted by Ernst & Young, allowed local exporters to improve their knowledge of these new terms without expending additional time and cost in travelling to Sydney and Melbourne, where these courses are generally run. The Network’s February Business Breakfast focused on doing business in Singapore. The Singapore breakfast was the second in our series of events focusing on local export markets. Exporters, export supporters and Network sponsors who attended this event were entertained by Carol Cooke (CIC Group), who spoke about her positive and negative experiences in Singapore. CIC Group are specialists in key security and key management solutions, and so casino developments in Singapore provided more opportunities for CIC Group. I also shared some tips and learnings from my experiences with Recruitment Systems selling and servicing our recruitment software in Singapore. In particular, Recruitment Systems has learnt the importance of relationships and finding the right agent – and one that has the right experience and will add value to your business – as well as the value of going to the experts for legal and financial advice. It has also been our experience that negotiations are very price sensitive and any exporter wishing to sell into this lucrative market need to have a fundamental understanding of their own costs and the price point where exporting becomes unprofitable.

While the Network’s Business Breakfasts provide members and others to network and share their experiences, Network members can also be involved with more exclusive meetings and briefings. For example, a small group of exporters were recently privileged to share breakfast with Austrade’s Senior Trade and Investment Commissioner, Malaysia and Brunei. These exporters are working in this market – or wanting to find out more about opportunities in this market – and not only benefited from an up-to-date briefing on the economic and business environment in this region, but received tips for the different industry sectors and, in many cases contacts and introductions were organised to progress exporters’ activities in Malaysia and Brunei. And moving further afield, the United Arab Emirates (UAE) was the focus of a forum for exporters to highlight opportunities and experiences in this region. Geoff Bell (Science, Forensic and Engineering Centre at the Canberra Institute of Technology (CIT)), hosted the forum at CIT’s Bruce Campus and shared his story of almost two years providing upskilling and accreditation in Abu Dhabi for its crime scene and forensic program. Mr Bell noted the importance of establishing and maintaining close relationships in-country, and added that the Chief Minister’s trade mission to UAE in 2009 was also valuable in this process. Professor David Widdowson (Centre for Customs and Excise Studies at the University of Canberra), also spoke at the event and drew on six years experience working in the UAE to give an overview of some of the issues for exporters to be aware of, including differing cultural and business practices and concerns. Professor Widdowson also spoke about the role of expatriates in UAE in the ‘Emiratisation’ process, which is an initiative of the UAE government to employ its citizens in a ‘meaningful and efficient manner in the public and private sector’. These events are just a snapshot of events run by the ACT Exporters’ Network, and demonstrate the vibrancy and depth of the export industry in Canberra and the region. Being able to share experiences, share knowledge and encourage each other in their exporting journey, while drawing on assistance from those that provide assistance and support for exporters, is what the ACT Exporters’ Network is all about.

BRENT J U R AT O W I T C H

PRESIDENT, ACT EXPORTERS’ NETWORK

For more information on the ACT Exporters’ Network visit actexportersnetwork.com, or contact the Network’s manager, Pam Faulks, on 0400 090 452, pam.faulks@ canberrabusinesscouncil.com.au. The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry.

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A S S O C I AT I O N S T O B U S I N E S S

One issue for employers is that a General Protections claim can be launched any time an employee feels that they have been adversely treated ...

Adverse action claims by employees GREG SCHMIDT

Workplace Relations Director

Corporate Sponsors ACTEWAGL, 104.7 / Mix 106.3, Prime TV, The Canberra Times, The Good Guys Tuggeranong, Duesburys Nexia, Synapse Worldwide, B2B in Canberra. Associates and Affiliates Retail Traders Association, Australian Industry Defence Network Foundation Member Australian Chamber of Commerce & Industry 36

Most employers are aware that a dismissed employee will usually have the right to lodge an Unfair Dismissal claim through Fair Work Australia. There is some protection for employers in that a dismissed employee does not have the right to lodge an Unfair Dismissal claim unless they had been already employed for at least six months (at least twelve months if the former employer is a Small Business Employer). However, relatively few employers are aware of the risk of an “adverse action” claim – that is, a claim alleging a breach of the General Protections. General Protections is a name given to a part of the Fair Work Act 2009 setting out rights and protections for various parties in the employment framework – employers, employees, potential employees, independent contractors and industrial associations. The General Protections have been invoked only rarely, so far, but the indications are that claims will become more frequent. Broadly speaking, the General Protections prevent someone taking ‘adverse action’ against another party for a ‘prohibited reason’. One issue for employers is that a General Protections claim can be launched any time an employee feels that they have been adversely treated. This obviously includes dismissal of an employee, but it also could mean non-selection for promotion or employment, removal of fringe benefits, transfer or demotion of employee, removal of email privileges, and so on. A bigger issue for employers is that if an employee or union alleges that an action was taken for a prohibited reason, no proof has to be provided to support the allegation. The onus lies with the employer to prove that any adverse action was taken for a legitimate reason, not for a prohibited reason. Clearly, this can be very difficult to prove, particularly in cases where an employer has not kept good records of counselling or warnings given to an employee. The recent case of Barclay v The Board of Bendigo Regional Institute of Technical and Further Education clearly demonstrated this difficulty. The employer, the Bendigo TAFE suspended an employee (Barclay) from duty pending an investigation into alleged misconduct as an employee. The alleged misconduct centred around the fact that Barclay circulated an email to fellow union members insinuating that fraudulent information had been provided to an auditor. The

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email was circulated by Mr Barclay using his TAFE work email account but identifying the sender as the President of his union sub-branch. The employer considered that Barclay had probably committed misconduct by circulating damaging and defamatory allegations, and also by not reporting the suspected fraud to management (among other reasons). He was suspended from duty pending a formal investigation into the suspected misconduct. Barclay lodged a general protections dispute claim in response to the adverse action (suspension from duty and removal of email privileges). General protections dispute applications are initially lodged with an organisation called Fair Work Australia, which will attempt to resolve the dispute by mediation or conciliation. Disputes which cannot be resolved in this way are referred to a court (the Federal Court or Federal Magistrates Court). The judge who first heard Barclay’s case determined that the employer had not committed any offence. However, an appeal court (by a 2 to 1 split decision) found that the employer had failed to demonstrate that its action against Barclay was not taken because he was the local union representative. The lesson for employers is that even though the employer firmly believed that Barclay had breached the organisation’s code of conduct as an individual and acted accordingly, the appeal court held that Barclay might have been simply distributing information in his role as a union representative – which allowed the employee far more latitude to take actions that would otherwise have been unacceptable. Informal feedback from the legal profession indicates that adverse action claims are likely to become more common in the future. To guard against these claims, it is recommended that employers should always carefully consider any decision that will impact negatively on an employee, and satisfy themselves that the action is appropriate. Records of counselling and warnings should be retained by employers to help complete the “paper trail” of evidence that an appropriate decision has been reached after a proper process. For further information contact Greg Schmidt PO Box 192, Deakin West ACT 2600 12a Thesiger Court, Deakin ACT Phone: (02) 6283 5236 Fax: (02) 6282 5045 Mobile: 0412 747 894 greg.schmidt@actchamber.com.au

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