B2B magazine issue 92 April 2014

B2BMAGAZINE.COM.AU

APRIL 2014

92

g in n in g e B w e AN

WANT A TRUCKLOAD OF MONEY? FUEL CREDITS EXPLAINED

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CONTENTS

PUBLISHER'S NOTE

Moderation in all things …

TIM BENSON Publisher

I am a big fan of a quote attributed to Ted Turner: ‘Early to bed, early to rise, work like hell, and advertise’. This was his answer when asked what his secret to success was.

All too often we get caught up in our businesses and end up working all day and all night, weekends and public holidays and forget that there is more to life than slaving away in ‘the business’.

Sometimes I have seen people driving themselves longer and harder in the business, convinced that they are doing it for their family and it’s financial security, only to miss their children growing up and to end up with a divorce.

This not need be the case. All things in moderation. Work sensible hours. Take holidays. Get a good night’s sleep. Spend time with the ones you care for – and look after your health.

Easy to preach: hard to practice.

In this issue we feature new strata management business, Civium Strata People. Civium is a Latin word that means a congregation of people or civilians coming together. The company’s logo is a collaboration of dots representing people coming together, in much the same way as the Romans congregated in colosseums of yesteryear. After 30 years in the strata business, firstly as Canberra Units Plan Services, then Ray White Strata and now Civium Strata People, the next national growth phase for this Canberra owned business is an exciting one – read all about it at page 14.

Of course it is a good day when the ATO owes you money. In this issue RSM Bird Cameron asks whether the ATO ‘owes you a truckload of money’ – page 10. They take a close look at fuel tax credits and suggest that heavy vehicle owners may be entitled to previously unclaimed fuel tax credits.

Send all comments to editorial@b2bmagazine.com.au

Photo: Andrew Sikorski

14 COVER STORY CIVIUM A NEW BEGINNING

your gateway to business support Visit our website for a full list of events, latest news and more!

CONTACT US ON 1300 648 641 OR VISIT

WWW.CANBERRABUSINESSPOINT.COM.AU

CONTENTS

FEATURE

25 HEALTH

05 Business succession planning helps avoid business and estate pain later Dobinson Davey Clifford Simpson Lawyers

27 INTELLECTUAL PROPERTY

08 The key to building high performing teams

Starting a business? Legal issues to consider

By Arete Group

08 Want a truck load of money? Does the ATO owe you?

ONLINE MARKETING How to reach your audience By nFlame Creative

HorizonOne Recruitment

08

RSM Bird Cameron Chartered Accountants

12 New to Canberra, not to government

28 PROPERTY FINANCING

Russell Kennedy Lawyers

Investing in property through your SMSF

By Loan Market

UPFRONT

RECRUITMENT Temporary assignments no longer a quick fix

By Hays Recruitment

06 Master class to help business start-ups COVER STORY

10

A2B: ASSOCIATIONS TO BUSINESS

14 CIVIUM Strata People – a new beginning

29 MINISTER'S MESSAGE Signs of resilience in the face of uncertainty

19 ADVICE FROM THE EXPERTS

20 ACCOUNTING

Be wary of GST clauses in contracts

By RSM Bird Cameron Chartered Accountants BUSINESS ADVISORY Don’t commit business infanticide – set up well!

By Vincents Chartered Accountants

21 BUSINESS LAW

12

Agreeing to agree? Be careful what you wish for!

By Bradley Allen Love Lawyers CORPORATE ADVISORY Maximise your businesses sale value

By MAXIM Chartered Accountants

ISSN 1833-8232

30 CANBERRA BUSINESS COUNCIL Business achievements builds confidence 32 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY The value of business networking 33 ACT EXPORTERS Upcoming trade mission to Singapore

BUSINESS NETWORKING

34 B2B @ Moonlight bus launch 34 B2B @ Karpathian fishing competition 35 B2B @ CIVIUM Strata People launch

23 CORPORATE GOVERNANCE

38

Happy healthy Canberra

By Healthy Identity

Disability sector – time of unprecedented change

By Australian Institute of Company Directors

35 B2B @ Canberra Comedy Festival launch

ESTATE PLANNING Loans by parents to children

By Certus Law

37 B2B @ CBC & PayMe Summer Long Table Dinner

36 B2B @ RSM Future Leaders Wine & Food Night 38 B2B @ Hays Beyond Blue Golf Day 38 B2B @ FBA Jimmy Possum

25 FAMILY LAW

Financial agreements and assets

By Dobinson Davey Clifford Simpson Lawyers

EDITOR

PUBLISHED BY

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

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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.

F E AT U R E

Business succession planning helps avoid business and estate pain later It is often said that the best time to put in place a business exit strategy is when you are first entering into business. At that time everyone is generally agreeable and looking forward to a prosperous business relationship.

The same sentiment applies to estate planning and business succession and getting things right at the start usually makes the transition easier upon the death of a business partner.

Whenever a business purchases significant new assets it is important to give consideration to the overall structure of the business as well as the estate planning requirements and desires of the key people in the business.

In a family business context it is often the case that parents leave a greater share of the assets to the child or children working in the business and less to those not involved in the business. Giving consideration to business structures whenever assets are purchased can go a long way to ensuring that a business has robust asset protection, is structured for tax minimisation and decreases the risk of estate challenges.

Quite often it is control of the key assets that is most important and not necessarily ownership of them. When doing your estate planning it is important to ensure that even if ownership of key assets is not, or cannot be, passed either via your will or via some other means at your death, that control of those key assets is passed to the appropriate people.

Family discretionary trusts are very common asset owning and business trading structures and, if structured correctly, provide a good level of asset protection as well as income splitting opportunities.

However, family trusts are not generally good

business succession vehicles and need to be given extra consideration from an estate planning perspective.

While some trust deeds allow named beneficiaries or the appointor or the guardian to decide while they are alive or in their will who is entitled to certain assets of the trust, many do not and all that can be done is to ensure that control of the trust passes into the right hands. Unfortunately, relying on clauses within the trust deed to determine who receives assets on someone’s death is also likely to have adverse taxation and stamp duty consequences, as it is unlikely that any concessions (otherwise available) will apply.

Control of a trust can be left to someone by naming a successor appointor, should the deed allow it, or leaving shares in the trustee company to those you wish to take over the trust. However, to ensure that the desired outcome is achieved it is essential that the primary documents governing the trust, including the trust deed and the trustee company constitution are reviewed.

The use of family discretionary trusts also gives rise to the “extended beneficiary problem”. Most family trust deeds include a very broad group of family members as potential beneficiaries. It is often the case that some of the potential beneficiaries would never be intended to benefit from the trust.

While the risk may be small, as long as a trust has a broad range of beneficiaries (for example, nephews and nieces) who are not involved in the business there is a risk that one of them may mount an argument that the trustee is not administering the trust correctly because they are not being given due consideration when distributions are made.

If it is intended that a certain child will take control of an asset after his or her parents die, it may be wise from a planning perspective to structure the trust used to acquire the asset around that child, rather than the parents (as is usually the case) and to limit the potential beneficiaries. If the trust is structured correctly succession can happen automatically and the asset can be excluded from the risk of estate challenges, even in New South Wales where the notional estate provisions often broaden the pool of available assets.

Business succession and estate planning need to be viewed as a continuing process and not a process which is limited to a point in time. Dobinson Davey Clifford Simpson are able to provide clients with comprehensive estate planning and business succession advice and documentation.

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Brendan Cockerill, Senior Associate Business and Succession.

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

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UPFRONT

Master class to help business start-ups

A

master class was held recently

by Capital Angels to help businesses access funds in their start-up phase.

“The keys to successfully raising capital is to know your business, understand what investors are looking for and standing out from the crowd,” Chairman of Capital Angels, Michele Troni said.

“When putting their money behind a venture, investors are looking for a well developed and tested idea, a good understanding of the relevant market, a qualified and enthusiastic team, scalability and a clear exit strategy.”

“If we can help early-stage Canberra businesses gain a better understanding of the funding environment, and hear the

experiences of those who have gone down the funding path before, then those new business operators stand a better chance of not only surviving, but excelling.”

“A number of Canberra companies have already achieved excellent results, proving that our city has what it takes to turn innovative ideas into winning businesses.”

Minister for Economic Development, Andrew Barr said, “The Gallagher Government is committed to supporting innovation, entrepreneurship; and the Government’s Business Development Strategy contains numerous initiatives to support businesses. He said that it was important that there was a clear funding path for the creation of new innovative businesses which would help to diversify Canberra’s economy.”

The event was sponsored by the Citadel Group and the Canberra Airport - two Canberra success stories and examples of what local businesses can aspire to.

The Act Government contributed $15,000 in seed funding and a further $5000 to establish the Capital Angels website.

Capital Angels is a private sector driven investor initiative which was formed in 2005 to provide a forum for high-net worth individuals to proactively support the region’s entrepreneurs by providing investment and business support. The ACT Government contributed $15,000 in seed funding and a further $5000 to establish the Capital Angels website.

Device droppers and screen smashers take note

By Tim Benson

We’ve all dropped and broken a screen on one or more of our electronic devices and wished that we’d spent the time and money to buy a protective case – if your screen is intact at the moment why not have a look at Tech21’s latest offerings.

Tech21 is the only brand to offer Impactology™ products that provide good protection for mobile devices thanks to intelligent design featuring innovative materials like D3O® impact protection and BASF polymer, which is also used in bullet-proof glass.

Having used the Tech21 case and Impact Shield screen protector on my iPhone for the past month, I can say that it has worked well and not impeded in the use of the phone – of course I haven’t dropped the phone during this time (I better leave it on because the second I take it off I’ll drop the phone and smash the screen).

There is a whole lot of technical jargon about the technology Tech21 has brought

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together in their protective cases. To find out more, go to this link and watch the video: http://www.youtube.com/ watch?v=6rRs4dheImE .

Wireless mobile storage – why bother?

Having tested the Seagate Wireless Plus, I can say that there are many reasons why having wireless mobile storage is the way to go.

With Seagate® Wireless Plus, you can enjoy your media and access your files without wires or the Internet. This mobile storage device broadcasts its own Wi- Fi network, so you can wirelessly stream your media and files to your tablet or smartphone on-the-go and off-the-grid.

The 1TB of built-in storage, means you can load up to 500 movies or thousands of songs, photos and documents. You can drag-anddrop to load files wirelessly from your PC or Mac® computer or use the USB 3.0 adapter to load files up to 10• faster than Wi-Fi N.

B2B M AGA ZIN E

Win Tech21 products: • 2 x iPad 2/3/4 Impact Mesh cases (1 x blue, 1 x clear) • 2 x iPad Mini Impact Mesh cases (1 x blue, 1 x smokey) • 1 x clear iPhone 5 Impact Band case with an Impact Shield screen protector • 1 x clear Samsung Galaxy S4 Impact Mesh case with an Impact Shield screen protector Email comp@b2bmagazine.com.au with the answer to this question below to win one of the above (nominate) products: What products is Tech21 the only brand to offer?

magazine presents

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The smartest thing you can do for your business before the end of financial year Andrew Sykes from RSM Bird Cameron gets behind the marketing hype and shows you what cloud accounting can do for your business.

Does it really save so much time and money?

Come along to hear the answers.

“Take the hour, or even the day off to attend this seminar – in any small or medium business you’ll free yourself from weeks of repetitive work and never look back.”

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TUESDAY 20 MAY 2014 @ 5.30-6.30 PM Canberra Business Events Centre, Regatta Point Commonwealth Park, Acton TO REGISTER Email: jodie.moore@rsmi.com.au or phone 02 6217 0300

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F E AT U R E

The key to building high performing teams

By Simon Cox, Principal Consultant/Director

A

t HorizonOne, we see a wide range of approaches to recruitment.

Wherever possible we focus our client’s attention on talent, key motivators and attitude above all else. While there is no set formula to creating a great team, we wanted to share two unique approaches to sourcing talent that make great business sense.

Recruiting for planned turnover CFO Rob Hanlon joined the Australian Financial Security Authority (AFSA) Finance team in July 2012. The team had an unsteady reputation among fellow business units, was known for being reactive, and there were issues around staff turnover, vacancy rates and absenteeism.

Rob’s attitude to building a high performing team is one that is probably a new concept to many of us: planned turnover.

“We know that there are limited opportunities for promotion in our team due to the size. You may be surprised to learn we do recruit for people who want to progress even if they can’t stay within the organisation when it comes to the next step of their career.

Rob explains those who want to go the extra mile will be the difference between returning good financial results and excellent financial results for an organisation.

He says he would rather get a few years out of a high performer than 10 years from someone just average.

“I can teach systems and process, but I can’t teach people how to think!” Rob Hanlon 8

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But it doesn’t stop there. Attitude and motivation, the ability to work in and be part of a team, and someone who is client focussed are also key considerations for Rob. He explains: “I can teach systems and process, but I can’t teach people how to think!”

Rob’s attitude and approach to recruitment has seen significant improvements in delivery and efficiency, significantly reduced staff turnover and very positive results from a recent staff survey.

Talent vs experience In May of 2011, the Australian Sports Commission appointed a new CFO to address a number of issues facing the team including significant audit findings, and the task of rebuilding a fragmented finance team.

Fast-forward three years and the ASC Finance team now enjoys a collaborative team of 22, audit findings addressed and time to focus on continuous improvement.

Omar Bouhafs – Director of Finance and Systems explains, you must have the right attitude to recruiting if you want to build a high performing team.

“My attitude to staff selection includes giving due consideration to members of the existing team. A mix of different personalities, backgrounds and characters enrich a department and build strong morale which results in high performance.

“In addition to having the core skill set, I want staff that are adaptable, open minded, can manage change and are strong communicators. If you target the right people they can bring an organisation forward by challenging the status quo and looking for continuous improvement.”

B2B M AGA ZIN E

“I believe it’s important to look beyond experience and consider the talent of individuals.” Omar Bouhafs “I use behavioural based interview techniques and examine what an individual has achieved in their previous place of employment and what will transfer well into our business.

“I believe it’s important to look beyond experience and consider the talent of individuals.”

Benefits of working with a specialist recruitment agency Rob: “HorizonOne’s candidates are always in the top two when we have recruited.

Their ‘John West’ philosophy to recruitment – it’s the ones they reject that makes them the best.”

Omar: “As a preferred specialist agency, I know that they have done the background work, and the candidates they refer will represent the top of the market.”

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

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F E AT U R E

Want a truckload of money?

D

o you own a heavy vehicle that is used to power auxiliary equipment on that vehicle? You may be entitled to previously unclaimed fuel tax credits.

The recent Practice Statement Law Administration 2013/4 (‘the Practice Statement’), released 23rd December 2013, outlines the ‘fair and reasonable’ apportionment for taxable fuel used in a vehicle for powering the auxiliary equipment of that vehicle, that under section 41-5 of the Fuel Tax Act 2006 (‘Fuel Tax Act’), an entity has an entitlement to a fuel tax credit for.

For an owner of a heavy vehicle (gross mass exceeding 4.5 tonnes) used on a public road, the entitlement to a fuel tax credit is reduced by the value of the road user charge.

However, in vehicles where fuel powers the auxiliary equipment of the vehicle (e.g. a refrigerated truck), a fuel tax credit on the proportion of fuel used to power auxiliary equipment will not be reduced by the value of the road user charge, therefore entitling the entity to additional, and perhaps unclaimed, fuel rebates.

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While the fuel tax credit is nothing new, the Practice Statement outlines the definition of fair and reasonable apportionment, therefore providing a better indication of what is an acceptable entitlement.

•

•

Fuel tax credits may be available to owners of vehicles with a gross vehicle mass of over 4.5 tonnes, used to power the auxiliary equipment of that vehicle.

Who does this apply to?

Fuel tax credits may be available to owners of vehicles with a gross vehicle mass of over 4.5 tonnes, used to power the auxiliary equipment of that vehicle.

Auxiliary equipment is defined by the Practice Statement as a ‘mechanism or apparatus of a vehicle that does not propel or operate the aspects of the vehicle that are for the purpose of travelling.’

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•

• • • • • • • •

This can include: the mechanisms for loading and unloading goods transported (including pumps for bulk haulage vehicles, tipper mechanisms of dump trucks – this includes tippers) the mixing barrel and associated loading and unloading mechanism of a concrete transit vehicle the bin lift and compacting mechanism of a waste compactor (including side, front and rear loading) the waste jetter and vacuum system of vehicles used in the cleaning of drains the pump of a gas or liquid tanker winches and towing equipment of a tow truck air conditioning of commercial buses and coaches for passenger comfort the refrigeration unit of a refrigerated vehicle truck loading crane elevated platforms (buckets) and snorkels; and truck mounted drilling equipment.

F E AT U R E

Does the ATO owe you?

What is ‘fair and reasonable’ apportionment?

In a heavy vehicle with powered auxiliary equipment, the road user charge will only apply to that fuel used in the vehicle for travelling, interpreted as ‘not only fuel for propulsion, but also for aspects of the vehicle’s function and operation that are for the purpose of travelling on a public road. This includes fuel used for stopping and idling while stationary in the course of a journey as well as the use of lights, brakes, power-steering and windscreen wipers.’

It is necessary then to apportion the fuel of the vehicle between that used for travelling (subject to a road user charge), and that used to power the auxiliary equipment of the vehicle (not subject to a road user charge.)

The ATO has provided the Auxiliary Equipment Apportionment Table outlining the percentage of fuel, used to power the auxiliary equipment of the vehicle, not subject to the road user charge. The Commissioner accepts that the percentage of fuel outlined in this table is ‘fair and reasonable.’

While an entity may use the Auxiliary Equipment Apportionment Table, the ATO also allows scope for self-assessment,

and permits an entity to use any method of apportionment, so long as it is fair and reasonable. If the entity has two different (but both fair and reasonable) methods of apportionment which yield two different results, they may use either method. PSLA 2010/3 explains how an entity may meet the fair and reasonable apportionment requirements when using their own methodology.

What are you entitled to?

If you have not previously claimed fuel tax credits (unaffected by the road user charge) for the portion of fuel used to power auxiliary equipment on your vehicle, you may be entitled to an additional fuel tax rebate.

Taxpayers who operate their vehicles on a public road should review their activities and apportion their fuel according to what is outlined as ‘fair and reasonable’ (using the table or otherwise), and where appropriate, may be able to seek refunds from the Commissioner for fuel tax credits that have previously been unclaimed. While quick off-road uses of the auxiliary equipment

may only result in small claims, claims may be significantly higher if these activities take longer.

The Practice Statement applies to tax periods and fuel tax return periods commencing both before and after the date of its issue, meaning you may be able to claim fuel tax credits for a number of years prior to the current tax period.

RSM Bird Cameron can help you to recognise where you may have unclaimed fuel credits for your vehicles and assist you in claiming your correct entitlement. Please contact us today.

Tel: (02) 6217 0300 Lvl 1, 103 – 105 Northbourne Avenue www.rsmi.com.au

Bird Cameron

Chartered Accountants

With RSM Bird Cameron you really are…

Connected for Success.

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F E AT U R E

L-R: Andrew Klein & Victor Harcourt

New to Canberra, not to government Leading law firm Russell Kennedy Lawyers’ commitment to the ACT with the opening of an office in Canberra has been reinforced by the appointment of Canberra based Special Counsel Andrew Klein to its Government Legal Services Team.

Russell Kennedy Lawyers provides expert legal services across its sectors of focus, including Government (Federal, State and Local), Aged Care and Retirement Living, Health, Not-for-Profit, and Insurance. In these sectors Russell Kennedy is focusing on its core strengths in litigation and dispute resolution, workplace relations, employment and safety, IP/IT, government and administrative law, and corporate and commercial law.

In recent years the firm’s growth strategy has focused on building a long term practice in Canberra, particularly in the Federal Government space, and providing these clients with a smart alternative to the way legal services have traditionally been provided in this sector.

Government and Aged Care Lead Principal, Victor Harcourt, explains: “Our firm has substantial government experience, gained over many years working with the Victorian Government and Victoria’s largest councils and water authorities. This experience and expertise makes us ideally placed to provide services to the Federal and ACT government markets in Canberra. The firm consequently has a long term strategy 12

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to cement a position as a preferred provider of legal services to government in Canberra, and nationally.”

Russell Kennedy Lawyers also saw an opportunity to introduce its significant aged care and not-for-profit expertise to clients in Canberra. They are viewed as the go-to law firm in these heavily regulated industries and it is their intention to provide their industry knowledge to operators and stakeholders in Canberra as well.

We are committed to the Canberra market for the long term.

The appointment of Andrew Klein to Russell Kennedy Lawyers’ Canberra office will be followed by further appointments shortly.

Andrew has lived and worked in Canberra for more than 20 years. He has exceptional legal skills and has worked both as an in-house lawyer in a number of Commonwealth and ACT departments and agencies, and as an external provider of legal services to the Commonwealth and ACT. He knows the city and he knows the clients. “We are committed to the Canberra market for the long term. We are also committed to providing clients, both in the public and private sector, with a real, smarter alternative to the way legal services are currently delivered in Canberra,” Andrew said.

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Russell Kennedy Lawyers is basing its approach to the Canberra market on three primary principles: 1. A relationship based focus on client service within a flat structure. They understand that direct access to Principals and other senior lawyers is important to their clients.

2. A value approach to providing legal services – by allocating the right resources, at the right time, in the context of the specific needs of individual matters, rather than taking a ‘one size fits all’, layered approach. Cost consciousness is paramount to client satisfaction.

3. Delivery of services by lawyers who have worked in and for the sectors of focus. Russell Kennedy’s lawyers understand the needs of these sectors and their instructing officers as well as the environment in which they are working.

Level 5, Tower A 7 London Circuit Canberra City West T: 02 61619 4117 www.rk.com.au

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COVER STORY

Strata People - a new beginning CEO Doug O’Mara is unmistakably fond of a challenge and has plenty of mettle to back up his plans for his locally-owned real estate business.

In his latest move, O’Mara has launched Civium Strata People, a newly branded company that is part of the Ray White Canberra Group.

“More than 12 months ago, I was approached by an advertising agency wanting to offer their perspective on the way our business [Ray White Canberra] was branded and how the public saw us in their eyes,” Doug said. “They raised many valid points that really got me thinking.”

Civium is a Latin word that means a congregation of people or civilians coming together.

“When you say Ray White, you automatically think homes. With over 1000 offices in our Ray White residential network and more than 5000 residential sales people, it was very difficult for us to have any brand recognition or ownership around our specialist businesses such as Ray White Strata.”

Doug explained that his business Ray White Strata was the only strata management business in the Ray White network.

“Over the last few years, we have worked with head office to establish our own identity [Ray White Strata] under the Ray White brand. But it was always going to be a difficult sell to try and build that business’s unique profile while it was under the larger corporate brand.”

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“As we grow our strata business nationally, we wanted to have a more dynamic and flexible online presence about who we are, and what we wanted to be with greater control of the supporting infrastructure.”

“Importantly, our strata clients told us that the most important issues for them were that they were listened to, felt valued, and had a close and personal relationship with our company.”

With these factors in mind, Doug decided that his strata business would be better served under a new brand. After workshops with ZOO advertising agency and his leadership team, Civium Strata People was born. It’s a fresh edgy brand with strong connections to the community and the company’s heritage.

Fresh, edgy brand “We wanted to have a unique, edgy, clean and fresh brand that represented our values, our personality, our roots, and what was important to our clients.”

Doug added that it was essential that the brand had a community and people focus, because “that’s what we do—we service congregations of people and communities— work communities and living communities.”

Civium is a Latin word that means a congregation of people or civilians coming together. The company’s logo is a collaboration of dots representing people coming together, in much the same way as the Romans congregated in colosseums of yesteryear.

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Chris Miller Business Development Director

COVER STORY

Josh Jasnos Strata Manager

Shannon Rawlings Strata Associate

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Photo: Andrew Sikorski

COVER STORY

After 30 years in the strata business, firstly as Canberra Units Plan Services, then Ray White Strata and now Civium Strata People, the next national growth phase for this Canberra owned business is an exciting one.

While work is full of challenges, Doug has crossed a few items of his personal ‘bucket list’. He climbed Everest and had his first boxing fight in 2013, has walked the Kokoda Track, flown a jet-fighter, and late this year he is sailing across the Drake Passage to Antarctica.

Future success Civium Strata People has offices and business in Melbourne, Sydney, Brisbane, Adelaide and Perth with an ambition to grow to Darwin and Hobart in the coming years.

With close to 15,000 units and 700 separate developments under management, the company has a strong base for its national expansion.

The Civium Strata People portfolio includes large, exclusive marquee and highrise developments, as well as a wide range of boutique townhouse complexes, serviced apartments and commercial properties.

According to Doug, Civium Strata People has 35 per cent of the market in Canberra but recognises that his company’s growth will come from large property developments in Sydney and Melbourne. He expects that the units under his company’s management will grow to more than 20,000 within 12 months.

“We’re aspiring to compete on a national level against listed companies with foreign ownership. To grow your business, you have to have scale – and that’s what we’re aiming for,” Doug says. ”In a fragmented property industry, no organisation has ever taken a national approach to servicing the

needs of developers, institutions and owners corporations before – and that’s our point of difference.”

In Canberra, some of the larger properties managed by Civium Strata People include the 8 star NATHERS rated Nishi building and The Apartment complex in New Acton.

The team Civium Strata People is a national team of forty professional strata managers and support team members, focussed on excellence in strata and community title management.

National Strata Director, Tony Foreshew leads the operations of the business and reports to National CEO Doug O’Mara. The senior members of the ACT team are, Jarrod Smith and Tristan Veurink who are Strata Division Managers, Business Development Director, Chris Miller and Business Development Manager, Jeanette Hall.

“We pride ourselves in blending our localised understanding with the reassurance of a national brand,” Doug says. “For us, it’s personal, we’re interested in building relationships. Each client is an individual, and every property is a unique proposition.”

Services The team at Civium Strata People add value at all stages of the life of a development, from design to completion, formation of the owners corporation and beyond.

They are known for providing sound advice under the respective states and territories legislation, and giving guidance to owners in matters of conflict, improvement to common property, and overall proactive management of complexes under their management.

Civium Strata People manages: • Commercial properties large and small • Townhouse developments • High rise unit developments • Serviced apartment buildings They deliver: • Personalised customer service to suit client needs • Managers and support staff who are easily contactable and available to clients • Proactive arrears management • Discounted property insurance due to the buying power of the Civium’s network.

Testimonials “As a developer, we rely on the provision of expert advice regarding the provision of strata from an early stage of each project.

The team at Civium Strata People have been an honest and helpful resource who have provided valuable local information to Doma Group and I’d recommend them highly.”

Sandra Wade, Doma Group.

“We have worked with the Civium Strata People team for some time and had no hesistation to going to them again for our latest project, an 8 star NATHERS rated, large-scale sustainable residential scheme.

Chris and the team seemed to understand the complexities of modern green-building methods and have been proactive in assisting the planning stages. We would highly recommend Ray White Strata and look forward to working with them again.”

Nectar Efkarpidis, Molonglo Group.

Contact details Civium Strata People 1300 274 256 civiumstrata.com.au

ADELAIDE | BRISBANE | CANBERRA | PERTH | MELBOURNE | SYDNEY 16

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COVER STORY

Photo of the Nishi Building: Andrew Sikorski B2B M AGA ZIN E

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ADVICE 20 20 21 21 23 23 25 25 27 27 28 28

ACCOUNTING

Be wary of GST clauses in contracts

by Rhys Kyburz, RSM Bird Cameron Chartered Accountants

BUSINESS ADVISORY

Don’t commit business infanticide – set up well!

by Tony Lane, Vincents Chartered Accountants

BUSINESS LAW

Agreeing to agree? Be careful what you wish for!

by Mark Love, Bradley Allen Love Lawyers

CORPORATE ADVISORY

Maximise your businesses sale value

by Ben Weber, MAXIM Chartered Accountants

CORPORATE GOVERNANCE

Disability sector – time of unprecedented change

by Phil Butler, Australian Institute of Company Directors

ESTATE PLANNING

Loans by parents to children

by Stephen Bourke, Certus Law

FAMILY LAW

Financial agreements and assets

by Sally McGuinness, Dobinson Davey Clifford Simpson Lawyers

HEALTH

Happy and healthy Canberra

by Robbie Manzano, Healthy Identity

INTELLECTUAL PROPERTY

Starting a business? Legal issues to consider

by Shaun Creighton, Arete Group

ONLINE MARKETING

How to reach your audience online

by Damian Schroeter, nFlame Creative

PROPERTY FINANCING

Investing in property through your SMSF

by Peter Spooner, Loan Market

RECRUITMENT

Temporary assignments no longer a quick fix

by Jim Roy, Hays Recruitment

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ACCOUNTING ACCOUNTING

by Rhys

by Rhys Kyburz Kyburz

BUSINESS BUSINESSADVISORY ADVISORY

BeBewary waryof ofGSTGST clauses clausesin incontracts contracts

A recent A recent legallegal casecase in the in Victorian the Victorian Supreme Supreme Court Court has highlighted has highlighted the importance the importance of ensuring of ensuring thatthat the correct the correct GSTGST clause clause is used is used in in business business contracts. contracts.

A properly A properly drafted drafted GSTGST clause clause can can avoid avoid any any problems problems or unintentional or unintentional financial financial consequences. consequences.

LastLast month month the ruling the ruling illustrated illustrated the continued the continued difficulties difficulties (and(and disputes) disputes) withwith regards regards to GST to GST and and real real property property transactions. transactions.

In this In this casecase the contract the contract was was stated stated to betoinclusive be inclusive of GST of GST and and upon upon discovering discovering thatthat GSTGST was was not not payable payable by the by vendor, the vendor, the purchaser the purchaser sought sought a refund a refund of 1/11th of 1/11th of the of purchase the purchase price.price.

The The Magistrates Magistrates Court Court agreed agreed withwith the purchaser the purchaser (being (being a a developer), developer), and and found found thatthat it was it was an implied an implied termterm of the of contract the contract thatthat the vendor the vendor would would refund refund the GST the GST amount amount if GST if GST did not did not apply apply to the to the sale sale and and thatthat the contract the contract should should be rectified be rectified accordingly. accordingly.

As aAs result, a result, the purchaser the purchaser was was not not required required to pay to pay an additional an additional amount amount on account on account of GST. of GST. Many Many businesses businesses thatthat drawdraw up contracts up contracts rely rely on template on template GSTGST clauses clauses to address to address the GST the GST issues issues involved involved within within the contract. the contract.

Whilst Whilst template template GSTGST clauses clauses can can be useful, be useful, theythey can can also also be abe costly a costly mistake mistake if businesses if businesses use them use them without without a thorough a thorough understanding understanding of how of how the the GST works.

GST works.

It is important It is important thatthat the GST/pricing the GST/pricing clauses clauses in contracts in contracts are carefully are carefully constructed constructed to ensure: to ensure: • it• is clear it is clear to both to both parties parties whether whether the contract the contract priceprice is GST is GST inclusive inclusive or exclusive or exclusive • if• theif contract the contract priceprice is GST is GST exclusive, exclusive, a clause a clause is included is included to allow to allow the party the party to recover to recover GSTGST (in addition (in addition to the to contract the contract price) price) fromfrom the the customer customer if it becomes if it becomes payable, payable, • tax • invoice tax invoice requirements requirements are met. are met.

Once Once it hasit been has been determined determined thatthat the taxpayer the taxpayer is registered, is registered, or or required required to betoregistered, be registered, for GST for GST purposes, purposes, thenthen the GST the GST status status of the of the transaction transaction needs needs to betodetermined. be determined.

Further, Further, as there as there are aare number a number of of property-related property-related GSTGST rules,rules, it needs it needs to betodetermined be determined if anyif any of these of these rulesrules are to arebetoapplied. be applied.

ThisThis ensures ensures thatthat the all theintentions all intentions are clear, are clear, and and all GST all GST matters matters are addressed. are addressed.

It is often It is often a good a good ideaidea to have to have contracts contracts reviewed reviewed by aby a specialist specialist before before signing. signing.

By Tony

By Tony LaneLane

Don’t Don’tcommit commitbusiness business infanticide infanticide– –setsetupupwellwell !!

It is commonly It is commonly understood understood thatthat overover 80%80% of businesses of businesses fail infail in theirtheir first first 12 months 12 months of operation. of operation.

A further A further 50%50% fail within fail within the next the next 12 months.

12 months.

Is this Is this symptomatic symptomatic of business of business operators operators not not being being goodgood at at whatwhat theythey do? do?

NotNot necessarily. necessarily.

What What those those statistics statistics do not do not reveal reveal is that is that often often the idea the idea thatthat spawned spawned the business the business is insufficiently is insufficiently supported supported by by goodgood systems, systems, controls controls and and processes processes to give to give the idea the idea the best the best possible possible chance chance of flourishing. of flourishing.

DataData collected collected

by ASIC

by ASIC regarding regarding corporate corporate insolvencies insolvencies overover the the pastpast 12 months 12 months indicates indicates thatthat the main the main drivers drivers of insolvencies of insolvencies continue continue to follow to follow the post-GFC the post-GFC trend trend – being – being intrinsic intrinsic rather rather thanthan extrinsic extrinsic – – poorpoor cashcash flowflow management, management, poorpoor financial financial management management and and poorpoor strategic strategic management. management.

Businesses Businesses thatthat are exposed are exposed to volatile to volatile revenue revenue patterns patterns in the in the current current economic economic climate climate mustmust ensure ensure theirtheir fundamentals fundamentals remain remain strong, strong, especially especially those those in their in their infancy. infancy.

PoorPoor cashcash flowflow management management during during downward downward cycles cycles can can leadlead to illiquidity, to illiquidity, placing placing pressure pressure on on internal internal sources sources of funding. of funding.

Strong Strong balance balance sheets sheets continue continue to yield to yield insolvencies insolvencies due due to the to inability the inability to generate to generate sufficient sufficient cashcash to pay to pay debts debts as and as and when when theythey fall due. fall due.

Financial Financial agility agility in business in business cannot cannot be be overlooked overlooked or underestimated. or underestimated.

In the In coming the coming months, months, as the as extent the extent of the of ‘fiscal the ‘fiscal restraint’ restraint’ emerging emerging fromfrom the federal the federal budget budget becomes becomes clearer, clearer, the local the local economic economic landscape landscape maymay wellwell contract contract further. further.

ThisThis should should leadlead savvy savvy business business operators operators to re-adjust to re-adjust theirtheir cashcash flowflow forecasts. forecasts.

Therefore, Therefore, nownow is anisopportune an opportune timetime to prepare to prepare sensitivity sensitivity analyses analyses around around differing differing sets sets of assumptions of assumptions regarding regarding revenues revenues and and costs. costs.

To delay To delay this this process process maymay wellwell prove prove too too late late to implement to implement strategies strategies for recovery for recovery if theif worst the worst befalls befalls you.you.

The The suitesuite of tools of tools available available to antoinsolvency an insolvency practitioner practitioner to apply to apply to to the recovery the recovery or resurrection or resurrection of a of business, a business, havehave the greatest the greatest effect effect at the at the point point nearest nearest to the to emergence the emergence of the of problem. the problem.

The The longer longer the period the period of procrastination of procrastination before before seeking seeking specialist specialist advice, advice, the more the more diminished diminished will be willthe be effect the effect of any of any business business rescue rescue plan,plan, as will as the will suite the suite of options of options available. available.

Indeed, Indeed, those those thatthat delaydelay the longest the longest maymay findfind thatthat the the remaining remaining options options are less are less palatable palatable thanthan theythey might might wishwish and and thatthat any any valuevalue has long has long sincesince beenbeen eroded. eroded.

WithWith the resources the resources and and skillsskills to implement to implement successful successful business business recovery recovery strategies, strategies, Vincents Vincents can can assistassist you you to diagnose to diagnose and and treattreat failing failing elements elements of your of your business business to put to put in place in place measures measures to guard to guard against against worst worst casecase outcomes outcomes ensuring ensuring youryour infant infant business business grows grows to maturity. to maturity.

Bird Bird Cameron Cameron

Chartered Chartered Accountants Accountants

If youIfwould you would like some like some guidance guidance or advice or advice on this onsubject this subject pleaseplease contact contact Rhys Rhys Kyburz Kyburz at RSM at RSM Bird Cameron Bird Cameron on 02on 6217 02 6217 0311 0311 or rhys.kyburz@rsmi.com.au. or rhys.kyburz@rsmi.com.au.

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

For more For more information, information, contact contact Vincents: Vincents: 31-3331-33 London London Cct Circuit, Cct Circuit, Canberra Canberra City. City.

T: 6257 T: 6257 2077 2077 F: 6257 F: 6257 1399 1399 E: tlane@vincents.com.au E: tlane@vincents.com.au www.vincents.com.au www.vincents.com.au

BUSINESS LAW

by Mark Love

Agreeing to agree? Be careful what you wish for!

Whether you call it an MOU (or memorandum of understanding), a Heads of Agreement or something else, form can never be the victor over substance in the world of “Contract”.

Entering a Heads can give you comfort, but at what risk and with what effect? The answer lies in whether the Heads agreed records a deal that has been done or records the terms of a deal yet to be done.

The seminal case of Masters v Cameron classified three categories, where the Heads record: 1. all the fundamental terms of the bargain, with intent to be immediately bound to perform those terms – the subsequent document to be drawn is merely a more elaborate and precise expression; 2. all the fundamental terms of the bargain, with intent not to be bound until a more elaborate and precise expression is entered; and 3. aspects of the deal, but without any intention for the parties to be bound until a formal document is prepared.

Whether or not the facts of a situation cause a document to fall within any of these categories will be determined “objectively” from the facts and circumstances of each case. It will depend on the reasonable and objective meaning of the document itself, and also the surrounding conduct of the parties.

Unusually complex deals are best negotiated where the parties identify their common ground early. Heads are entered to secure key points and outline the commercial intent or framework for engagement; these might be expressed to be a “binding Heads”. Yet such a document might lead only to a commitment for the parties to “negotiate in good faith” towards completing a final document, but it might fall well short of being a contract that spans the scope of the intended project – worse yet, it might actually prove to be binding and reveal that you are exposed to commitments and risks that your accountants, consultants and lawyers subsequently identify.

To consider: Are you better off pausing while the formal, legally binding (and confidential) contract is drafted which has the capability to protect both parties versus the potential uncertainty of whether a Heads is binding, leaving your other advisers gasping? If you don’t intend to be bound, say so. If what you seek is an exclusive dealing period, then enter that document. If you are completely confident you have covered all the terms, structure, risk and issues your advisers are going to raise, then you will of course be secure.

9th Floor, Canberra House, 40 Marcus Clarke Street, Canberra ACT 2601 Tel 02 6274 0905 | www.bradleyallenlove.com.au

CORPORATE ADVISORY

by Ben Weber

Maximise your businesses sale value

When positioning and preparing your business for sale, whether you are a privately-owned growing business or a listed corporate, there can be many strategic options which need to be considered at any one time including options such as divestments, capital raisings, takeovers, mergers and acquisitions in order to maximise your value.

Prior to considering these options it is crucial the business is properly positioned and prepared to successfully execute transactions to maximise its sale value. The primary cause of business sales and capital raisings either not completing, or transacting at a less than desirable price is a lack of preparedness from the seller.

PREPARE - In order to deliver a successful sale at the best price and terms the business should ensure it is prepared in the following areas: • Capable Management Team; it must be clear that the business is successful and able to be capably managed without significant owner input, which requires a transition of management from the owner to the management team prior to the sale.

• Sound Strategic Direction and Earnings Growth; there should be a clear and concise 3 to 5 year strategic plan developed to demonstrate to the buyer how future growth will be achieved, what it will cost to achieve it and quantification of the increase in earnings and revenue.

• Financial Information; prior to undertaking any transaction, financial information (including 1 to 2 year detailed forecasts) should be presented in a bespoke, clean and easy to understand format with supporting detail prepared. If information can be provided quickly and accurately during a transaction it reduces the opportunity of wriggle room for buyers on price and terms.

• Tax structure; many sellers only look at the top line price when considering a transaction, it is vital to focus on the net proceeds after tax rather than the top line. There are numerous tax strategies and structures that can be employed prior to a transaction to increase the net proceeds and reduce tax payable.

Now you are ready to maximise your businesses sale value.

Maxim Corporate Advisory and Transactions team can help you improve and unlock shareholder value through offering lead advisory services and integrated solutions for divestments, acquisitions and capital raising initiatives. If you are facing challenges or opportunities along these lines, we would welcome the opportunity to meet and discuss your plans and goals. As an independent corporate adviser, we are highly experienced transaction advisers. We will work with you to deliver strategies and processes that are impartial, uncompromised and deliver the best possible outcome.

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

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CORPORATE GOVERNANCE

by Phil Butler

Disability sector – time of unprecedented change

In late 2013, The Australian Institute of Company Directors released its Directors Social Impact Study which explored governance issues across the not-for-profit sector. The disability sector received specific attention with the major changes occurring in this area.

From 1 July 2014, the National Disability Insurance Scheme (NDIS) trial will commence in the ACT, and many organisations are gearing up for this new model. While there will be a transition phase, there is no doubt that this change will have major implications for the governance and management of those organisations providing services to people with disabilities.

From the 2013 study, one of the major concerns expressed by directors was that the scheme completely changes the business model of how they operate, and questioned whether the staff and directors of these organisations were prepared for the change. An example often cited, was that the service providers would need to be much better at marketing their services to potential clients. Many organisations hadn’t needed to consider marketing skills and experience of directors and executives previously. This is all about to change.

Under the NDIS, people with a disability will be able to choose which services they require and who will provide them. There is an opportunity for new organisations to enter the marketplace and meet the needs of clients.

While opening up competitive forces is most likely a good thing, an unintended consequence is that NFP providers may cease to exist if they are unable to compete with these new providers, or be left to only look after the unprofitable elements of care Another consequence is that cash flow is likely to be a major issue as the grant system will change and care providers will often need to wait until well after a service is provided to receive payment. Again, this is a very different model from the current system.

As with most change, there will be those organisations that thrive and those that will struggle and it is quite likely that there will be a consolidation of organisations. Those who have the right skill-sets for board and management roles are the ones most likely to succeed with this change.

I would recommend that it’s vital for all organisations to undertake an analysis of these skill-sets on a regular basis, but that it’s critically important for those in the disability sector right now.

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

ESTATE PLANNING

by Stephen Bourke

Loans by parents to children

With the price for real estate, parents will often assist their children to obtain their first property by advancing money to that child. In happy times, it is of great assistance to the child. However, if that child’s marriage fails, then the funds may be lost in the matrimonial settlement.

In a recent case in the Family Court, a father had advanced two sums to his son amounting to $380,000. The first amount was a $150,000 interest-free loan in late 1995, repayable on demand. The second loan was for an amount of $230,000 at 10% annual compound interest – repayable on or before April 2003. This loan was the subject of a written loan agreement which provided that no interest was payable if the debt was repaid by the due date. However, the loan was not repaid by the due date.

In relation to the first loan, the son’s wife tried to argue that the money was a gift rather than a loan. But the court was satisfied that it was a loan. However, the court noted that the father had taken no steps to enforce the loan and where a loan is to be repaid on an “at-call” basis, the Statue of Limitations operates from the date the loan is advanced.

In the ACT, it is six years.

In other words, the father could not enforce the loan and the money was therefore retained by the son and divisible in the Family Court.

The second loan was recorded by way of a loan agreement but there were no repayments. With a loan under a loan agreement, the Statue of Limitations commences when the borrower defaults on a repayment set out in the loan agreement. The son signed an acknowledgment of debt but it was outside the six year period and that loan also became statute barred.

The lessons for parents who advance money to children: • A loan agreement is essential but is not enough on its own. There should be repayments and evidence of the repayments should be kept; • Never let the six year period expire. A loan can be refreshed within the limitation period to avoid the loan not being recoverable under the Statute of Limitations; • An acknowledgement of debt after the six year period has expired will not be sufficient to refresh the loan.

ASIC say that the six-year limitation period under the Statute of Limitations can be restarted if the “debtor makes a payment or acknowledges the debt in writing”. But it must be before the limitation period has expired. In the ACT, a limitation period cannot be re-started once it expires.

Advancing money to adult children can be of great assistance in getting a start in the real estate market. But in doing so, care should be taken to ensure the funds are treated on an arms length basis.

This includes loan agreement, re-payment and avoiding the loan becoming stale.

Certus Law specialises in superannuation, trusts and estate planning.

Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au

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HEALTH

FAMILY LAW

by Sally McGuinness

Financial agreements and assets

Statistics tell us that these days people are staying at home for longer; marrying for the first time older and starting families later. As a result, most couples entering into a de facto relationship or a marriage are bringing more to the table than ever before. It is for this reason that couples are increasingly opting to enter into Financial Agreements, to achieve certainty around what will happen to their assets in the event of a relationship breakdown.

You can enter into a Financial Agreement if you are: 1. Intending to marry or enter into a de facto relationship (regardless of gender) (also known as a “pre-nuptial agreement”); 2. In a marriage or a de facto relationship (to deal with the division of your property in the event that you separate); or 3. If you are separated (to formalise an agreed property settlement).

Married couples and couples intending to marry have had the option of entering into Financial Agreements since 2000 and de facto couples, since 2009. The intention of the legislation was to enable couples to have greater control and choice over their own financial affairs in the event of a marital breakdown, and to put in place safeguards to protect people entering into such agreements.

A properly drafted Financial Agreement can make provision for: 1. Preserving previously-owned property by “quarantining” what you each brought in/are bringing in to the relationship (you could then, for example, elect to then divide all jointly acquired assets in a certain way); 2. Protecting previously-owned assets for the benefit of children from previous marriages (this can be particularly helpful for couples entering into second or subsequent marriages); 3. Preserving interests in multi-generational or long-established family businesses, property or wealth; or 4. Prospectively deal with anticipated inheritances due to one party or both.

The importance of obtaining specialist advice Financial Agreements require a number of formalities to be met in their drafting (and the law in the area is ever-changing), so it is important to obtain specialist advice from a lawyer who has expertise in the field. This will also ensure that the document you are entering into will achieve its intended purpose.

A properly drafted Financial Agreement can only be set aside in very limited circumstances and, due to the seriousness of their binding nature, both parties are required to obtain independent legal advice prior to entering into them.

Financial Agreements can also play an important role in estate planning and business succession.

If you would like further information or advice about your options please contact us.

Sally McGuinness, Senior Associate 18 Kendall Lane, New Acton Canberra City ACT 2601 T: (02) 6212 7600 E: mail@ddcslawyers.com.au www.ddcslawyers.com.au

Happy and healthy Canberra

By Robbie Manzano by

As a proud member of the nation’s Capital I felt enormous pride on Canberra Day. It was great to see locals soak up the sun and get outside for all the community events in February and March.

Although only a handful of community events were targeted at health specifically, the social atmosphere from the Balloon Spectacular, Enlighten and the Canberra Day festivities caused a healthy mindset to those who attended.

With this in mind, we can say a healthy community is a community of healthy individuals and creating healthy environments will decrease the prevalence of obesity, diabetes and depression.

Although this is the ideal model for health, we are far from creating these environments due to a complex global system, therefore we have to think and act locally as it will go a long way in attaining a health promoting status for our nation’s Capital.

As a community we need fill ourselves with pride and put in an effort to get involved even if we only do the bare minimum.

Below are 2 suggestions on how you can get involved in a happy and healthy Canberra.

1. Enter yourself with some friends in a community event.

There is no better feeling than getting out and doing something that ultimately helps hundreds of people. Participating in a fun run or helping as a volunteer gives you a sense of ownership. Not only that, it motivates you to train for the event and encourages others to get involved.

2. Create a health-promoting environment within your networks.

Creating a healthy environment involves both the social and physical culture. Casual Fridays, although doesn’t sound much, is a great initiative as it gives the employee a sense of self expression. Recognising workplace accomplishments that are un-work related goes a long way in building report and a happy social environment. In the household, encouraging children to help with the food prep is an ideal way to ingrain health promoting habits during a child’s youth whilst at school weekly community initiatives, such as school rubbish pick up or crazy hair day, give a child a sense of belonging and school pride.

Healthy Identity is a health promotion brand that encourages healthy practice locally, nationally and internationally. If you would like to get involved in any of our community projects or want to set up one up, I encourage you to get in touch with me on robbie.manzano@healthyidentity.com.au and we will do everything we can to support you.

Robbie Manzano is founder and managing director of Healthy Identity. Robbie has degrees in Human Nutrition and Coaching Science from the University of Canberra and has completed a Graduate Certificate Public Health from Curtin University. robbie.manzano@healthyidentity.com.au 0423 366 014

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Accommodate Canberra offer a personal, leisure or corporate, experience in many of Canberra’s most sought-after locations.

Visit our website and choose from the array of modern, fully appointed, self-contained & serviced, 1 to 3 bedroom apartments available or call to discuss your requirements with our concierge.

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INTELLECTUAL PROPERTY

by Shaun Creighton

Starting a business?

Legal issues to consider

Starting a new business is an exciting time. A difficulty which often arises is getting all necessary legal advice, documents and structures in place prior to starting. Even though cash flow can be tight when starting off a new venture, this is an important time to receive professional advice, as it may limit the risk of unintended issues arising after you are up and running.

What are the legal issues/advice/documents you will need before you start your business? Sadly, there is no such thing as “one size fits all”, as the answer to this question turns on the nature of your business, how you are structured, your size, and the industry you operate in.

Examples of the types of legal services we regularly find a start up business needs (and why) include: • Legal structure advice: Before starting to trade, have you considered whether you will trade as a sole trader, company, partnership, trust, or even a company as trustee of a trust? This is important to discuss with both your lawyer and accountant to minimise unintended legal, accounting and taxation consequences.

• Founder Agreements (eg Shareholder Agreements): If you are going into business with other people, a founder’s agreement (such as a shareholders agreement, partnership agreement, unit holders agreement) is a must. This agreement should cover off issues such as what is the entry and exit process (and conditions which must be satisfied prior to entry and exit), how are decisions made (including decisions which must be unanimous), who owns any IP which is generated, and any restraints against an exiting party from competing with you.

• Intellectual Property Protection: The type of IP in a new business will vary from case to case, but almost every new business will have a new name/brand. That name/brand should be protected by way of one or more registered trade marks. This will provide you with an ability to prevent 3rd parties from using a brand similar to yours, plus limits the risk of being forced to re-brand as a result of infringing the rights of a 3rd party.

• Good and/or Services Agreements: If your business intends selling goods or providing services, there is merit in having your good or services agreement ready for use before you start to trade (or soon thereafter).

• Employment and/Contractor Agreements: If engaging people to work for you, will you engage employees or contractors? Do you understand the difference between the two and the consequences of getting this wrong?

• Policies: before you start, you may require a privacy policy, website terms etc.

ARETE Group’s Start Me Up package: A fixed fee package tailored to suit start up businesses ARETE Group offers a tailored service package for start up businesses. We call it Start Me Up!

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 W: www.aretegroup.com.au or www.asportslaw.com.au

ONLINE MARKETING

by Damian Schroeter

How to reach your audience online

Google is pretty clever when it comes to delivering relevant content to web users. You might have noticed that when you search for a phrase on your office computer, you get a different set of results to when you search for the same phrase at home. You can thank Google for that.

When you search for something online, you are shown a set of results based on factors including; your current location, your search history, themes of emails in your Gmail account, and of course paid advertising placement from Google AdWords.

As an advertiser, you can harness this technology to better reach the right customers for your products and services. Last month I introduced you to the Google Search Network, and now I think you are all ready for a brief introduction to the Google Display Network.

The Google Display Network enables you to identify potential customers based on their past behavior and target sections of other websites to display your ads, not just in the Google search results pages.

Ads on the Display Network can either be basic text ads or image ads. The important thing to note is that you can find new customers while they are viewing other webpages, which feature content of a particular theme or subject, related to your advertising campaign. Your ads are eligible to be shown on these websites to generate new sales leads for your business.

For example: let’s say you manage a medical practice specialising in the treatment of sporting injuries. You know that your patients are into cycling and that there are websites and forums related to that subject.

Many of these websites are feeding ads from the Google Display Network and you may want to consider setting up a Display campaign to target websites featuring “cycling” themes and keywords to promote your medical services for cyclists.

Remember, Google does not charge you to show your ads to potential leads, only when someone actually clicks on your ad and continues through to your website.

Next month we will cover the exciting world of “re-marketing”. This is my personal favorite of all the online marketing tools as it allows you to follow up on lost leads from your website traffic and chase potential customers all over the Internet with creative image banner advertising.

Get started with a new Google AdWords account today by selecting a package from our website and receive $100.00 FREE advertising credit from Google.

Damian Schroeter is a Google Partner and Director of Design & Advertising at nFlame Creative.

Consultation by appointment: Phone: 02 6249 8694 or b2b@nflame.com.au www.nflame.com.au/AdWords

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PROPERTY FINANCING

by Peter Spooner

Investing in property through your SMSF

Your self managed super fund (SMSF) can borrow to invest in real estate. Over the last few years more Australians are realising the benefits of managing their own super and in particular, investing in property through their super fund.

Dreaming of spending your retirement on a golf course, or sailing the Greek Islands on a yacht? Aren’t we al. Well, with a smart investment strategy in place anything is possible. The main benefit of investing in property with your SMSF is that it can be an effective way to increase the value of your retirement savings.

The SMSF experts would also tell you that this approach allows you to: Diversify your investment portfolio - to include property without impacting on your personal asset position.

Make additional repayments via salary crediting - to pay off the loan sooner (although the loan is usually self servicing from the rental income).

Obtain gearing benefits – the trust can help offset the loan costs and expenses against the rental income (resulting in potential tax deductions for the fund).

Protect your other super fund assets – because the Lender’s recourse to recover the loan is limited to the property itself.

Enjoy flexibility – the SMSF can choose many kinds of property including residential and commercial.

Purchasing property with your SMSF does have tight restrictions and the penalties for breaching these restrictions can be severe. To make it more complex the legislation changes, so do obtain advice from an expert that’s specific to your situation if you are considering this investment approach.

With a number of Lenders now offering products for SMSF leveraged property investments, your mortgage broker can help you navigate the options.

Want to know more? Want to discuss loan elements of SMSF property investment?

Peter Spooner is a qualified and highly experienced residential property financing specialist. He has access to over 800 loan products from a panel of 30 lenders (including all of the major banks) plus reachback to over 500 Loan Market associates when formulating solutions for his clients.

Peter does not charge a fee-for-service.

Australian Credit Licence 390222

To gain further information into the Loan Market go to www.loanmarket.com or drop Peter a note on peter.spooner@loanmarket.com.au or call on 0400-281-398

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RECRUITMENT

by Jim Roy

Temporary assignments no longer a quick fix

The use of temporary workers in Australia is no longer a quick fix but a long-term staffing solution for employers, according to the Hays survey of temporary workers and their employers.

Our survey found 31.2 per cent of organisations consider temporary workers to be a key component of a long-term staffing strategy. This ranks above their use to overcome permanent headcount restrictions (25.8 per cent).

A further 24.2 per cent of employers consider temporary workers to be essential to the success of their organisation, while just 11.8 per cent see them as a temporary cost reduction measure. The findings show that temporary workers offer employers a flexible alternative to permanent staff who can help fill short-term and longer contracts and their expertise can be used for special projects.

Another bonus of using temporary workers is the relief it can provide permanent staff. 60 per cent of the employers surveyed say it is one of the benefits they like. Rather than continuously redistributing work between current permanent employees, which can reduce productivity, increase stress and may negatively impact on health and safety, temporary resources can instead support a permanent team.

For the employer, there is also a reduced administrative burden as temporary workers are paid by a recruitment agency, are fully interviewed and reference checked, and have undertaken any necessary pre-employment medicals, safety checks and OHS training.

From a candidate’s perspective there are also some interesting findings - the average temporary workers are almost equally men and women, predominantly aged over 30 and have a range of experience and skills to bring to the workplace.

The majority of temporary workers are also interested in pursuing more work of this kind in the future, highlighting that candidates are also a driving force behind the increased use of temporary workers in the job market.

They, like employers, also see the benefits of this kind of work, including the flexibility of temporary assignments, the opportunity to gain more experience and skills, and the ability to make important business contacts.

We’ve been leaders in contingent and temporary recruiting in Australia for 35 years, so we have a deep understanding of the sector and the people currently working and hiring temporary, interim and contract roles in all disciplines across the country.

As we expect these trends to continue in the job market we hope this report will give employers and candidates some valuable information and advice they can use.

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

MINISTER’S MESSAGE

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Signs of resilience in the face of uncertainty Over the coming six weeks all eyes will turn to the Commonwealth Budget and its implications for the Territory.

The employment and spending cuts expected to be inflicted by the Commonwealth’s Commission of Audit and 2014-15 Budget are creating uncertainty in Canberra – making households and businesses more cautious to spend and invest.

There is no doubt that economic growth in Canberra will take a hit from the deep cuts to the Public Service and other decisions expected in the Commonwealth Budget.

But our longer-term economic prospects are brighter than might first be expected.

The budget position of the ACT Government, and the economic position of the ACT economy more broadly, are sound. Our fundamentals – such as levels of growth, debt and investment – remain strong.

Provided there are no further significant economic shocks, we expect to return to a balanced budget in 2015-16. Our economic conditions remain positive – despite the challenges presented by continued Commonwealth contraction – and the growth forecasts for remain unchanged since June last year.

The ACT also continues to have one of the highest population growth rates in Australia and the highest average wages. Combined with low interest rates, these factors are expected to result in improved household consumption, which is good for local businesses.

On the downside – and despite having Australia’s lowest unemployment rate and second-highest workforce participation rate – job security concerns are likely to mean see cautious consumer spending in the short term. We cannot escape the decisions of our biggest employer, the Commonwealth, and we are anticipating employment growth will slow in 2014-15.

Our economy has been remarkably resilient in the face of the recent uncertainty. Revenues are broadly in line with expectations and are holding up

well. We have the scope to take up the challenge of responding to Commonwealth cuts. Our current levels of revenue and low levels of debt allow for the Territory Government to continue a program of infrastructure investment.

The Government pushing ahead with significant infrastructure projects has two key effects. First, it provides the important facilities that the city needs in health, education and transport. The Capital Metro and City to the Lake and projects are significant infrastructure investments that will redefine how our city functions, and will also generate thousands of new jobs. The University of Canberra Public Hospital is a significant new investment in health facilities, as are investments in the Tuggeranong and Belconnen Community Health Centres.

Second, the investment helps keep our economy ticking over – taking up some of the slack caused by the Commonwealth’s lower spending.

The ACT Government must respond to these economic conditions with its eyes open. We are only 9 per cent of the Territory’s economy so stimulus measures must be measured and targeted.

But, crucially, our budget position gives us the ability to provide this stimulus. The budget review shows our levels of debt are low by national and international standards, and we have a AAA credit rating – meaning we can borrow to fund infrastructure that will boost our economy.

The forthcoming ACT Budget will maintain the Government’s discipline on new recurrent spending, and make targeted savings – in order to help us to return to balance; there will be no slash and burn. Meanwhile, we will continue investment in the key infrastructure projects.

The ACT economy continues to show signs of resilience in the face of uncertainty from the Commonwealth, and with the right mix of tax reform and targeted new spending, we can continue to support our economy, and through it our community.

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ANDREW BARR

ACT DEPUTY CHIEF MINISTER TREASURER MINISTER FOR ECONOMIC DEVELOPMENT

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Business achievements builds confidence C H R I S FA U L K S

CEO, CANBERRA BUSINESS COUNCIL

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his year is shaping up to be a big one for business in Canberra and the Capital Region. We all know that it will be a year of significant challenges for the private sector and the ACT economy but there have been a number of significant “wins” for business recently.

The challenge The protracted period of uncertainty caused by our biggest industry, the Australian Public Service (APS), implementing major cutbacks has had a significant impact on employment, wages, spending, business investment, and business and consumer confidence in the ACT. The opportunities Rather than adopt a negative position Canberra Business Council is leading the charge to work with the ACT and Federal Governments to look for opportunities to minimise the impact of Commonwealth contraction while maximising opportunities for growth and job creation in Canberra’s private sector.

The “wins” The Chief Minister Katy Gallagher delivered an upbeat address at Canberra Business Council’s annual ‘State of the Territory’ Luncheon at the National Gallery on 13 March 2014. During her speech, the Chief Minister released two important initiatives – the Digital Canberra Action Plan and the final City Plan – aimed at transitioning Canberra to a modern digital city and improving the liveability of our city by developing the city centre.

These announcements represent some big “wins” for business.

Stimulus package for the building and construction industry – 6 March 2014 In February 2014, Canberra Business Council in partnership with the Master Builders Association ACT, The Property Council of Australia ACT, Consult Australia, and The Planning Institute of Australia presented the ACT Government with a

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‘Call to Action’- a submission which outlined the regulatory and process reforms needed to keep the building industry in the ACT growing.

The ACT Government listened and, as a direct response to the advocacy of the industry groups announced a stimulus package on 6 March 2014.

The stimulus package includes: 1. Releasing at least four civil contracts for estate works in Moncrieff. This commitment to fast track the development of Moncrieff will boost the sector through a direct investment of $150 million from the civil contracts and flow on work for the ACT economy of $400-$500 million work beginning next year, with the construction of at least 500 dwellings.

2. Changes to lease variation charges (LVC); 3. Significant reduction in extension of time (EOT) commence and complete development fees; and 4. Drafting of legislation to facilitate major projects across the ACT.

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A Call to Action: canberrabusinesscouncil. com.au and details of the Stimulus Package: www.cmd.act.gov.au Digital Canberra Action Plan – 13 March 2014 In February 2012 Canberra Business Council presented a proposal to the ACT Government to establish a catalyst program to be known as Digital City: the Canberra Innovation Challenge.

The ACT Government listened and in August 2013 announced the $300,000 Digital Canberra Challenge which is managed by the eGov Cluster, in partnership with NICTA, CollabIT and Canberra Business Council.

In March 2012 CBC also developed a Small Business Policy Statement which included a recommendation that the ACT Government support a Digital City proposal to stimulate innovation around new technology-based businesses.

The ACT Government listened and in mid-March 2014 the Chief Minister released the Digital Canberra Action Plan - a $4.4 million investment in a strategy to accelerate business engagement with the digital economy and create a networked ‘smart city’, a truly digital city.

Digital Canberra Action Plan: http://www.cmd.act.gov.au/policystrategic/ digitalcanberra/actionplan The City Plan The Chief Minister also released the final City Plan on 13 March 2014.

The City Plan creates a blueprint for the transformation of Canberra into a city with its own unique identity and includes: • Framework for extensive residential growth in Civic; • Plans to progress major infrastructure projects such as the Parkes Way split boulevard, the Australia Forum convention centre and the redevelopment of the ABC flats • Permanent bridging of the divide between the city and the lake.

Canberra Business Council has lobbied

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Call to Action a Joint industry submission to the aCt Government for reGulatory and ProCess reform in the best interests of Canberra February 2014

for a world-class convention centre for many years to increase tourism and diversify the economy. The Council welcomes the decision to progress the planning of the ‘Australia Forum’ in this precinct.

City Plan: http://www.cityplan.act.gov.au/ A Plan For Canberra Before last year’s Federal Election, Canberra Business Council released A Plan for Canberra, which called for investment in enabling infrastructure that would diversify the ACT economy and create jobs.

The Plan set out 15 initiatives with investment in tourism infrastructure a priority of the Plan. A new Convention Centre (the Australia Forum) was at the top of the list.

Already there have been a number of “wins” from the Plan: • On 24 February 2014, the Hon Jamie Briggs MP, Assistant Infrastructure and Regional Development Minister and Minister responsible for the National Capital, met with the ACT Chief Minister and a small delegation of ACT business people. Our early discussions have been productive and the Minister has shown encouraging interest in working with the ACT Government and private sectors on key priorities for Canberra and the region.

• The Joint Standing Committee on the National Capital has agreed to participate in a June 2014 Agreement for the 1st Pollie famil with members of the Canberra business community.

• Progress on the Australia Forum. It is estimated the Australia Forum will generate $762 million and over 1,000 jobs.

What is really important to note is that for every dollar a conference delegate spends while in Canberra, only 10 cents goes to the convention centre, the other 90 cents goes into the general economy towards hotels, hospitality and retail.

This would provide a huge boost to our local businesses.

A Plan for Canberra: www.canberrabusinesscouncil.com.au

TRADESTART support for Canberra based businesses

TradeStart support provides a vitally important resource to assist SMEs into export. Canberra’s business sector, though small compared to the major metropolitan centres, includes some of Australia’s most innovative export businesses. Companies such as Aspen Medical, Seeing Machines, Inteledox, Funnelback, Windlab, Sentinel and many other companies at the forefront of innovation in their respective fields.

In its 2010-2011 Budget, the Federal Government announced funding cuts to the TradeStart Program and when the tender for the new TradeStart Program for 20102014 was released by Austrade, the ACT and Capital Region was excluded from the list of proposed office locations. Exporters in Canberra were to be serviced from South Sydney or Wagga.

Canberra Business Council was so exasperated at this outcome that it decided

These successes demonstrate that the combined efforts of the private sector and government in a small city-state like Canberra can deliver growth in investment, exports and jobs and they can produce an impressive level of economic resilience. to make a point by submitting a nonconforming tender which argued the case for a TradeStart office in Canberra to service the ACT and Capital Region export community.

The bid was unsuccessful but the Council continued to lobby successive Ministers for Trade about the importance of a TradeStart representative being based in Canberra to provide higher levels of service to Canberra’s high-technology and services export sectors.

In February 2014 Austrade reinstated a Tradestart position in the ACT – another “win” for businesses in Canberra and the surrounding region.

More to be done This is not a bad start to the year. These successes demonstrate that the combined efforts of the private sector and government in a small city-state like Canberra can deliver growth in investment, exports and jobs and they can produce an impressive level of economic resilience.

The Council welcomes the ACT Government’s decision to proactively implement regulatory change and initiatives to stimulate the local economy during this period of uncertainty.

Other priorities for local businesses to drive growth and jobs include: • Direct international flights to the Territory from Singapore and New Zealand • Greater investment in marketing Canberra as a tourism destination • Freight and Logistics Hub at Canberra Airport • Whole-of-government focus on red tape reduction • Commonwealth Government procurement and outsourcing policies • Prioritising the Australia Forum – convention centre • High Speed Rail connection between Sydney and Canberra as the first stage of an east coast HSR network.

The Council looks forward to continuing to work closely with the ACT and Federal Governments to restore business confidence and drive growth and jobs for our community.

CANBE RR A BUSINESS COUNCIL 216 Northbourne Ave, Braddon.

T: 02 6247 4199 www. canberrabusinesscouncil.com.au

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The value of business networking JO POWELL

EVENTS MANAGER

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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t would be difficult to exaggerate the value of networking to business however, the fact that a sizeable, but decreasing number of businesses don’t take full advantage of the networking opportunities available to them is truly surprising.

Networking can be a powerful and cost-effective tool when used properly, providing both businesses and their customers with tangible benefits, some of which might be unattainable by any other means.

Networking certainly requires fewer resources than other marketing initiatives. To ensure that maximum benefit is derived from the investment made, however, it is critical to apply the resources deliberately, intelligently and with conviction. Done well, the rewards flowing from networking initiatives will far outweigh the committed time and effort.

The principal precursor to the proper application of resources is the development of an effective networking strategy that clearly identifies the objectives of that strategy; the approaches to be taken to achieve those objectives; the methods to be used to assess the effectiveness of those approaches; and the establishment of suitable feedback loops to ensure that the approaches, and the higher-level strategy, remain relevant and are able to be continually refined and improved. In essence, a proactive and conscientious approach to networking cannot fail to help any business to achieve its objectives, and such an approach does, in fact, present as one of the most efficient and effective mechanisms to assist in the achievement of those ends.

Some general ‘networking pointers’ might be useful for those who are yet to take advantage of the benefits networking can offer: Firstly, care must be taken to ensure that all networking interactions are pleasant, and often ‘social’, encounters. Approaching a networking opportunity in an aggressive or ‘hard sell’ way will almost certainly be counterproductive and very quickly close off any entries the networker might have hoped to achieve. It is much better to err on the side of caution, passing up the opportunity to get some messages across on any particular occasion whilst recognising that such an agreeable approach will ensure that doors are left open and that future – and probably more mutually beneficial - interactions will be welcomed.

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Secondly, it should always be remembered that word of mouth referrals are an important asset for most if not all successful businesses. Potential customers approach businesses seeking goods or services based often on the past experiences of their colleagues, families and friends. Noting this, it is vital that businesses build rapports and alliances with as many entities as is possible. In this way reputations are established and nurtured among a much wider group than the existing customer base. An effective means for doing this is by letting others know what makes you different to – and better than – the rest.

Networking provides a most effective means of achieving this, particularly when the networker takes advantage of the diversity of networking activities and targets groups available.

Thirdly, all involved in any particular business venture – from the most senior managers to the most junior staff – should be encouraged to become involved in appropriate networking opportunities. The benefits of doing this are many, ranging from improved confidence for junior staff that recognise that they’ve been entrusted with a task vital to the success of their business, to the simple increase in the number of networking opportunities to be benefitted from.

Although some of the rewards of this approach will be readily and immediately apparent, others – such as greater senses of cohesiveness and improved staff morale – will be more subtle but no less important.

Finally, post-networking action is every bit as important as the networking interaction, and a follow-up contact will reinforce the view that you value the relationship and are keen to nurture a closer rapport.

The ACT & Region Chamber of Commerce and Industry provides many networking events throughout the year in order to assist and grow business in the ACT and region. Sometimes the hardest part about networking is knowing where to go and how to start, and this is where the Chamber can help, by providing frequent opportunities to its very diverse group of members for the benefit of all, regardless of industry group or business goals and ambitions.

For more information on events at the ACT & Region Chamber of Commerce and Industry please contact us on (02) 6283 5200 or via email – events@actchamber.com.au.

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Upcoming trade mission to Singapore Singapore is a major trading hub and plays an important role for companies willing to expand to the South-East Asian region. Singapore is particularly strong in the manufacturing, wholesale/retail trade and services sector. The country is host to multinational companies from various industries and geographies. In the ICT sector, Singapore is host to more than 80 of the world’s top 100 software and services companies. The World Bank has ranked Singapore as one of the easiest places in the world to do business.

Australia has enjoyed a strong trade relationship with Singapore. The Singapore-Australia Free Trade Agreement (SAFTA) came into effect in 2003.

SAFTA has helped to minimize trade tariffs and increased market access for Australian exporters of services, particularly education, environmental, telecommunications and professional services.

Furthermore, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) has opened up many opportunities for Australian companies.

According to DFAT’s Trade at a Glance 2013 report, Singapore is Australia’s 8th largest export market with total exports reaching A$ 10.3 billion (Goods - A$ 7.1 billion, Services – A$ 3.2 billion) in 2012. If we compare this to Australia’s exports to ASEAN-10 (10 countries in the ASEAN region), total exports to Singapore account for 30% of total exports to ASEAN-10.

There are several ACT companies who are already regularly exporting their products and services to Singapore, such as IE Asia Pacific, Northrop Consulting Engineers, Inland Trading, Intelledox and CIC Technology. In the education space, University of Canberra is currently offering Doctoral Programmes in collaboration with Asia Global Graduate School in Singapore.

Singapore’s investment in Australia is also quite significant. In 2012, Singapore’s investment in Australia reached A$ 55.9 billion and was ranked fourth overall as Australia’s source of foreign investment. There are also several Singapore investments in ACT. ComfortDelGro, which is one of the largest land transport companies in the world, acquired Dean’s Buslines and Transborder Express in 2012. In the utilities sector, Singapore Power owns a stake in Jemena, which is responsible for managing the ActewAGL gas network.

To further enhance trade relations between ACT and Singapore, the ACT Government in partnership with Canberra Business Council and the ACT Exporters’ Network is planning to organise a trade mission to Singapore over the five days 16-21 June 2014.

This mission is planned to follow on from the delegation of officials Minister Barr led in November 2013 to further develop trade with the region and to promote investment and tourism opportunities for the ACT economy. The participants for the Mission will be drawn from businesses and institutions with expertise in knowledge intensive business services, projects and infrastructure, tourism and ICT services.

Progressing direct flights from Singapore to Canberra will be high on the Minister’s agenda and he will also further the strong links Canberra educational institutions have with Singapore by representing the ACT at an ANU Alumni event and a Rugby 10’s tournament involving the Canberra University ACT Brumbies as well as commemorating the opening of the Singapore National Stadium.

The timing of the mission will also coincide with CommunicAsia 2014, which is Asia’s largest integrated ICT event serving the business needs of the ICT industry. It provides an integrated platform where executives from the ICT industry can network, create new business opportunities and help shape industry trends. In 2013, CommunicAsia attracted 25,698 trade visitors from 95 countries and there were 1324 exhibiting companies from 49 countries. CommunicAsia 2014 is held in conjunction with BroadcastAsia 2014, Asia’s leading digital multimedia and entertainment technology platform. It is likely that some Canberra ICT exporters will exhibit in the trade show.

ACT Government funding via TradeConnect may be available for companies interested in participating in the mission. There will also be predeparture briefings, market updates and networking opportunities with other participants prior to the mission.

If you are interested in participating in this trade mission, please contact me at larry.fisher@canberrabusinesscouncil.com.au or call (02) 6247 4199.

B2B M AGA ZIN E

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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