B2B Magazine Issue 121 November 2016

121 NOVEMBER 2016

COVER STORY (p.19)

MTAA Super:

Revved for success Convergence Australia 2017 Don't miss this change management conference (p.11)

STRATTON DISRUPTS THE NOVATEDÂ LEASING INDUSTRY It's all about transparency (p.12)

How healthy is your medical practice?

RSM can book you in for a check-up (p.14)

B2BMAGAZINE.COM.AU

P/ 6279 4200 www.aulichcivillaw.com.au

Preserving wealth, values and wishes.

• Wills • Testamentary Trust Wills • Guardianship guidelines • Self-Managed Superannuation Nominations • Enduring Power of Attorneys • Superannuation Binding Death Benefit Nominations • Enduring Power of Attorneys •Advance Care Planning Contact Lisa Barlin, Partner or Erin Taylor, Senior Associate from Aulich Civil Law

lisa@aulichcivillaw.com.au

erin@aulichcivillaw.com.au

CONTENTS

ISSN 1833-8232

19

COVER STORY

MTAA Super: Revved for success

PUBLISHER'S NOTE 5 Viva Vilfredo Pareto!

by Tim Benson SMART BUSINESS TIPS 5 Tools to streamline your business

by Smart Business Guardian UPFRONT 6 DFP Recruitment Services Australia’s first disability confident recruitment company

by PCA people 6 Gillespie Group Welcomes R&D Specialist

by Gillespie Group 8 Recent changes to Enduring Power of Attorney legislation in the ACT: what it means for you

by DDCS Lawyers 8 Drone “free for all”

by Strata Community Australia (ACT) 10 The Campervan and Motorhome Club of Australia (CMCA) has come and gone

by Campervan & Motorhome Club of Australia 10 Canberra training company Wisdom wins national award

by Tim Benson FEATURE 11 Building from the ground up – Convergence Australia 2017 12 stratton disrupts the novated leasing industry with transparency 14 How healthy is your medical practice?

by RSM ADVICE 25 ACCOUNTING Directors urged - be wary of ‘out of the blue’ requests

by RSM 25 BOOKKEEPING What can XERO tell us about leadership? (Part 2)

by Tailored Accounts 4

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BUSINESS LAW Release of guarantees – keeping your security

by Bradly Allen Love Lawyers 26 CASH FLOW SOLUTIONS Act now to avoid a Christmas cash flow crunch

by Fifo Capital 27 CYBER SECURITY Risk and business continuity: compliance or good management

by Cordelta 27 INSOLVENCY Poor practitioners poison the pool

by Vincents chartered accountants 28 INTELECTUAL PROPERTY B2B contracts – unfair contract terms

by Moulis Legal 28 RECRUITMENT Australia's most wanted: knowledge workers in growing demand

by HAYS Recruiting experts worldwide 29 STRATA MANAGEMENT The fine line between “funny” and “frightening”

by Vantage Strata 29 WEBSITES Google vs Facebook advertising

by Synapse Worldwide A2B: ASSOCIATIONS TO BUSINESS 30 Don’t miss the train when it comes to light rail G2B: GOVERNMENT TO BUSINESS 32 Light rail bound for Woden BUSINESS NETWORKING 34 B2B @ SCA (ACT) 2016 Strata Community Awards 35 B2B @ CAPO Auction and Masked Soirée 36 B2B @ RSM Touch of Life Corporate Day 37 B2B @ The Hall Community Ball 38 B2B @ Melbourne Cup Lunch

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EDITOR / PUBLISHER Tim Benson editorial@b2bmagazine.com.au 0402 900 402 02 6112 8175 PUBLISHED BY Man Bites Dog Public Relations ABN 30 932 483 322 PO Box 4106 Ainslie ACT 2602 b2bmagazine.com.au ADVERTISING B2B Magazine advertising@b2bmagazine.com.au 0402 900 402 02 6112 8175 EDITORIAL ASSISTANT Termeh Garmestani termeh@b2bmagazine.com.au 02 6112 8176 DESIGN & PHOTOGRAPHY

Kasra Yousefi kasra.com.au 02 61128195

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, b2bmagazine.com.au misrepresentation or Facebook: @B2BmagazineCBR any other cause.

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PUBLISHER'S NOTE

VIVA VILFREDO PARETO!

W

hy? Well he’s the fella So, in theory, if you can work out the 20 the ‘Pareto principle’ per cent of input that is is named after. And giving you the 80 per cent what is that? I hear you of output you can focus on asking. Well, get ready for some earththat and life will be sweet. shattering news. Known as the ‘law of Ah, if only it was that easy. the vital few’, the ‘principle of factor sparsity’ or the good old ‘80/20 rule’ is best explained as follows: for most things about 80 per cent of the effects come from 20 per cent of the causes. Now, old matey Pareto (economist in the late 19th Century) first observed this in his garden when 80 per cent of his peas came from 20 per cent of his pods. He then researched that 80 per cent of Italy’s land was owned by 20 per cent of the people. Wikipedia also illuminates that a study released in 1992 into the distribution of global wealth showed the richest 20 per cent of people owned 80 per cent of the worlds wealth. So basically the ‘Pareto principle’ can be applied to most things that you do. In business for example: • 80% of problems can be attributed to 20% of causes • 80% of a company's profits come from 20% of its customers • 80% of a company's complaints come from 20% of its customers • 80% of a company's profits come from 20% of the time its staff spent • 80% of a company's revenue comes from 20% of its products • 80% of a company's sales are made by 20% of its sales staff (Living Life the 80/20 Way by Richard Koch).

So, in theory, if you can work out the 20 per cent of input that is giving you the 80 per cent of output you can focus on that and life will be sweet. Ah, if only it was that easy. For example, if you ditch 80 per cent of your clients to focus on the 20 per cent. Then you are putting all your eggs in a few baskets and if you lose a couple to a sneaky fox then that old 80/20 rule is going to bite you in the … Anyway you know what I mean.

Tim Benson, Publisher Send all comments to: editorial@b2bmagazine.com.au

Tools to streamline your business Kristin Miller General Manager Smart Business Guardian One of the biggest challenges of running a business is trying to get through the never-ending list of jobs that need to be done.

Some of these are income producing but many are overhead or administrative related. The advantage of running a modern-day business is the range of excellent tools we have available to assist in streamlining some of these functions.

All business owners should consider new tools that are available.

We have made a few suggestions below to kick start your research.

• Accounting Software –newer online versions being offered by Xero, MYOB, Quickbooks have fantastic new features that will change the way you invoice, collect money, track your expenses, comply with Super and GST reporting.

• Manage your staff – Utilise new online tools for rostering, leave management, time attendance, payroll costing. Check out Deputy or EasyEmployer.

• Social Media Automation – Schedule all your updates by using Hootsuite or Buffer • Keep track of inventory – check out the newer tools that will integrate with your point of sale system and your accounting software. See Vend or Kounta as options.

• Manage Information – compile information to be returned to later in an easily searchable format (so you can clear from your email or desk) by using Evernote.

If you have any other great tools you swear by we would love to hear about them.

(02) 6162 1928 49 Phillip Avenue, Room C205, Watson, ACT 2602 smartbusinessguardian.com

UPFRONT

DFP Recruitment Services - Australia’s first disability confident recruitment company

By Victoria Wray

D

o you have a diverse workforce?

At PCA People we emphasise the inclusiveness and accessibility of opportunities for all people. A diverse workforce is beneficial to all; it offers increased perspectives, creativity, experience and understanding. To support this, in the past seven months, we completed an intensive program with the Australian Network on Disability, building and enabling our resources and consultants to confidently recruit talent from diverse groups, including people with disabilities. We are now Australia’s first labour hire recruitment company to become a Disability Confident Recruiter (DCR)!

Recruiting for the National Disability Insurance Agency (NDIA) prompted our certification. With NDIA growing, we needed to rapidly design programs and initiatives to assist in achieving their recruitment needs. To ensure we were inclusive, “it led us to reflect on our processes and question whether we were demonstrating best practice in all aspects of service delivery” (DFP Chief Operating Officer Kate Coath). Joining the DCR program was a sound strategic decision because we wanted to embed

inclusion practices within our business and daily activities.

So, what does this mean for our candidates and clients?

• Through our teams, processes and systems we provide equitable access, opportunity and participation for our candidates.

• Our commitment to accessibility and inclusivity ensures that every candidate that comes through our door is treated respectfully with equitable and fair practices.

• Our staff can confidently discuss with candidates and clients any adjustments that may be required.

• We can be a reference tool for our clients regarding the recruitment of candidates with disabilities.

Our approach is to make it easy for you to work with us. By creating systems and processes that support our candidates, clients and the DFP team, we build an inclusive culture, managing a wider range of talent and skills.

Since January 2016, we have designed assessment methodologies for multiple selection exercises, created workflows

for several recruitment and selection processes, evaluated thousands of candidate applications, trained assessors and facilitated selection assessments with over 1800 participants. To date, we have made 370 placements, and from this pool 65 placements made of people with a disability.

An inclusive culture is increasingly important. Approximately 20 per cent of Australia’s population has a disability; that’s one in five people (Australian Network on Disability). There is a strong business case for inclusive practices. Are you a disability confident business? Let us help you with your disability confident recruiting.

Victoria Wray Senior Consultant, Accounting and Finance

T: (02) 6257 1010 http://www.pcapeople.com.au/

Gillespie Group Welcomes R&D Specialist

By Yvonne Varela

I

’m really enjoying working back in public practice at the Gillespie Group after a six year period working with Defence Housing Australia (DHA) as their Taxation Manager.

Prior to this I spent a little over 10 years in public practice with firms such as PKF in both their Sydney and Canberra offices working in areas of financial accounting, auditing and tax accounting. My clients were from a wide array of industries including Not-forProfits, primary producers, construction and property developers, R&D enterprises and SME’s. I have recently added a Diploma in Financial Planning to my belt and I’m ready for the next challenge.

It was awesome to have the opportunity to work with DHA, one of Australia’s largest award winning land and property developers. During my time with DHA the then General Manager of Finance and I managed to expand the single-bodied 6

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number punching role into a considerable in-house Tax and Compliance team. This included expanding into Research and Development tax incentives on some of the unique property development challenges that DHA often needed to overcome.

Many of these developments won multiple industry awards for innovation and sustainability.

However, after six years, I missed the hands on interaction with my clients and the joy of celebrating their business successes or lending a hand when needed.

I am looking forward to the challenges that lie ahead and the excitement of the ever growing team at the Gillespie Group. Being part of the Gillespie team not only allows me to take part in helping businesses, such as those within the property industry, but to also provide a more unique and meaningful service experience. I am able to assist clients across multiple industries with navigating

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around their eligibility for the Research and Development tax incentives scheme, where they otherwise thought it was too hard or ‘not for them’ and forfeiting a possible 43.5% refundable tax offset (if their aggregated turnover is less than $20 million). This includes the property sector that is finding it hard to access better quality land for development or perhaps an existing company that finds itself having to D-I-Y a special-make of equipment to allow the business to function because the equipment doesn’t exist for purchase.

So… its back to work, but this time at Gillespie Group to share in my clients stories and future once again.

Phone: 02 6260 4994 68-70 Dundas Court Phillip ACT 2606 gillespiegroup.com.au

David Campbell

Coach, Speaker, Trainer and Celebrant

Call today 0413 602 459 david@ddkcampbell.com.au www.ddkcampbell.com.au

My passion is to support businesses/ entrepreneurs who are seeking to achieve their best.

As a John Maxwell certified coach, I can offer you workshops, seminars, keynote speaking, and coaching, aiding your personal and professional growth through study and practical application of John Maxwell’s proven leadership methods.

Working together, I will move you and/or your team or organisation in the desired direction to reach your goals.

My Services are not bound by location, I am capable of reaching any organisation anywhere.

I am also an authorised Celebrant in the Canberra region. My background

as a retired Naval Officer provides a unique understanding of ceremony and celebration. I enjoy working with couples as they prepare for or continue in their marriage.

David Campbell

UPFRONT

Recent changes to Enduring Power of Attorney legislation in the ACT: what it means for you

By Rehana Richard

S

ignificant changes to Enduring Powers of Attorney in the ACT came into effect on 1 September 2016. Whether you have an existing Enduring Power of Attorney or are thinking of making an Enduring Power of Attorney, the changes may have an impact on you.

When creating an Enduring Power of Attorney, a person is able to authorise their chosen attorneys to make decisions on their behalf in relation to: a. Property and financial matters; b. Personal care matters; and c. Health care matters.

From September 2016, Enduring Powers of Attorney can now authorise attorneys to make decisions in relation to medical research matters. This may involve ‘low-risk research’ and ‘medical research’ approved by a human research ethics committee. Prior to 1 September 2016, attorneys did not have this power in the ACT. The policy objective behind the amendments is to enable people with impaired decision-making to receive

potentially beneficial treatment that was not otherwise available to them and to assist health researchers to develop innovative treatments.

‘Low-risk research’ includes any nonintrusive examinations of a person for research purposes and ‘medical research’ includes receiving treatment under a clinical trial.

There are a number of safeguards and strict processes in the legislation to ensure decisions about participation in medical research adhere to particular standards and to avoid potential abuse by attorneys. If there is any doubt about an attorney’s decision in relation to medical research matters, the law allows an ‘interested person’ (eg. a relative) to apply to the ACAT for a review of the attorney’s decision.

If you have made an Enduring Power of Attorney prior to 1 September 2016 authorising your attorneys to act on your behalf in relation to health care matters - that power extends to decisions in relation to medical research matters. You do not need to update your existing Enduring Power of Attorney unless you would like to specifically

exclude an attorney from consenting to your participation in low-risk research or medical research or if you wish to include particular conditions or limitations on their power to do so.

DDCS Lawyers can provide advice about existing Enduring Powers of Attorney or help you prepare an Enduring Power of Attorney which specifies your wishes in relation to decisions about medical research matters. Please contact DDCS Lawyers on (02) 6212 7600 or estates@ddcslawyers.com.au.

Rehana Richard is a Lawyer of the firm.

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

Drone “free for all”

By Chris Miller

T

he peak body for apartment and unit owners in the ACT is wary of a potential drone “free for all” in the wake of recent moves to relax laws and forego licenses for some users.

Apartment and unit blocks (strata communities) now house over 7 million Australians, and the peak body representing owners in this space want the laws to be properly explained, before the gift giving season, which is likely to see drones join the long list of toys sought after this year.

use in strata communities, but recreational use around them is the core concern here.

“Drones could mean big savings for strata communities nationwide when Chris Miller, President of Strata checking on things like window safety Community Australia (ACT) and structural

“Paired with the right guidelines and education, drones have the potential to monitor and maintain these high density areas at a more efficient level than can be achieved at the moment and we support that wholeheartedly.”

“For a growing number of families in the ACT, balconies rather than backyards are the place they go to relax and we do not want to see recent law changes mistakenly prompt a surge in ‘air traffic’ around strata communities,” Strata Community Australia (ACT) President Chris Miller said today.

Mr Miller says SCA sees the brilliant potential that drones possess for functional 8

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integrity storeys above the ground.”

“Paired with the right guidelines and education, drones have the potential to monitor and maintain these high density areas at a more efficient level than can be achieved at the moment and we support that wholeheartedly.”

“But whilst the Civil Aviation Safety Authority (CASA) has done a good job to

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ensure drone use is restricted in populous areas, the fact remains that consumers see this technology as a toy, and more effort must be put in to properly communicating why it’s important they are used lawfully.”

Mr Miller says the more concerning aspects involve the safety and privacy of strata property owners, both of which will be flouted if a dedicated campaign isn’t initiated.

“Collisions in mid-air, drones whizzing past occupied balconies and even drones being used to look through windows and spy on building occupants are some of the things that have been addressed in law by the CASA, but it’s time they were properly communicated to the public,” Mr Miller concluded.

Editor Note: Mr Miller is ACT President of Strata Community Australia

P +02 6100 9950 M +0400 376 208 stratacommunity.org.au

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Call us for a free 1-hour consultation.

Start Making Smart Investments Suite 4, 3 Hall Street, Lyneham ACT 2602 contact@scarlettfinancial.com.au 02 6193 2670 www.scarlettfinancial.com.au

Increase your financial security and success by minimising tax, boosting your returns and building purpose into financial decisions.

WEALTH | PROPERTY | FINANCE | RISK

UPFRONT

The Campervan and Motorhome Club of Australia (CMCA) has come and gone

By Cathy Lee, Canberra Rally Manager

I

t was 12 months in the planning, many were in the region for 5 weeks and the Rally ran for 7 days. That was the CMCA’s 31st National Rally held at EPIC from 8 – 14 October 2016. The 240 strong Volunteer team warmly welcomed over 1300 people in 720 vehicles to an unseasonal cold and wet Canberra. Registrations were well down, due to flooding and dangerous roads around the country. The Rally attendees rugged up and set about enjoying what the rally had to offer and the National Capital.

A free off-peak Action bus pass proved to be very popular, by providing the opportunity to explore the City, visit the National buildings and Canberra tourist sites and spread the money around. Obvious by our CMCA name badge and rally ribbons, bus drivers gave directions and locals shared their wealth of knowledge and interesting information on their city. Every day we ran a bus to and from the Dickson shops, so people could stock up on essential supplies.

We shopped, hired and purchased everything we could, locally. Our financial contribution to the Canberra economy will essentially be around $2million.

Local Entertainers were showcased during the week with a wonderful Entertainment Programme that included the Woden Valley Youth Choir, Leg’s Dance Studio, Blamey Street Big Band, the Old 45’s, Smooth Ops and Second Movement.

Several donations to local organisations were made during the rally week. $3300 was donated to Clare Holland House, $2250 was raised for the Snowy Hydro Southcare and 62 rugs and various other craft items, including baby booties, beanies and

x-ray bags were donated to the Canberra Hospital Foundation.

Many local businesses supported the rally and the CMCA would like to thank the Tradies Group, Barlens Hire, the ACT Government, Beyond Bank, Switched on Cycles, Peter Funnell Entertainment, O’Brien Smash Repairs, Blackhawk Logistics, National Zoo and Aquarium, Cockington Green, Hire a Guide, DogsACT, Balloons Aloft, Hertz Mitchell, Golf Cars Canberra and Scooters & Mobility.

Thanks Canberra for making the CMCA so welcome.

For more information on CMCA visit website www. cmca.net.au or call 02 4978 8788.

Canberra training company Wisdom wins national award

By Tim Benson

W

isdom Learning, a Canberrabased Registered Training Organisation was recently recognised as the ‘2016 Service Champion – Small Business’ at the, Customer Service Institute of Australia’s, Service Excellence Awards held in Melbourne.

Wisdom’s CEO Rod Hattch and Director Jana Clyde were honoured to accept the award.

Since commencing operation in 2002, Wisdom has been widely recognised in education and business however this award has significant meaning for the organisation.

“Excellence and service has underpinned Wisdom’s success and it is great to have this external recognition validating our standards of service against an international benchmark,” Rod said.

“Other important elements to our success are client satisfaction and repeat business.

This external recognition is icing on the cake.”

The reward criteria is the International Customer Service Standard (ICSS:2015-2020).

This is the benchmark for service excellence for Australia and around the world.

Rod says that he is also very proud that the development of the ICSS was an initiative of 10

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the International Council of Customer Service Organisations led by the Customer Service Institute of Australia.

This award reflects the quality of businesses in the ACT and that many of them compete and win, against other companies throughout Australia and internationally.

“We want to thank our clients, customers and suppliers that partner with us to enable us to deliver this great service. Of course, the achievement of this award is also down to our great team of people who consistently aim to deliver Wisdom WOW! Moments for our customers,” Rod said proudly.

“It really reflects our team’s passion and continued commitment to creating exceptional customer experiences,” Jana said.

The Customer Service Institute of Australia received a record number of nominations this year including organisations such as American Express Australia Limited, Boost Juice, Virgin Mobile, Defence Housing Australia and SunSuper.

“We are truly honoured and very excited to be acknowledged nationally for this award.

It will set a new benchmark for us to try and achieve next year for the benefit of our customers,” Jana concluded.

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Background Wisdom Learning is an award winning Registered Training Organisation known and respected for its high standard, high quality learning, facilitation and consulting services. Providing innovative and effective learning and development solutions since 2002, Wisdom offers over thirty nationally recognised qualifications to professionals, apprentices and learners alike across a range of functions: business services, leadership and management, innovation and change, training and education, property services and real estate.

+61 2 62578588 info@wisdomlearning.com.au www.wisdomlearning.com.au

F E AT U R E

Building from the ground up – Convergence Australia 2017

‘

Convergence – Optimising your organisational change’ is back in Canberra on 7 -9 March 2017 at the National Museum of Australia. Attracting over 40 national speakers across the 3-day event, Convergence is bringing people to Canberra to have a conversation on change management. With an ideas marketplace, a digital showcase, 5 streams of masterclasses, and 3 full-day workshops, the event is the brainchild of Redgrass Communications founder, Sonia Irwin.

“I am really excited about where Convergence 2017 is headed. What started as a pilot event on change management in 2016 is quickly evolving into something much larger than I had anticipated. The demand by speakers to come to Canberra and talk about change management has been intense, and we are fielding sponsorship enquiries,” said Sonia Irwin.

When Sonia was creating Convergence 2016, she was working with Virginia

15 years. I was frustrated in seeing the same problems being repeated. I’d just finished a contract and felt I had to draw a line in the sand”.

“Convergence had been on my mind for a while. I was hunting around for more education on change management. There are a lot of training organisations, offering different methodologies around change.”

Sonia was also studying a Masters in environmental science at ANU Crawford School at the time. She was fascinated why climate change was not getting the traction needed and the resistance to the change.

It was in a semester about the Paris CoP21 treaties, that Sonia had her ‘A-ha’ moment’.

“I realised that I could affect real change by helping others get better at change management. What was missing for me was the nexus point, the ability to have a conversation about how to optimise change with a people focus. Convergence was born out of an intense desire to create a

“I am really excited about where Convergence 2017 is headed. What started as a pilot event on change management in 2016 is quickly evolving into something much larger than I had anticipated. The demand by speakers to come to Canberra and talk about change management has been intense, and we are fielding sponsorship enquiries” Haussegger, ABC TV’s award-winning TV news journalist. During the initial panel briefing session, Virginia was intrigued about how Sonia had managed to convince 25 speakers to come on board.

“Virginia asked me why was I doing this?

As a communicator, I’d been involved with government change programmes for over

conversation and a community to share some of the best practice thinking in Australasia and beyond about change management.

Whether it’s a large-social change like climate, or the introduction of a new IT system in an organisation, the challenges we face as humans are the same. It’s more than just survival, it’s about self-actualisation,” Sonia explained.

Photo: Richard Tuffin

Change management as a profession is undergoing its own revolution. The industry is seeing a range of new approaches that include research from neuroscience in how our brain works, new capability assessment tools such as the Change Capability Model from Deakin University and Change Synergy(formally ChangeFirst Australia), to new IT solutions on how to manage change from innovative companies such as Ralleo.

“We have really exceeded our own expectations on speakers and presenters at Convergence. We open on day one with renowned futurist Tim Longhurst talking about disruption trends, and close with professional speaker and previous Royal Australian Navy Commodore and Director General Military Strategy, Martin Brooker who will talk about courage under fire. With the range of master classes, leading edge thinkers, and professional speakers, I think Convergence is offering something innovative to our participants.

“The nice thing is I also get to encourage people to come to my hometown, Canberra, and enjoy the Enlighten festival and Night Noodle Markets. I’m very focused on sourcing local suppliers for Convergence, and it’s been wonderful identifying small businesses that can help me build this idea,” Sonia concluded.

Convergence Australia 2017 opens ticket sales in December 2016. If you would like more information or to be involved, please email info@redgrass.com.au

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F E AT U R E

stratton disrupts the novated leasing industry with transparency stratton.com.au, Australia’s largest consumer vehicle and asset finance broker, has today launched a disruptive play at the salary packaging and novated leasing industry, introducing a new product initiative that promises real benefits to employers and drivers alike and much needed transparency.

S

tratton, which is majority owned

by ASX 100 carsales.com Ltd, will be offering full disclosure of all components such as vehicle price and interest rates with its novated leasing product; items which are commonly not disclosed by other novated companies in a sector that is completely unregulated and offers only limited protection to consumers.

Rob Chaloner, founder and CEO at stratton, says, “stratton intends to disrupt this industry where three major players currently exist. These companies have the oligopoly and they’re commonly making exorbitant margins from novated vehicle packaging; it’s unfair to employers and novated drivers, aka employees, alike”.

“We’re going to change this and act differently. As Australia’s largest consumer vehicle finance broker we intend to use our scale to bring real benefit and transparency to employers and novated vehicle drivers by

– a benefit that should flow to the employee as intended – often results in the employer becoming rightly suspicious and thus not wanting to participate.

“This is unfortunate, as packaging a vehicle is a great way for hard-working Australians to benefit greatly from this legitimate opportunity,” said Chaloner.

Additionally, novated leases are classified as a commercial finance product even though end users are consumers. stratton believes the end user should dictate protections and receive full disclosure and transparency like that of a consumer loan. As such, stratton has introduced protocols to ensure customers receive the same level of disclosure as they would be entitled to under the National Consumer Credit Protection Act (NCCP).

Packaging providers obtain large fleet discounts on vehicles, but rarely are they passed on to the customer. stratton will be leveraging its online car-purchasing platform carconnect.com.au to supply vehicles and pass on 100 per cent of the discounts received. The only charge is a fully transparent service fee of 1 per cent of the vehicle price.

By comparison, a fleet discount is commonly 10 per cent of the vehicle price, which is often pocketed by novated packaging companies and while the driver is

“stratton intends to disrupt this industry where three major players currently exist. These companies have the oligopoly and they’re commonly making exorbitant margins from novated vehicle packaging; it’s unfair to employers and novated drivers, aka employees, alike.”

Rob Chaloner, founder and CEO, stratton

shaking things up with transparent behaviour and investment in innovative technology,” said Chaloner.

Currently, novated leasing in Australia is supplied by three major companies who have an oligopoly on the industry.

“This is a major issue for employers who are tempted to provide this pre-tax employee benefit, however the lack of transparency and large profits being made from the tax benefit 12

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charged a retail price of the vehicle.

“We’re operating independently of industry practice and behaving as though the industry is regulated – because this product should be totally transparent to consumers.

Our quotes will fully disclose the purchase price of the vehicle leased, the total financed amount and the interest rate.

“Current practice uses complex quotes that are difficult to understand, contracts that

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do not offer full disclosure of vehicle prices or interest rates and all too often poor customer service that sometimes doesn’t communicate how much customers are actually borrowing.

Industry operators are under no legal obligation to disclose items such as interest rates and the true cost of vehicles – something which Chaloner says is, “utterly deceiving, because as a result it means there is a complete lack of transparency.

“We have many examples where our quotes for a vehicle package are hundreds of dollars cheaper per month compared with the competition, which we pass on to our clients,” said Chaloner.

There’s a common myth associated with salary packaged vehicles that the beneficiaries of a novated lease are well-paid senior and executive level management who gain the true benefit from this salary sacrifice. In reality it’s a different story – with drivers of these vehicles often moderately paid teachers, nurses, government workers and middle

From left to right Justin Jacobs, Rob Chaloner, Mat Walkerden and Damian Hardy. management who use a novated lease to help stretch their pay, and provide a reliable safe vehicle to their families.

“Consumers often don't know how much they have borrowed, yet it is justified by a novated packaging company because it is deemed a pre-tax salary benefit. In truth, the novated packaging provider is the one who sees the true benefit, not the novated driver.

“Regardless of the fact the sector is unregulated, we don’t want to see major companies continuing to take advantage of consumers and pocket the cost and tax savings that should be passed on to them. We want to make leasing fair to consumers, who are the end users,” said Chaloner.

With powerful weapons in its armoury such as transparent practice, industry innovation and state of the art technology, stratton continues to disrupt an industry of

‘minimal choice’ to truly walk the talk of their business and values.

ASPIA recently questioned whether stratton was a disruptor in the Sydney Morning Herald1 – saying to consumers, “we will let you decide”. stratton would also like consumers to decide this. stratton remains at the forefront of innovation because of its different way of thinking, speedy adoption of new technologies, and ensuring it continues to provide exceptional deals and unrivalled service to its customers.

About stratton: stratton is Australia's largest asset finance broker, providing finance for cars, commercial and leisure vehicles, business equipment and a large range of other products to over 10,000 customers each year.

Since the company's inception in 1998, stratton has experienced rapid growth across the country and now employs over 200 people nationally. The company’s success has largely been driven by its focus on technology and personalised customer service.

With over a million visitors per year, www.stratton.com.au is now one of the most highly-used asset finance portals in Australia.

In 2014, stratton joined CarSales, Australia’s largest classifieds network.

For more information please visit www.stratton.com.au.

For more information on stratton’s novated leasing product, please visit www.stratton.com.au/novatedleasing or call 1300 242 280

2016, Sydney Morning Herald, Novated leasing market criticised for withholding true costs from customers, Accessed 27 October, http://www.smh.com.au/business/ consumer-affairs/novated-leasing-market-criticised-for-withholding-true-costs-from-customers-20161025-gsabea.html 1

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F E AT U R E

Photography: Kasra Yousefi

How healthy is your medical practice?

By Sally Colquhoun and James Campbell

“There are two certainties – death and taxes. As a medical practitioner you help your patients delay one of these. As accountants, we can help you manage the other. ”

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he highly skilled professionals working within medical and allied health sectors are an essential part of our lives. Each year, particularly being parents of busy and active children, we each spend many hours visiting the doctor, physiotherapist, chiropractor, dentist, orthodontist….the list goes on. As medical professionals, you look after us and our families.

But how well do you look after your business?

Working in this sector comes with its own set of unique challenges. For practice owners, these challenges are even greater. Juggling patient care and the needs of a business in a demanding marketplace can be stressful, but it doesn’t have to be. With the right business strategy, operational efficiencies and structure in place, coupled with advisers you can trust to assist when needed, you can be confident that your business will stay on track while you keep your attention where it needs to be – on us, your patients.

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Business strength now, to survive an uncertain future The health sector and Medicare is currently facing significant reform – but when those reforms will happen, and what they will entail, is not yet known. This uncertainty translates into stress for health practitioners.

How can you run your practice if you are uncertain of the future?

The only thing a business owner can plan for, is change. To ensure your business has the strength and resilience to adapt, and in fact thrive, in a changing environment requires a strong practice model. Ensuring your business has quality programs, systems and processes within a flexible structure will provide your business the operational capacity and flexibility to adapt to a changing marketplace.

The health of your business is like your own health – a healthy and strong body and mind now, may offer a better outcome when facing a medical challenge in the future.

We can aid your practice by working with

F E AT U R E you on strengthening your practice model through our expert analysis, advice and implementation.

It may also be that you would prefer to leave the financial management to the specialists – RSM. There are opportunities to outsource elements of your business operations from bookkeeping to tax compliance, financial reporting, and even as far as a full outsourced CFO function. We can cater for all of your needs.

Keeping your practice in shape – periodic business check-ups If you feel prepared for the future ahead of you, that’s fantastic. But it’s always good to check in every once in a while to make sure your practice is operating as smoothly as it should be. No different from an annual visit to the dentist and doctor. Over time, the systems and processes in any business can become less efficient, and tax and other financial obligations may need to be reviewed.

Our periodic practice health checks ensure that your practice is in tip-top shape, as well as identifying any new opportunities that may have come along.

Our review would consider a number of aspects of your business including people, processes, and technology.

Your business’s backbone financial systems and processes One aspect of business which is constantly evolving is the financial systems and processes that are available. Without robust systems and processes that operate efficiently, a business will lack stability – like a patient with a weak spine. Some of the key questions that we may ask in a check-up include: • Can your current accounting processes and systems cope with increased complexity of transactions?

• How much manual labour is required to produce financial reports?

• Can you better use automation, cloud accounting software and applications to streamline the current processes?

• Does your current system provide real time, useful information that will actually enable you to actively manage your business throughout the year?

• Can your system facilitate measurable KPIs and budgets then report your businesses actual performance against those?

• Does your current system provide cash flow management tools that ensure you always have enough cash to run your business and meet your obligations?

You may find that what you believed was a great way of doing business can be vastly improved by making better use of technology and expertise.

Staying out of harm’s way - tax compliance

“The only thing a business owner can plan for, is change. To ensure your business has the strength and resilience to adapt, and in fact thrive, in a changing environment requires a strong practice model.”

There are two certainties – death and taxes. As a medical practitioner you help your patients delay one of these. As accountants, we can help you manage the other. You are likely well aware of your tax reporting deadlines. However, due to the complexities of the tax laws, it is best to refer to the specialists when determining your tax position. We are experts in managing your tax obligations and in ensuring you are achieving the best outcomes possible.

Another key aspect to our business check-up would be to review how your current structure is used from a tax minimisation perspective. The Australian Taxation Office (‘ATO’) released guidelines on their expectations around the allocation of how profits from the business structure of a professional practice, such as a medical practice, are carried on through a partnership, trust or company. Reviewing your business’s flow of profits against these guidelines is important to ensure your practice is considered by the ATO, to be a low risk of breaching the anti-avoidance provisions contained within the tax laws. This reduces the chance of ATO audit activity, which, if it does occur, can be a real distraction from otherwise maintaining a healthy business.

Using superfood to enhance health - tax opportunities Tax does not always have to be a compliance burden. There is also a Federal Government incentive for companies undertaking eligible research and development (‘R&D’) activities. In some circumstances this program can provide a 45% refundable tax credit. So for $100k spent on eligible R&D, companies can claim up to $45k cash back in the income tax return, adding a very healthy boost to your company’s cash flow.

You may wonder how this incentive can be applied in the medical industry.

R&D activities can not only relate to activities such as trialling drugs and developing new medical devices or technology, but can also relate to the B2B M AGA Z I N E.CO M . AU

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F E AT U R E

“There are opportunities to outsource elements of your business operations from bookkeeping to tax compliance, financial reporting, and even as far as a full outsourced CFO function. We can cater for all of your needs.” development of innovative software; apps; developing, trialling new or improved medical equipment or procedures (e.g. IVF, Invisalign); as well as new weight loss or illness-related online dietary packages (e.g. diabetes) where scientific research has been v undertaken.

If your business is investing in the future of healthcare and is trying something new or different, there may be an opportunity to make a claim.

Taking your practice from strength to strength So, your business is now healthy and thriving? You’ve had your business check-up and we have discussed the next steps. There are two paths – continue on the current journey of maintaining your business or grow it into something more.

Taking your business into new markets; inviting new partners; or expanding your service offering is exciting. However, it can be overwhelming and scary at the same time. The key to success through this phase is to plan effectively and implement efficiently. This is not a task that should be undertaken without the right help. You wouldn’t try to provide a patient with care outside of your speciality, would you? Likewise, we recommend you seek the right expertise when commencing on a new business venture to give both the new venture and your existing business the best chance of survival.

Throughout the growth journey there are a number of issues to consider, including: • Protecting your assets – you’ve worked hard to build up your practice, and the process of change can cause instability. By ensuring your assets are properly protected, you can be confident in moving forward with changes to your business.

• Legal and financial requirements –The transition to any growth plan can be a big undertaking. It can also introduce new legal and financial obligations of which you should be aware. It may be that you need to change the legal structure of the business; negotiate new lease agreements; implement remuneration policies; you may have new or changed registration requirements; and of course there may be tax consequences. Each of these needs to be considered, understood and planned for.

• Valuing your business – knowing the monetary value of your business gives you a good idea of your future direction. Ensuring your practice is professionally valued gives you a solid idea of where you are in the market, and the confidence you need to make decisions.

• Planning for the future – you’re expanding your practice now, but how will this look in the long-term? Do you have a strategy in place to make sure your plans unfold as smoothly as possible? Having a clear projection of your practice in the long term enables you to make confident decisions.

“Due to the complexities of the tax laws, it is best to refer to the specialists when determining your tax position. We are experts in managing your tax obligations and in ensuring you are achieving the best outcomes possible.”

Preparing for the worst We can’t control the future. Therefore, part of ensuring the ongoing health of your practice is to protect both the business revenue and your personal income from life’s unavoidable pitfalls.

Think of this as your insurance policy. Your insurance policy should include a variety of tools such as partnership and shareholder agreements as well as actual insurance policies (income protection, life and key man insurance). A key component of being prepared for the worst, is having a succession plan for your business. This plan outlines how you can exit from your business either in retirement or should something happen to you. It ensures that the business is viable and healthy even when you are no longer working in it.

As a medical and allied health professional you look after your patients health needs. As patients, we rely on your expert opinion and trust that you will do the right thing for our health.

At RSM we can help you continue to provide exceptional care by offering our support and expertise in business. If you would like RSM to help look after the health of your business, please contact us and our team.

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If you have any questions around any of the issues raised here, please do not hesitate to contact James Campbell at RSM Australia, on james.campbell@rsm.com.au or 02 6217 0306.

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COVER STORY

COVER STORY

MTAA Super: revved for success

Photography: Kasra Yousefi

A lot of things have changed since we visited MTAA Super back in 2015, not least of which is its refurbished Brisbane Avenue headquarters.

T

he 26-year old Fund has been on a transformative course since 2011 that has seen investment performance accelerate into Top 10 league tables and a number of awards being won in recognition of its achievements.

For the financial year 2015/16, MTAA Super achieved: • 4th place ranking for rolling one and three-year investment returns for its MySuper balanced option.

• 4th and 8th place ranking for its default pension option for rolling one and three-year rolling periods.

(Source: SuperRatings’ SR 50 Fund Crediting Rate Survey for June 2016)

Leeanne Turner, who has been CEO of MTAA Super since 2011 is incredibly proud of the MTAA Super team and its ability to adapt to internal change while also managing

and responding to an unprecedented level of external industry change.

MTAA Super has repositioned for its next chapter with a new five-year Strategic Plan that broadens its focus and maintains a commitment to deliver a quality service to members. Inroads have already been made with the transition in late 2015 to a new superannuation administrator, AAS – a move that has resulted in significantly improved platform capability.

More recently, the Strategic Plan has been brought to life with a full scale rebrand that has left no corner of MTAA Super untouched – except the name, which the membership, acknowledging the 25+ year heritage in the motor industry, voiced loudly, should remain.

With a five-year strategic plan in place, the MTAA Super team felt the time was right to reposition the Fund for its next chapter.

Vision, values and culture Much of the change has stemmed from the Fund’s brand blueprint including its vision to be the most inspiring superannuation fund in Australia.

“The new blueprint helped drive some much needed clarity on our vision, mission, values and proposition. It was also instrumental in setting the stage for a larger conversation with our staff around what they would like to see in terms of a workplace culture and setting,” Ms Turner explained.

Out of this has come a completely redesigned office space that facilitates collaboration and teamwork.

Through the brand blueprint, MTAA Super recognised that the right visual identity in the largely homogenous superannuation category could also help it better connect with members who might not be interested in their super just yet. So the team, took on the task of refreshing the Fund’s look and feel.

Well-known Sydney based agency Hulsbosch was engaged to help bring the transformation to life.

“The team at Hulsbosch have been instrumental in helping us achieve the change we wanted. Their 30+ years of expertise enabling some of Australia’s biggest brands to navigate the complex rebranding process across multiple stakeholders was an important driver of our decision to partner with them,” Ms Turner said.

What followed was a deep dive into the superannuation category and a series of discovery sessions with key stakeholders at all levels.

“The 3-week long discovery process allowed us to uncover some important truths about the superannuation landscape. One of the biggest affirmations was the fact that communications, both visual and written across the super space were quite uninspiring in terms of look and tone.”

A few months and many focus groups later, MTAA Super arrived at its first visible transformation - a new logo and striking new colour palette. The change has been well received by members and employers alike who consider that it reflects fresh and energetic optimism.

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“We must never lose sight of the fact that we exist to help and serve members.

In a sector with a high rate of apathy, ensuring our communications are as transparent and easy to understand as possible is critical in building trust with our member base.”

Leeanne Turner, MTAA Super CEO

Back to basics Hulsbosch branding agency director Jaid Hulsbosch echoes, “We broke from brand elements of the past such as the old imagery, colours, copy writing and typography and found ways to make MTAA Super unique and stand apart in its industry.”

Resolved that the new MTAA Super had to be more than just a ‘cosmetic’ overhaul, Ms Turner championed the need for the Fund to get back to basics and adopt a more direct and easy to understand tone in all its communications.

“We must never lose sight of the fact that we exist to help and serve members. In a sector with a high rate of apathy, ensuring our communications are as transparent and easy to understand as possible is critical in building trust with our member base,” Ms Turner outlined.

To this end the Fund’s Marketing, Communications and Digital teams together with six external design, digital, advertising and media agencies set out to deliver best practice design thinking strategies to effectively respond to member communication needs.

Focused on members While MTAA Super’s heritage is with the motor industry, close to a third of its members are from outside the industry.

“It’s important that we acknowledge our evolving membership and project an image that stretches beyond motor, one that is inclusive, connected and embodies our spirit of ‘community and mateship’,” Ms Turner shared.

The new tri-colour palette resulted from a new information architecture based on our target audience. And a number of other visual devices including iconography and typography were created to help bring the logo to life.

The member focus has also been highlighted with a brand new image library that showcases real members and employers of the Fund, many featured in their everyday work settings. Employing high impact black and white styling complemented with ‘real member stories’ and testimonials, the team at MTAA Super has been hard at work on energetic new campaigns to win both the hearts and minds of members.

And the rebrand didn’t stop with communication material, MTAA Super also rolled out a new device responsive website that has been designed to be as user friendly as possible and based on member feedback.

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Back in the spotlight

New space, new start

Earlier this year, MTAA Super, established a partnership with Triple Eight Race Engineering to sponsor TeamVortex, its newest team headed by Craig Lowndes.

“Craig has been a great ambassador for the sport over the past twenty years and truly represents the Fund’s values of integrity, entrepreneurial spirit and community. Further, by leveraging Craig’s broad appeal beyond motorsport, MTAA Super builds greater awareness and strikes a strong emotional connection with existing as well as new members,” Ms Turner explained.

After eight years off-air, MTAA Super returned to the spotlight with its new advertising campaign at the Summer Olympics. The “It’s our choice campaign” features Lowndes in 30 second and 15 second TV spots, radio advertising, digital display banners and outdoor billboards.

Last but not least, is that refurbished office space on the third floor of MTAA House in Barton. The spacious, light filled open plan environment has been universally met with excitement by its staff and Trustee Board.

The new office design incorporates features gleaned from staff input including a large, modern staff breakout area, a collaborative new office floor plan, incorporating quiet rooms and multifunctional meeting and a revitalised green outdoor space.

With its energetic new look and renewed strategic focus, the team at MTAA Super is ready for anything “I am really proud of the team,” says Ms. Turner. “We are an industry fund, so everything we do is for the benefit of our members. That is understood by everyone at MTAA Super, from the Board and throughout the organisation.

Culturally that’s terrific.”

She believes that the success of MTAA Super is driven by having a culture where people are passionate about new ideas and ways to benefit the fund and its members.

If the last few years are any indication of what’s to come for the Fund and its 50-strong team, the next few years will definitely be one to watch.

MTAA Super was established in 1989 and has 26 years’ experience in mvvanaging members’ retirement savings. As of 30 June 2016, MTAA Super had $9.2 billion in funds under management and has approximately 250,000 members.

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Craig Lowndes, TeamVortex

The # 1 choice of Team Vortex and 40,000 other businesses Make it Yours

10/16

1300 362 415 mtaasuper.com.au

This document is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty. Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specific needs or personal situation.

You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.

ADVICE ACCOUNTING

25

Directors urged - be wary of ‘out of the blue’ requests

BOOKKEEPING

25

What can XERO tell us about leadership? (Part 2)

BUSINESS LAW

26

Release of guarantees – keeping your security

CASH FLOW SOLUTIONS

26

Act now to avoid a Christmas cash flow crunch

27

Risk and business continuity: compliance or good management

INSOLVENCY 27

Poor practitioners poison the pool

INTELLECTUAL PROPERTY 28

B2B contracts – unfair contract terms

RECRUITMENT

28

Australia's most wanted: knowledge workers in growing demand

STRATA MANAGEMENT

29

The fine line between “funny” and “frightening”

WEBSITES

29

Google vs Facebook advertising

CYBER SECURITY

by Jonathon Colbran, RSM

by Fuzuki Nishimura, CPA, Tailored Accounts

by Mark Love, Bradley Allen Love Lawyers

by Jane Lombard, Fifo Capital

by Baden McMaster, Cordelta

by Tony Lane, Vincents Chartered Accountants

by Shaun Creighton, Moulis Legal

by Jim Roy, Hays Recruitment Experts Worldwide

by Chris Miller, Vantage Strata

by Sam Gupta, Synapse Worldwide

ACCOUNTING

by Jonathon Colbran

Directors urged - be wary of ‘out of the blue’ requests

BOOKKEEPING

by Fuzuki Nishimura, CPA

What can XERO tell us about leadership? (Part 2)

ASIC has recently written to company directors highlighting the need for caution when contacted “out of the blue” by advisers seeking to assist them in cases of financial distress.

Notices of winding up applications are readily available for public inspection. A number of organisations distribute daily lists of such Notices to professional (and other) contacts.

A Notice of winding up application is usually an indication The ATO and ASIC have recently that the relevant company may be in some form of financial distress. conducted raids on 13 businesses There are consequentially a number of professional (and other and residences across the not-so-professional) advisers who country in a bid to crack down will be keen to offer their advice and services to the directors of on those “pre-insolvency” firms that company. It is apparent that a small number of these advisers who have allegedly encouraged are suggesting actions which may be considered illegal. These actions phoenix activities, tax avoidance can lead to serious consequences and GST evasion. for directors including large fines or imprisonment. Warning signs of potentially bad advice include: • Offering “the impossible” • Suggesting the transfer of business or assets to another company without adequate payment • Reluctance to provide their advice in writing • Indications that they have access to a “friendly” liquidator • Suggesting the destruction of books and records or withholding them from an appointed liquidator ASIC is attempting to identify these advisers and the liquidators to whom work is referred and has asked that directors notify them if they are contacted.

In the meantime, ASIC has also written to registered liquidators noting their concerns against cold-calling directors in such situations and requesting that evidence of any misconduct be reported to ASIC. Clearly directors who believe their companies may be in financial distress should consider contacting a qualified practitioner as soon as possible.

However, cold-calls from “self-proclaimed specialists” can result in directors not receiving the best advice for their circumstances.

The ATO and ASIC have recently conducted raids on 13 businesses and residences across the country in a bid to crack down on those “preinsolvency” firms who have allegedly encouraged phoenix activities, tax avoidance and GST evasion.

In view of ASIC’s growing concerns in this area we suggest that creditors (including secured creditors) should be on the lookout for appointments made immediately prior to the hearing of the winding up application and consider whether such an appointment is appropriate.

XERO entered Australian accounting software market seven years ago. They used to be a boutique-sized business; however, they brought a disruptive innovation that has changed the landscape of accounting industry. Software used to be installed in our computers; and Many of our clients love XERO accounting data were handled mostly offline from our desktops.

When XERO came out, we just loved because it is highly customised it. It allows us to access data from to their business needs. multiple devices. Our clients could now enjoy seeing financial reports from their mobile devices.

Many of our clients love XERO because it is highly customised to their business needs. A grocery owner, who has been our client for more than four years, shared with me that XERO was the best software to handle hundreds of transactions and still As for us accountants, XERO is able to generate real-time report. an user-oriented software. We That is the reason clients choose to subscribe and stay using XERO could vote for changes, posting for long term.

Another user mentioned about our ideas, and sharing our the highly secured XERO account thoughts in the community of information. Confidential data is protected with security feature. This experts. Tailored Accounts posted increases the user confidence in converting into cloud accounting. ideas, and some of them have As for us accountants, XERO is an user-oriented software. We could been realised. vote for changes, posting our ideas, and sharing our thoughts in the community of experts. Tailored Accounts posted ideas, and some of them have been realised. XERO takes user feedback seriously with an open mind for change. Therefore, they could bring new ideas to the industry to leverage the strength of our innovation eco-system.

As an emerging software product, XERO still has room for improvement.

However, XERO has always aimed for better outcomes. XERO open source software could enable companies to develop add-ons. There are more than five hundred add-ons currently to reduce manual work. XERO was good, has been good, and will be great in the future.

Tailored Accounts team attended to XEROCON SOUTH, which was one of the best conferences in our industry. I am impressed and inspired by the philanthropic thoughts of XERO leaders. XERO team was able to show us the leadership for a new era of cloud accounting. Tailored Accounts team and I are willing to help you know more about XERO system and become a part of the change.

If you have any questions around any of the issues raised here, please do not hesitate to contact Jonathon Colbran, Partner at RSM Australia, on Jonathon.colbran@rsm.com.au or 02 6217 0341

Fuzuki Nishimura is the Team Leader at Tailored Accounts “The Accounts Department of Small and Medium Business” www.tailoredaccounts.com.au

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BUSINESS LAW

CASH FLOW SOLUTIONS

by Mark Love

Release of guarantees – keeping your security

Act now to avoid a Christmas cash flow crunch

Guarantees form a fundamental part of many loan contracts; for most lenders, having one or more guarantors for the borrower’s obligations under the contract is essential, as it provides additional security for their loan.

However, there are several issues to consider where a borrower defaults and you attempt to enforce the guarantee, especially in circumstances where you may only get payment from some guarantors, not all.

As a lender, you must be careful to ensure that a release of one guarantor doesn’t release them all. It is a common occurrence; a borrower under a loan agreement has defaulted and repayment is being sought from multiple guarantors. But what happens where some of the guarantors go bankrupt and cannot pay? Can It is a common occurrence; a you negotiate repayment from borrower under a loan agreement the others separately, without releasing all? has defaulted and repayment The law in this area is quite strict: any variation to an original is being sought from multiple loan agreement (where that guarantors. But what happens variation is not unsubstantial or is prejudicial to the guarantor), where some of the guarantors made without the consent of all guarantors, can have the effect of go bankrupt and cannot pay? releasing all. Variations can include extending the time the borrower has to pay, increasing the loan amount (even where the guarantor’s liability is limited to the original amount) or releasing a co-guarantor. In essence, if the deal changes, then you risk losing your guarantee.

So what are some strategies to mitigate this risk? It is critically important to draft the initial loan contract in relation to the guarantee properly, as this can have a great bearing on how matters pan out in the future.

To avoid the above risks, the guarantee should be drafted to provide for the following: 1. The guarantor acknowledges that the lender may act as though the guarantor was the principal debtor; 2. The guarantor waives all rights (such as the right of rescission) that they would usually hold as guarantor; and 3. The guarantor provides consent to future variations of the original agreement (though this does require some specification as to the variations that can occur).

However, we advise that even in circumstances where the agreement provides for all these, it is still best practice to obtain consent from all guarantors at the time of the variation, to ensure that the guarantee is not released.

It is of vital importance when drafting contracts containing guarantees that these potential issues are taken into account and provided for in the original agreement.

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

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by Jane Lombard

The Christmas period for small businesses seems to lead to cash flow problems. From there, things can go from bad to worse, seeing a rise in insolvencies in the New Year, typically in February. To avoid these cash flow shortages, small businesses should start to plan for the cash flow crunch now.

The Christmas shut down period sees the normal cycle of cash collection cease. For small businesses, many invoices are not chased for payment resulting in reduced cash coming in, which can have knock on effects on the business further disrupting cash flow.

The following tips could help you combat the cash flow crunch.

1. Securing working capital & ensuring receiving the maximum turnover...

Cash flow problems are always an issue. As a small business, your focus must be on securing your working capital and ensuring you are achieving the maximum turnover.

2. You also need to be wary of any customer concentration risk...

This is a situation where an individual customer equates to 30%, 40% or even 50% of total revenue. Concentrating revenue with one particular account is especially dangerous. Christmas time is unfortunately the most likely period for a large account to miss a payment cycle.

3. The key to combating this period is mid to long-term budget preparation...

A small or start up business in particular, because of its low turnover is initially susceptible to severe cash flow problems. The ease with which start-ups can fall into a cash flow crisis sees the need for them to be ever more vigilant and ever more prepared.

Most small businesses and start-ups are living hand to mouth, not looking further than the next week or next paid invoice. Try to avoid this by preparing a plan to combat any cash flow problems.

4. Preparing a rolling 13-week cash flow...

A good way of predicting and reacting to trading and social trends is to prepare a rolling 13-week cash flow. As you are constantly forecasting three months ahead, you should be better equipped to handle the peaks and troughs, and become more adept at recognising any warning signs.

Many of the businesses that fail during their first two years of operation do so out of lack of planning. As many are living hand to mouth, they don’t recognise the trends and thus do not have enough of a buffer to secure themselves during the low periods.

Once you have prepared your rolling 13-week cash flow, small businesses that can identify the lack of funds and will need to secure additional working capital immediately, whilst also considering the need to injecting extra funds into the business through the selling of non-vital assets.

5. Clear communication of your payment expectation with clients…

A further handy tip is to clearly communicate your trading terms with clients prior to the undertaking of a job, particularly well before the Christmas trading period.

P 0408 226 841 E jane.lombard@fifocapital.com PO Box 3269, Weston Creek ACT 2611

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CYBER SECURITY

INSOLVENCY

by Baden McMaster

Risk and business continuity: compliance or good management

by Tony Lane

Poor practitioners poison the pool

Risk management and business continuity planning are often seen by organisations as distractions from their day-to-day business. Many organisations approach these areas as a compliance activity required to meet certain standards, because their clients expect them to have policies and procedures in place, or because senior management have said they The role of risk management need them.

However, approaching risk and business continuity from this is to ensure organisations perspective significantly limits the consider all available information value of these activities. These areas should not be seen as a separate prior to making decisions. activity or corporate overhead, but incorporated into the way in which organisations conduct business on a daily basis.

The role of risk management is to ensure organisations consider all available information prior to making decisions. Rather than relying on assumptions about your operations, or thinking that everything will be ok, effective risk management is really about testing those assumptions and asking, “What if…”. It doesn’t need to be an onerous or time-consuming task, and should be incorporated into normal decision-making processes.

Likewise, business continuity planning is ensuring that when something unplanned happens, organisations are in the best position to continue operating. A common approach to business continuity planning is scenariobased – that is, “if this happens (loss of electricity), then we do this”. Whilst this approach has merit, it limits the planning to what organisations can imagine. A better approach is to break business continuity into three fundamental elements: loss of access (either temporary or permanent) to facilities; loss of staff (including temporary loss, such as where staff stay home due to bushfire risk); and loss of key services (again, either temporary or permanent).

Using this approach, and by identifying multiple possible approaches to dealing with each, organisations can manage a business interruption without the need to try and plan for each individual type of event. This approach also aligns with normal business planning.

If risk management and business continuity are approached in an integrated way, and as part of normal business considerations, then organisations can: • truly identify and understand the risks they face (both internal and external to the organisation); • plan effectively and modify their operations to minimise or remove the impact of risks; • know how they will deal with a business interruption when one occurs (and all organisations suffer business interruptions at some point); and • if caught out by the unexpected, can efficiently and effectively continue to operate.

The Cordelta governance, risk, and compliance team can assist you with positioning your firm to make the most of any eventuality. Contact us for further details.

The recent NSW Supreme Court case, In the matter of Condor Blanco Mines Ltd [2016] NSWSC 1196, once again serves as fair warning to an already wary insolvency profession that the highest standards of independence, neutrality and professionalism are expected of insolvency appointees, and those standards will be enforced by the Courts.

In this case, questions were raised against the appointed Administrator regarding the basis of his appointment and whether it was proper in all of the circumstances. There soon followed a Court application to have the Administrator removed. In that instance, the Administrator failed to attend to his overarching obligation as an ‘officer of the Court’ to maintain a neutral position and assist the Court in resolving the questions regarding his appointment. Predictably perhaps, the Administrator suffered a substantial adverse costs order.

Practitioners advocating to remain appointed is not new, but an alarming trend has resurfaced that again reflects poorly on insolvency practitioners – the improper use of the Voluntary Administration process to defeat (and indeed worsen) creditors’ positions.

The scenario in which this arises can be explained as follows: • A creditor commences Court winding up proceedings against a Company; • The Company engages an insolvency practitioner to discuss options (noting that the voluntary appointment of a liquidator is no longer available in these circumstances); • The insolvency practitioner advises that a Voluntary Administration remains the ‘only’ course of action to ward off (read: allow that practitioner to get in before the Court appointed one) the creditor’s application.

This is not an improper course to adopt if the Company’s business is capable of being reorganised under Part 5.3A of the Corporations Act 2001.

However, in most circumstances the eleventh-hour appointment of an Administrator, in the face of a winding up application, is simply a liquidation by proxy, as: • The Company’s business activities have ceased; • The Company’s employees have been terminated; • The Company’s assets have been sold, transferred or put beyond the reach of creditors; and • There is simply no possibility of reorganising (read: resurrecting) the affairs of the Company with a view to providing creditors a better return than a winding up.

Why is this approach objectionable? It unnecessarily increases costs and reduces returns to creditors by introducing an entirely redundant regime as a precursor to the inevitable liquidation. It is also an abuse of process.

Advisors receiving such an approach from an insolvency practitioner would be wise to act with caution.

Baden McMaster, Executive Level 1, 72 Dundas Ct T 02 6162 4112 | security@cordelta.com

Tony Lane is a Registered and Official Liquidator at Vincents Chartered Accountants.

For more information, contact Vincents on (02) 6274 3402 www.vincents.com.au

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INTELLECTUAL PROPERTY

RECRUITMENT

by Shaun Creighton

B2B contracts – unfair contract terms If you are reading this B2B article, it is likely you are interested in B2B transactions.

The Australian Consumer Laws (the ACL) protect consumers from unfair contract terms in standard form contracts. With effect from 12 November 2016 these protections will extend to B2B transactions for small business. These extensions will allow for unfair contract terms in small business contracts to be declared void.

These protections will apply to contracts entered into, renewed, or varied, on or after 12 November 2016, and where: i. at least one party is a small business, meaning they employ fewer than 20 people at the time of entering into the contract; ii. the upfront price payable under the contract does not exceed: • $300,000; or • $1,000,000, if the contract is for more than 12 months; and iii. subject to some limitations, the contract is a “standard form” contract.

What is a “standard form contract”?

A standard form contract is generally the same for all customers and is offered on a “take it or leave it” basis, with the party providing the contract generally having the stronger bargaining position.

What is an “unfair term”?

Whether a contract term is “unfair” is ultimately a decision for a Court. In making this assessment, a Court will consider the extent to which the term is transparent, together with the effect of the contract as a whole. A Court may also consider other matters, such as: • would the term cause a significant imbalance in the parties’ rights and obligations arising under the contract. Examples include giving one but not both parties a right to terminate or vary the contract; or • is the term reasonably necessary to protect the legitimate interests of the party that would benefit from its inclusion; or • would the term cause financial or other detriment (e.g. delay) to a small business if it were to be applied, or relied on?

A term might not be considered transparent if it is hidden in the fine print or schedules, or terms that are phrased in overly legal, complex or technical language.

How can we assist?

From 12 November 2016, many standard form contracts will be unenforceable because they are imbalanced towards the party that prepared the contract. Provisions such as warranties, liability caps and indemnities are important risk management tools for business, but may be deemed unfair in a B2B transaction.

Contact Moulis Legal to review your standard term contracts to identify any provisions that may be in breach of the new unfair contract laws. We would be pleased to provide you with a report on the terms that are a problem, how those terms can be amended, and draft alternative provisions that are more likely to be enforceable.

Small business contracts are less likely to be deemed unfair if businesses are prepared to negotiate provisions. Our team can assist in identifying and negotiating contract provisions that are likely to be deemed unfair.

Moulis Legal – Commercial + International Visit or contact us at W: www.moulislegal.com E: shaun.creighton@moulislegal.com T: 02 6163 1000 or 0430 22 78 62

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by Jim Roy

Australia's most wanted: knowledge workers in growing demand The demand for knowledge workers is increasing as employers recruit these highly-skilled professionals to add immediate value and adapt to the rapidly changing and digitising world of work.

Of the new jobs added to the latest Hays Quarterly Report of skills in demand (for October to December 2016), almost all require knowledge workers.

Knowledge workers are candidates who require a large amount of knowledge to succeed in a non-routine role, such as analysts, accountants, architects and lawyers. These professionals are highly educated, skilled and experienced, and use their extensive technical expertise to think of the right solution to the issue at hand.

Layer this with the ever-increasing need for technology and digital skills across a broad spectrum of professions and industries and it’s no wonder the talent pool is tight.

This is supported by findings from the Hays Global Skills Index, which in Australia found that there is a widening talent mismatch between the skills candidates possess and those employers require.

According to the Hays Quarterly Report, knowledge workers in demand at present include the following: • Business Performance Analysts who can develop advanced models are in demand since businesses want to understand where they can create savings and drive efficiencies.

• Systems Accountants are needed too as businesses implement new systems and look for improvements.

• Highly-skilled Financial Accountants and qualified Management Accountants with local experience are in short supply.

• Commercial Analysts are another area of need as companies act to ensure decision makers receive meaningful information and insights into the business.

• Within professional practice, Supervisors and Assistant Managers in business services are needed, with firms viewing quality candidates as potential future Partners.

• Interior Designers with Revit documentation skills and a strong design sensibility are needed.

• So too are Senior Architects who can assist in running a firm while remaining hands-on when it comes to design.

• Engineers with sound technical knowledge who can consult and manage clients are required.

• Corporate and Commercial Lawyers with solid mergers and acquisition backgrounds are also sought.

• Change Analysts are in short supply too. There has been an increase in the number of these roles driven by a desire to manage costs.

• Data Analysts are also sought. A growing reliance on in-house data analytics has driven growth, especially in the government space.

• CRM and Marketing Automation professionals are also in high demand as customers expect the right message at the right time.

For more on the skills in demand, please visit the Hays Quarterly Report at www.hays.com.au/report.

Jim Roy, Regional Director A Level 11, 60 Marcus Clarke Street, Canberra D 02 6112 7663 | E jim.roy@hays.com.au

STRATA MANAGEMENT

WEBSITES

by Chris Miller

The fine line between “funny” and “frightening” If you are anything like me, you appreciate a good yarn about funny / interesting work place incidents. Some industries bear more fruit when it comes to tall tales than others. Strata management is fertile ground in this department.

A colleague of mine from Victoria, Stephen Raff (CEO of Ace Body Corporate Management) has recently published a book on this subject called “Strata living stories, an insider’s guide to the weirdest, wackiest and downright hilarious things residents do!”. My personal favourite involves a resident coring I recently received a a hole between his apartment and the long vacant unit below to create a dual level residence call from a concerned – pure genius.

Contained within the pages of Stephens gentleman who book I found an interesting recurring theme that I identified with in my own experience. informed me that In conversation with other colleagues of the adjacent balcony mine, they also recognised the same issue. For some inexplicable reason, when confronted was… on fire. in an urgent situation, the first reaction of a resident within a strata building is to call their strata manager.

Depending on the situation this can be cause for a mild chuckle, however occasionally it is actually somewhat more alarming. For example, I recently received a call from a concerned gentleman who informed me that the adjacent balcony was…. on fire. You read that correctly.

When I enquired with the caller as to whether they had informed the fire department they responded with an emphatic “well you’re the strata manager; shouldn’t you do that?!”

Let me be abundantly clear in my advice on this point – if you live in an apartment, whether you are an owner or a tenant, when faced with an emergency you are entitled to take reasonable action to respond to the emergency. The example of a fire is pretty clear; you should feel free to make a call to the fire department without first squaring it away with your strata manager. However, other examples of emergencies would include anything that is making the unit unsafe such as sparks coming out of the fuse board, or sewage backing up from the toilet or overflow pipes.

For non-urgent matters you should naturally call your strata manager, and in cases where you deemed it appropriate to directly engage with a service provider, you should attempt to call upon the preferred contractors of the strata management company or your property managers. After that fact you should also make the managers aware of what occurred and what action you took.

As always, the best advice is to apply common sense to each situation. If you keep that in mind you should avoid making it into the second edition of Stephen Raffs catalogue of stories from the world of strata!

For further information, please contact Chris Miller, Managing Director M 0400 376 208 or 1800 878 728 The Griffin, Corner Giles & Jardine Streets, Kingston PO Box 4259, Kingston ACT 2604.

by Sam Gupta

Google vs Facebook advertising Some people say, they have spent money on Google Adwords, but it didn’t work for them or someone tried using Facebook advertising for their business and it did not give them any business. I often come across businesses with such issues and I believe the solution is as simple as understanding the advertising platforms better. So, I have put together this article for those who are interested in getting better results from their Google and Facebook advertising.

• What makes them different? - I am sure we all know, Google is a search engine. Think of it like an interactive version of the old yellow book with wikipedia combined. When people search for products or services, you want to be found on it before your potential customers find someone else. Facebook on vthe other hand is a social media tool - think of it more like a social club. People come to Facebook to engage with their friends and family, they are not really actively looking for a product or service.

• Hot leads vs Cold Calling? - On Google, users are actually searching for someone to help them with their problem. They The best thing about online probably want help sooner than later. So, when you advertise on Google for that marketing is that unlike traditional product or service, it is likely medium, you can fine-tune and to give you more hot leads.

Facebook advertising on the evolve your adverts as you learn other hand is like modern day cold-calling. Your ads are more about your customers. likely to pop-up in between their social life. Although you can customise to target demographics and interests, the customers are not really seeking your help.

• How to advertise? - As you can tell, the target market may be the same, but the functions of the two platforms are very different.

They serve two very different needs. This is why the way you create Google Adwords need to be very different to that of Facebook. You will have to entice potential customers differently to make your advertising effective. The landing page will also play a significant role in boosting your conversions. Take the time to understand what your target market on each platform might be looking for. They may have different needs and priorities. Try different kinds of offers to see what works best.

The best thing about online marketing is that unlike traditional medium, you can fine-tune and evolve your adverts as you learn more about your customers. It may take some time to understand what actually works for your own business. So, don't give up quickly. Be willing to try different versions to find out what works better for you. Generally speaking, for instant hot leads, Google might work better and Facebook is ideal for brand awareness and customer education. In essence, you should use a combination of the two mediums to best promote your business. If you need help, give me a call or drop me a line.

Sam Gupta is the managing director of Synapse Worldwide.

Sam would love to hear your thoughts on this advice column.

Tel: 1300 785 230 Email: admin@synapseworldwide.com Web: www.synapseworldwide.com

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A2B

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

Don’t miss the train when it comes to light rail Robyn Hendry . CEO . Canberra Business Chamber

I

f a business owner were to provide advice to someone thinking about starting their own business, it is likely they would talk about the need to be proactive – you can’t wait for customers to come to you, you have to go out and find them.

The need for businesses to communicate with and attract customers has essentially kept the lights on in the advertising, marketing and public relations sectors for decades.

However, taking the initiative doesn’t always have to mean an expensive campaign,

The supplier’s guide makes it very clear that if a business wants to be in the running for light rail projects, then they have to put their hand up. To date, Canberra Metro has made initial contact with over 250 ACT business and suppliers. it can be as simple as picking up a phone and letting a key potential customer know who you are and what you can do for them.

In the Canberra Region at the moment, businesses who see opportunities associated with light rail are being asked to do just that.

In late August, Canberra Metro; the consortium engaged to design, build, operate and maintain stage one of the light rail network for 20 years; announced plans to release around 75 work packages.Plans are for most tenders to be issued between August 2016 and April 2017, with the majority of subcontractors and suppliers to be appointed by early 2017.

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Since its appointment, Canberra Metro has always committed to source as much as reasonably possible of its suppliers and labour from the local market.

When it announced the upcoming work packages, Canberra Metro also issued a supplier’s guide, which has been developed in conjunction with the Canberra Business Chamber Light Rail Business Link Program.

To download the guide, visit: www. canberrabusiness.com/work-packages/.

The guide outlines the areas where Canberra Metro will be seeking assistance.

The types of goods and services that will be required during construction include: • Facilities support - cleaning, stationery, printing, security, waste • Professional services - environmental, traffic, testing, training, survey, dilapidation, marketing and communications, accounting and creative work • Project wide services • People - labour, staff • Plant - Hire (wet/dry hire) – earthworks, haulage, pumps, cranes • Purchase – hand tools, specialist equipment, PPE, signage, barriers, lighting, geofab, conduits/pits, drainage • Materials - fuel, concrete, reinforcement, aggregates, disposal • Subcontractors – traffic management, decontamination, welding • During construction • Roadworks – kerbing, surfacing, lining, lighting, drainage • Earthworks - bulk in depot and general groundworks • Shot-creting • Building works, depot and stops Once construction is complete, Canberra Metro plans to continue to source from local business and this could include: • Consumable spares – lubricants, cleaning materials, non-specialist tools and hardware items • Civil engineering maintenance • LRV accident repairs – e.g. for spray painting and composite panel repairs • General systems maintenance – such as gardeners, plumber and electricians for • Office supplies – stationary and furniture.

The supplier’s guide calls on local businesses to make themselves known to Canberra Metro so it can make sure they are informed when relevant work packages are

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released. Identified businesses will be asked to tender for work as it becomes available.

These businesses will have up to four weeks to respond to the tender documents.

Once the tenders have been responded to, Canberra Metro will assess all quotes and then award the contract to the successful business. At this point the unsuccessful tender bids will be contacted as well to let them know the outcome.

When picking a successful tenderer, Canberra Metro will consider technical ability, previous experience and performance, safety and quality, compliance, capacity and cost. The Canberra Metro management are strongly emphasizing specific safety elements for consideration, and sometimes these technical elements will take time to adopt or adapt equipment to, so early investigation of this element is encouraged.

The supplier’s guide makes it very clear that if a business wants to be in the running for light rail projects, then they have to put their hand up. To date, Canberra Metro has made initial contact with over 250 ACT business and suppliers.

If your business isn’t one of them and you think you have something to offer you should put your name on the Canberra Business Chamber Suppliers’ Register (see www. canberrabusiness.com). Canberra Metro will be using this to source local suppliers.

Alternatively, you can visit Canberra Metro at 330 Northbourne Avenue, Dickson or send your company profile to get-on-board@canberra-metro.com.au.

Canberra Metro would also like to hear from you if your business has a product or service you think it can use, but isn’t on the list of goods and services expected to be purchased.

It always pays to talk to potential customers, but in terms of light rail you definitely don’t want to be reticent. In this instance a little bit of direct marketing will go a very long way.

Contact the Canberra Business Chamber Team: Phone: 02 6247 4199 Email: info@canberrabusiness.com Web: www.canberrabusiness.com

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CHIEF MINISTER’S MESSAGE

Light rail bound for Woden ANDREW BARR Chief Minister | Treasurer | Minister for Economic Development | Minister for Tourism & Major Events

T “Our population is growing and if we are to avoid becoming gridlocked like Sydney, we need to keep working on building our light rail network now.”

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he re-elected Labor Government will take light rail to Woden via the Parliamentary Triangle.

Work will begin immediately on developing this route, with construction contracts to be signed in the next term of government.

Extending light rail to Woden will create a north-south spine for our public transport network and critically, it will get light rail across the lake. Buses, bikes and walking routes and later stages of light rail will feed into this spine, making it even easier for Canberrans to get where they need to go.

Just as the first stage is about much more than transport and is already revitalising the Northbourne corridor, stage two will continue the renewal of Woden, where the town centre is already benefiting from the ACT Government relocating more than 1000 public servants.

Our population is growing and if we are to avoid becoming gridlocked like Sydney, we need to keep working on building our light rail network now. Our transport plan will improve our public transport system so it becomes more convenient, efficient, affordable and reliable – a genuine alternative to driving.

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Investment in major infrastructure projects also helps drive investment and economic activity into the city. Stage one of the light rail network attracted multinational investment into our city, and will create 3,500 jobs. This investment and job creation will continue with stage two of the network.

The route to Woden is one of five priority stages of the core light rail network, with Gungahlin to the city under construction and extensions to Belconnen, Canberra Airport and further into the Parliamentary Triangle to be built next.

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