B2B magazine Issue 97 September 2014

B2BMAGAZINE.COM.AU

SEPTEMBER 2014

LONDON

97

G N I L L CA

UNIVERSITY OF CANBERRA BRINGS UNIVERSITY OF LONDON TO THE NATION’S CAPITAL

BEWARE OF OUT-OF-CONTROL COMPANIES

POLITICAL DONATIONS:

KNOW YOUR DISCLOSURE OBLIGATIONS

REDUCE COSTS IN THE PUBLIC SECTOR

$4.95 inc. GST ISSN 1833-8232

01

CHRISTMAS FUNCTIONS FEATURE INSIDE

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CONTENTS

PUBLISHER'S NOTE

Spring clean your business… and your life I love Spring. The cherry blossoms around the nation’s capital really are a sight to behold.

TIM BENSON Publisher

With warmer temperatures, and beautiful sunny days, it’s time to not only do more exercise outside but also spring clean your business.

Take time out to think about your long-term business goals.

Is where your business heading where you want it to be?

Find your business plan — and reassess your short to longterm goals and objectives. You may wish to seek help from a business adviser to do this.

On an administrative front, dedicate some time to organise your emails. And this could mean, turning off the pop-up notifications that turn up every-time you receive an email and disrupt your work-flow. If you have emails sitting in your inboxes in the thousands, then it is definitely time to clean up! Much of your paperwork can also be stored in the Cloud which is easier to find and reduces the mess on your desk.

In the spirit of Spring and to help the Heart Foundation ACT raise money to fight cardiovascular disease, I am participating in the Celebrity Heart Challenge along with 10 other local identities.

I encourage as many people as possible to get on board and make an online donation at www.canberrahearts.org.au. See story on page 18.

This month’s cover story profiles how Canberra is changing the face of postgraduate study. Canberra’s postgraduate students will have direct access to prestigious University of London qualifications under a new arrangement made with the University of Canberra.

It’s also a good time to book your Christmas office party before venues are booked out.

And finally, good luck to all the entrants in the Canberra BusinessPoint Awards at the end of this month..

Send all comments to editorial@b2bmagazine.com.au

12 COVER STORY LONDON CALLING UC CHANGES THE FACE OF POSTGRADUATE STUDY

2014 CANBERRA BUSINESSPOINT AWARDS 4

THURSDAY 25 SEPTEMBER 2014 National Portrait Gallery 6.00pm - 9.00pm CONTACT US ON 1300 648 641 OR VISIT

www.canberrabusinesspoint.com.au

BOO YOU K TICK R E TOD TS AY!

PROGRAM DELIVERED BY:

PROGRAM DELIVERED BY:

C ANBE RR A BUSINESS COUNCIL

AN ACT GOVERNMENT INITIATIVE

AN INITIATIVE OF

CONTENTS

FEATURE 06 Watch out for out-of-control companies Dobinson Davey Clifford Simpson Lawyers 07 REIACT award for the 3rd year running ANZ Mobile lending

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08 OPC and the National Press Club OPC IT 10 Achieving sustainable cost reductions in public sector operations RSM Bird Cameron Chartered Accountants 16 146,000 vacancies, 14 million applications you do the maths!

HorizonOne Recruitment COVER STORY 12 London Calling UC changes the face of postgraduate study

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19 CHRISTMAS FUNCTIONS FEATURE

28 FINANCIAL PLANNING Salary sacrifice to superannuation

by Dragonfly Financial Services 30 INTELLECTUAL PROPERTY International applications where an international agent is required

by Arete Group

32 WEBSITES Take advantage of mobile commerce

by Synapse Worldwide

22 PJ O'Reilly's 23 ADVICE FROM THE EXPERTS

A2B: ASSOCIATIONS TO BUSINESS

24 ACCOUNTING Most families have no risk management plan

by RSM Bird Cameron Chartered Accountants 24 BANKING Taking advantage of the redraw

by ANZ Mobile Lending 25 BOOKKEEPING Using mobile applications to run your business

by Tailored Accounts 25 BUSINESS ADVISORY The rise (and fall) of the Phoenix

by Vincents Chartered Accountants

ISSN 1833-8232

28 FAMILY LAW Asset valuation and disclosure

by Dobinson Davey Clifford Simpson Lawyers

32 RECRUITMENT Gen Y – more loyal than you thought

by Hays Recruiting

20 The Canberra Rex Hotel

22 Mood Food & Co

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27 CORPORATE GOVERNANCE Governance ina a changing world

by Australian Institute of Company Directors

30 PROPERTY INVESTING High yielding properties: know the risks

by Hatch Property

21 Rydges Capital Hill

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26 CORPORATE ADVISORY Working capital management & treasury

by Maxim Chartered Accountants

34 MINISTER'S MESSAGE Major events profile Canberra to the world 35 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY Exercise Boss Lift Top End 36 ACT EXPORTERS Financing your export business BUSINESS NETWORKING 37 B2B @ ACT Chamber International Sport Business Breakfast

26 BUSINESS LAW Political donations: are you up-to-date on your disclosure obligations

by Bradley Allen Love Lawyers

38 B2B @ ACT Chamber Business After Business Networking Event

EDITOR

PUBLISHED BY

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Liz Lang editorial@b2bmagazine.com.au 0408 952 341 02 6161 2751

Man Bites Dog Public Relations ABN 30 932 483 322 PO Box 4106 Ainslie ACT 2602 b2bmagazine.com.au

Tim Benson advertising@b2bmagazine.com.au 0402 900 402 02 6161 2751

PUBLISHER

DESIGN

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LEGAL NOTICE Man Bites Dog Public Relations (‘MBD’) owns the copyright in this publication. Except for any fair dealing as permitted by the Copyright Act 1968 (Cwth), no part of this publication may be reproduced without the prior written permission of MBD. MBD has been careful in preparing this publication, however: it is not able to, and does not warrant that the publication is free from errors and omissions; and it is not able to verify, and has not verified the accuracy of the information and opinions contained or expressed in, or which may be conveyed to readers by any advertisement or other publication content. MBD advises that it accepts all contributed material and advertisements contained in this publication in good faith, and relies on various warranties and permissions provided to it by the persons who contribute material and/or place advertisements. Those warranties and permissions include that neither the material and/or advertisements are misleading, deceptive or defamatory, and that their use, adaptation or publication does not infringe the rights of any third party, or any relevant laws. Further, MBD notifies readers that it does not, nor should it be understood to endorse, adopt, approve or otherwise associate MBD with any representations made in contributions and/or advertisements contained in the publication. MBD makes no representation or warranty as to the qualifications of any contributor or advertiser or persons associated with them, and advises readers that they must rely solely on their own enquiries in relation to such qualifications, and be satisfied from those enquiries that persons with whom they deal as a result of reading any material or advertisement have the necessary licences and professional qualifications relating to the goods and services offered. To the maximum extent permitted by law, MBD excludes all liabilities in contract, tort (including negligence) and/or statute for loss, damage, costs and expenses of any kind to any person arising directly or indirectly from any material or advertisement contained in this publication, whether arising from an error, omission, misrepresentation or any other cause.

A Magnificent Musical Showcase World-Renowned Performers

Simon O’Neill

Inessa Galante

Peter Coleman-Wright

VOICES IN THE FOREST

30th NOVEMBER 2014

4.45PM – 8.30PM | GATES OPEN 1.30PM NATIONAL ARBORETUM CANBERRA

GROUP PACKAGES — NOW ON SALE

PACKAGES INCLUDE CONCERT TICKETS IN ‘A RESERVE’, DINNER TICKETS AND PARKING VOUCHERS Want to do something different for your Christmas party?

Entertain staff and clients at a unique event?

Get together with friends and family? .... in a stunning location .... with spectacular views .... and a relaxed vibe?

Then book a group package to the Voices in the Forest concert.

Sit back and enjoy an unsurpassed late afternoon’s entertainment featuring superb performances by three of the world’s most beautiful voices including Latvian soprano, Inessa Galante; New Zealand tenor, Simon O’Neill and Opera Australia baritone, Peter Coleman-Wright.

They will perform a program of famous arias and Broadway songs featuring breathtaking solos and duets.

MAJOR SPONSOR

MEDIA PARTNERS

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Dinner after the show Continue your evening with a dinner after the concert in the stunning, award-winning Village Centre and take in the spectacular views overlooking Canberra city, forests and mountains. The dinner is a seated, 2-course meal including wines, beer and soft drinks.

Group packages include A Reserve concert tickets (preferential seating), tickets to the dinner after the show and parking vouchers for onsite parking. Cost is $2100 (inc gst) for a package of 10 tickets. Packages can be purchased for any number of tickets of 10 or more. Visit the event website www.voicesintheforest.com.au to download a booking form.

Get in early to book the best seats for your group today!

BRONZE SPONSORS

Sponsor of the National Arboretum Village Centre

For e ve nt d e t a i l s vi si t

w w w. v o i c e s i n t h e f o r e s t . c o m . a u

SUPPORTED BY

F E AT U R E

Watch out for out-of-control companies

By Brendan Cockerill

U

p until 1995 all companies had to have at least two directors.

This posed significant issues for businesses looking to obtain the limited liability provided by company structures as quite often, for example, both parties to a marriage were, of necessity, directors of the company and if the company ever became insolvent both directors, and therefore any assets owned by the directors including the family home, could be exposed to a claim.

Since 1995, companies have been able to have a sole director, however, companies can only have a sole director if their constitution allows it. Many businesses have taken the necessary steps to amend their constitution to allow their trading or trustee company to have one director and have removed the non essential directors.

While the ability to have sole director companies helped solve an asset protection problem it introduced a business continuity and succession problem. If the sole director of a company, including a company acting as trustee of a trust or trustee of a self managed superannuation fund, loses capacity or dies, unless they have done certain things, the operation of the company grinds to a halt is no one will be in a position to continue to operate the company.

It is a commonly held misconception that a person’s Attorney, appointed under an Enduring Power of Attorney, can immediately step into their shoes as a director of a company if the principal loses capacity. This is not the case unless the rules of the company allow it.

Generally, the shareholders would need to take the necessary steps to appoint a new director in place of the incapacitated sole director. It 6

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is therefore very important that the directors of all sole director and shareholder companies have an enduring power of attorney.

The situation can be even worse if a director dies as no one has the right to exercise the voting rights attached to the shares in a company owned by a deceased shareholder until probate is granted, which can take 3 to 6 months. The reason for this is that until probate is granted it is not clear who will have the right to deal with the deceased’s assets.

The problem exists even if, for example, a husband and wife both own 50% of the shares in the company and the wife, who is also the sole director, dies. Most company constitutions require 50% plus 1 vote to appoint a director.

As a result, unless his wife has left her share to him and probate has been granted, the husband is unable to appoint himself as a director in place of his wife as no one is entitled to vote on behalf of the deceased and the husband only has 50% of the shares. This is a common business structure.

It is important to note, in the case of a trustee company, that the appointor of the trust, being the person having the power to change the trustee of the trust, cannot usually fix the problem. The reason being that the appointor can appoint a new trustee, however, no one will be able to sign any transfer documents to transfer the assets from the old company to the new company.

In the case of both incapacity and death, it is possible that someone else will be able to continue to operate the company bank accounts, however, no one will be in a position to enter into contracts or sign other documents on behalf of the company.

In order to overcome the problems that can arise in relation to sole director companies

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it is important to consider amending the constitution of the company to entrench someone as a director if the sole director loses capacity or dies. Alternatively, the company could appoint a corporate attorney to continue to act on behalf of the company after a sole director loses capacity or dies. There are also other solutions that can be tailored to fit particular circumstances.

Business control and succession should be considered on an ongoing basis and while a sole director structure is beneficial for asset protection purposes, all businesses operating under such a structure need to give consideration to the continuity of the business in the event that something happens to the sole director.

DDCS Lawyers can provide you with specialised advice in relation to all areas of business succession and estate planning.

To make an appointment please contact a member of our estate planning team.

Brendan Cockerill is a Senior Associate of the firm.

18 Kendall Lane, New Acton, Canberra phone (02) 6212 7600 mail@ddcslawyers.com.au, www.ddcslawyers.com.au

UNDER PRESSURE TO CUT COSTS? Public sector agencies and departments are having to find new ways to streamline their operations.

Our team of public sector specialists understand complex organisations.

We can help you redesign business processes, deliver savings, and build lasting change.

Contact Luke Williamson or Thomas Pucci in our Canberra office for a consultation today.

02 6217 0301 rsmi.com.au

Bird Cameron

Chartered Accountants

With RSM Bird Cameron you really are… Connected for Success.

F E AT U R E

OPC AND THE NATIONAL PRESS CLUB

L-R: Brett Norton, Managing Director OPC IT, Laurie Wilson, President & Maurice Reilly, Chief Executive, National Press Club

T

he National Press Club of Australia will celebrate its 50th Anniversary on 10 September 2014 with a black tie gala dinner.

The Anniversary commemorates the first ever speech by a Prime Minister, Sir Robert Menzies, to the National Press Luncheon Club.

The Club has a strong national presence and continues its tradition of presenting speakers such as visiting international figures, heads of state, religious leaders, innovators and of course our own political leaders, including every Prime Minister and Leader of the Opposition.

The National Press Club also has a strong local presence as a place to network and conduct business. It is a first class venue for weddings, events, functions, meetings, conferences, dinners and cocktail parties.

Recent industry awards are testimony to the Club’s pursuit of excellence.

These include: • Clubs ACT Awards for Excellence 2013 and 2014 Small Club of the Year, 2014 Best Conference & Event Centre, 2013 and 2014 CIT Best Apprentice • Restaurant & Catering Awards for Excellence 2014 Winner – Restaurant in a Pub/Club/ 8

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Tavern, 2014 Finalist Wedding Caterer, 2014 Honourable Mention Function/ Convention Centre Caterer.

Membership to the National Press Club is open to corporates, journalists, and individuals.

Members have access to all Club facilities and become part of an iconic institution with membership made up of the influencers and decision makers of Australia and the Canberra business community.

The Club offers exclusive member only events and award winning dining facilities, which, when combined with its comprehensive program of thought provoking speakers, makes the National Press Club a sophisticated venue for relaxing and networking.

Given the Club’s high profile and calibre, the smooth running of events and activities is essential. OPC supports the Club by providing a fully Managed Service for all its IT infrastructure. This ensures that the technology that the Club relies on for event bookings and operations behind the scenes is seamless and reliable.

OPC has introduced best of breed Dell hardware solutions and provides endto-end proactive monitoring to ensure critical services such as backups, email,

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Photo: Andrew Finch

event software, and security are current and always available.

As a similarly long-standing Canberra business (est. 1985), OPC congratulates the National Press Club on its 50 years and looks forward to continuing its very successful partnership for many years to come.

Visit www.npc.org.au for more information about the Press Club and its anniversary celebrations or contact OPC at www.opc.com.au or 1300 788 616 for information on how we can improve your IT.

For more information on how OPC can revolutionise your business, contact the team on 1300 788 616 31-37 Townshend Street, Phillip ACT 2606 www.opc.com.au

F E AT U R E

ANZ Mobile Lending scoops REIACT award for 3rd year running

A

NZ Mobile Lending was recognised as the ACT’s Mortgage Provider of the Year for the 3rd year in a row at REIACT’s Awards for Excellence held recently at the Hyatt Hotel.

Paul Lanzon director of ANZ Mobile Lending, Canberra Inner South & Queanbeyan/Jerrabomberra says much of the award’s success is due to the close relationships that mobile lenders have developed with local real estate agents.

“The ANZ Mobile Lending team in Canberra also has 260 plus years of lending experience – an impressive track record — which is combined with a genuine eagerness to go the extra mile to satisfy our clients’ needs,” he said.

“This award comes at the same time that ANZ has been awarded Home Loan Lender of the Year by Money Magazine 2014

recognising ANZ as the most awarded home lender,” said Tania Vidovic of ANZ Mobile Lending Canberra Southside & Weston Creek.

“It’s our commitment at ANZ Mobile Lending Canberra to serve our customers’ needs for today into the future. This is appreciated by our clients and contributes to our high level of retention in funds under management,” Tania added.

Kylie Peden director of ANZ Mobile Lending Belconnen & Gungahlin said, “The mobile lending proposition is delivering into the ACT market specialist bankers who are willing to see our clients anytime or place that suits them – whether it’s at their home, their office or a place convenient to them.”

“We pride ourselves on delivering the great products and services of the most awarded home loan lender in Australia – home delivered,” Kylie concluded.

Contact the award-winning team at www.anzmobilelending.com.au or call 132512 L-R: Paul Lanzon, Kylie Peden and Tania Vidovic Photo: William Hall Photography

ANZ Buy Ready. ™

Be ready to make y ur move.

With ANZ Buy Ready™ our team of mobile lenders can give you the knowledge and tools you need.

To arrange a meeting at a time and a place that suits you, contact us today.

Wherever, whenever. We come to you.

Tania Vidovic 0437 131 314

Kylie Peden 0400 131 314

Paul Lanzon 0422 007 005

ANZ can provide Approval in Principle to eligible customers who apply for an ANZ home loan and complete an application form. An Approval in Principle is an approval for a loan subject to conditions being met, including that security is satisfactory to ANZ. All applications for credit are subject to ANZ’s normal credit approval criteria. Terms and conditions, fees and charges apply. ANZ has been awarded ‘Home Lender of the Year’ by Money magazine in 2014. These Mobile Lenders operate as ANZ Mortgage Solutions independently operated franchisee’s of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522.™ANZ Buy Ready is a trade mark of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ. Item No. 90590 09.2014 W408570

B2B M AGA ZIN E 408570_ANZ MOBILE LENDING PRESS AD - BUY READY 115 X 186MM (3 HEADSHOTS)_90590.indd 1

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F E AT U R E

Achieving sustainable cost reductions in public sector operations

W

ith a sluggish economy and additional budget restraint on the horizon, many government agencies and departments need to find more cost savings and business efficiencies. After shedding jobs and freezing recruitment, how can agencies and departments achieve long-term cost savings? RSM Bird Cameron explains how.

“It’s not simply a matter of getting by with less,” says Luke Williamson, Senior Manager, Assurance and Advisory Division. “From day one, we work with agencies and departments to build a culture that is ‘cost conscious’ so that staff are aware of and can take charge of the costs in the things they do. This change to organisational culture is the key to achieving sustained lower cost operations.”

“It might be a matter as simple as questioning why correspondence is being sent by post when it could be emailed, or why cheques are being drawn when payments could be made by electronic funds transfer,” he said.

“On the whole, public servants work hard to execute processes efficiently, but typically they’ve had limited opportunity to suggest change to processes that have become entrenched in their organisation’s daily operations. Adopting a cost conscious culture means empowering staff to suggest cost reductions or performance improvements which can deliver significant savings to fund business re-engineering.”

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Luke and fellow RSM Bird Cameron executive Thomas Pucci bring with them close to 40 years of local and international advisory and consulting experience across portfolio areas such as health, human services, border security, transport, taxation, and defence. They specialise in solving complex problems in the public sector and have led significant cost reduction programs for a number of agencies and departments; both big and small.

RSM Bird Cameron is also well placed to work with agencies and departments who have geographically dispersed operations and customers as the firm has a large regional presence across Australia.

Achieving sustainable cost reduction Taking a broad organisational perspective is central to achieving significant and sustained savings. This means considering the efficiency of existing business operations across corporate and operational functions as well as the efficiency of working capital. The key areas to focus on include people and cultural performance; business processes efficiency and the use of technology. See Table 1.

In seeking to achieve sustainable cost reductions, it’s important to not only examine individual areas or business units, but to focus on cross-organisational processes and organisational structure with a special emphasis on reducing complexity; especially at process hand-over points between business units.

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A typical sustainable cost reduction project has three dimensions and delivers results throughout an 18 to 24 month timeframe.

See Table 2.

For most organisations, RSM recommends a combination of methodologies and strategic analyses when considering sustainable cost reduction, such as using their modified LEAN and/or Six Sigma methodologies. LEAN is a management philosophy made famous by Toyota and focuses on eliminating waste to improve overall customer value, while Six Sigma focuses on quality and getting costly activities executed right the first time.

Cost savings examples 1. A review of a government agency’s recruitment function revealed that it operated a ‘fire house’ model, where its recruiters would leap into action when a position became vacant. This in-turn had led to resourcing levels designed to meet the ‘peak load’, with the recruitment team often finding work to keep themselves busy when the fire bell was quiet.

A LEAN based review proposed opportunities to dramatically reduce costs by more than 70% which improved the ‘time to hire’. The principle strategies adopted included a change from just ‘recruiting for a vacancy’ to one of ‘recruiting for forecasted vacancies’ with the adoption of less bureaucratic processes to hire candidates.

2. A review with a hospital found that significant savings could be made through the optimisation of its large workforce of non-clinical technicians (electricians,

F E AT U R E

Table 1 Corporate

Operations

Sustainable reductions in corporate infrastructure/general and administrative overhead expenses. However, the corporate functions must remain flexible to adapt to future challenges and opportunities.

Remediation of operations driving low profit, or high costs.

Key areas of focus include: • Corporate structure.

• Corporate functions. ○ HR ○ Payroll ○ Procurement ○ ICT ○ Real Estate & Property ○ Finance & Accounting • Program/Project approval & Governance.

Key areas of focus include: • Key business processes.

• Front-office & back-office.

• Channels, customer segments, customer management, churn.

• Talent, roles and responsibilities, training & development.

• Appraisal/succession planning.

Working Capital Improve asset performance by reducing the amount of capital tied up in current assets, and achieve cash releases from the balance sheet.

Key areas of focus include: • Current liquid assets.

• Inventory (raw materials, work in-process, finished goods).

• Current liabilities.

• Tax efficiency.

Table 2 Dimension 1 Fast cost reductions

Dimension 2 Building a cost conscious culture

Dimension 3 Business re-engineering

• Rapidly executed.

• Focused on changes that can be made with little investment.

• Well-advertised internally to build momentum for greater change and to help establish a ‘cost conscious’ culture.

• Contributes to a ‘war chest’ that can be used to fund identification and achievement of transformational opportunities.

• Change that encourages staff to seek out and enact ‘common sense’ savings ideas.

• Supported through executive encouragement and a culture that “no idea is too silly to be suggested”.

• Invoked by simple techniques (such as a weekly whistle-stop cost meeting).

• Empowered by training delivered to key or influential personalities.

• Careful implementation of integrated change to People, Process & Technologies to enable savings.

• Use of structured methods such as LEAN and Six Sigma to identify and substantiate large savings (in intensive processes).

• Focus on complexity reduction.

• Identify & outsource non core activities.

Savings of around 5%

Savings of around 5% to 10%

Savings of around 10% to 15%

plumbers, IT network engineers, etc). The change commenced with a review that demonstrated that most technicians only spent around 40% of their time doing work or repairs. The root causes - poorly designed maintenance schedules had led to a high rate of unscheduled maintenance, task planning that did not consider the impact of staff moving between jobs across a large campus, loose responsibilities, and a culture that overprioritised labour budget management (i.e. overtime minimisation), rather than efficient job completion.

Arranging for a review RSM Bird Cameron can undertake sustainable cost reduction reviews for customers Australia-wide. A typical review takes between 4 to 8 weeks depending on the size and complexity of the organisation.

Bird Cameron

Chartered Accountants

Please contact: Luke Williamson or Thomas Pucci in the Canberra Office to discuss your needs on 6217 0301 rsmi.com.au With RSM Bird Cameron you really are... Connected for Success

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COVER STORY

LONDON

G N I L CAL

UC CHANGES THE FACE OF POSTGRADUATE STUDY

C

anberra’s postgraduate students will have direct access to prestigious University of London qualifications under a new arrangement made with the University of Canberra.

UC’s new Master of Management course to be launched soon will be paired with a University of London Graduate Diploma of Economic Policy, Policy Studies or Public Management under the academic direction1 of the School of Oriental and African Studies, one of the colleges of University of London as part of this new arrangement.

This unique combination means students will graduate with two postgraduate qualifications in the time it takes to complete one Master’s program.

Postgraduates will also have the opportunity to complete the University of London’s Masters of Business Administration (International Management) under the academic direction of Royal Holloway, another well-renowned University of London college, with access to University of Canberra facilities and staff.

The University of Canberra’s Dean of Business, Government and Law, Professor Lawrence Pratchett, said the University of Canberra will be the only university in Australia to offer the programs.

“We’re obviously very excited, this agreement marks the very first time an Australian university has entered into something like this,” he said.

“The program is perfect for anyone looking at studying a postgraduate degree locally but also wanting an international qualification.”

The University of Canberra will provide face-to-face academic support and curriculum content for students studying their University of London Postgraduate Diploma and Master of Business Administration.

Professor Pratchett said students will have access to all of UC’s facilities including the library and other resources.

“Tutorials will help students explore the content of the London courses and to discuss questions and topics with expert tutors here in Canberra,” Professor Pratchett said.

“This face-to-face experience will also help students to interpret London’s international curriculum in an Australian context.”

The program focuses on networking and peer-to-peer engagement in Canberra throughout the study period.

Students will also be able to ‘sit in’ on a range of other Masters courses offered by UC’s Business, Government and Law Faculty to gain additional knowledge.

“This is a unique opportunity to gain a qualification from London while also getting a Masters from the University of Canberra,” Professor Pratchett said.

University of Canberra Master of Management courses The Masters of Management draws on curriculum from the University of Canberra

MBA and Master of Business Management suites and has been carefully designed to complement the University of London postgraduate diplomas.

The degrees that will be offered in the first instance include: • Master of Management (Economic Policy) incorporating the University of London Postgraduate Diploma in Economic Policy.

• Master of Management (Policy Studies) incorporating the University of London Postgraduate Diploma in Policy Studies.

• Master of Management (Public Management) incorporating the University of London Postgraduate Diploma in Public Management.

University of London’s Master of Business Administration (International Management) The course has been designed for those who want an MBA from a prestigious international university but also want to study locally.

• Students receive a University of London qualification that is AMBA (Association of MBAs) accredited.

• Students undertake two short intensive blocks in London while the remainder of study will be based in Canberra.

• Students will have complete access to London curriculum and courseware with additional support from UC staff, peers, curricula and facilities.

1 Academic direction means that staff at this College develop the syllabuses, prepare the study materials, and are responsible for online tuition and the assessment of International Programmes students.

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COVER STORY

University of Canberra’s Business, Government and Law Faculty postgraduate courses The University of Canberra offers its own suite of postgraduate courses that are perfect for managers looking at moving up to the next level of their career.

Corporate learning The Master of Business Administration (Innovation & Leadership) is tailor made for working professionals.

Innovative legal education UC’s Master’s degree in Juris Doctor is delivered in a block intensive mode allowing students to study in the evening and Saturday to complete the course in three years of study while still working.

• Master of Business Management (International Business) • Master of Business Management (Legal Studies) • Master of Business Management (Marketing) • Master of Business Management (Project Management) • Master of Business Management (Public Management) • Master of Business Management (Sports Management).

To find out more about the University of Canberra’s postgraduate courses, visit www.canberra.edu.au

Other UC Masters courses for professional learning These courses are designed around the needs of working professionals who still want an on-campus experience.

The courses are suitable for both students new to business education as well as those seeking to broaden their understanding of relevant business fields.

• Master of Business Management (Executive Leadership) • Master of Business Management (Human Resource Management) • Master of Business Management (Information Systems)

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COVER STORY

BRILLIANT

S R E H C R A E S E R UC

Associate Professor Dr Sudha Rao

B

Centenary Professor John Dryzek

eing diagnosed with cancer can be a traumatic experience. However, receiving news that the cancer you thought had been treated has returned can be heartbreaking.

Research led by University of Canberra Associate Professor in molecular and cellular biology, Dr Sudha Rao, is on the brink of making a major breakthrough to stop the spread of recurring cancer.

Dr Rao and her team are aiming to better understand how cells work at the genetic level and are looking at preventing the spread of primary cancer cells. Their research has recently identified two target proteins that, if blocked, can neutralise the cells that spread primary cancer around the body.

“There is very little therapy to fight aggressive cancers such as breast cancer and the available treatments are harsh and in many cases, superficial and transient,” Dr Rao explains. “And once they recur, there is no

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treatment whatsoever. We are determined to fix that.”

Focusing on breast cancer, which remains the leading cause of cancer-related death in women, Dr Rao has built on previous work that identified a group of cells that are resilient to current cancer treatments and spread the cancer to other parts of the body.

“We aim to demonstrate that a therapy that combines standard care treatment with a treatment that inhibits cancer stem cells could prevent cancer recurrence,” Dr Rao said.

By looking at how these cancer stem cells are wired up at the gene level and understanding what makes them different to normal breast cells, Dr Rao and her colleagues were able to identify small molecule inhibitors that drugs can specifically target.

Dr Rao, who is part of the University’s Centre for Research in Therapeutic Solutions (CResTS) adds that “these treatments could

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also be used in tackling other aggressive cancers, such as prostate, ovarian and pancreatic cancer.”

Dr Rao and her colleagues received a grant of $571,894 from the (NHMRC) for the project. They are working in close collaboration with Canberra Hospital and the Australian National University (ANU) on their research.

“We are at the verge of making a breakthrough discovery as well as developing new therapeutic strategies, so this funding will ensure that our work continues to go forward.”

UC Centenary Professor awarded Australian Laureate Fellowship Most recently Centenary Professor John Dryzek, who is world-renowned for his work on deliberative democracy, was awarded the highly prestigious Australian Laureate Fellowship.

COVER STORY

“

THIS WELL-DESERVED RECOGNITION TO ONE OF OUR BRIGHTEST MINDS IS A TESTAMENT OF THE QUALIT Y OF THE ACADEMICS THAT WE HAVE ATTRACTED TO WORK AT THE UNIVERSIT Y OF CANBERRA.

Professor Dryzek from the Centre for Deliberative Democracy and Global Governance at the University of Canberra’s Institute for Governance and Policy Analysis (IGPA), was one of 16 outstanding researchers recognised by the Australian Research Council.

The Australian Laureate Fellowships are highly competitive awards, designed to develop and retain world-class researchers who through leadership and mentoring will build Australia’s international competitive research capacity.

Professor Dryzek’s work on deliberative democracy highlights the critical importance of effective, inclusive and transformative communication in decision-making, not only among those who make the decisions but between them and the public in order to solve global problems more effectively.

The UK-born political theorist, who joined the University of Canberra in January, said he was delighted to receive this accolade, the first for the University.

“It is an incredible honour to be recognised as a Laureate Fellow,” Professor Dryzek said from Harvard, where he is spending a semester as a visiting fellow at the Kennedy School of Government’s Ash Center for Democratic Governance and Innovation.

“This acknowledgement will boost our contribution to the building of deliberative capacity, not only in political theory but more importantly in applied practice, informing Australian positions in global negotiations or how Australian public policy responds to environmental governance.”

The fellowship, which includes funding of more than $2.6 million over the next five years, will allow Professor Dryzek and his team of postdoctoral fellows and PhD students take on three of the biggest challenges facing today’s world.

“We will investigate and contribute to the discussion on how to promote global justice,

”

how to navigate a potentially chaotic Earth system, and how to involve people from different cultures in productive democratic communication and therefore, effective joint problem-solving,” he said.

University of Canberra Deputy ViceChancellor (Research) Professor Frances Shannon congratulated Professor Dryzek on his achievement.

“This well-deserved recognition to one of our brightest minds is a testament of the quality of the academics that we have attracted to work at the University of Canberra,” Professor Shannon said.

“Professor Dryzek is not only making an outstanding contribution to his field, he is renowned for his dedication to mentoring the next generation of political thinkers and researchers in this area,” she said. “We look forward to seeing this opportunity translate into a rich, dynamic research environment on global governance and democratic practices at the University.”

politics. One of the instigators of the ‘deliberative turn’ in democratic theory, he has published five books in this area. His widely-published work in environmental politics ranges from green political philosophy to studies of environmental discourses and movements to global climate governance.

Professor Dryzek has also worked on comparative studies of democratisation, post-positivist public policy analysis, and the history and philosophy of social science.

His current research emphasises global justice, governance in the Anthropocene (a new era of instability in the Earth system), and cultural variety in deliberative practice.

For more information www.canberra.edu.au/research Twitter: @UniCanberra Facebook: University of Canberra

About Professor John Dryzek John Dryzek is a Centenary Professor in the Centre for Deliberative Democracy and Global Governance at the University of Canberra’s Institute for Governance and Policy Analysis (IGPA). Before joining the University of Canberra, he was Distinguished Professor of Political Science and Australian Research Council Federation Fellow at the Australian National University.

He is a Fellow of the Academy of Social Sciences in Australia, former Head of the Departments of Political Science at the Universities of Oregon and Melbourne and of the Social and Political Theory program at ANU, and former editor of the Australian Journal of Political Science.

Working in both political theory and empirical social science, he is best known for his contributions in the areas of democratic theory and practice and environmental

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F E AT U R E

146,000 vacancies, 14 million applications You do the maths!

By Simon Cox

T

he LNP Federal Government’s newly unveiled unemployment policy has heralded considerable backlash in the media and from opposition leaders who have criticised the idea as poorly researched, and lacking in common sense.

Whilst unemployment recently reached a 12 year high of 6.4 percent, the proposal that Australia’s unemployed be forced to file 40 new job applications per month in order to receive their Newstart benefit, seems well on the way to ridiculousness.

I am keen to explore here what the impact of such a move would mean to SMEs of Australia. Additionally, why would the Government float such a logically flawed and easily criticised policy?

First, let’s look at the numbers. Summarising a well-researched article by leading Recruitment Industry Commentator Ross Clennett (published July 30; 2014): Key figures The ‘scene’ • 26 occupations are considered to be in ‘skills shortage’ (as compared with 99 back in 2008) • 146,000 vacancies (May 2014), down from 184,000 (May 2008) • 720,000 unemployed/active job seekers (plus 920,000 ‘underemployed’ = potentially $1.6million competing for vacancies); approximately 350,000 on Newstart allowance The ‘fix’ • 40 new job applications per month; 10 per week • 14,000,000 applications (40 x 350,000) each month from Newstart recipients alone;

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• ~ 100 applications per vacancy per month from Newstart recipients.

This is the core reality of the Australian job market – job vacancies are trending down.

The intensification of job-search requirements means people receiving Newstart will be coerced into applying for many jobs that they have very little chance of obtaining.

What does this mean for Australian SMEs? We will be swimming in job applications from unsuitable applicants. Recruitment firms like HorizonOne who pride themselves on service and responding to every applicant in writing, will be forced to rethink this approach or incur a significant increase in costs.

To quote Ross Clennett: “Has the government seriously considered the impact that this proposed policy will have on businesses who advertise jobs? Have they made even the slightest attempt to talk with the groups who will be most impacted by this moronic policy?”

No one suggests that the unemployed shouldn’t be doing what they can to find a job, but futile applications for non-existent jobs serve no purpose but to tick the boxes to receive a payment.

Why? Speculation is rife about why a Government might take on such a counter intuitive, clearly flawed idea.

Here are some of the best guesses: 1. Political point scoring - Encouraging resentment of taxpayer-funded benefits flowing to people down the ladder of life’s fortune can deliver political dividends

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- though not all attacks deliver equally.

(Peter Lewis & Jackie Woods, The Drum, ‘The politics of downward-envy’, ABC, 5/7/14) 2. Strategic precursor to dropping of the minimum wage – Is this the soft left jab before the powerful right hook? What better way to soften up the public for a politically unpopular move like dropping the minimum wage? This idea would well and truly be in line with the LNP Government’s policies focussing on big business.

3. A short term drop in the number of Newstart recipients – Further stigmatisation of the unemployed and more deterrents for applying for unemployment benefits would allow the government to report a drop in welfare spending. Naturally, this would merely drive the problem ‘underground’.

Whatever the rationale, as a recruitment service provider and small business owner, I sure hope common sense prevails!

Sourcing talent is a science, not a sales game

Please contact Simon Cox, Principal Consultant / Director at HorizonOne Recruitment on 02 6108 4878 or simon@horizonone.com.au Level 1, 27 Torrens Street, Braddon www.horizonone.com.au

Modern Office, Great Exposure, Excellent Parking

• 7-11 Barry Drive prominently located on the north west fringe of the CBD. • Two story office building with large open spaces filled with natural light.

• Excellent exposure with signage rights available.

• The building has recently undergone a major refurbishment.

• 180 - 2000sqm available.

• Huge allocation of 74 secure on-site parking spaces.

• Also includes a loading dock servicing the ground floor from McKay Lane at street level.

For more information contact: Chris Miller | 0400 376 208 chris.miller@rwcanberra.com.au

Troy McGuinness | 0413 499 735 troy.mcguinness@rwcanberra.com.au B2B M AGA ZIN E

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Donate at www.canberrahearts.org.au

Celebrity heart challenge

Who will be Canberra’s biggest heart?

E

leven Canberra personalities drawn from business, government and university have accepted the Heart Foundation ACT’s twelve-week challenge to become Canberra’s biggest heart and reduce their risk of heart disease.

We’re proud that B2B’s publisher and owner of Capital Magazine, Tim Benson is one of these challengers. The celebrity challengers will have access to nutrition advice from the University of Canberra Nutrition and Dietetics Clinic with personal training sessions being provided by Lee Campbell from B.Firm. At the end of challenge, the person who raises the most will be crowned Canberra’s Biggest Heart.

At the launch, Tim congratulated all his fellow challengers for taking part in such a good cause to raise funds for the Heart Foundation. He encouraged as many people as possible to get on board and make an online donation at www.canberrahearts.org.au.

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The celebrity challengers include Deputy Chief Minister and Treasurer, Andrew Barr MLA; Theo Dimarhos, Savills Australia; Maria Efkarpidis, Rock Development Group; Melissa Gelonese, Entourage Productions; Professor Nicholas Klomp, Deputy Vice Chancellor (Education), University of Canberra; Eoghan O’Byrne, Canberra FM; David Pembroke, Content Group; Kevin Phelan, The Good Guys (Fyshwick); Dan Stewart, Land Development Agency and Amanda Whiteley from HerCanberra.

Canberra’s heart statistics are worrying • Heart disease accounts for four deaths a week in the ACT. • More than one in three people in the ACT are overweight.

• Close to a quarter of the ACT population aged 15 and over do very little or no exercise at all. This is well below the national average of 36%.

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Tony Stubbs, CEO Heart Foundation ACT, said that with 62% of locals being overweight or obese and 50% being insufficiently active for health, the Challenge provided participants with the right building blocks to turn their heart health around.

To support these celebrities fundraising efforts for the Heart Foundation ACT, visit www.canberrahearts.org.au

CHRISTMAS FUNCTIONS FEATURE The Canberra Rex Hotel Rydges Capital Hill Mood Food & Co. PJ O’Reilly’s

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C H R I S T M A S F U N C T I O N S F E AT U R E

How to host a great Christmas function

I

t’s that time of year when office managers are starting to lock in their dates and venues for the office Christmas party.

We have a wonderful selection of venues in Canberra such as those profiled in this functions feature.

Consider having a theme for the party as your goal is to create a sense of excitement leading up to the event.

If it’s your responsibility to organise the party, here’s some ideas on how to make it a stand-out success.

Make sure you book early as venues will fill up quickly from now on.

B2B’s number one tip for holding a successful function is this: draw upon the experience of the venue functions manager where you’re holding your event – as they have will great ideas and contacts.

Consider having a theme for the party as your goal is to create a sense of excitement leading up to the event.

Evening functions always give staff a reason to dress up and make an occasion of the event. Remember to factor into your planning how staff will get home safely at the end of the evening.

Other party options include: an afternoon event combined with an outdoor activity such as lawn bowls, indoor rock climbing, ice skating, ten pin bowling, hire

The Canberra Rex Hotel

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Host your Christmas Party at the iconic Canberra Rex Hotel

}

Reward your staff with a Christmas soiree in one of the Canberra Rex Hotel’s private event spaces, which offer stellar seasonal food and beverage experiences, festive touches and a dedicated events team.

The Rex is the perfect place for intimate ten-guest occasions and festive large scale parties that embrace the essence of the season.

The Hotel is hosting the fabulous interactive theatre show - Faulty Towers – the dining experience in December, a deliciously entertaining alternative for festive end of year gatherings. Tickets include canapés on arrival, selected beverages, a 3 course meal and 2-hour interactive show.

For the perfect Christmas party venue in Canberra, contact our events team today on 02 6248 5311 or events@canberrarexhotel.com.au

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segways around the lake, or perhaps a high tea leading into dinner?

Instead of hosting a Christmas party that is just for staff, broaden the guest list to include suppliers/business associates and your staff’s family.

For a smaller function, speak with the restaurant/food and beverage manager as to how they can easily accommodate your group booking within their venue.

For a larger function, consider hiring out the venue or an exclusive function room.

With careful planning, your office Christmas party will be remembered for all the right reasons!

Christmas at Rydges Capital Hill

I

f you’re looking to plan a Christmas Party or End of Year Celebration with a difference in Canberra, then look no further.

Rydges Capital Hill Canberra is the perfect place for your Christmas party for the office, family or social group. With a variety of event spaces, such as the indoor atrium creating a fabulous outdoor feel, our private function rooms flooding with natural light and our large outdoor terraces, we can accommodate any size group from two to 200.

The hotel lobby bar, Capital & Co, is open from 5.00pm until late for anyone who wants to keep the party going. For those looking for a space a little more casual but with a great

open space for entertaining, Capital & Co can be hired exclusively.

At Rydges Capital Hill we pride ourselves on our professionalism, attention to detail and friendly service, matched with our excellent location. We are more than happy to tailor a package to your exact needs and personal desires. With a wide selection of menu options and upgrades, anything is possible.

If you require any further information or would like a personalised quote please contact our friendly and dedicated team who will be more than happy to help you plan your upcoming Christmas event or End of Year Celebration.

To book or obtain a quote, contact our functions team today!

T: 02 6295 3144 E: Functions_capitalhill@rydges.com 17 Canberra Avenue Forrest ACT www.rydges.com

PARTY ON THE HILL!

Rydges Capital Hill is the perfect venue to host your Christmas function Whether it’s a work Christmas party, family or social gathering we can cater for your every need.

Experience our private function rooms flooding with natural light, party on the large outdoor terraces or dine in our lush indoor garden atrium.

The hotel lobby bar, Capital & Co can also be hired for exclusive functions.

B2B&EVENDOTS: 97

To book or obtain a quote, contact our functions team today!

T: 02 6295 3144 E: Functions_capitalhill@rydges.com 17 Canberra Avenue Forrest ACT www.rydges.com B2B M AGA ZIN E

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C H R I S T M A S F U N C T I O N S F E AT U R E

Sophisticated & hipster Christmas

I

f you’re looking for a new venue to hold your office Christmas party this year – that is relaxed yet sophisticated, with a zesty, fresh and exciting menu selection and conveniently set in the hipster haven of Braddon – then Mood Food & Co is for you.

With a great bar/lounge area for pre-party drinks, Mood Food & Co can be hired out for private Christmas functions with a seating capacity of up to 60.

For smaller groups, it’s a perfect place to kick back and feel at home while owner/ operator Kane Farrow and his young team look after you and your work colleagues.

“Mood Food & Co has a chilled vibe where the focus is on our customers.

It’s not a venue where you will feel lost like at a large impersonal function,” he said.

“Our chefs can design a special Christmas dining menu for larger group bookings by arrangement – whether it’s for lunch or dinner,” Kane said. “And our chefs love creating divine desserts.”

The majority of the Mood Food & Co’s menu is gluten and dairy free with a wide vegetarian selection. Located in the Mode 3 Building on Lonsdale Street, the modern Australian restaurant is easily identified from the street by its colour-wash of lime green café umbrellas on the pavement.

This hint of lime green is accentuated throughout the restaurant’s striking décor.

“I’d encourage anyone wanting to book their Christmas party to book early to avoid disappointment as the countdown to Christmas begins,” Kane said.

Unit 132/24 Lonsdale Street Braddon ACT For bookings, phone 02 6257 8990 www.moodfoodco.com

BOOK YOUR CHRISTMAS FUNCTION NOW! • Bookings available for groups of all sizes • • Options available for lunch, dinner or finger food •

CALL US TO MAKE A BOOKING ON: P | 02 6230 4752 E | oreilleys@iimetro.com.au www.pjoreillys.com.au

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ADVICE 24 24 25 25 26 26 27 28 28 30 30 32 32

ACCOUNTING

Most families have no risk management plan

by Nathan Porter, RSM Bird Cameron Chartered Accountants

BANKING

Taking advantage of the redraw

by Tania Vidovic, ANZ Mobile Lending

BOOKKEEPING

Using mobile applications to run your business

by Harry Hoang, Tailored Accounts

BUSINESS ADVISORY

The rise (and fall) of the Phoenix

by Tony Lane, Vincents Chartered Accountants

BUSINESS LAW

Political donations: are you up-to-date on your disclosure obligations?

by Mark Love, Bradley Allen Love Lawyers

CORPORATE ADVISORY

Working capital management and treasury

by Ben Weber, Maxim Chartered Accountants

CORPORATE GOVERNANCE

Governance in a changing world

by Phil Butler, Australian Institute of Company Directors

FAMILY LAW

Asset valuation and disclosure

by Alison Osmand, Dobinson Davey Clifford Simpson Lawyers

FINANCIAL PLANNING

Salary sacrifice to superannuation

by Luke Smith, Dragonfly Financial Services

INTELLECTUAL PROPERTY

International applications where an international agent is required

by Shaun Creighton, Arete Group

PROPERTY INVESTING

High yielding properties: know the risks

by Julie Cumming, Hatch Property

RECRUITMENT

Gen Y – more loyal than you thought

by Jim Roy, Hays Recruiting

WEBSITES

Take advantage of mobile commerce

by Sam Gupta, Synapse Worldwide

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ACCOUNTING

by Nathan Porter

BANKING

Most families have no risk management plan

Research has consistently shown that most Australians are underinsured and do not possess a level of cover sufficient to protect themselves and their family’s way of life. In Australia, over 5 million families have dependent children but only 4 per cent of these families possess insurance which will allow them to maintain their current lifestyle for 10 years or more.

While this issue affects most Australians (including singles and young couples) the most vulnerable section of society is families with dependants. This is generally because people underestimate the amount of money required to raise a child in the long term.

Unexpected costs The National Centre for Social and Economic Modelling (‘NATESEM’) has estimated that the cost of raising a child from birth until they finish their education for a typical Australian family is between $474,000 and 948,000. Importantly, this amount does not include private school fees.

Could your family afford to spend over $474,000 per child over their lifetime, in addition to your normal household expenses? Most couldn’t.

Without a plan in place many families will strike financial hardship if something happened to their major income earner or primary carer.

Calculating your insurable risk The difference between the amount needed to continue your family’s lifestyle and your current assets is called an ‘Insurable Risk’. Your Insurable Risk is calculated by determining the total lump sum required to fund your family’s ongoing income into the future and adding this figure to the lump sum required to extinguish all your debts, pay for any medical expenses and your funeral costs. We then determine the total value of your current assets and subtract this ‘current asset pool’ from your future financial requirements. ‘Insurable Risk’ tells us what your family’s potential financial risk is to an unplanned event. We subtract from this any existing insurances and we are left with your ‘Insurance Shortfall’. Some families have adequate assets to cover their insurance shortfall, but the vast majority of Australians do not. As a result, Australia is one of the most underinsured nations in the developed world, ranked 14th out of 32 for life insurance density and penetration.

Where to from here?

Sadly, most Australians discover (sometimes too late) that their only life Insurance cover — that default cover contained within their superannuation fund — is insufficient to meet their insurance shortfall.

The best course of action is to speak with your financial adviser to review your risk management plan to determine the most efficient and affordable way to ensure you have sufficient life insurance to cover everything life sends your way.

Bird Cameron

Chartered Accountants

If you would like to discuss your situation, please contact Nathan Porter, Financial Planner at RSM Bird Cameron, on 02 6217 0335 or nathan.porter@rsmi.com.au

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By Tania Vidovic

Taking advantage of the redraw

Redraw has become a standard feature of home loans, with many home owners taking advantage of accessing extra money at their home loan interest rate. 1 Simply put, redraw gives you access to additional payments you have made to your loan, allowing you to withdraw that ‘extra money’ if needed. 2,3 Many people choose to contribute additional funds to their home loan, above their minimum monthly payments, thus reducing the interest paid on the home loan principal. These payments may then be available to redraw, allowing access to the money they’ve contributed to buy a car, go on holiday, home renovations, etc. The amount is redrawn at the same interest rate as their home loan, which could be cheaper than other finance options.

Redraw offers you a convenient and low-cost way to access money at the same rate as your home loan. It could also be considered as part of a savings plan.

If you plan to renovate your kitchen, using a home loan with a redraw facility could be an option to fund the project. If you were to add an additional $100 towards your home loan each week, after a year, you’ll have contributed over $5,000, and reduced the amount of interest paid on your home loan for that year.

That $5,000 may be able to be redrawn to pay for renovations. This also comes with the advantage of avoiding set-up or other account fees associated with other financial products.

However, any money redrawn will negate any future interest saved by the amount you redraw.

There are advantages and disadvantages to the redraw account, depending on your needs, and every loan has different terms and conditions.

Sources:

1. ‘What is redraw with your home loan’, mortgagefacts.com.au, 3 March 2014.

2. ‘Trends in home loans’, switzer.com.au, 3 March 2014.

3. ‘Redraw facilities for home loans: Avoid or embrace?’, canstar.com.au, 4 March 2014.

Disclaimer: The information is in summary form and does not purport to be complete.

It is intended as a general guide only and is not a substitute for professional advice. The information does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you.

For more information, contact Tania Vidovic, ANZ Mobile Lender, ANZ Mobile Lending, M: 0437 131 314 P: 02 6293 3333 F: 02 6293 3311 E: tania.vidovic@anzmortgagesolutions.com This Mobile Lender operates as ANZ Mortgage Solutions Canberra Southside & Weston Creek, ABN 79 116 225 373 an independently operated franchise of Australia and New Zealand Banking Group Limited (ANZ) 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ.

BOOKKEEPING

By Harry Hoang

Using mobile applications to run your business

In my last two columns, I introduced you to two of my favourite mobile applications – Xero and Receipt Bank. I use them on a daily basis and consider them to be part and parcel of my business. The growth in use of mobile devices has led to an explosion in the development of mobile applications. Small-to-medium businesses are using these applications to improve their processes and help their customers, while others have jumped on the bandwagon to develop their own applications for their staff to use or to sell as a product.

I recently caught up with one of the top IT gurus in town during which I learnt that an increasing number of people have begun using their mobile phones (installed with specific applications) as a credit/debit card to purchase and pay for bills instead of using the conventional credit card.

He mentioned that even banks are surprised at how their customers are quick to adapt to such new technologies. In fact, consumers are now using mobile applications to find information about local businesses, search for real estate, and compare products and prices while shopping online.

I can certainly foresee more businesses using such applications as part of their daily business operations given the shift from a knowledge to green economy.

At Tailored Accounts, we also use Xero and its add-on features which enable our employees to record their working hours and time-bill our customers at the same time. With Xero, I can also approve my staff leave applications, and manage accounts receivable and payable using my smartphone from any place at any time. Xero allows business owners to manage all aspects of their businesses as the software is able to integrate seamlessly with other applications such as CRM, inventory management, invoicing and job systems, and so on. You can visit the following website – https://www.xero.com/au/add-ons/ – to learn more about the different applications that can be integrated with Xero.

The financial services industry has long led the development of digital service delivery models and addressed many of the challenges and risks that the economy will face, hence it comes as no surprise that there is a proliferation of mobile applications with the increased use of smartphones. For your part, keep yourself updated with the latest technological trends so as to gain 24/7 access and control to your accounts and financials.

My foremost advice is to use mobile applications that complement your business environment and accounting system(s), since what works for other businesses may not necessarily work for your business.

At Tailored Accounts, we can help your business to build a mobile friendly cloud accounting system.

Harry Hoang is Tailored Accounts Executive Director Glebe Park Apartment, Ground Floor - 186/15 Coranderrk St, Canberra T: 02 6169 6763 | M: 0434 196 607 E: info@tailoredaccounts.com.au | www.tailoredaccounts.com.au

BUSINESS ADVISORY

By Tony Lane

The rise (and fall) of the Phoenix

It’s a much-vexed question in modern commercial practice; “can I trade out of a debt laden entity through a new structure?” Those at the regulatory end of the business spectrum are often quick to quip “No! That’s a phoenix.” – as though the mere mention of the name ‘phoenix’ invokes an evil connotation equivalent only to being diagnosed with the plague, or other similarly ghastly illness.

The analogy is drawn from the mythical bird that arose from the ashes of its predecessor to live anew. However, businesses that continue from the ruin of their forebear seem to attract the moniker in a cynical context. Like most decisions in business, it’s the motivation of the players that ultimately validates their actions.

There is nothing intrinsically wrong with rescuing a business through the creation of a new entity. In many instances it’s the only way of perpetuating value. The justification of the title ‘phoenix’ (or not), comes through an analysis of the transaction (or series of them), through which the latter entity came to be operating the business of the former.

A legitimate transition of business, between old and new entities, often occurs via an informal scheme, or through a properly structured Deed of Company Arrangement (following a period of Voluntary Administration) under the Corporations Act 2001. Here, the decedent entity (and/or its associates) provides valuable consideration to its creditors over and above a simple liquidation outcome. It is at this point the question of value becomes paramount – is it enough to merely provide one dollar more, or should there be an objective assessment of the consideration provided in return for transaction? What is the appropriate measure of value? An added disadvantage, often highlighted by creditors, is the arbiter of that position is the incumbent insolvency practitioner.

Despite this criticism, creditors should be heartened by the attention ASIC pays to such arrangements, particularly in cases such as Storm Financial and QBI Corporation, where deeds were either effectively challenged or their promotion denied by the Court for lack of value.

The seminal ‘phoenix’ case remains ASIC v Sommerville & Ors,1 in which a solicitor was found in breach of the Corporations Act by aiding and abetting directors of failed entities to transfer assets for little or no consideration. That case highlights the role played by advisors, and signals to those proposing a transition of business to carefully consider their actions.

1 [2009] NSWSC 934

Tony Lane is a Senior Manager at Vincents Chartered Accountants and provides specialist advice to clients in the areas of insolvency, business risk and financial conflict and dispute resolution.

Level 7, 1 Hobart Place, Canberra City. T: 6274 3400 F: 6274 3499 E: tlane@vincents.com.au | www.vincents.com.au

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BUSINESS LAW

by Mark Love

CORPORATE ADVISORY

Political donations: are you up-to-date on your disclosure obligations?

One of the most polarising federal budgets in decades, talk of double dissolutions and a unpredictable Senate – with an early election not out of the question, now is a good time to ensure that both you and your business are up to speed on your disclosure obligations when it comes to making financial or other donations to political parties or their state branches.

Many individuals and businesses make political donations, which will generally include any gift or disposition of property (other than by will) to a political party or candidate, but many are unaware of their disclosure obligations or the myriad complex legislative provisions which may deem them to be making donations they aren’t even aware of.

At the federal level, any donations to a registered political party in excess of $12,800 (a indexed figure that fluctuates year to year 2) must be disclosed in an annual return lodged with the Australian Electoral Commission within twenty weeks of the financial year ending. 3 Commercial discounts, freebies or mates-rates for your local pollie could also land you in hot water – such concessions could be considered reportable donations. Indirect donations made to third party organisations, such as an interest or industry group for the purpose of benefiting a political party, may also be caught. 4 The disclosure threshold applies equally to political expenditure, and covers items like election advertising, whether through broadcast, publication or display, 5 so if you’ve ever considered printing posters of your local candidate or running an event for your local party, you should make sure you’re up to date on the current disclosure thresholds. When figuring out whether you’ve exceeded the threshold, donor-organisations should be aware that donations by a related organisation may be included as the same entity,6 meaning that the value of all gifts and expenditure incurred across the organisations is aggregated and a single return required.

Political entities also have to lodge their own returns. If you or your business appear on their return, but haven’t lodged your own, you could be caught out. Failure to lodge a return within time, or lodging a return that is incomplete or known to be false, is an offence and may attract a fines of up to $5,000.7 These obligations will vary depending on the relevant state or territory and level of government. For those engaged in the ACT political scene, the donation disclosure threshold is far lower, kicking in at a mere $1,000 (although generally it is the receiving entity that carries the responsibility for disclosure).

With disclosure records publicly accessible, the potential consequences (and financial penalties) of non-disclosure are serious.

by Ben Weber

Working capital management and treasury

Since the global financial crisis the business and lending climate has been tighter than in previous years. Countries have experienced double dip recessions and businesses locally have been holding on to their cash for longer due to the changes.

The flow-through effect of big business holding cash has put a squeeze on smaller entities’ working capital. As a result there has been a big emphasis on cash collection, and closer emphasis placed on well-timed payments to suppliers.

The additional impact of the GFC has been slower retail figures, which has meant many companies have had more capital tied up in inventories as they struggle to sell-through their stock.

Working capital is defined as the excess of current assets over liabilities, comprising of accounts receivable and inventory less accounts payable. In essence it is the businesses liquidity. With slower customer payments, increased inventories and lower bank LVR’s, the pressure on working capital and cash flows can be immense.

In this climate enterprises must do everything they can to free up cash. Working capital is one of the few remaining areas that can deliver significant cash to enterprises in a short period without undertaking a restructuring program.

As we move further away from the climate of the GFC where economies are coming out recession, financing the up-turn also requires tight cash control where inventories are kept at a bare minimum as output increases.

Maxim can assist with analysis and advice around your businesses working capital and treasury management, including the suitability of your current structure for your operations and ways it might be improved. We are also able to assist with the application for additional bank funding through the valuation of your structure and business assets.

Maxim Corporate Advisory is able to assist further through market and business profitability analysis, so your enterprise is equipped to determine pricing and terms of large commercial agreements.

Through sturdy working capital management and business planning, your enterprise will be better equipped to ride the wave of increased consumer sentiment in the coming years.

1 Commonwealth Electoral Act 1918 s 287(1). 2 The disclosure threshold is indexed on 1 July every year in accordance with s 321A. 3 Commonwealth Electoral Act 1918 s 305B(1).

4 Commonwealth Electoral Act 1918 s 305B(2). 5 Commonwealth Electoral Act 1918 s 308.

6 Commonwealth Electoral Act 1918 s 287(6). 7 Commonwealth Electoral Act 1918 s 315.

Mark Love, Legal Director, Business Law 9th Floor, Canberra House, 40 Marcus Clarke Street, Canberra ACT 2601 E: mark.love@bradleyallenlove.com.au T: 02 6274 0810 | www.bradleyallenlove.com.au

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Ben Weber, Head of Corporate Advisory and Transactions Level 2, 59 Wentworth Ave, Kingston ACT 2604 T: (02) 6295 8744 F: (02) 6295 8344 www.maximca.com.au

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CORPORATE GOVERNANCE

by Phil Butler

Governance in a changing world

Regular readers of this column would be aware that the Australian Institute of Company Directors’ role is to improve the quality of governance for the betterment of the economy and society.

While much of our focus is seen as being at the ‘top end of town’, we are just as involved in assisting small family businesses or not-for-profit organisations and are extensively involved in the governance of the public sector.

Obviously in Canberra there is a great deal of interest in how public sector organisations (whether it is government departments or government companies) are governed. There is similar interest across Australia regarding how the states and territories achieve good governance.

The introduction of the Public Governance, Performance and Accountability Act (PGPA) on 1 July 2014 has seen a major change at the federal level. With the abolition of CAC and FMA Acts and the introduction of PGPA, many organisations are still coming to terms with the implications of these changes. Terms such as ‘earned autonomy’ are being considered. As the Finance website points out, the previous structures had too much of a ‘one size fits all approach’ which hopefully will be improved in the new era.

Another key element of the Act focuses on collaboration. As is noted in the Commonwealth Grant Guidelines: “Accountable authorities have a duty to encourage entity staff to co-operate with others to achieve common objectives. Entity staff should work collaboratively with stakeholders, including other government entities, grant recipients and beneficiaries.”

Society has generally recognized that so many issues we face are too big or too complex for any one organisation (or government ) to solve, so true collaboration is critically important to achieve outcomes. While such an approach is important it should also be recognised that this change brings a whole range of other implications. What will the cultural impact of such changes be? How suitable is our reporting framework to report on the results from collaborative work? Is our risk appetite still appropriate?

The Public Sector Governance Forum to be held in Canberra in October will explore a range of these issues. With the keynote address from Senator the Hon Mathias Cormann, Minister for Finance and a host of other speakers on Federal and State issues, the forum will be a unique opportunity to understand some of the complexities of governance in the public sector. In addition, the final speaker on the day, Dr Robert Kay will explore the world of innovation in public sector.

Anyone who attended Company Directors conference in May will attest to the outstanding insights that Dr Kay delivers.

For more information on the Public Sector Forum visit the Company Directors website.

Phil Butler is Manager - NFP, Public Sector & ACT at the Australian Institute of Company Directors.

Level 3 54 Marcus Clarke Street Canberra T: 02 6132 3200 | www.companydirectors.com.au

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FAMILY LAW

by Alison Osmand

FINANCIAL PLANNING

Asset valuation and disclosure

One of the most important steps in the process of dividing your assets is to identify and value the “asset pool”. Both you and your former spouse have a duty to disclose assets that exist at the time of your settlement or assets to which you may have an entitlement in the foreseeable future (such as a deceased estate or compensation claim) and any assets you have disposed of since separation. This includes assets you have purchased after separation as well.

If you have transferred assets to another person as a means of trying to defeat your spouse’s claim, the court has the power in some cases to set aside the transaction leading to the transfer.

What will happen if you fail to disclose an asset? Your spouse may be entitled at a later point in time to ask the court to set aside the orders or financial agreement giving effect to your agreement. This can involve costly litigation and “new” assets acquired after the settlement may find their way into the asset pool.

Generally, assets are valued at the time of their division or settlement between the parties. Sometimes, through negotiation, the parties may agree that it is appropriate to value an asset at a particular point in time, such as the date of separation. However, it is important to remember that you cannot require your former spouse to accept the value of an asset at an earlier point in time simply because valuing the asset at that point will benefit you as part of the outcome.

In some cases, such as establishing the value of real property, like the former family home, you and your spouse may be prepared to accept an appraisal of a reputable real estate agent in your area. However, different considerations apply to an appraisal than to those of a valuation prepared by a registered valuer.

If your matter is before the court and the value of the former family home remains in dispute, then the issue can only be resolved with valuations prepared by registered valuers. In some cases, you and your former spouse may agree to engage the one valuer and that person will become what is known as a single expert.

Superannuation interests can be the subject of complex valuations, and the value is often quite different from the value recorded on a superannuation statement.

It is important to obtain advice about the nature of your superannuation interest and that of your spouse. This does not mean that you have to split those interests but you need to understand what they are worth so that you can negotiate accordingly.

Salary sacrifice to superannuation

by Luke Smith

Salary sacrifice is where a portion of your income is paid to your superannuation fund rather than to yourself directly. Contributions made to superannuation through salary sacrificing are paid from your “before-tax dollars” and is a strategy that can be used to reduce your taxable income.

Making regular contributions can be an effective way to reduce your income tax and boost your retirement savings for the future.

Tax on superannuation contributions is capped at 15%, which for some people is lower than their marginal tax rate. Using this strategy may also drop you into a lower tax bracket.

How does salary sacrifice work?

You need to speak with your employer to see whether they offer a salary sacrifice package for their employees. If they do, you can discuss how to direct some of your income in to your superannuation fund.

The table below illustrates the potential saving that can be achieved by directing a portion of your income into superannuation. We have assumed a marginal rate of 39% (including the Medicare levy) for illustrative purposes: Contribution $10,000 $15,000 $20,000

Superannuation Tax Rate (15%) $1,500 $2,250 $3,000

Income Tax Rate (39%) $3,900 $5,850 $7,800

Taxation Saving $2,400 $3,600 $4,800

Over a 5 year period to retirement this may equate to a tax saving of $24,000 where contributions of $20,000 pa are directed to superannuation, rather salary (assuming tax rates remain unchanged).

Salary sacrificing into superannuation is often used in conjunction with a transition to retirement strategy for people aged over 55 who are yet to retire from the work force. This strategy can be an efficient way to increase superannuation balances close to retirement, whilst not lowering your take home pay – a professional financial adviser can illustrate how this could work for you based on your individual situation.

While salary sacrificing to superannuation is a great way to increase your retirement funds in a tax efficient manner, it may reduce your day to day cash flow. Funds placed into superannuation can only be accessed when you meet a condition of release (normally retirement from the workforce after reaching preservation age or attaining age 65). As such, you need to ensure the amount sacrificed is well within your financial capability.

General Advice Warning:

The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.

Alison Osmand is a Senior Associate of the firm 18 Kendall Lane, New Acton Canberra City ACT 2601 T: (02) 6212 7600 E: mail@ddcslawyers.com.au www.ddcslawyers.com.au

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Luke Smith, Director AFSL No: 237590 T: 02 6273 3118 F: 02 6273 1118 E: luke@dragonflyfs.com.au M: 0413 311 999 GPO Box 1961 Canberra ACT 2601 www.dragonflyfs.com.au

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INTELLECTUAL PROPERTY

by Shaun Creighton

International applications where an international agent is required

We often meet with clients who are surprised to learn that their registered trade mark provides no protection in other countries.

Trade marks (like other forms of IP such as patents and designs) are registered on a per country basis.

If wishing to extend protection of your Australian trade mark rights to other countries, do you need to engage lawyers or trade mark attorneys in those specific countries? The answer, like the answer to many legal questions, is “it depends”.

International applications which we can file from Australia Australia is a signatory to an international convention called the Madrid Protocol. A single International Application may be filed (from Australia) under the Madrid Protocol nominating any country that is also a signatory to that international instrument.

Such applications act as a bundle of applications filed in the designated countries and, if and to the extent accepted, International Registration is issued by the International Bureau at the World Intellectual Property Organisation (WIPO). International applications using the Madrid Protocol would be based on the Australian trade mark application(s) (the basic trade mark(s)).

If utilising the Madrid Protocol, any application assumes your Australian trade mark (i.e. the basic mark) proceeds to registration and remains registered for a period of 5 years. Failure to meet these requirements would result in applications under the Madrid Protocol being denied or removed.

Under a different international convention (the Paris Convention), if an international application is filed in a country which also a signatory to that convention within 6 months of the Australian filing date, the international application will benefit from the Australian filing date (ie it will be deemed as filed on the Australian trade mark filing date, and if it proceeds to registration, be registered from the Australian filing date).

Most countries are signatories to the Paris Convention, but only about half the countries in the world are signatories to the Madrid Protocol. The following are examples of countries that are signatories to the Madrid Protocol: the USA, the European Union (including the UK), China, Japan, New Zealand.

International applications where an International Agent is required If wishing to file a trade mark application in a country that is not a signatory to the Madrid Protocol, then a local lawyer / trade mark attorney will usually need to be instructed. We have a network of international agents we can use to assist in such circumstances.

Avoiding infringement: pre-filing and pre-use searches Finally, since your Australian trade mark does not provide rights in other jurisdictions, before using a trade mark in another country, it is prudent to first have searches conducted to ensure that such use won’t infringe the rights of other parties in those jurisdictions.

We can assist with all of your Australian and international trade mark requirements. Visit us at www.atrademarks.com.au P: GPO Box 579, Canberra ACT 2601 E: shaun.creighton@aretegroup.com.au shaun.creighton@aretegroup.com.au T: 02 6162 1639 | M: 0430 22 78 62 www.aretegroup.com.au

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PROPERTY INVESTING

by Julie Cumming

High yielding properties: know the risks

Property investors are always looking for ways to maximise their rental returns through high yielding properties. There are great gains to be made but there are also risks.

I’ve heard similar stories such as where an investor purchased in a mining town. The investor purchased for $450,000 and immediately received $980 pw in rent. This situation continued for 18 months. The mining operation was then scaled back and rents plummeted. The investor’s rental property became vacant as did many others for the same reason, resulting in an oversupply, which crashed the market rent to $280pw and significantly reduced the capital value of the property to below the purchase price.

My message is this—understand the risks of these properties. High yield and high capital growth do not generally come in one package.

It’s wise to understand the total return, being the rental return and capital growth, balanced against the associated risks. Ask yourself this question…Is this investing or speculating?

High yielding properties are not restricted to mining towns and include some serviced apartments, some lease-back properties, student accommodation, dual income properties (dual key, granny flats etc.) holiday letting. It’s important to know that the operational, management, and the wear and tear costs of high yielding properties can be extremely high.

It’s essential to understand what is underpinning the growth in this high yielding property area. What is providing the demand for rental accommodation and is the growth sustainable?

The yield or the rental return is important as it offsets the holding costs, reducing the ongoing cash contributions by the investor. These costs include interest, body corporate and management fees, insurances and statutory charges.

When selecting a suitable high yielding property to purchase, make sure you understand the real costs and long term benefits of holding the asset.

A positive cash flow property can be a terrific addition to a negatively geared property portfolio to assist cash flow, however if the total overall impact is only minimal or risky, the benefit of tying up your cash and/or equity in such an asset may not be wise or productive. Over the long term you want to achieve capital growth.

In summary, look beneath the surface and understand the real costs, long-term sustainability and ensure a broad base for demand exists, prior to making a buying decision. Get expert advice to save yourself a lot of stress and financial pain.

It is possible to secure quality higher yield investments. They are often available ‘off market’ and taken up very quickly as they are rare so please contact Hatch Property Australia if you are interested in learning more.

Julie M Cumming QPIA, Director, Hatch Property M: 0404 453 397 E: julie@hatchproperty.com.au www.hatchproperty.com.au

QUALIFIED PROPERTY INVESTMENT ADVISER

QPIA

Hear from a range of high profile speakers on public sector governance issues including collaboration, culture, risk and performance. Keynote speaker the Hon Mathias Cormann will be joined by representatives from the Department of Finance as well as federal agencies, NSW and Victorian government offices.

Highly esteemed speaker Dr Robert Kay, will also be in attendance, discussing innovation in the public sector.

Tuesday 28 October 2014

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Register now w:companydirectors.com.au t:02 6132 3200 e:act@companydirectors.com.au B2B Half Page Oct 2013_Layout 1 9/10/13 2:16 PM Page 1

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RECRUITMENT

by Jim Roy

WEBSITES

Gen Y – more loyal than you thought

Gen Y Australia’s loyalty is there for the taking. A statement that will surprise many no doubt but, particularly as a Brit living in Australia for almost exactly a decade, I have often felt a fierce pride and national unity pervades Australian culture and this sense of unity appears to extend to the workplace. Surprisingly to many, extend to the workplace.

Surprisingly to many, Gen Y Australia is one of the most loyal groups we have surveyed at Hays.

More than 70 per cent expect to have six or fewer employers in their career. Other findings from our research indicate that nearly one quarter (23 per cent) think they should stay with their first employer for two years. This compares to a 15 per cent average of the other countries we surveyed. Perhaps a reflection of this need for security, we found that for Gen Y Australia the most important part of job satisfaction is feeling valued and appreciated, chosen by 47 per cent of respondents.

While financial reward is also important, chosen by 40 per cent, it is followed closely by ‘varied and interesting work’ and ‘feeling like you have made a positive contribution’. It appears that it is very important to Gen Y Australia that time spent in the office is not wasted. In order to attract and keep hold of this generation it’ll be important to make sure they are inspired and encouraged as well as well paid.

The Australian lust for life is clearly reflected in Gen Y’s approach to their careers. More than half (56 per cent) consider the definition of career success to be enjoying work, and a further 49 per cent believe it is a result of achieving a work-life balance (49 per cent). Setting limits on the amount of time spent at work does not mean an aversion to friendships in the workplace though. In answer to another question, a third of Gen Y Australia see this as the most important aspect of a working environment.

Implications for HR Organisations should aim to keep Gen Y Australia engaged and satisfied through competitive reward packages as well as work that applies to their particular interests wherever possible. A survey undertaken amongst Australian employees by Pay Global revealed that flexible work and being able to work from home are the most attractive non-financial perks an employer could offer. Other benefits offered include free overseas travel, wellness programmes and free lunches—the latter two are provided to workers at Dutch-owned algorithmic trader Optiver, who have their Asia-Pacific headquarters in Sydney. They were named Australia’s top employer by BRW magazine in 2013. Food for thought, especially for small businesses who are looking to attract the top Gen Y Australia talent.

Gen Y, classified as those born between 1983 and 1995, represent the future leaders of industry across the world. In a selection of countries, Hays surveyed Gen Y to understand their unique expectations and attitudes regarding the world of work. The research findings cover the themes of leadership, entrepreneurship, attracting employees, retaining employees and technology.

Jim Roy, Regional Director 5th Floor, 54 Marcus Clarke Street, Canberra T 02 6112 7663 | F 02 6257 6377 E canberra@hays.com.au

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by Sam Gupta

Take advantage of mobile commerce

The ecommerce and mobile commerce trend is continually growing in Australia. More than 75% of people choose mobile devices for the convenience factor.

Around 17% of Australians shop via their mobile devices. Most people keep their mobile devices close to them throughout the day. The natural progression is to buy goods and services via mobile, because it’s accessible, fast and convenient.

To take advantage of this trend, my advice is to start simple. Get a responsive website first. With the increase of mobile and tablet use in Australia and around the world, it is very important to optimise your website for mobile devices.

Speed is the key, customers have no tolerance for sites that take forever to load on their mobiles.

Secondly, make it easy for customer to make a payment. Just over 60% of all mobile purchases are for digital goods such as an app or music.

Have you thought about creating an app for your customers? Take advantage of the new trends and offer customers the opportunity to buy your product or service through their mobile and tablet devices.

Resist the temptation to go overboard on these devices. Keep the user interface clean and clutter free. Simple call to action buttons work well — the opportunities are limitless.

In the near future, near field communication (NFC) on mobile phones will pick up, where you can simply wave your mobile phone in front of the counter, accept the payment, and check out with ease.

There is also a huge growth in the acceptance of the eWallet concept around the world where your credit cards are securely stored.

When checking out from an online store, you simply choose the card from which to pay. You won’t need to enter the credit card number as your eWallet takes care of the payment for you.

New types of payment options are also gaining momentum. To succeed in these changing times, you need to embrace the technology now.

Both ecommerce and mobile commerce are great ways to extend your product and services to a larger market or provide a value-added service to existing customers.

To find out how your business can take advantage of ecommerce and mobile commerce, book an obligation free 1 hour consultation. Call 1300785230 or send an email to admin@synapseworldwide.com.

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

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MINISTER’S MESSAGE

Major events profile Canberra to the world ANDREW BARR

ACT DEPUTY CHIEF MINISTER TREASURER MINISTER FOR ECONOMIC DEVELOPMENT

T

he hosting of landmark events has become big business around Australia – drawing business, tourists and exposure to cities and regions.

Canberra is no exception to this. In recent years the hosting of high-profile exhibitions, sporting matches and special events has added significantly to the Territory’s economic and cultural life.

Our centenary year in 2013 was an obvious highlight – but as big as a success as that was, a crucial aspect of that year was building the capacity within Canberra to host big events, and showcasing to the rest of the country and the world we were able to host and support big events.

Two prime examples of this are coming up early next year, when Canberra hosts two of the biggest sporting events of 2015: the Cricket World Cup and the Asian Cup Soccer tournament.

The AFC Asian Cup brings together the best soccer teams in our region – for seven matches stretching from January 10 to 23 at GIO Stadium.

Canberra will host six group matches and a quarter final.

Manuka Oval will also host three cricket world cup matches, 18 February, 24 February and 3 March 2015. These events are, of course, great news for sports fans. But they’re also great news for local businesses.

www.evendots.com.au

An economic impact analysis by PriceWaterHouseCoopers predicted the Asian Cup would inject $10 million into the ACT economy, while the Cricket World Cup would be expected to generate more than $8 million.

For the tourism and hospitality sectors, the tournaments will bring interstate and international visitors to Canberra. The AFC Asian Cup is particularly good timing – coming as it does during what is traditionally a quiet time of year.

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What’s more, Canberra will exposed on the world stage like few times previously in our history: the Asian cup will be broadcast throughout a continent home to billions of people, while the cricket world cup will be followed by sports fans right across the globe.

This presents some significant opportunities for local businesses to reach a broad and diverse audience to boost opportunities in trade and tourism, and also in networking.

To help boost the outcomes from the Asian Cup, earlier this year Austrade launched its new Match Australia program. This is a new sports-business program promoting Australia as a destination for business, tourism and education during the tournament.

For information contact on getting involved in the tournaments in 2015 contact the Innovation, Trade and Investment division of the Chief Minister, Treasury and Economic Development Directorate at www.business.act.gov.au Digital Canberra Being able to use technology to grow your business is vital these days, and the ACT Government is pleased to offer Canberra’s private sector the tools and assistance to thrive in the digital age.

As part of the Government’s Digital Canberra initiative, free workshops are being offered to businesses and not-for-profit organisations, and next month the installation of free public Wi-Fi begins.

The Digital Business Capacity Building Workshops, which are being held monthly for the rest of this year, are a great chance for businesses to with key information on how to successfully navigate the digital space and how they can use the tools and technology available to benefit their business and improve the relationship they have with customers.

Digital Business Capacity Building Workshops Upcoming seminars are on September 24, October 30, November 27 and December 10.

For information contact the Canberra Business Council on: cbcdigital@canberrabusinesscouncil.com.au or phone 6247 4199

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

A2B

Exercise Boss Lift Top End

R

ecently I gained a rare insight into the work of our fine men and women on the frontline as part of Exercise Boss Lift Top End and Exercise Pitch Black 14. A group of 23 bosses and senior managers from around Australia headed to Darwin to see a full range of core capabilities on display across Army, Navy and Air Force – and we had a ball.

In addition to Exercise Boss Lift, Exercise Pitch Black 14 was taking place which is a significant air combat training activity aimed at training personnel in tactical level scenarios and high-end warfare.

Along with our own defence force other countries participating included: Republic of Singapore Air Force, Royal Thai Air Force, United Arab Emirates Air Force, Royal New Zealand Air Force, French Air Force, and the United States Air Force.

Exercise Boss Lift is an escorted tour that allows employers and senior managers to participate with, and observe, the skills and activities of reservists in the military environment.

Our visit included site tours of RAAF Base Darwin, Robertson Barracks, Larrakeyah Barracks and HMAS Coonawarra, and the Darwin Military Museum. A highlight was visiting a control tower and watching (and listening) to a number of fighter jets taking off from RAAF Base Darwin as they headed out to RAAF Base Tindal. However, the real stand out of the week was attempting to flip my crew overboard while driving a Navy RIB and shooting a Steyr AUG assault rifle for the first time.

I can assure you the adrenalin rush from both activities still sees me smiling.

Our activities were skilfully hosted by Mr Jack Smorgon AO, National Chairman, Defence Reserves Support Council and Major General Ian Flawith, Director, Reserve and Employer Support, Cadet, Reserve and Employer Support Division, Department of Defence, with both gentlemen effortlessly providing insightful commentary throughout the week. They were of course ably supported by two ever-efficient and humorous staff, Jenny Southall and Chris Cates.

Exercise Boss Lift is an escorted tour that allows employers and senior managers to participate with,

and observe, the skills and activities of reservists in the military environment. Often there is an opportunity for employers to see their employees undertaking a range of tasks, leading, and seeing them in a new light as a Reservist.

Further, such employer engagement activities aim to enhance the availability of Reservists by further developing community and employer awareness and support for the Reserve. In a nice move, Major General Flawith’s son, Captain Jim Flawith, 1st Aviation, Roberston Barracks, briefed our group providing a pleasant father-son reunion.

Importantly, we had the opportunity to speak with a number of serving officers about their work and to hear of the high regard in which Reservists are held.

Interestingly, for Army, almost 17,000 personnel are Reservists, with 8,000 personnel evenly spread across Navy and the Air Force.Quite simply, Reservists get in and do the work required of them; with their level of skills such that a commanding officer isn’t aware they are a Reservist providing them with a fully integrated workforce.

Unfortunately we were told of one Reservist’s difficult experience with her employer and needing to resign from her job in order to fulfil her obligation but thankfully this is not a too common occurrence.

The ACT Chamber of Commerce encourages local employers to consider publicly pledging their support for members of the Reserve. By becoming a supportive employer you will be encouraged and assisted by your local Defence Reserves Support office to develop and implement a Defencefriendly leave policy. In addition, the Employer Support Payment Scheme (ESPS) provides financial assistance to eligible employers to help offset the costs of releasing employees for most categories of Australian Defence Force service. For further information on joining the Defence Reserves Support Council and the business benefits of reserve service please contact your local Defence Reserves Support office on 1800 803 485 or visit www.defence.gov.au/reserves Lastly, I wish to thank all those involved for making the week a rewarding experience and my best wishes go to the men and women who proudly serve our nation, including my brother who has safely returned from Afghanistan.

ANDREW BLYTH

CEO, CHAMBER OF COMMERCE & INDUSTRY

Corporate Sponsors ActewAGL TransACT The Canberra Times The Good Guys Tuggeranong Synapse Chamber Networks Women in Business Young Business Network Business after Business Foundation Member Australian Chamber of Commerce & Industry

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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

Financing your export business LARRY FISHER

EXPORT DEVELOPMENT MANAGER CANBERRA BUSINESS COUNCIL LTD

For more information on the ACT Exporters’ Network visit actexportersnetwork.com.au or call 02 6247 4199 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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T

o be successful in export, it is important for a business to have a good export strategy, conduct proper due diligence before exploring opportunities in a potential market, prepare export pricing/marketing and also visit the potential export market.

However, most of the time, a business will need to commit time and money to do all of these activities. In the later stages of the export journey, businesses may also be faced by key issues such as financing the export contract and making sure it gets paid by the customer.

It is important for a business to have an export budget before making the first step in its export journey. If you are considering preparing an export budget, it should cover all the expenses that will likely occur when marketing you products and services to overseas markets, which may include: • Regular visits to your target markets. The cost of this will vary depending on which markets you are targeting.

• Production of export marketing collaterals such as brochures, business cards and samples. Some markets also require that you translate your marketing materials to the local language.

• Communication such as email, website, phone calls and video-conferences. Each target market has a unique communication technique, so it is important that this is also taken into consideration.

• Market entry consultants and legal or business advisory services.

• A dedicated Export Manager to manage your export business.

• Working capital to finance your export orders, including freight and logistics.

If you are an ACT company seeking financial support for your export business, there are several options available: 1. Trade Connect Trade Connect is ACT Government’s grant program which is designed to help Canberrabased businesses with a range of export market development activities. Examples of the funded activities include market visits, development of marketing material, promotion and advertising, trade show participation, incoming buyer visits, B2B M AGA ZIN E

market research and mentoring. To be eligible for Trade Connect funding, the applicant must be prepared to enter into a formal agreement with the ACT Government and meet all of the following conditions, which include: • Be a registered business for tax purposes.

• Have an office with supporting staff in the ACT • Have an annual turnover of less than $10 million.

• Have tradeable goods or services for the export market to be developed.

• Have a current Export Development Plan.

For more information about Trade Connect, please refer to www.business.gov.au 2. Export Market Development Grant Administered by Austrade, the EMDG scheme is a key Australian Government financial assistance program for aspiring and current exporters. The scheme encourages small and medium sized Australian businesses above $5,000 provided that the total expenses are at least $15,000. The scheme provides up to eight (8) grants to each eligible applicant.

To be eligible for EMDG, the business must have: • Income of not more than $50 million in the grant year.

• Incurred at least $15,000 of eligible export expenses under the scheme (first-time applicants can combine two years expenses).

• Principal status for the export business (some exceptions apply, eg. Non-profit export focused industry bodies).

For further information about EMDG, please refer to www.austrade.gov.au/export/export-grants.

The Export Finance Insurance Corporation (EFIC) has developed the Export Finance Navigator (www. exportfinance.gov.au), which provides businesses with assistance in cutting through the confusion surrounding finance, grants and tax concessions.

The Navigator helps businesses find the financial solutions that are key export success.

If you need further information about exporting or would like to discuss how to benefit from the above grants, please contact Larry Fisher of the ACT Exporters’ Network at larry.fisher@canberrabusinesscouncil.com.au or call (02) 6247 4199.

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