B2B Magazine Issue 126 May 2017

126 MAY/JUNE 2017

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ACT government voluntarily opts out of quality recruitment outcomes HorizonOne explains (p.8)

Apis: Positioning for the future

A modern firm with strong leadership

Campbell & Co Lawyers (p.23)

Everything you need to know about SMSFs (p.19) Feature by Gillespie Group PULL-OUT

COVER STORY (p.13)

CONTENTS

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ISSN 1833-8232

COVER STORY Apis: positioning for the future

Photo: Kasra Yousefi

PUBLISHER'S NOTE 3 Am I getting old?

by Tim Benson SMART BUSINESS TIPS 3 Tips to prepare for the EOFY

by Smart Business Guardian UPFRONT 4 Paying your child’s legal fees

by DDCS Lawyers 4 Strata living and management - Developers, Green Field sites and the first two years levies

by Strata Community Australia FEATURE 6 Great outlook for Brady Perspectives

by Brady Perspectives 8 ACT government voluntarily opts out of quality recruitment outcomes

by HorizonOne 10 Is your business ready for the end of financial year?

by RSM 19 Self-managed super fund – but should you manage it yourself?

by Gillespie Group 23 Campbell & Co Lawyers: a modern law firm focused on the future

by Campbell & co. Lawyers ADVICE 27 ACCOUNTING Fringe Benefits Tax spotlight customer loyalty programs

by RSM 27 BOOKKEEPING Time for a change: accounts health check tools for not-for-profit organisations

by Tailored Accounts 28 BUSINESS LAW Preparing to sell your business

by Bradly Allen Love Lawyers 28 CASH FLOW SOLUTIONS Customers and cash flow

by Fifo Capital

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CYBER SECURITY Five simple things you should be doing to improve your online security

by Cordelta 29 INSOLVENCY Parlous attention to payroll procures penalty

by Vincents 30 INTELLECTUAL PROPERTY Unauthorised use of your brand - what are your options?

by Moulis Legal 30 PUBLIC RELATIONS What is Native Advertising?

by Man Bites Dog Public Relations 31 RECRUITMENT Skills in demand for the Fourth Industrial Revolution – are you job-ready?

by HAYS - Recruiting experts worldwide 32 THINK RESULTS Mental wealth

by Dipac & Associates 32 WEBSITES It’s still ‘horses for courses’ online

by Synapse Worldwide A2B: ASSOCIATIONS TO BUSINESS 34 Figures painting a rosy picture not always reflected in reality G2B: GOVERNMENT TO BUSINESS 36 Achieving CBR’s ambition BUSINESS NETWORKING 37 B2B @ Strata Community Australia (ACT) Networking Event 38 B2B @ Canberra Business Chamber 2017 ACT Chief Minister’s State of the Territory Business Address

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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

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, misrepresentation or any other cause.

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PUBLISHER'S NOTE

Am I getting old?

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or the first time in my life, last week I felt old … and I’m only 48. If my body holds out, and medical technology continues to improve, I reckon 90 is not a bad target. So, I’m just past halfway.

Knock out the first 20 years and the last 10 and I reckon on a productive life of about 60 years. Therefore, by my calculations, I have just more than half (32 years) of a potential working life to go. So, why did I feel old last week?

Well, let me explain. I was working on a committee with a group of people who had an average age, I would guess at, less than 30. These people were all more qualified than me in the subject matter we were dealing with. The things they didn’t have were 1. Manners and 2. Experience. The only way you can get these two essential qualities is ‘experience over time’. OMG, I felt old. I shocked myself. I was doubting myself. Should I be doing this? Am I too old for this? Should I be leaving these things to the younger generation? After mulling this over for a few days. I reflected on my father and my father’s father. My father is in his mid-seventies and stopped working as a consultant in his early seventies. He ‘retired’ at 54 and nine months and thought that was his lot. He got bored and not soon after went back to work in the public service as a consultant, and did so for another, almost, 20 years. Now, I can understand why he retired at 55. His father was an old man in his 60s and died in his late 60s. On the other hand, whilst an extremely grumpy bugger, my father is still going strong in his mid-70s. So, I reckon, ‘insha'Allah’, I will live to at least 90 years, working till I’m at least 80. So, thank you, young rude person, for making me realise what a long and productive career I have ahead of me.

OMG, I felt old. I shocked myself. I was doubting myself. Should I be doing this? Am I too old for this? Should I be leaving these things to the younger generation?

Tips to prepare for the EOFY Kristin Miller General Manager Smart Business Guardian

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an you believe we are almost at the end of another financial year? While this may be of interest to those in the financial sector most business owners really don't care that much. Saying that, there are a few things you should pay attention to at this time, such as: • Update your records: Use a proper record keeping system to capture your invoices and expenses.

• Deductible expenses: Are there any bills you need to pay for that you could then claim this financial year? For example, repairs and maintenance, paying superannuation for employees for the June quarter prior to the end of year etc.

• Bad debts: Review all your debtors and identify if there are any bad debts to write off • Tax Planning. Meet with your accountant before the end of June to review your accounts and implement any advice prior to the end of the year.

If you need any assistance in getting your accounts in order please feel free to contact us.

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

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

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UPFRONT

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By Alison Osmand

aving to represent yourself in family law litigation is a very difficult thing to do. Many couples are simply not in a position to resolve their disputes via the mediation process or by agreement, and find themselves involved in litigation about the division of their assets and also the parenting arrangements for their children. They often find it difficult to raise the necessary funds to either commence or continue this litigation. This sees them turning to others for assistance.

There has been an increase in the number of parents and in some cases grandparents, who are utilising their retirement savings and the equity in their homes to assist adult children to fund legal proceedings after a separation.

The person who is funding the litigation may not fully understand what is happening throughout the Court process nor have a short, medium or long-term estimate of fees for their child’s case. This can understandably create a great amount of stress.

As your child’s lawyer cannot speak to you without their authority, it is wise to obtain an authority to speak to their lawyer so that you can have an understanding of the process and fees. It is also beneficial to ask the lawyer for regular estimates of the likely costs of the case. In some circumstances, it may be appropriate for you and your child to both sign a fee agreement with the law firm.

It is very important that you keep detailed records of the amount of money you have provided to your child for their legal fees. You should also consider whether or not you intend this to be a gift to your child or whether it is a loan they need to repay. If it is a loan, it is vital to document when the money is to be paid back and under

what terms. When money is being advanced for the payment of legal fees, it is extremely important for the Court to understand and have regard to a loan that is repayable and that there is documentation to establish that the debt is repayable.

If for some reason you do not require your child to repay the money immediately or in the near future, you may see this as part of your estate planning issues. This is especially important if the expectation is that the child who had their legal fees paid will receive less from your estate than their siblings because of the assistance you gave to them. In these circumstances, it is crucially important that this is documented as well. Your lawyer will be able to advise how best to do this so that after your death, there is no disagreement between your children about whether the money was a loan or a gift during your lifetime and the expectation on how this would be treated after your death. This may involve revisiting your Will.

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

Strata living and management Developers, Green Field sites and the first two years levies

By Steve Wiebe

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ustralia wide, there are approximately 280,000 complexes, with around 40% of the population currently living in a strata environment. You just need to look around at all the complexes currently being built around Canberra to understand this is only going to increase.

Green Field sites are areas not previously developed, and as for all complexes, the developers have certain legislative responsibilities. In the ACT, the developer is required to disclose in their contracts for sale, their reasonable estimate of the levies for the first 2 years after completion. This often happens even before ground is broken on the development.

The Strata Manager can assist the developer with formulating the expected 2 year budget. Developers can advise the Strata Manager of building common property, such as lifts, pools, gyms, and the like. From this, the Manager can then draw on their historic knowledge of other complexes of similar size and nature to develop the budget.

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Often quotes are obtained relative to the requirements to ensure a high degree of accuracy of the estimate.

More often than not, for brand new buildings, the majority of inclusions will be under warranty, so an increase in the second year’s budget is to be expected as warranties cease.

Under the Unit Titles (Management) Act 2011, all Unit Plans above 4 lots are required to have a Sinking Fund in place. This will be allowed for in the budget. After construction of the complex, it is recommended that the Sinking Fund Forecast be completed by a professional quantity surveyor, to ensure that all aspects of the complex are taken into account. Once again, the Strata Manager is able to assist with this process and arrange the Sinking Fund Forecast to ensure that the Owners Corporation complies with the relevant Legislation.

It is important that the estimate of the levies is “reasonable”. Intentionally reducing estimates of levies for the purpose of sales, should be avoided as:

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• Buyers of units can potentially cancel their contracts if an estimate is not reasonable; and • After construction, if levies are significantly higher than originally estimated in the Contract, this can have reputational consequences for the developer and the strata manager alike.

Any Strata Manager associated with the SCA is proficient in being able to assist developers. For a full list of local Strata Managers associated with the SCA, please visit www.stratacommunity.org.au

Steve Wiebe SCA (ACT) Treasurer P: 02 6209 1560

Photo: Christopher Ireland

Paying your child’s legal fees

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F E AT U R E

Great outlook for Brady Perspectives

“The issues where we are confident in engaging with are complex national security issues with multiagency aspects such as counterterrorism, border security and maritime security.”

Photo: Tim Benson

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cott Brady, founder and director of Brady Perspectives, has had a full and interesting career to date, including being an Australian Army Officer, working in intelligence, undertaking two tours of East Timor.

After leaving the Army in 2007, Scott worked for Noetic Corporation, in the United States, working on three big projects for the US Department of Defence, looking at the role of law enforcement in peace and stabilisation, and counterinsurgency.

“The Australian Department of Defence sent me to the Democratic Republic of the Congo to run scenario based exercises for the UN integrated mission there,” Scott said, “The US Department of Defence sent our team to Kosovo for a week, looking at ongoing US law enforcement and criminal justice programs.”

After coming back to Australia in 2011, Scott worked for Noetic in Canberra and then moved to Qinetiq. In late 2016, he established his own consulting business, Brady Perspectives.

So why the move to set up his own business?

“I’d been working in the industry for 10 years. I have good contacts and expertise.

I’ve also defined my own approach to consulting, and can better leverage those skills by

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working for myself,” Scott explained.

Scott says that he defines his role as a ‘problem solving consultant’.

“Our single most powerful attribute is to be able to look at a problem from a different perspective,” Scott said.

“I break down the issues, then put them back together and see if it they make sense. A lot of insight comes out of that process. Many people are too close to their issue and they may also have legacy issues. I deemphasise domain expertise. The client is the expert.

I bring the outsider’s view to the issue,” Scott outlined.

According to Scott, his clients are mainly in the Commonwealth Government.

“The issues where we are confident in engaging with are complex national security issues with multiagency aspects such as counterterrorism, border security and maritime security.

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The more agencies that are likely to be in the mix then the more complex the dynamic is likely to be,” Scott said.

Over the next couple of years Scott would like to build a modest team of consultants who love what they do and have built a reputation for high quality problem solving consulting.

“The main advantage that we have at the moment is ‘small is beautiful’. When you engage Brady Perspectives you are buying our core capability and our devoted attention,” Scott concluded.

Scott Brady Principal Consultant Phone: 0401 769 200 Email: scott@bradyperspectives.com Web: www.bradyperspectives.com

F E AT U R E

ACT government voluntarily opts out of quality recruitment outcomes

By Simon Cox In a move that defies logic, the ACT Government is about to explore how much damage can be done to an employer brand by testing the age old principle of “you pay peanuts – you’re going to get monkeys.” In a ‘forced choice’ procurement exercise described by some in the industry as a ‘process trap’, the ACT Government have unilaterally set labour hire margins at 7.05% effectively forcing those that rely on ACT Government business to either sign up, or risk losing their contractors to other firms on the panel.

The opportunity cost of doing business with the ACT Government through this panel is so extraordinarily high, recruiters will simply avoid referring their best talent. Quality referrals will dry up rapidly.

margin of 7.05% represents less than half that paid by Commonwealth Government panel arrangements, which are already cut price rates.

For a Government crowing about how strongly they support small business, how many SME’s could survive a Government imposed >50% drop in profitability?

7.05% puts professional recruitment services in the same bucket margin-wise as those who supply standard transactional products and services. Given the complexity and challenges involved in sourcing highly skilled contractors, this doesn’t make any commercial sense.

Canberra’s recruitment community is stunned that our local Government would make a unilateral move across most of Canberra’s major labour hire categories. Our region consistently ranks above all other States and Territories on candidate shortages in sectors like ICT, Accounting and Finance, and other specialist professions.

The number days to fill an average ICT contract across Australia is 25 days, whilst in Canberra it takes on average 60 days!!

This is why implementing a scheme like this in the ACT market vs the NSW market is so different. In addition to this uniquely Canberra challenge, attracting talented contractors to the ACT Government is already a challenging task. By compounding this challenge and making it unprofitable for recruiting firms to supply staff, surely the ACT Government will damage their already limited supply of talented professionals?

I will tackle concerns about the ACT Governments bullish approach to the procurement process in a future blog article. I will say for now however that this represents another very clear example of how the ACT Government pays lip service to support local SME’s, whilst behaving completely differently when it comes to managing their own procurement. For another recent example, have a read through recent article by Tim Benson from B2B magazine.

Let me spell out in plain and simple terms how this move will impact the ACT Government’s ability to attract talented contract personnel:

Pay peanuts, get monkeys

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Opportunity cost will drive down quality Like it or not, experienced recruiters make decisions daily on how they prioritise the application of their talent network. Where recruiters send their best people is a multi-faceted decision, but one of the key factors considered is around the client paying appropriate fees.

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Existing contractors will be placed elsewhere Local recruitment firms are already looking at reprioritising their existing ACT Government contractors to employers paying reasonable rates. Whilst nobody will be being overt about this, it is simple economics at work.

Having spoken to a number of experienced recruiters that managed teams on the NSW Government equivalent of this scheme, it sounds as though a number of poor outcomes will prevail when you stiff a recruitment company on margins. These recruitment companies would allocate their lowest performing consultants (read cheapest), and put them in a corner of the engine room where they battle for the bottom rung candidates and fire them at the client till something sticks.

Experienced recruiters, those with the strongest talent networks, avoid engaging with low fee panel work like the plague.

Reputational risk, could this be brand suicide?

As mentioned above, the ACT Government already have distinct challenges when competing with the likes of Federal Government for talent. It is a shame, there are some great jobs in the ACT Government and we often hear positive stories from contractors who enjoy the proximity to ‘real outcomes’ in their work. But in a market driven by recruitment companies, where recruitment consultants are the critical interface for communicating employer brand, what will happen when the middle man feels jilted? That’s right, there will be a ‘pong in the air’ likely to cause a lasting impact on the ACT Government’s employer brand, and this may also impact permanent and non-ongoing talent attraction capability.

In a notoriously candidate short market, talented contractors are highly sensitive to bad press and will favour offers from other employers.

The opportunity cost of doing business with the ACT Government through this panel is so extraordinarily high, recruiters will simply avoid referring their best talent.

F E AT U R E

“Pay peanuts, you’re going to get monkeys” Evidence from recent history predicts pain ahead Below are two examples where similar approaches have run into trouble recently:

Queensland government The Queensland Government went to market with a similar model to ACT and NSW Governments, not with a fixed bargain basement margin, but with a model that failed to appropriately consider how the sector operates. Combined with a messy implementation and a lack of communication with suppliers, the panel quickly ran into trouble. The supply of quality talent to QLD Government reduced markedly. In this instance, through engaging with a strategic working group including industry bodies and improving the process and information sharing, the panel is operating positively and suppliers negotiate commercial terms they can afford to work to.

Department of health and ageing At the end of 2011, just as Canberra was starting to experience its own little GFC (i.e.

Government cut spending, redundancies, recruitment freeze), the Department of Health picked a far more intelligent time to try a low cost panel for contract recruitment.

Trialling a fixed rate model for non-ongoing staff at around 60% of normal rates, these were the results: • Many of the agencies on the panel reduced their level of work with Health, easily transferring their commitment to other clients who were willing to pay proper fees • The panel leaked like a sieve. If hiring managers could demonstrate ‘they tried’ to use the panel, they were able to agree on new commercial rates with anyone they chose.

• Investment in short term personnel through consulting firm panels increased dramatically, at much higher premiums (typically 30%) • Recruitment agencies avoided sending their best talent, and experienced recruiters avoided the Health panel work.

Some of the large multi-national firms eventually setup specialist health panel teams with junior recruiters tasked with flicking CV’s until something stuck.

• Only 1-2 other Commonwealth agencies ‘piggy-backed’ the arrangement, with at least one Department quickly backing out of their commitment once they saw how the panel operated.

The margins are prohibitive for small businesses Companies that are able to exist on tiny margins are typically built for high volume, low value-add labour hire supply. Typically these margins are seen in hospitality, mining and blue collar industries, and construction recruitment where entire teams are hired at once, and often for sustained periods.

Quality focussed, value-add recruitment companies simply cannot turn a profit on these rates unless there is a restricted panel on offer (there isn’t), and a guaranteed volume of work well above what is on offer from the ACT Government.

False economies We all know the ACT Government have a cash problem. But will taking the lion’s share of margin away from a group of suppliers like this really save money?

Advice from a number of very experienced consultant contractors in the commercial procurement space is this approach creates a false economy.

Government agency considering signing on should think very carefully about what this means for their employer brand, and what hidden costs are involved in the change.

However, signing on may become mandatory in the near future. Therefore now is the time for some real public debate. Any form of conversation about this enormous change has so far been strategically avoided by the approach taken with the procurement process for this panel.

Whilst the recruitment industry bodies APSCo and the RCSA are working hard to engage the Government in some eleventh hour lobbying, we are interested to hear from employers, contractors, and all other interested parties.

I would also call on recruitment company leaders to consider very seriously the move of signing up to this agreement, what that might mean for your business and the industry.

Also, if you are unhappy to be treated this way contact your local member, contact ACT Chief Ministers and ACT Procurement, and let them know that you won’t stand for this level of disrespect.

As a recruitment company that seeks to add value to local employers through the quality of our services, and as an SME who do a significant amount of business with ACT Government, HorizonOne won’t be signing on.

The driving down of quality by panels like these will mean it will be harder for ACT Government agencies to ‘do it first time, and do it right’.

Lower quality contractors that deliver a poor service will lead to more failed hires, and value for money quickly disappears. To replace someone after the first hire fails to deliver incurs more cost, and often at an inflated price.

Sourcing talent is a science, not a sales game

Where to from here?

Currently, it is optional for ACT Government agencies to sign up to this agreement. We would recommend any

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

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F E AT U R E

Is your business ready for the end of financial year?

By Sally Colquhoun

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efore you know it, the end of financial year will be here. Is your business ready? Tax is always something to consider as it is a large cost to most businesses. Looking at your business and personal situation in advance of the year end can provide tax planning opportunities. It may be that there is an opportunity to obtain additional tax deductions, defer income, ensure profits are distributed in a tax effective way, or even to restructure your business group.

Some of the things you may like to consider in order to make sure your business is in the best position possible, include:

1. Superannuation - In order to claim a deduction for super

contributions you owe to an employee’s super fund, make sure you pay the super before the due date for each quarter’s payment. You may also like to make sure any super related to the 30 June 2017 quarter is paid before the end of the financial year in order to obtain the deduction this year.

2. Personal superannuation - Like employee super, ensure you pay any personal super contributions you can make prior to 30 June to get a deduction this year. Note that the limit on the total concessional contributions that may be made is $35,000 for those aged 49 years and over and $30,000 for others. From 1 July 2017, this cap will be only $25,000 for everyone regardless of their age. So if you can, you may like to make the most of the chance to top up your superannuation before this changes.

3. Bad debts - Undertake an assessment of the receivables/ debtors in your business. Where there are amounts that are not collectible and therefore have gone bad, write them off prior to 30 June to be eligible for a tax deduction for these amounts. Just remember to also make the GST adjustment for these amounts.

4. Stocktake - Do a 30 June 2017 stocktake to determine the correct value of your closing inventory. Use this to find any obsolete or damaged stock that you are carrying. You can choose to value the stock at the lower of cost, replacement, or market sale price. This means that stock that is obsolete or damaged can be written off or reduced in value for tax purposes and claimed as a deduction.

5. Shareholder loans - Where you have borrowed money from a company you own (or an associate owns) it is important that you consider any impact this may have on your tax position for the year. Where these loans are not treated carefully you may end up with a deemed dividend and some unexpected tax.

6. Trust distributions - If you operate a trust, make sure the trustee decides how the profit will be distributed prior to 30 June and that the trustee documents this decision with an effective trust resolution. This decision is important as it tells the beneficiaries who is presently entitled to the trust income for the 30 June 2017 year. If no beneficiary (including a default beneficiary) is made presently entitled to trust income as at 30 June, the trustee will be assessed on the trust's taxable income at the highest marginal tax rate plus the Medicare levy. In effect

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49% tax may be paid on all of the trust income. In some cases this is much higher than an individual that was made presently entitled would pay.

7. Small business concessions - If you are carrying on a business that meets the definition of a “small business” you may be entitled to certain tax concessions. It is important that you undertake an assessment of whether you qualify for these as they can provide significant advantage to your tax position.

These concessions may include: • $20,000 instant asset write off - For assets that cost less than $20,000, an immediate tax deduction may be taken for the cost of the asset in the year the asset is installed and ready for use. However, the asset needs to be purchased by 30 June 2017 to get the full $20,000. Effective 1 July 2017 the instant asset write off reduces back down to $1,000 per asset.

• Immediate deduction for business start-up costs Where you have incurred professional fees, legal and accounting advice expenses for starting up a business, you may be entitled to an immediate deduction for these expenses.

• Business restructure - From 1 July 2016, small businesses can change the legal structure of their business without incurring any income tax liability when active assets are transferred by one entity to another. If you believe you have outgrown your structure, it may be time to consider whether you can change it without incurring a tax liability.

• Company tax rate - In the 2017 year the tax rate for a company that is considered a small business, has a tax rate of 28.5% rather than the 30% that applies to other companies.

• Prepayments - You may be entitled to an immediate deduction at 30 June 2017 for prepayments that are for a period of 12 months or less where the period ends before the end of the next income year. If you are not a small business entity these expenses would be apportioned over the period to which the expense relates. This may offer significant immediate advantage.

So before 30 June 2017 rolls around, make sure you spend some time with your accountant/tax agent to ensure you are effectively planning your position.

Speak to RSM business and taxation advisor, Sally Colquhoun, should you wish to explore any of these strategies for your business on sally.colquhoun@rsm.com.au or call 02 6217 0323.

For more information, please contact Sally Colquhoun on sally.colquhoun@rsm.com.au or 02 6217 0323

Sally is a chartered accountant with over 13 years' experience in providing clients with accounting and tax services. Specialising in taxation, she has provided both tax compliance and advisory services to clients of all sizes from publicly listed companies to trusts and individuals. She excels in providing valuable insights to clients on complex issues, with an innate ability to connect with people and make the most complex of issues understandable.

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Photo: Kasra Yousefi

Sally Colquhoun Senior Manager – RSM

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COVER STORY

Photography: Kasra Yousefi

Apis: positioning for the future

From left: Lakshman Gunaratnam, Hassan Adhami, Annya Newman, Mike Brennan, Melissa Robbins and David Trabinger

I

t is with great pleasure that Apis announces a number of recent staff promotions to support the growth of its Canberra based professional services team. Apis has operated in the Nation’s capital for over fifteen years, offering specialist services across strategic planning, programme and project management, business and systems analysis, user research, product delivery, change management and complex procurement.

"We are a firm of about 100 professional consultants known for shaping, solving and delivering major transformation initiatives. We take a hands-on approach and together with our government clients, we deliver," says current Partner Anthony Honeyman.

"We have intentionally invested in a series of professional development programs over the last few years, targeting leadership, consulting skills and personal growth for our team, from junior to senior," explains, current Partner, Nigel Nutt.

"Our clients and we are well and truly seeing the benefits of this investment!" One such initiative has been Apis’ highly successful Leadership Program designed in partnership with YellowEdge to focus on our delivery leads and the critical role this group fulfils in providing leadership to the teams on site and to the company in general. "We are a ‘people business'," Nigel goes on to say, "and are always looking for ways to develop our skills and stay current with our government market."

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‘‘The company has provided me the opportunity to work in many different environments.’’

Annya Newman, Principal Consultant

‘‘I like the fact that we are a hands-on delivery team.

We work on site with clients to help shape practical and sustainable solutions.’’

Melissa Robbins, Principal Consultant

‘‘I came to Apis from one of the 'Big Four'.Despite its size difference, Apis offers me similar opportunities to get involved in complex initiatives for large government departments.’’

Lakshman Gunaratnam, Executive Principal Consultant

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As a result of this ongoing investment in people, Apis is very pleased to announce the promotion of Annya Newman and Melissa Robbins to Principal Consultant and Lakshman Gunaratnam and Brendan Roche to Executive Principal Consultant. "All four team members have definitely earned their promotion" says Anthony Honeyman.

"Each has displayed the attributes and behaviours we desire as a company – adaptive, resilient, self-reflective and collegiate.

Each has demonstrated over extended periods, the ability to deliver high quality outcomes, together with their clients."

Annya has been with Apis for six years. In that time she has seen the company more than double in size and expand its services across government.

"The company has provided me the opportunity to work in many different environments. I have thoroughly enjoyed the challenges," Annya notes.

Melissa came to Apis in 2012. She comments, "I like the fact that we are a hands-on delivery team. We work on site with clients to help shape practical and sustainable solutions."

Lakshman and Brendan share similar sentiments. "I came to Apis from one of the 'Big Four'," notes Lakshman. "Despite its size difference, Apis offers me similar opportunities to get involved in complex initiatives for large government departments.

It has also provided me with a level of autonomy and flexibility which I’ve not experienced in the past."

Apis is also thrilled to announce the introduction of three new Partners from within the company – David Trabinger, Hassan Adhami and Michael Brennan – to join Nigel, Anthony and Tim in the Canberra Office. " The introduction of Mike, David and Hassan is a great addition to our leadership team, " says current Partner Tim Ryan. "They share our values and our passion for delivering quality services."

Each of the new Partners brings significant depth of experience in government business, particularly public sector reform in a digital age.

Tim explains, "The extension of the partner ranks for Apis is a reflection of the new and innovative work being undertaken across our Company, particularly in respect of our digital services. The new Apis partners have played a central role in positioning our design centre of excellence and our approach to true user research driven design."

COVER STORY

‘‘I am really excited by the move into the Partner ranks of Apis, particularly at a time of major change and transformation across the public sector. I am especially motivated by the opportunities emerging from the digital disruption agenda and the new approach to design and delivery of government policy and services.’’

David Trabinger, Partner

David Trabinger joined the firm in 2013 after a successful 23 year career in the public service. Much of his time was spent in the senior executive service, leading reforms across a number of social policy areas including health and welfare.

David explains, ‘I had the opportunity to work across some challenging policy and delivery issues and equally I had the chance to work with some fantastic people. However over time I found myself looking for ways where I could apply the experience and knowledge I had gained, both the successes and scars, onto a broader playing field. I was looking for how I could combine measured practical advice with hands-on delivery of outcomes – Apis was the obvious place for me. On joining Apis, I found a group of people motivated to work in true partnership with clients to deliver tangible outcomes. What that means for me is the opportunity to work with some incredibly talented consultants, supporting them with genuine insight about the machinery of government."

measured advice for clients is a highly sought after quality. David also brings a real passion for mentoring and coaching. His talent for guiding and developing our people is a real asset to the company."

David tells us "I am really excited by the move into the Partner ranks of Apis, particularly at a time of major change and transformation across the public sector. I am especially motivated by the opportunities emerging from the digital disruption agenda and the new approach to design and delivery of government policy and services."

Mike Brennan joined Apis in 2012 after 10 years in the UK developing his business design, project / programme management and consulting skills. Mike explains “My whole career has been involved with improving the way organisations operate and perform so when I returned to Australia, it was serendipitous that I came across Apis. It is an agile and progressive management consulting firm focussed on providing independent advice and delivering tangible

“What attracts me to the public sector is the importance of the work – being involved in making positive change for large segments of the population is highly motivating and satisfying.”

Mike Brennan, Partner

Over the past three years David has led a number of major engagements for Apis, including support to the strategic design elements of business transformation within the Welfare Payments Infrastructure Transformation programme for the Department of Human Services and support to the Department of Education and Training through strategic advice and direction on the future ICT strategy.

Nigel says "David brings a complete package of skills, experience and cultural fit to the Apis partnership. His ability to interpret and translate complex policy and delivery issues into well considered and

outcomes for clients. Overwhelmingly however, it is the integrity of the partners, the ethos of the organisation and calibre of the staff that have led me to make Apis my long term home.”

Since joining Apis, Mike has played a central role working with the Departments of Health and Social Services to deliver a number of major reforms in aged care. Mike reflects “What attracts me to the public sector is the importance of the work – being involved in making positive change for large segments of the population is highly motivating and satisfying.” In his time at the Department of Health, Mike has worked seamlessly alongside his APS colleagues to build truly integrated teams and develop the capability of departmental staff along the way. When asked what has contributed to Apis’ productive relationship with the Department, Mike responds, “When Apis accepts a piece of work, we make a commitment to the client to work with B2B M AGA Z I N E.CO M . AU

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‘‘I enjoy applying my knowledge of Government, technology and agile practices to design programmes that deliver outcomes in a way that fits the culture and capability of the client’s team.

Hassan Adhami, Partner

them to achieve an outcome – no matter how hard it gets. In the case of aged care, maintaining team motivation and cohesion has been critical during this complex, multi-year reform, and has been a key ingredient for progressive achievement of successful outcomes.”

Mike has been involved in a number of initiatives with the Digital Transformation Office and Digital Transformation Agency and is a great advocate of the digital revolution, “The DTO disruption in 2015/16 was an essential reminder for all Government Departments about the importance of listening to and understanding the needs of end users when reforming Government services. In aged care, we adapted an agile design process involving hundreds of users to develop critical system improvements. However, for complex reforms, there is no substitute for detailed planning and an integrated approach to design, change, delivery and benefits management.”

On the prospect of becoming a Partner of Apis, Mike enthusiastically responds, “It is a huge honour to be associated with this firm. I am looking forward to continuing to serve our clients across the public sector for many years to come.”

Hassan Adhami joined Apis in 2009 having spent the earlier part of his career providing project management and business design services to Government, predominantly in Canberra but also a short 18-month stint in the Middle East. In reflecting on why he has stayed with Apis for as long as he has, Hassan puts it down to the culture of the company and its people, the importance and national significance of the work they do, and the genuine desire to deliver in a collaborative, outcomes focussed way. "It’s a culture that is driven from the top and one that aligns closely with my views on always acting with integrity and working with people to achieve outcomes.”

Hassan has more than 15 years of experience delivering a range of online services, complex reform and transformation projects for Government. His experience spans the portfolios of Environment, Health, Agriculture, Human Services, Indigenous Affairs, Education and Veterans Affairs. His education in information technology and strong delivery background on a range of digital transformation, online services and ICT initiatives means he can work with and effectively manage multi-disciplinary teams in Agile and traditional delivery environments.

Hassan prefers the use of Agile and scrum delivery methodologies, but understands the challenges and constraints of applying these in a government context. “I enjoy applying my knowledge of Government, technology and agile practices to design programmes that deliver outcomes in a way that fits the culture and capability of the client’s team. All methodology has to be adapted to the context in which it’s applied, Agile is no exception. I’ve used my experiences in this space to help co-author the Apis Agile Delivery Methodology, which has successfully supported our clients in managing public policy delivery 16

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while achieving the benefits of iterative releases supported by ongoing user research.”

From 2012 to 2015 Hassan was programme manager and Apis lead for the Clean Energy Regulator’s implementation of the Carbon Pricing Mechanism and then the Emissions Reduction Fund. This included leading the multi-disciplinary team of Apis, APS, contract and vendor staff to deliver on programme outcomes. "We supported delivery of parallel and dependent projects using different delivery approaches, while also accommodating an international vendor operating in a time zone opposite to ours." Hassan reflects "The challenge was being flexible and adaptable, adopting what we could of good Agile practices, while maintaining effective governance and working to each supplier’s strengths. The fact that Apis works in blended teams, embedded onsite with our clients was a key contributor to the success of the programme. By genuinely creating a delivery environment of trust and collaboration, we were able to fulfil our part as delivery, change and design leads.”

Hassan is grateful for the opportunity to be part of the Apis partnership. He tells us “I’m excited about the challenges ahead for both Apis and our clients and look forward to continuing to partner with Government to deliver on major change and transformation.”

"The ongoing success of our company is built on our people, we are continually striving for the best balance of qualitative and quantifiable skills. We don’t always get it right but Melissa, Lakshman, Brendan, Annya, David, Mike and Hassan are testament to the fact that when we do, the benefits for both Apis and our clients are there for all to see," Nigel concludes.

Apis is a professional services firm specialising in programme / project management, business process design, complex procurement and strategic planning.

4/18 Bentham St, Yarralumla ACT 2600 T: 02 6206 0000 www.apisgroup.com.au

MIN EER 5 Artist’s impression Artist’s impression | MIN EER 5

PULL-OUT

Self-managed super fund – but should you manage it yourself?

Please feel free to remove this feature from the magazine.

By John Gillespie

As the name suggests, a Self Managed Superannuation Fund (SMSF) is one where the members are also the trustees and therefore have the freedom – and the responsibility – to make all of the decisions relating to the fund.

S

Photography: Kasra Yousefi

ome of these decisions include the fund’s investment strategy, the type of retirement planning strategies to undertake, the type of retirement income (pension) to use, the details of the trust deed for the fund, and so on.

In order for any fund to operate efficiently and in accordance with superannuation and tax laws, the sourcing and coordination of various professional services is typically required. These services include accounting, auditing, financial planning, investment advice, legal advice and general administration.

What is the structure of a SMSF? SMSFs can be quite simple or complex depending on the needs of the members.

As you can see, there are a number of aspects to consider when managing an SMSF. Trustees can choose to do a lot of this management themselves or, alternatively, they can engage professional service and product providers to minimise both the burden and the risk.

The first approach has the apparent advantage of minimising costs. However it can be time consuming and potentially risky if the trustees don’t have a strong knowledge of superannuation laws and requirements. It is worth bearing in mind that the penalties for breaching the law can be quite severe.

Engaging specialist service providers can remove a significant component of the management burden as well as greatly reducing the risk of breaching the law.

Typically a specialist SMSF Administrator will provide the transaction processing and accounting services and will source on behalf of the trustees the providers of legal, actuarial, and audit services as required.

Importantly, this allows the trustees to focus on the areas where they really want to have control, for example the investment strategy of the fund.

The following diagram illustrates the sorts of services and products that SMSFs typically employ.

John Gillespie, Director, Gillespie Group

S M S F F E AT U R E

Components of an SMSF Member trustee + non-member trustee

OR

Corporate trustee Sole member Director + (optional) non-member director

If one member only

Provider of legal advice Provider of actuarial services

Provider of SMSF administration Services

Provider of accounting services

Cash • Rollovers • Contributions Asset transfers

OR

Corporate trustee Member directors 2 to 4

If 2 to 4 members

Provider of audit services

These services can be efficiently sourced through a professional SMSF Administrator.

Member trustees 2 to 4

Provider of investment advice

Structure for adding gearing to the Fund

Self Managed Superannuation Fund

Debt Instrument trust

(1 to 4 Members) • Trust deed • Investment strategy • Trustee responsibilities • Pensions • Reports and returns • Compliance

• • • • • •

Cash Hub

Disbursements

Usually Cash Management Account/Trust Fund Investments

Non-standard Investments

Different from SMSF trustees Can be a Corporate trustee Required for limited recourse borrowing Holder of asset as security for the borrowing

Investment platform (optional)

• • • • •

Pensions Lump sums Insurance premiums Fees and charges Taxes

Standard Investments • Separately Managed Account • WRAP • Other

Advice & assistance required This structure needs to be supported by advice on all of the following points: • Suitability of SMSF • Set up of the SMSF • Setting/adjusting the investment strategy • Selecting and placing investments • Estate planning • Personal Risk Insurance In order to provide advice and assistance on these major points the Trustee & Members need accurate & timely reporting once the Self

Managed Superannuation Fund is in operation and that is when the selection of a capable SMSF Administrator becomes very important and how Gillespie Group SMSF Specialist can help you.

Gillespie Group SMSF Specialist service offering Here’s a brief overview of the services and products that Gillespie Group offer to SMSF trustees to assist them in the successful management of their funds:

Administration service SMSF administrators can support trustees by taking care of most of the administration requirements. Broadly, these include: • Fund establishment including the provision of a trust deed, notice of election to become a regulated fund and registration for an Australian Business Number (ABN), Tax File Number (TFN) and Goods and Services Tax (GST) • Compliance administration including

S M S F F E AT U R E providing annual financial and member statements, tax returns and all other necessary reporting to the ATO • Independent audit facilitation • Supplementary services including actuarial certification, calculation of lump sum and pension payments, and trust deed amendments

Cash hub All SMSFs need a cash hub to enable them to manage their cashflow requirements such as the receipt of investment income and payment of fees and taxes.

SMSFs will typically use either a cash management account from a bank or a cash management trust from a financial institution.

These offer: • Online access to facilitate easy reporting and transaction initiation • The ability to give third parties such as the administrator or financial planner access to the account to initiate transactions such as fee or tax payments • The ability to provide the trustee or administrator with data that enables them to meet the administrative and reporting requirements of the fund • The ability to receive direct payment of investment income and facilitate the purchase of assets or the crediting of the proceeds from the sale of assets • A high degree of security

Accounting SMSFs can engage accountants to provide some aspects of the administration requirements including the preparation of financial statements, the preparation of the fund’s tax return, the payment of taxes and GST, and other general administrative duties. Alternatively, a specialist SMSF Administrator can supply these services.

Auditing In addition, the fund must arrange an independent audit each year and must engage an auditor for this purpose.

Investments There is a wide choice of investment options available for trustees to select from in order to meet the investment objective and strategy of their fund.

The most common types of investments are: • Shares and other listed securities • Separately managed accounts–where a share portfolio is constructed and managed for an investor in accordance with instructions from a professional investment manager • Managed funds–covering most asset classes including Australian and international shares, property, alternative assets, fixed interest and cash • Term deposits • Direct property–including business real property, residential, commercial and retail property • Collectables–for example artworks

Anne Steele – Accountant, SMSF Specialist Auditor and registered Superannuation Auditor.

All of these investments can be owned directly by the fund on behalf of the members. However, it is also possible to simplify the management and administration of shares, managed funds, separately managed accounts and even term deposits through an investment platform such as a ‘wrap’ platform.

Holding investments through such a platform simplifies the management and administration of these assets while providing continuous online reporting plus consolidated annual tax statements.

Share brokerage Some trustees prefer to manage their own share portfolio and will use a share broker to facilitate their share trading. This could be a full service broker or online share trading service.

Borrowing An SMSF is able to borrow to invest by using a borrowing arrangement that meets the strict conditions under superannuation law. The actual investment can be anything that the fund can normally invest in, such as shares or property but the trustee must hold the investment through a separate, specialised trust commonly known as a Debt Instrument Trust (or bare trust) and the lender only has recourse to the assets that the trustee borrows against. There is no general recourse available to the lender against the fund itself.

The lender can be a bank, a margin lender, the SMSF trustee or a related party on commercial terms. It is important to set up this structure correctly to ensure that the arrangement is fully compliant with the law.

Legal and estate planning Trustees may need legal services for various reasons, including the drafting of the trust deed of the fund.

Estate planning is also a very important area of retirement planning and is best done with specialist legal advice to ensure that the beneficiaries receive the desired level of benefits with the least amount of cost, tax and legal challenge.

S M S F F E AT U R E

Financial planning Trustees may be confident in designing and implementing their investment strategy, however often they will employ the services of investment professionals to help in this area.

Financial planners can provide important advice to trustees, particularly in relation to:

• Retirement planning strategies that make the most of the tax and other advantages of the superannuation system and help fund members maximise their benefits • Development, implementation and monitoring of the investment strategy of the fund • Calculating the appropriate type and level of risk insurance • Other matters such as a general compliance overview, advising the trustees of the implications of superannuation and tax rule changes and working with other service providers in the interests of the trustees

Insurance SMSFs are able to own insurance plans on behalf of their members to protect them from the worst kind of unexpected events, such as serious injury, illness or death.

The insurance types most applicable to SMSFs are:

• Death – pays a lump sum if a member dies or is diagnosed with a terminal illness and has less than 12 months to live • Total and Permanent Disablement (TPD)- pays a lump sum if a member can no longer work because they become totally and permanently disabled • Income protection–pays a regular income while a member is totally disabled and is unable to work due to illness or injury or partially disabled and, after returning to work, earns less due to illness or injury

Stuart Howard – Financial Planner and SMSF Specialist Advisor

Gillespie Group of SMSF Specialist Advisers There are many providers that can give you advice but you would need to go to a few different businesses to get all the advice you need.

Alternatively you can come to a one-stop-shop, such as the Gillespie Group, where the following team members can assist with all the requirements of your SMSF: • John Gillespie – oversees the whole SMSF Service that we provide. John is a Chartered Accountant, Certified Financial Planner, Accredited Mortgage Consultant and registered Tax Agent.

• Stuart Howard – Financial Planner and SMSF Specialist Advisor after completing a course through Adelaide University. Stuart is a member of the Financial Planning Association and holds a BA Hons Economics degree.

• Anne Steele – Accountant, SMSF Specialist Auditor and registered Superannuation Auditor.

Collectively we have 50 years of experience in the establishment and ongoing management of SMSFs. To see if you can benefit from the extensive range of services we provide, we are happy to offer you a no cost initial meeting to discuss your new or existing SMSF in more detail. As an added incentive, should you decide to employ the Gillespie Group with respect to your fund before 30th September 2017, we are pleased to offer a 15% fee discount to new clients.

How the Gillespie Group SMSF Service can help The number of SMSFs registered in Australia has grown rapidly in recent years as more and more people are attracted to the benefits of managing their own fund.

If you are the trustee of an SMSF or are interested in setting up a SMSF, Gillespie Group is able to offer a number of products and services that can help. These include: Financial planning SMSF administration services Separately managed accounts Managed funds Investment platform Cash management account Term deposits Life insurance Facilitating the provision of other specialist services

PULL-OUT

• • • • • • • • •

Gillespie Finance Directions Pty Ltd ABN 40 122 284 888 AFS and Australian Credit Licence No 478547 Phone 02 6260 4994 Fax 02 6260 4995 Level 1, 68-70 Dundas Court PHILLIP ACT 2606 PO BOX 6126 MAWSON ACT 2607 www.gillespiegroup.com.au

F E AT U R E

Photography: Kasra Yousefi

Campbell & Co Lawyers: a modern law firm focused on the future

From left: Alicia Prest, Barbara Campbell, Paul Salinas and Senzeni Zambezi

The Past

The Future

ounded by Barbara Campbell in 2000, Campbell & Co Lawyers has grown from a one-woman operation to one of Canberra’s most respected local firms, focusing on Wills and Estate Law, Family Law and Dispute Resolution. The firm was initially run from her own home until it outgrew the space. In 2004 the firm amalgamated with Helen Small & Associates.

In 2012 the firm relocated to their current offices in Deakin. While it is a local firm they service clients throughout the region including Batemans Bay, Goulburn and Young.

Clever use of technology means they also have clients from as far away as Austria, the USA, Scotland, Italy and India.

Barbara has been an Accredited Family Law Specialist since 2002 and is passionate about Estate Law. She completed her Masters in Law in Estate Law a couple of years ago to ensure that she was, as with all her staff, ‘ahead of the pack’ in specialist knowledge about this burgeoning area.

Today, Barbara says she has the perfect team comprising of five solicitors, three excellent paralegals and amazing administrative staff who keep the firm running. And it’s this team that formed the plans to move forward. Barbara has proudly announced that three of her team members will be joining in ownership of the firm. The new directors will be Paul Salinas, Senzeni (Zeni) Zambezi and Alicia Prest.

When asked about the decision to incorporate the firm, Barbara said she received offers from various firms locally and nationally who were interested in buying her out. But with the best interest of her staff at heart, knowing this would have huge ramifications for some, Barbara spoke to her team and some expressed interest in buying into the business.

“I feel honoured the team think so much of the firm that they want to be part of it. It is also a really good way to progress a business with ownership by the staff. I

F

have incorporated the firm so that all staff members can if they wish – as did Alicia – buy shares in the firm and have ownership of it,” Barbara said.

Both Zeni and Paul will be appointed formally on 1 July with Alicia becoming a Director next year.

What we do The structure of Campbell & Co Lawyers has an Estate Law and a Family Law team. The Estate Planning and Superannuation team is managed by Paul while the Family Law team will be led by Zeni and Barbara. Barbara specialises in both Wills and Estate areas and hopes to be free to work on the complex Estate and Family Law matters and team work with all her staff as well as continue to grow the dispute resolution side of the firm.

Dispute Resolution As Dispute Resolution Specialists Campbell & Co Lawyers use their skills and experience

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“I feel honoured the team think so much of the firm that they want to be part of it. It is also a really good way to progress a business with ownership by the staff.”

Barbara Campbell, Founder and Principal

Barbara Campbell, Founder and Principal

to explore resolution to all matters first before resorting to court whether it be negotiation, collaborative law, mediation or any other alternative to traditional dispute resolution.

In 2007 Barbara developed Legal Resolution Services whereby senior Family Lawyers, retired Judges and barristers throughout the country were available to evaluatively mediate matters early in proceeding. Barbara was ahead of her time as only now is the idea becoming fully accepted.

Financial abuse of the elderly, misuse of Enduring Powers of Attorney and Will disputes are a growing concern and causing much litigation. As with Family Law, mediating a settlement in Family Provision

Paul Salinas, Senior Associate Lawyer

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Claims is mandatory so that only the most intransigent or difficult matters end in a Court Hearing.

Ensuring that options for settling a dispute where children are involved are first explored, Barbara and Zeni often encourage clients to see an expert Family Psychologist, or other services where appropriate, before hitting the litigation button where there are few winners and the children are the biggest losers.

Barbara explained: “I studied Advanced Mediation at Bond University early this century and have been a qualified Arbitrator since 1997. Arbitration, which ends matters within a few months, with Arbitrators having only 28 days to write their Judgement, is finally being encouraged by Family Court Judges around the country for Family Law Property matters. The region desperately needs dispute resolvers and this is where we want to focus our practice. We are in the position to travel to the regions where we hope to value-add to those legal teams already there.”

“I don’t think pushing people through the Court system is really working. In ten or twenty years, that is not how we are going to be resolving disputes. Chatting with a Judge at a recent conference it was agreed cases need to be triaged and apart from serious cases with risk to children, children’s matters probably do not belong in a Court.

We are going to be resolving them primarily through Dispute Resolution. There is nothing ‘alternative’ about Dispute Resolution any more.

New director Paul agrees that the way to get the best solution for the clients and in the most time efficient way possible is to use alternatives such as collaborative law, mediation or negotiation. Court should be the last solution.

“Nine times out of ten even when we go to Court these things get settled anyway – often on the steps of the Court. Why have

a client spend a fortune and go through the stress of preparing affidavits, applications and everything else, if we know that if the same effort was put in negotiating out of court, as negotiating in Court, you could achieve the same, or better, outcome for the client?” Paul explained. “I have achieved successful out of the box outcomes for clients in the past which you would never get in a litigated process.”

OUR NEW DIRECTORS Paul Paul is an experienced lawyer who grew up locally and has a passion for Estate Planning and Wills. He has a particular interest in tailoring Wills for clients with complex circumstances such as high wealth, blended families or family members with special needs.

In 2016 he was recognised by Doyles Guide as one of the leading Wills and Estates Litigation lawyers in Canberra.

Paul, along with Wills and Estate Planning, is also a recognised expert in Superannuation.

Paul is often contacted by other lawyers to provide expert advice on how to deal with Superannuation in Family Law or Estate Law disputes. He is particularly passionate about Self Managed Super Funds (SMSFs) and is an accredited SMSF Association Specialist Advisor. He is also the community leader for the ACT local community of the SMSF Association. He is often asked to speak at seminars nationally on the interaction between Family Law, Estates and Superannuation. He is looking forward to the challenge of continuing to build on that practice at Campbell & Co Lawyers.

“Why have a client spend a fortune and go through the stress of preparing affidavits, applications and everything else, if we know that if the same effort was put in negotiating out of court, as negotiating in Court, you could achieve the same, or better, outcome for the client?”

Paul Salinas, Senior Associate Lawyer B2B M AGA Z I N E.CO M . AU

F E AT U R E

Zeni Zeni moved to Australia from Zimbabwe in 2004. She studied law and started working as a solicitor in Bunbury. In 2015, she moved to Canberra and started working at Campbell and Co. Lawyers, focusing on Family Law. Like all lawyers in the firm encouraged by Barbara to study to be at the top of their game, Zeni is completing her Masters of Law in Family Law. “Although I settle many Family Law property matters, children’s issues are my passion and what I am concentrating on because that’s where most of the emotions are when it comes to Family Law. Having first-hand knowledge, and having that extra

“As a ‘people person’, what really appeals to me is the human relationship between lawyer and client.”

Alicia Prest, Senior Para-Legal that anything can be achieved with hard work. It’s a good opportunity to inspire these young children and show them it’s not about the colour of your skin, it’s what you are determined to do and you just aim for the stars.”

Alicia Alicia is in her final year of law school (taking out several university medals on the way and completing 1st class Honours).

Having previously worked for Barbara, Alicia returned to Campbell & Co. Lawyers last year after a period as a para-legal in a Federal Government department. She is also a mother of three small boys and is passionate about Family Law. After nearly 10 years working in law, Alicia will continue with the firm next year as a lawyer.

“As a ‘people person’, what really appeals to me is the human relationship between lawyer and client. Campbell & Co Lawyers represent, and more importantly, help, people through some of the most difficult times of their lives,” Alicia explained. “I also appreciate the work-life balance Barbara encourages with all staff members, always permitting time for study and family responsibilities.”

Senzeni Zambezi, Senior Associate Lawyer

“Children’s issues are my passion and what I am concentrating on because that’s where most of the emotions are when it comes to Family Law.” Senzeni Zambezi, Senior Associate Lawyer qualification on top of my law degree, and majoring in that area, makes you a go-to-person because you are aware of where the system is going to take you,” Zeni commented.

Zeni, who speaks Shona and is part of the local African community said: “I am honoured to have been invited to be a Director. It also shows the very large African community, many of whom have come here as refugees,

Alicia Prest, Senior Para-Legal

wonderful team.

“Campbell and Co. Lawyers now belongs to the team. They can take the firm to the moon. After a lot of hard work, I’m looking forward to watching the firm growing and becoming even more of the first stop for those we serve: our clients; who like our team work approach, and the empathetic professional focus on their matter at what is often a very difficult time in a client’s life.”

Barbara concluded.

So, with a rebrand, new directors and new structure, Campbell & Co Lawyers are set for the future.

Take it to the Moon Barb said: “Along with my young team we decided to modernise. I was more than Campbell & Co Lawyers happy to take on the new look with the ideas Suite 1, 1 Phipps Close, Deakin ACT 2600 of the younger members being seminal to PO Box 286, Deakin West ACT 2600 Australia such decisions. Social media, which does need P +61 2 6288 8852 some care in a law practice, is also becoming F +61 2 6161 1634 de rigour. Our website is also being totally E Mail@CampbellCo.com.au revamped with a fresh new look.

W www.CampbellCo.com.au As I wish to step back a little and enjoy my current and future grandchildren and perhaps even complete that PhD that has been a dream, I am delighted to be passing the baton and working with such a homogenous, Campbell & Co Lawyers team hard-working and B2B M AGA Z I N E.CO M . AU

B 2 B I S S U E 12 6

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ADVICE 27

Fringe Benefits Tax spotlight - customer loyalty programs

BOOKKEEPING

27

Time for a change: accounts health check tools for not-for-profit organisations

BUSINESS LAW

28

Preparing to sell your business

CASH FLOW SOLUTIONS

28

Customers and cash flow

29

Five simple things you should be doing to improve your online security

ACCOUNTING

CYBER SECURITY

by Sally Colquhoun, RSM

by Teddy Nam, Tailored Accounts

by Mark Love, Bradley Allen Love Lawyers

by Jane Lombard, Fifo Capital

by Dan Navfield, Cordelta

INSOLVENCY 29

Parlous attention to payroll procures penalty

INTELLECTUAL PROPERTY 30

Unauthorised use of your brand - what are your options?

PUBLIC RELATIONS

30

What is Native Advertising?

RECRUITMENT

31

Skills in demand for the Fourth Industrial Revolution – are you job-ready?

THINK RESULTS

32

Mental wealth

WEBSITES

32

It’s still ‘horses for courses’ online

by Tony Lane, Vincents

by Shaun Creighton, Moulis Legal

by Tim Benson, Man Bites Dog Public Relations

by Jim Roy, Hays Recruitment Experts Worldwide

by Darleen Barton, DIPAC & Associates

by Sam Gupta, Synapse Worldwide

ACCOUNTING

BOOKKEEPING

by Teddy Nam

by Sally Colquhoun

Fringe Benefits Tax spotlight customer loyalty programs

Time for a change: accounts health check tools for not-for-profit organisations

Do you provide employees with a business credit card associated with a customer The ATO has indicated loyalty program?

Are employees able to convert loyalty points that it will be targeting accumulated in connection with the business the use of customer credit card to rewards (e.g. goods, personal flights, holiday accommodation etc.)? loyalty programs.

Do you as an employer use the points accumulated under your business credit card to Employers who fall reward employees (or potential employees) with under the microscope non-cash benefits?

Do any of your employees accumulate may find they are substantial frequent flyer points on a personal frequent flyer program (e.g. Qantas, Virgin) as a left exposed to a result of work related travel? substantial FBT liability.

Are those employees able to convert the points to acquire rewards such as personal flights or to upgrade personal travel from economy to business?

Do you have employees who use their personal credit card to acquire customer loyalty points by paying for business expenditure (which you as an employer reimburse)?

If you answered yes to any of the above, you may find yourself under the scrutiny of ATO for providing FBT to employees.

The ATO has indicated that it will be targeting the use of customer loyalty programs. Employers who fall under the microscope may find they are left exposed to a substantial FBT liability. Employers may even be left holding the bag so to speak, where a former employee converts points to rewards AFTER they leave their current employment.

Don’t be fooled if you think the ATO audit selection criteria is limited to employers who accumulate more than 250,000 loyalty points in an FBT year.

The ATO will also apply the following criteria: • The arrangement has no commercial purpose other than to allow the recipient to receive the rewards they are entitled to; and • The rewards are being received in substitution for income that would otherwise be earned.

If you or your employees accumulate reward points under a customer loyalty program (e.g. credit card or frequent flyer), we strongly recommend that you review the arrangement to ensure that any FBT exposure is minimal.

If you are unsure if the accumulation or use of customer loyalty points by your employees exposes you to an FBT liability, we recommend that your accountant or speak to one of our FBT specialists at RSM for further advice.

At RSM we can help you stay on top of alerts and ensure you are kept up to date.

The Not for Profits (NFP) sector in Australia is considered diverse and large (approximately 600,000 NFPs in 2010 per the Productivity Commission report), contributing to annual revenue over $100 Billion Despite the and representing 8% of the Australia’s workforce opportunities, current (ABS, 2016). With the chief goal of achieving missions beneficial to the public, NFPs are leaders of NFPs are expected to meeta higher standard of public expectations; balancing this with seeking and not ready to capitalise managing funding has been identified as the on this ‘financial greatest problem.

Following the Government policy changes shock’. Grant Thornton regarding grants in the NFP sector, organisations started to experience the impact of increased Financial Literacy competition – diminishing funding and Survey revealed that enhanced accountability requirements.

Specifically, NFPs are expected to convince Board Directors in the funds providers of the value of their mission while ensuring efficiency and stewardship Australian NFP sector of the organisation. This situation creates opportunities for NFPs to manage financials may need to enhance more strategically by reassessing the efficiency financial literacy to of core operations against their budget and demonstrating measurable effectiveness. meet these challenges.

Despite the opportunities, current leaders of NFPs are not ready to capitalise on this ‘financial shock’. Grant Thornton Financial Literacy Survey revealed that Board Directors in the Australian NFP sector may need to enhance financial literacy to meet these challenges. It is thus necessary to focus on efficiency, efficacy and sustainability of organisations through considering collaboration with NFP governance experts.

To overcome emerging challenges, it is time for NFPs to examine their current financial health. Focusing on a wide range of financial adaptation abilities, tools developed by our team can help to evaluate the effectiveness of current budgeting and cash flow management. The 20-point system health check has been a perfect tool for NFPs to assess their readiness for change.

Using our tools, we ensure 1) financial integrity through regular reconciliations; 2) prompt clearance of any outstanding items; 3) close monitoring of liability balances; and 4) review of financial statements.

These quality assurance activities not only provide adequate financial management, but also create integral information for CEOs and Boards through charts and graphs. The Tailored Accounts teamis prepared to assess and closely monitor your organisation’s financial health, delivering useful financial information for your decision-making.

If you have any queries in relation to how FBT impacts on your business, please contact Sally Colquhoun, Senior Manager at RSM Australia, on Sally.Colquhoun@rsm.com.au or 02 6217 0323.

Teddy Nam is the Team Member Accountant at Tailored Accounts “The Accounts Department of Small and Medium Business” www.tailoredaccounts.com.au

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27

BUSINESS LAW

CASH FLOW SOLUTIONS

by Mark Love

Preparing to sell your business

Customers and cash flow

There will come a point when a business owner wishes to realise their investment. Whether for personal or financial reasons there are steps all owners can take to prepare their business for sale; to minimise tax, transactional costs and stress, and maximise the return.

Grooming your business for sale can streamline the sale process. Even if the sale doesn’t proceed, you will have a better understanding of the assets that you hold and allow you to consider alternative succession plans. Below are some fundamental matters to ask yourself when selling your business.

Consider the sale from the buyer’s perspective. If you were going to buy the business what would you want to know?

First, understand what you are selling. This may seem obvious; you’re selling your café, what more is there? Using the café as the example, there are a number of assets that may be included or excluded from the sale: 1. The business name; 2. The premises; the Lease; Grooming your 3. Intellectual property rights; 4. Stock-in-trade; business for sale can 5. Plant and Equipment; and 6. Website and Social Media Accounts. streamline the sale Get a clear asset register, have access to your depreciation register, know what is encumbered, process. Even if the leased or hired. Prepare your Landlord.

Understand these obligations early so you know sale doesn’t proceed, what “hoops” you need to jump through to sell. you will have a better Second, make yourself redundant – the buyer wants to know that the business can understanding of the run effectively without you, otherwise the assets that you hold business’ value is likely wrapped up in your ongoing employment. and allow you to Third, take practical steps now (even if you aren’t sure if you want to sell): consider alternative 1. understand what value your assets have succession plans. (asset registers should include licences and intellectual property rights); 2. document your procedures or policies (manuals about how the business operates will assist the new buyer); 3. update all maintenance registers; 4. maintain a list of your suppliers with copies of the relevant contracts or terms; 5. make sure your accounts and financial statements are up to date (these can provide you and the buyer with a true understanding of the value of the business); and 6. know where you have given personal guarantees.

Be clear that any offer or discussions are “subject to contract” so you aren’t bound by an ill-informed handshake deal. Be careful with all representations you make. Before releasing information, consider a Non-Disclosure Agreement. In this path a business broker can be very instructive.

Finally, seeking financial and legal advice early will assist structure the sale to minimise tax and to create a plan.

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

B2B M AGA Z I N E.CO M . AU

The challenge of late paying customers is one that every business has to deal with at some stage. Typically, there are four types, so read on if you want to find out who you could be dealing with.

1. In their own time The chronic late paying client can be an ongoing challenge. Often it’s the big corporations or government with 90-120 day payment terms that sit in this category and demand to do everything in their own time.

But it can also be a standard customer who just never pays on time and is straight out unreliable. If it’s the former, consider invoice finance as a solution to allow you to get faster access to your cash. If it’s just a lack of reliability then consider a credit check and whether you want Some customers are to avoid doing business with them at all.

2. To be reminded just a bit forgetful, Some customers are just a bit forgetful, especially when it especially when it comes to paying their bills.

It’s not intentional, they just have a lot on their comes to paying plate and you might be struggling to appear on their to-do list. The best way to deal with their bills. It’s not these clients is with constant reminders and a planned campaign of contact to remind them intentional, they just that their bill is due. Consider getting in touch have a lot on their before the due date to start the process early.

3. To be helped plate and you might Unfortunately sometimes businesses hit a financial rough patch and will struggle to pay be struggling to appear their bills. Keep your lines of communication on their to-do list. open with your customers. If you sense this is happening then consider what solutions you can put in place to move them forward with their payment. A great idea might be a payment plan system where they can break the amount due into smaller payments that are more manageable in the short term.

4. To be found?

Some customers disappear when their invoices are due. Whether you call, email, fax or send them a letter by post: you’d be forgiven for thinking they’d disappeared off the face of the planet. Set yourself a time limit and persevere. If they exceed the limit then it’s probably time to call in the professionals and get a debt collection agency to handle the issue.

Late payment can have a big impact on a company’s ability to maintain cash flow levels. Unfortunately it’s likely that every business will encounter it, and that each offending customer will fall into one of the categories outlined above. The best strategy is to be aware of the challenges you could face and put plans in place for dealing with them.

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

CYBER SECURITY

INSOLVENCY

by Dan Navfield

Five simple things you should be doing to improve your online security Most of us are regularly exchanging data over networks with organisations, people and devices. With cyber-attacks becoming more common, strategic and methodologically diverse, I’m amazed by how many people take their online security for granted and don’t implement some very basic cyber security controls. The following are a few simple steps to increase your cyber security.

1. Use a password manager If you can memorise your passwords, they probably aren’t unique enough to be secure. A password manager allows you to generate random alphanumerical strings and then log into websites automatically.

I use 1Password – another example includes KeePass 2 and Dashlane. Keepass 2 allows you to If you can memorise your encrypt your passwords too!

2. Get a VPN passwords, they probably aren’t You should use a virtual private unique enough to be secure. network (VPN) whenever you connect to an unknown Wi-Fi network, or are planning on visiting a site that you don’t want recorded in your browser history.

VPNs provide secure connection over the Internet between users and websites, and encrypt the data exchanged across the connection.

I use IP Vanish VPN – other examples include ExpressVPN and VyprVPN. 3. Install a device tracking service The basic inbuilt services your phone may have are great, but dedicated device tracking products give another level of functionality. You can remotely access your device via data or SMS services to get the location, wipe data, take photos of thieves and notify authorities. Some can also trigger a super loud sound in your house to help you locate your phone under a pile of washing. Note that these services can be used to, well… track your location… so make sure you only pick a reputable service that won’t on-sell your location data.

I use Prey – other examples include Cerberus.

4. Set your social media accounts to private Cyber criminals can learn a lot about you from social media such as where you or your children go to school, where you live or go to work and when you’re on vacation. Identity theft is real, as are many other horrendous crimes that transgress the digital/reality barrier. Setting your accounts to private and only adding or accepting connections from people you know and trust will help protect you.

5. Block website tracking services Most websites are using or have exposure to ‘trackers’ which follow your browsing Web habits and learn about you - usually for targeted advertising.

You can block online tracking by using a few extensions in your browser.

I use Ghostery (and yes, I may have initially chosen it because of its name).

Other examples include Disconnect and Privacy Badger.

The Cordelta security team can assist you with preparing and responding to online attacks. Contact us for further details.

by Tony Lane

Parlous attention to payroll procures penalty Airport lounges, once a haven of the elite and well-heeled travellers, are now most often the province of business types. So, whilst awaiting the departure of a flight recently and patronising such an establishment, I happened across a copy of that revered publication, The Australian Financial Review, open at an article headed “Accountancy firms liable for underpayments”. As an accountant and liquidator, I was naturally intrigued.

What followed in that article was a brief analysis of a recentlyIt’s offence? Wilfully turning a decided Federal Circuit Court case1 in which an accounting/ blind eye to the failings of its bookkeeping firm was found liable for being ‘involved’ in a client to properly pay the wages contravention of the Fair Work Act 2009 (FWA). It’s offence? and entitlements of employees Wilfully turning a blind eye to the failings of its client to properly pay the wages and entitlements of the client’s employees, and thus falling foul of the ‘involvement’ provision of section 550.

Clearly the journalist was not understating the position to call the decision ‘precedent-setting’, if only perhaps for want of a higher jurisdiction.

However, the judgement immediately started me thinking about its application in all matters winding up. For those unfamiliar, section 550 of the FWA is a direct lift of section 79 of the Corporations Act 2001 (CA), which itself sets out the preconditions for a person to be considered ‘involved’ in a particular breach of that Act. One might well imagine circumstances not dissimilar to those that befell the hapless accounting firm, in which an accounting firm for a client that enters liquidation knew, or could reasonably be expected to be aware of, the non-payment of employee entitlements by that client.

The relevant entitlement in question in a winding up context is superannuation which, under the CA, ranks equally with wages in a liquidation (and so presumably attracts similar importance), yet remains aloof from coverage under any form of government compensation scheme.

Would this FWA decision perhaps apply under the CA, in assessing the culpability of the accountants of insolvent companies that had neglected to pay superannuation? If so, what might that mean for the profession at large, especially those accountants that work to a fee?

The jury, as they say, is ‘out’ (or perhaps not?). What appears probable is that from the ashes of this decision will arise a line of argument that focusses interest on those who would act as advisors to insolvent clients, where they know of the insolvent’s misdeeds. Pay attention or pay the price seems the message.

1 Fair Work Ombudsman v Blue Impression Pty Ltd & Ors [2017] FCCA 810

Dan Navfield Executive - Digital Services Level 1, 72 Dundas Ct T 02 6162 4112 | security@cordelta.com

Tony Lane is a Registered Liquidator at Vincents.

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

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INTELLECTUAL PROPERTY

PUBLIC RELATIONS

by Shaun Creighton

Unauthorised use of your brand - what are your options?

Businesses often see their branding misappropriated. However, the range of intellectual property and allied rights which can attach to branding means care must be taken in developing a suitable strategy before taking action.

Branding registered as a trade mark If the branding in question has been registered as a trade mark, then the simplest course is to consider trade mark infringement proceedings.

Typically, infringement involves unauthorised use of a “substantially identical” or “deceptively similar” sign for: • the same goods/services for which the mark is registered, • goods/services “of the same description” as the goods/services for which the mark is registered, • or services “closely related to the goods” for which the mark is registered (and vice versa).

However, because of the nuances of these tests, the possibility of noninfringing uses and/or defences and the risk of breaching the “unjustified threats” provisions of the Trade Marks Act 1995, it is advisable to seek advice from a trade mark law specialist before threatening or undertaking legal action for trade mark infringement.

Branding not registered as a trade mark If the branding in question has not been registered as a trade mark, then other sources of rights may still exist, including possible rights under: • the common law relating to ‘passing off’, • the Consumer and Competition Act 2010 (CCA); and • copyright in logos or other artistic or written materials (pursuant to the Copyright Act 1968).

Passing off most frequently occurs when a trader ‘puts off’ or ‘passes off’ that trader’s goods/services as those of another. The key ingredients of passing off are: • reputation/goodwill accruing to the injured trader; • a misrepresentation made by the wrongdoing trader; and • damage to the goodwill of the injured trader.

The CCA, including the Australian Consumer Law (ACL), contains provisions which might apply depending on the nature of the particular branding misappropriation, including prohibitions in trade or commerce against: • misleading or deceptive conduct or conduct likely to mislead or deceive; and • making false or misleading representations about goods/services (including as to sponsorship, approval or affiliation).

Finally, copyright may be relevant where a logo is involved. Although it is unlikely that copyright will subsist in a simple word or phrase (as a literary work), where the branding in question contains or comprises graphical elements, there may copyright in those elements as an artistic work.

Unregistered rights in branding can be difficult to identify and assert.

Professional advice on this should be taken accordingly.

Moulis Legal can assist in registering your brand as a trade mark. We can also provide advice and services in relation to any unauthorised use of your brand, including taking appropriate enforcement action. If successful in litigation for unauthorised use of your brand, you may be entitled to damages or an account of the profits made by the infringing party.

by Tim Benson

What is Native Advertising?

Native Advertising is the future of advertising, magazines, newspapers, blogs and websites. It is basically paid editorial or advertorial. Or you could call it ‘content marketing’. The way the old media (including online) worked was that the content was written by journalists and was ‘objective’, ‘unbiased’ and ‘news’. There was a solid brick wall between ‘journalists’ and ‘advertising’. The thought of a ‘real’ journalists writing something paid for by advertising was enough to call in the union.

This indignation, to those in the know, was paper thin, as there is an army of people, handsomely paid, to influence the media and get stories run on behalf of their clients – be they government, politicians, community organisations or businesses. These include media advisors, public relations consultants, marketing gurus and press agents. I would hazard a guess that over 80 percent of stories in the media have been put forward by one of these ‘paid’ advocates as ‘news’ to an editor or busy journalist.

This is acceptable to ‘journalists’ because they have been taught to know what ‘news’ is (topic for my next e-book) and as long as there is a ‘news’ angle, and they are not being paid by the people they are writing the story on – then ‘they’ are in control of the story. Right? Ah, no. The media ‘enabler’ has sold the journalist the story, provided the angle and text in a media statement, put forward their spokesperson, and other spokespeople and set up a photo opportunity … you get what I mean.

So, print, television, radio and online media were only getting paid for half of their services: advertising. The other half content, or news, was a cost.

There are people getting paid to ‘sell’ the news to journalists (as discussed above) but media businesses were missing out.

So, media businesses have had to look at new ways of generating revenue. If 80 percent of stories are being ‘sold’ to their journalists but they are not getting anything for them, why shouldn’t they cut out the ‘conga line’ of media advisors, public relations consultants, marketing gurus and press agents and be paid for promoting issues and businesses and celebrating their successes?

Now, of course, these articles need to be professional, written, have a news angle, be properly researched and fact checked – or they will not be read.

Most media businesses support the need for independent, and investigative, journalism, but now recognise the fact that 80 percent of content provided to the media is through its symbiotic relationship with an industry of ‘content enablers’.

As the media grapple with a changing world, it is now far more open to paid content and advertorial.

It is a great way to get your story out to the world. Editorial (Native Advertising) has credibility and keeps the audience engaged through the use of professional writing and journalistic techniques.

It is also an industry standard for public relations agencies and other ‘media enablers’ to value ‘editorial’ at twice the amount of advertising. So, if you are going to pay for your marketing then why not get twice the value.

Contact Shaun Creighton on 02 6163 1000 or shaun.creighton@moulislegal.com to discuss how we can assist in protecting and enforcing rights in your brand.

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Public Relations B 2 B I S S U E 12 6

B2B M AGA Z I N E.CO M . AU

Have your business promoted with Native Advertising in B2B Magazine and online at b2bmagazine.com.au Tim Benson - Managing Director, Man Bites Dog Public Relations tim.benson@b2bmagazine.com.au T: 02 61128176 M: 0402 900 402

RECRUITMENT

by Jim Roy

Skills in demand for the Fourth Industrial Revolution – are you job-ready?

The digital and technological divide between jobseekers’ skills and employers’ requirements has never been greater than it is today as we approach the Fourth Industrial Revolution. Of the new jobs added to our April to June Hays Quarterly Report of skills in demand, almost all require the knowledge and capabilities needed to utilise new emerging technologies and digital trends, from new systems to robotics, 3D printing to data analytics.

What does this mean for jobseekers and professionals? It means you must continuously upskill in new technology relevant to your field. But upskilling and development doesn’t have to mean expensive courses; it can be as simple as stretch opportunities, mentorships and involvement in projects that will expand your skills and introduce you to new tools and technology.

Without development, the gap between the skills employers want and those jobseekers possess will only continue to widen. After all, there aren’t many jobs or industries where technology isn’t integral.

According to the latest Hays Quarterly Report, some of the skills in demand include Commercial Analysts and Senior Commercial Analysts with experience creating financial models and VBA programming. Accountancy professionals with IT programming skills who can contribute to system improvement and automation projects are also needed, as are professional practice accountants with new technology and hybrid skill sets.

Architects who can use a broad range of digital devices and tools, including GPS positioning, 3D printing and VR are needed, as are 12d Designers with experience using this software. In facilities management, experts with BMS programming and commissioning experience who can program automated controls systems are sought.

Customer service and telesales call centre professionals with strong systems and technology skills are another area of growing need, while Instructional Designers who can innovate an organisation’s e-learning or learning and development frameworks are sought. Within the HR field we’re also seeing demand for Remunerations Analysts and HR Analysts who can provide accurate and responsive data to assist with forecasting and people plans.

Of course, DevOps Engineers who can create agile production environments, UX/UI Designers, Mobile App Developers and Systems Engineers are all sought.

Meanwhile, Data Analysts and Economists in the Australian Public Service who can provide evidence-based proof of policies and evaluate the efficiency of programs are in demand.

So too are Purchasing Managers with strong enterprise resource planning (ERP) software knowledge and Digital Content Producers who can undertake website maintenance and write content.

For more skills in demand, please see the Hays Quarterly Report at www.hays.com.au/report or contact me on 6112 7663 or Jim.Roy@hays.com.au.

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

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31

WEBSITES

THINK RESULTS

by Darleen Barton

Mental wealth

by Sam Gupta

It’s still ‘horses for courses’ online

According to a survey conducted by Discover Financial Services in 2008, lack of cash flow is a major problem for nearly 44 percent of all small businesses. While it is only natural for a business to experience fluctuations in income, generating sustainable cash flow is perhaps the only way to remain afloat. The irony of the situation is that a majority of the business owners either neglect or simply don’t know how to generate and manage cash flow. Guess what? Nothing has changed since 2008.

I often go toe to toe with accountants about what is more important when building a sustainable business-The Money? or the Behaviour? - Here is my theory as simple as it is: You need to first move before you have motion or you are resting. That’s physics. You need to do the activity, to get the clients, to get the cash flow.

If you are not doing the activity that brings you in the business consistently, you will only be wishing for cash flow and eventually go out backwards. A lack of professional sales skill and low confidence can be a challenge in itself. After 30 years of working with Businesses from SME to Multinational Corporations, I know you need to engage in “conversation” with another human being to gain commercial leverage! FACT! Show me your bank statement and I will show you your priorities and tell you all about your behaviours.

Here are a few check-ins: Bill promptly. Ask for advance payment 50% or 100%. You pay your car registration in advance your insurances in advance why not ask your clients to pay in advance?

Add terms for payment defaults. Set up the expectation in the initial appointment with your clients.

Pay wisely. The way you manage your payables can also play a major role in improving your business cash flow.

Know your customers. "80% of your sales come from 20% of your clients."

Know your “I” “S” & “D”* clients.

Consider price increases – You should analyse the market conditions regularly to know whether there is any scope for making a price rise. Don't be price shy, you lower your price you will lower the consumer’s expectations. Do Not discount. Add value.

Package your products or services. The hamburger, the French fries and the coke.

Reduce Overhead expenses. All businesses will have some overhead expenses.

But with careful observation, you can find areas where you can reduce your costs.

Learn about Fixed and Variable costs in your business. Your variables are just that: variable! Do you need to buy better? Sell more? Be forensic. A lack of Sales Skills and no confidence can be the BIGGEST cash flow drainer of all time!

After 25 years in Business from SME to Multinational Corporations, I know you need to engage in “conversation” with another human being to gain commercial leverage! FACT! Get off the dime and get face to face with your potential clients/customers AND repeat. YOU CAN NOT SELL A SECRET!

*Ideal, steady, demolition

Marketing in today's world is confusing. There are traditional offline marketing mediums like print, TV, radio, outdoor advertisements and there are online options such as search engines, blogs and social media.

Ideally, your marketing mix should have both offline and online mediums.

In this article, let's focus on the online bit and break it down into smaller chunks. Before we get down to the details, you still need to answer following questions: Why? Why do you want to do this digital marketing exercise? Branding? Is for any or all of the following: lead generation; sales conversion; repeat customers; new service offering or clearing stock? What are you really trying to achieve? Is that goal long term or short term? What's the big picture look like? Be clear in about your reasoning. Some say, 'to make more money', well, that's the overall result, not a clear purpose.

Who? Who is your ideal customer? It's a simple yet difficult question get right.

Learn as much about your ideal customers as possible. Be clear about who you want to do business with.

What?

If you have answered the first two questions clearly, this will be an easy one. There are many marketing options available in the digital world. What you choose really comes down to where your ideal audience hangout for the objective you want to achieve. For example, if they are trying to find you via search engines, then you want to focus on Google SEO and SEM, if they are B2B customers, you should focus on LinkedIn or other B2B channels.

You can choose a combination of channels to push your message to the right audience.

How? Once you have decided on the channels, come-up with a series of campaigns reach your goals and allocate how much you want to spend on each one of these campaigns, how long will they go for and how will they communicate your message. You can use a combination of campaigns to complement each other. For example, if you are running a Facebook ad to promote a new product, you can use Google AdWords and online PR campaign for maximum impact. Each campaign should be designed to achieve certain objectives. More importantly, KPI's for each campaign should be clearly defined.

Once you start a campaign, make sure you track it regularly so that you can make any necessary changes if it's not working. Sometimes you will have to give it some time to really know the effectiveness of it. Other times, you may be able to spot the difference between various campaigns and allocate more budget to the one that's performing better.

Just like the offline marketing, you need to try different things to see what works best for your business. Keep trying, keep experimenting, keep fine-tuning. Marketing (any kind) is one of the core functions of any growth focused organization. It doesn't have to be expensive. Just focus on the ROI.

DIPAC- DISCIPLINE –INNOVATION – PERSISTANCE – ATTITUDE – COURAGE work over Four disciplines Coaching | Mediation | Counselling | Therapy Darleen Barton - Practitioner Accredited- ANMS -AMA Mediator Ochre Medical Centre 15 Whitrod Ave, Casey ACT 2913 Ph: (02) 61634200 www.dipac.com.au

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

Photo: Andrew Sikorski

Figures painting a rosy picture not always reflected in reality pressure to keep prices low even though gross operating profits are falling.

To keep afloat, retailers are cutting costs, which often includes cutting staff.

Anecdotally, some ACT retailers are telling us these figures don’t reflect their reality.

Recently a local business told me that a significant issue is delays in payment of invoices.

A few weeks after this information was shared with me, the Sydney Morning Herald ran a story on this phenomenon and its impact on businesses.

It suggested that Australian mid-sized businesses owe $8 billion in outstanding

Robyn Hendry CEO Canberra Business Chamber

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ast month I shared with you an overview of all the positive things the ACT economy has going for it at the moment.

And certainly, the signs do look good.

However, some industries are going through ups and downs and the experience of each individual business can be very different.

For example, ABS figures released in August last year reported that annual retail turnover in the ACT grew by 6.9 per cent, almost triple the national annual growth rate and the strongest result across all jurisdictions.

By December 2016, the ACT had the largest decline in retail trade in Australia, but in January we were once again the best performer.

Unfortunately, statistics don’t tell the actual story of business experience and Australia has seen some major retailers go under in recent months. Plenty of pundits are predicting ongoing tough times for the sector.

Challenges for retailers include international competition and there is

Unfortunately, statistics don’t tell the actual story of business experience and Australia has seen some major retailers go under in recent months. Plenty of pundits are predicting ongoing tough times for the sector.

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inadequate cash-flow is the leading reason for business failure.

However, evidence indicates that larger businesses are using their bargaining power to extend their payment times to their suppliers while reducing or keeping the payment terms for their customers shorter.

The result for SMEs is that they are having to rely on short term lines of credit to cover any cash flow shortfalls created by this approach.

Delays in payment are also passed downstream, SMEs are often forced to pass on the delay in payment to their own suppliers as well as delay payments for other

... Australian mid-sized businesses owe $8 billion in outstanding payments to suppliers and more than $2 billion of this is currently overdue.

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payments to suppliers and more than $2 billion of this is currently overdue.

Global research firm RFI conducted a survey of mid-sized businesses and found they are unable to reconcile almost onethird of their supplier invoices at least every other month.

The problem has reached such endemic proportions that it recently became the focus of the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) first ever self-initiated inquiry.

ASBFEO, in partnership with the Small Business Commissioners in New South Wales, Victoria, South Australia and Western Australia, and in association with the Council of Small Business Australia and the Australian Institute of Credit Management, conducted an inquiry to examine payment times and practices in Australia.

Its final report was presented to the Minister for Small Business, the Hon. Michael McCormack MP last month.

According to ASBFEO, the issue is not just contained within a single industry sector; it appears to have become a systemic problem in Australian corporate culture and throughout the Australian economy.

The impact is most strongly felt by small businesses as they have limited, if any, cash reserves and need their anticipated income to maintain solvency.

Data from the Australian Securities and Investment Commission (ASIC) says that

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obligations, such as superannuation, and while this is not recommended it is a reality for some.

Of course, the real risk is that one of the businesses in the chain goes bust and others never get paid – putting everyone’s sustainability in the balance.

In response, the ASBFEO has made a series of recommendations, including a call for national legislation which sets a maximum payment time for business to business transactions.

Canberra Business Chamber welcomes the recommendations of the ASBFEO review and looks forward to working with stakeholders to find local solutions that help ensure businesses of all sizes can continue to operate, employ and grow.

Join us for our 2017 Federal Budget Breakfast where a panel of insiders will analyse all the ins and outs of the Budget and what it means for business in Canberra.

2017 Federal Budget Breakfast Date: Wednesday 10 May 2017 Time: 7:30 am to 9:00 am Venue: The Great Hall, Parliament House Register: canberrabusiness.com

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Helping you make an Impact

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CHIEF MINISTER’S MESSAGE

Achieving CBR’s ambition ANDREW BARR Chief Minister | Treasurer Minister for Economic Development Minister for Tourism & Major Events Photo: Martin Ollman

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ast year, I released a vision of Canberra, where we achieve our ambition to be a world-leading 21st century city, playing to our strengths and using our natural advantages well.

The Canberra: a statement of ambition document sets our city’s goals for the next 20 years. And to achieve the vision, we need to be strong, bold and decisive.

We must recognise that we shape change, or change shapes us. Decisions we make today and tomorrow should shape our city for decades to come.

It’s important we deliver long-term visions through shorter-term plans, so #CBR2020 aims to shape Canberra over the next three years.

I see Canberra in 2020 as a positive and self-reliant city, engaged with the wider world and leading the adaption of new technologies to enable everyone to reach their full potential.

By 2020, more than 420,000 people will call Canberra home. I want Canberra in 2020 to be a shining light of urban renewal done right.

In 2020, we will be working on maximising the returns to local business from direct international, particularly trade.

The Government will work with universities and research centres to translate 36

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I see Canberra in 2020 as a positive and self-reliant city, engaged with the wider world and leading the adaption of new technologies to enable everyone to reach their full potential.

By 2020, more than 420,000 people will call Canberra home.

I want Canberra in 2020 to be a shining light of urban renewal done right. their ideas into industry value, particularly in the areas of plant and agricultural research, and health and wellness services.

To make the most of the international opportunities to grow Canberra businesses, the ACT Government will provide further support Canberra businesses to build the capacity they need to expand into global markets. Through a new program to be run by the Canberra Business Chamber, businesses leaders will be able to take part in a range of training workshops to give them the expertise they need to make the most of international trade.

Our tax reform agenda continues to lead the nation. Year after year, our decisions to phase out bad taxes, such as stamp duty and insurance tax, are praised by economists across Australia and globally.

We will continue these reforms and Canberra in 2020 will have a balanced

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financial position and will continue to lead the national tax reform debate.

Last year’s election confirmed Canberrans share our vision to make our city smarter, more connected, more inclusive and more open.

Canberra in 2020 will be a vibrant and exciting place to live, work and study in.

Let’s work together to make sure Canberra achieves its advantages.

Strata Community Australia (ACT) Networking Event Photography: Tim Benson Hotel QT Canberra NETWORKING

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Canberra Business Chamber 2017 ACT Chief Minister’s State of the Territory Business Address Photography: Andrew Sikorski Hotel Realm

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To share these photos go to: facebook.com/b2bmagazinecbr

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