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COMMERCIAL PROPERTY AND SMSF Should yours be in your super fund?

30 YEARS BETWEEN THE EARS ArtSound FM 92.7 providing an independent voice

BEST OF BREED OPC and Engineers Australia celebrate 27 year partnership APRIL 2013

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$4.95 inc. GST

TO APP OR NOT TO APP? Imagine having an App for your business

CANBERRA INTERNATIONAL MUSIC FESTIVAL 10-19 May www.cimf.org.au

TWO NEW ADVICE COLUMNS Risk Management and Business Relocations

ARE YOU READY FOR EXPORTING? ACT Exporters Network asks the question

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Norm Honey, under the advice from RSM Bird Cameron, used his SMSF as a tax effective strategy to purchase commercial property at the Kingston Foreshore. ‘I’m now looking forward to the completion of the build’ says Norm, ‘using my superannuation as an investment vehicle has effectively meant I can hold the commercial property in a low tax environment’. For a personalised, tailored and innovative approach to your finances please connect with one of our trusted advisors today.

RSM Bird Cameron Ph: (02) 6247 5988 103-105 Northbourne Avenue Canberra, ACT

www.rsmi.com.au


CONTENTS B2B EDITORIAL

Celebrate Canberra A year of celebration. Canberra is 100 years young in 2013. As a Canberran I have to admit to having visited more foreign cities and towns than local towns around Canberra in regional NSW. I suppose this is TIM one of the benefits of living in such BENSON a great city, surrounded by terrific Editor facilities, restaurants, entertainment and national institutions - you tend to stay here and then holiday elsewhere. One of the things I'm going to promise to do is visit some of the great places in our region during 2013.

Starting with Gundaroo

Photos by Andrew Sikorski

I spent a lovely Sunday afternoon there recently with my daughter and will be dining and performing there with my band, The Method, in the near future. Of course I, like many Canberrans, take a leisurely two hour drive to Thredbo during the ski season - and of course the two hour drive to the NSW South Coast during the warmer months. I suppose this is what Canberra is really all about. We are surrounded by regional NSW, but are not regional NSW. Most Canberra businesses are highly skilled at what they do and are forced, due to location and population, to do business with the other state capitals - it is then of course just a small step to export their goods and services to other countries. Australians should be proud of their capital city Canberra.

Reclaim 'Canberra' I don't take the view that journalists should stop referring to 'Canberra' when they talk about federal politics. Instead I think the ACT Government should reclaim that famous signoff and run a national campaign celebrating 'Canberra'. I can hear it now: 'Parliament House - Canberra', 'National Gallery of Australia - Canberra', Some of the best wines in the country - Canberra', 'Floriade - Canberra', 'National Balloon Festival - Canberra'. I think that would make for a fun, positive and proactive approach to one of the Send youngest, and best, capital cities in the world. all comments to editorial@b2bincanberra.com.au

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CONTENTS OPINION 16 New High Court family law decision − Farrar Gesini & Dunn explains

FEATURES

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6 In memory of Dr Christopher Peters AM OI JP 12 Financial advice from RSM Bird Cameron 14 Artsound FM − 30 years between the ears 18 Best of Breed − OPC IT and Engineers Australia 20 To app or not to app with Susan Kirally 23 CPS growth outperforms expectations COVER STORY 25 Open for business; Beames wants you!

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29 ADVICE FROM THE EXPERTS 30 ACCOUNTING How effective is cloud computing? By RSM Bird Cameron BUSINESS LAW Is a creditors guarantee worth the paper it is written on? By Elringtons Lawyers 31 BUSINESS RELOCATION Organisations on the move By Allied Pickford's Business Relocations

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CORPORATE GOVERNANCE The governance of sport By Australian Institute of Company Directors 32 DOCUMENT MANAGEMENT Is your document security up to scratch? By Ricoh

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ESTATE PLANNING Gifts to self managed superannuation funds under your will By Certus Law 33 HEALTH You don't need to climb Everest to get into shape! By Healthy Identity

PUBLISHER I EDITOR

ISSN 1833-8232 LEGAL NOTICE

RECRUITMENT Talent attraction By PCA People 34 RISK MANAGEMENT How resilient is your business? By Paladin Risk Management Services 34 WEBSITES Five steps to improve your website By Synapse Worldwide A2B: ASSOCIATIONS TO BUSINESS 35 MINISTERS MESSAGE: Exporting Government solutions 36 CANBEERA BUSINESS COUNCIL: City to the lake – A project to transform west basin and the city 37 ACT EXPORTERS: Are you ready for exporting? 38 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: Taking the journey with businesses BUSINESS NETWORKING 08 B2B @ B2B March issue launch 09 B2B @ Hong Kong Economic and Trade Office Chinese New Year Celebrations 10 B2B @ Launch of the Canberra International Music Festival 11 B2B @ Schevello’s 25th 80s styled birthday party B2B @ Dragonfly Financial Services new office opening 41 PROPERTY 42 BENDIGO BANK Should the Government bank with the community bank? 44 BRINDABELLA BUSINESS BROKERS Owners's involvement 46 PROUD PROPERTY MANAGEMENT Investment properties: Get the best property management.

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Manning Fell manning.fell@b2bincanberra.com.au 0430 722 463

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PHOTOGRAPHY art-atelier.com.au

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.


OBITUARY

Dr Christopher

Peters AM OI JP

Written by Julian Barrington-Smith Chairman, ACT & Region Chamber of Commerce & Industry

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OBITUARY

I

t is very hard to fully grasp the influence that Dr Christopher Peters AM OI JP had on the day to day life of The ACT; it is only when someone of his calibre is no longer with us that his contribution is fully appreciated. Chris managed to get involved in all things Canberra, and he did so because of his love for our city and because he truly believed that everybody could make a difference if they had the desire, and Chris did that wholesale. His business card was legendary; with all the boards, positions and committees he headed up, he needed a card that would fold into booklet form to get them all on! Born and raised in Adelaide, Chris was the son of an Adelaide G.P. who lived in the “battler” suburbs, but had the fortune to be educated at one of Adelaide’s top schools; this gave him the ability to look at an issue from different perspectives and a capacity to quickly and concisely summarise the salient points. His first exposure to volunteering came during his last years at school when he undertook administrative work for the Scout Movement, quickly becoming the chief administrator in S.A. Chris started his career as an entrepreneur importing and selling waterbeds before he had even left school. He evolved this into a business which imported some of the finest brands in luxury goods. As a result of this, Chris became involved in the South Australian Company Directors Association which resulted in him taking up the CEO position in Sydney with national body, subsequently merged to form The Australian Institute of Company Directors. During this tenure, Chris was involved in influential policy decisions which would ultimately be used to formulate ASIC. From there, Chris became the CEO of the Australian Institute of Architects and the CEO of the Printing Industry Association, before taking up the position of CEO at The ACT & Region Chamber of Commerce and Industry, a position he held for 15 years, whilst at the same time immersing himself in all aspects of life in The ACT. Chris often said that the time Canberra came of age as a community was during the period immediately after the 2003 Bushfire disaster. Chris was a powerful driving force in rallying together business, government and community organisations to deliver some extraordinary outcomes. In recognition of his services to the community, Chris was awarded the AM in 2004, an honorary Doctorate by the University of Canberra in 2009 and ACT Citizen of the Year in 2012 and the Order of Isabel de Catolica by The King of Spain in 2008 for services to The Spanish Diplomatic Corp. Chris was diagnosed with pancreatic cancer in July 2011 and true to form, immediately set about immersing himself in everything he needed to know about the disease; he gave regular updates to friends and colleagues and volunteered for the committee of the new ACT Cancer Centre, putting forward many suggestions and insights gained as a patient in the current system. Chris underwent various treatments for eighteen months and up until the end of January had been responding well; unfortunately he suffered, what was initially thought to be, a minor setback, which resulted in complications from which he was not able to recover. Up until shortly before the time of his passing Chris was very active, leading or serving in forty organisations, committees and groups across all facets of life in The ACT, in the fields of commerce, education, health, tourism, defence, immigration and charities. His connections within the Diplomatic Corp enabled foreign diplomats to settle quickly in Canberra and the relationships he established have been invaluable in the establishment of business links with many overseas countries. His passion and patronage of classical music within The ACT were well

known. He spearheaded the public battle for the retention of teaching services at The ANU School of Music during the period of uncertainty and downsizing in 2012 and was a proud patron of The Canberra Symphony Orchestra. Chris will be missed for his quick wit and smile, his generosity of spirit, his innate diplomacy and negotiating skill as well as his unerring perception and understanding of the nature of business and its often complex relationship with Government in The ACT. Chris is survived by his wife, sister, brother and father. The Staff and the Board of The Chamber would like to offer them our heartfelt condolences.

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for sessions up until the 24 April 2013 at Dendy Canberra only. 2 premium lounge tickets must be purchased to the same film, same session. Voucher must be surrendered upon redemption and cannot be used in conjunction with any other offer. Not valid for internet bookings. Not valid for festivals, special events, premieres and Dendy Arts.


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for sessions up until the 24 April 2013 at Dendy Canberra only. 2 premium lounge tickets must be purchased to the same film, same session. Voucher must be surrendered upon redemption and cannot be used in conjunction with any other offer. Not valid for internet bookings. Not valid for festivals, special events, premieres and Dendy Arts.


B2B @ LAUNCH OF THE CANBERRA INTERNATIONAL MUSIC FESTIVAL ANU SCHOOL OF MUSIC


B2B @ SCHEVELLO’S 25TH 80s STYLED BIRTHDAY PARTY

B2B @ DRAGONFLY FINANCIAL SERVICES NEW OFFICE OPENING DRAGONFLY OFFICES


RSM BIRD CAMERON

Do you own or are you considering the purchase of Commercial Property? While the beneďŹ ts of purchasing residential property within a Self Managed Super Fund (SMSF) have been well documented, another effective strategy is the transfer or purchase of commercial property within your SMSF. photos by Andrew Sikorski

Lindsay Walker and Nathan Nash

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RSM BIRD CAMERON

SMALL BUSINESS

RENT

SMSF

Small Business Owners and Commercial Property There can be significant advantages available to small business owners who hold their business premises in their SMSF, with the key benefit being the low tax environment for holding their property assets. A SMSF has the ability to purchase business premises from a member or related party and the SMSF can then lease the business premises to the member’s business at arm’s length or commercial terms. The SMSF pays a maximum 15% tax on the rental income, whilst the member’s business would obtain a tax deduction on the rental expense at 30% for a company or up to 46.5% for other business structures – thereby obtaining a benefit through the different tax rates. Furthermore, if the SMSF is in pension mode, it could be in a position where the fund does not pay any tax on the rental income received, whilst the business still benefits from the tax deduction claimed for the rental expense. Norm Honey, a long time client of RSM Bird Cameron, was made aware of these options when he discussed his plan to purchase a commercial property at the Kingston Foreshore with his Accountant, Ken Johnston and his Financial Planner, Nathan Nash. Norm says ‘the one stop shop or team approach at RSM was invaluable when I was exploring ways to structure my business and the property purchase’. ‘I’m now looking forward to the completion of the commercial property at the Kingston Foreshore’ says Norm, ‘and I have used my superannuation savings as a source of capital and will hold the commercial property in a low tax environment’.

Purchasing Commercial Property As well as SMSFs being very tax effective structures for holding commercial property, the borrowing provisions available to Trustees now make buying commercial properties within a SMSF a lot more feasible. Additionally, the tax benefits are amplified when a SMSF is in pension phase as mentioned, with potential tax free income and nil capital gains tax. Also, paying less tax on rental income means more cashflow is available to either repay any loan faster or to reinvest within the fund. Before deciding to purchase a business property within your SMSF it is important to speak with your accountant and financial advisor about the pros and cons, as well as the best way to structure such a purchase.

Bird Cameron

Chartered Accountants

PENSION PAYMENTS

Considerations A number of considerations need to be factored into the decision to purchase or to transfer ownership of a commercial property, such as: 1. Stamp Duty This can be a considerable cost, although the longer term benefits generally outweigh the initial costs. Also some States offer stamp duty concessions. 2. Capital Gains Tax The transfer of the property into the SMSF is a CGT event due to the transfer in ownership. However, a number of strategies exist to minimise or eliminate the tax consequences such as Small Business CGT Concessions. 3. Limitations Preservation rules may restrict access to assets within superannuation and contribution limits may also restrict the value of property that can be transferred. One of the most valuable benefits to clients of RSM Bird Cameron is their ability to connect with a team of professionals. The team approach of their accounting and financial planning professionals can provide significant advantages with regards to structuring assets, minimising tax, utilising superannuation and creating long term wealth. ‘Having financial planners and accountants under the same roof has really allowed us to offer a comprehensive solution for our clients,’ says Nathan. ‘We are able to identify where opportunities lie and offer innovative solutions, rather than just looking after a client from a one dimensional perspective.’ RSM Bird Cameron provides taxation consulting services through its accounting division, as well as personal financial planning through its subsidiary, RSM Bird Cameron Financial Services Pty Limited (AFSL 238282). ‘Our personalised approach is not only about quality advice but more importantly it’s about a trusting relationship and the reliability of the people helping you with your corporate or individual financial welfare’ says Lindsay Walker, also a Financial Planner at RSM Bird Cameron Financial Services. For more information please contact Ken Johnston, Nathan Nash or Lindsay Walker on 02 6217 0300 to arrange a free consultation.

103-105 Northbourne Ave T:6247 5988 | E:Canberra@rsmi.com.au W:www.rsmi.com.au


30 years F E AT U R E

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OA on eac

A

rtSound FM, Canberra’s own not-for-profit Arts and Music Radio Station presents its award-winning classical, jazz, blues, folk and world music 24 hours a day. Based at the Manuka Arts Centre, ArtSound has been a key part of the Canberra and region music and arts community for 30 years. It is a largely listener – supported, volunteer run organization providing a high quality radio service on-air on FM92.7, 90.3 and online as well as a range of audio production and preservation services. Mr Chris Deacon OAM is the General Manager of ArtSound FM. Chris was a founding member of ArtSound and manages the technical aspects of the station as well as the day-to-day administration with the assistance of a small team of part time staff and almost 100 volunteer program producers. Its presenters and programmers are highly respected and have extensive contacts in the music and arts world. Further, ArtSound FM attracts an audience that is high in levels of achievement and leadership in an environment that engenders positive response. The station provides an independent voice for musicians, artists and cultural organisations. Its volunteers record and present almost 300 hours of local concerts each year. ArtSound has, arguably, the largest independent collection of recorded oral and music history of the Canberra region, dating back to the early 1980s. As part of its contribution to the Canberra Centenary celebrations, it is cataloguing and broadcasting some of the gems of that collection during 2013. In addition, ArtSound has a particular interest in supporting emerging artists and in conjunction with the Fine Music Network, supports the annual Young Performer of the Year Award. The inaugural year of support in 2012 saw the ACT Representative, Andre Lebedev, a brilliant young classical guitarist from the ANU School of Music, win the National competition. Work is also being undertaken in collaboration with the school on “In the Wings”, a program which will soon showcase young classical artists in the Canberra region. ArtSound FM broadcasts concerts from the National Folk Festival around the world each year and we also have a regular presence at some of Canberra’s other main festivals and events including the Multicultural Festival. The station presents some wonderful local music in programs like “Friday Night Live” (sponsored by B2B Magazine) and “Concert Hall” but also showcases the best interstate and international classical, blues, jazz, world and folk music, including “Let the Bands Play” from Melbourne (Thursdays 4PM), Bill McGlaughlin’s award winning “Exploring Music” (weekdays at 9AM), George Ingmire’s “New Orleans All The Way Live” (Saturdays 4PM), and the “Woodsongs Old Time Radio Hour” from Kentucky (Saturdays 7PM). Full program details are available at www.artsound.fm. Located in a heritage significant area adjacent to tranquil Telopea Park, the ArtSound recording and broadcast studios are sought after by local, national and international artists as among some of the best

D Chris

between your ears!

M,

Ge

ner al M a

nage

r, Artsou nd FM

in Australia. ArtSound also provides fee-for-service facilities to government and private clients for preserving audio recordings - one of only a small handful of organizations that adheres to the National Library of Australia’s stringent specifications. Broadcast media training is offered to all age groups. With access to significant professional broadcast expertise, ArtSound FM is distinguished by its association with some of the leading arts and cultural organisations in the ACT. Promotionally, the station also works with both large and small corporates on an ongoing basis. ArtSound has won numerous awards, including the Chief Minister’s Community Media Award (sponsored by the Public Relations Institute of Australia) in 2010 for “enriching the life of the Canberra Region”. Its specialty is creating strategic partnerships and custom-designed, innovative sponsorship/marketing packages for organisations wishing to promote their goods or services. ArtSound can provide you with promotional and marketing tools that can be tailored to fit specific corporate public relations or advertising strategies. Savvy organisations rely regularly on ArtSound FM for its immediacy and ability to reach a highly targeted audience. ArtSound FM delivers a particularly upscale and otherwise hard-to-reach audience. It is well known that Canberra citizens’ involvement in arts and cultural activities leads the nation. As the city’s only radio station dedicated to the arts, ArtSound FM is unique in its ability to serve the needs of this community of interest. ArtSound is largely self-funded: an annual grant from the ACT Government only covers about 20% of its costs. Sponsorships, studio hire, listener donations and memberships provide the balance of our income. Direct costs for broadcasting, transmission and audio services make up the bulk of its expenditure and Artsound is taking the opportunity in its 30th birthday year to commence a new fundraising program aimed at improving its FM radio transmission facilities. ArtSound is looking to the Canberra community to rally around them and make a donation or a bequest to ensure the growth of ArtSound’s independent music and arts voice. Details of how you can donate to ArtSound are on the website at artsound.fm or you can call the office on 6295 7444. All donations to ArtSound FM over $2 are tax deductible. Manuka Arts Centre Cnr. NSW Crescent and Manuka Circle T: 6295 7444 | www.artsound.fm


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OPINION

New High Court family law decision By Anna Neilan, Solicitor, Farrar Gesini Dunn

T

he issue of property settlement between married and de facto parties is complex and technical. A recent High Court decision just made this more the case. If you are 40 something and one of your parents (or both) have re-partnered and you are wondering about the effect this may have on your inheritance, then read on. If you think a property settlement cannot happen whilst you are not separated, think again.Generally speaking, the Court cannot make a property settlement order unless it is satisfied that, in all the circumstances, it is ‘just and equitable’ to do so. The case of Stanford v Stanford [2012] HCA 52 has highlighted the importance of carefully considering this term. The husband and wife were married for over 40 years. Both parties had been previously married and had adult children. The family home was registered in the husband’s sole name. During the relationship, they each made Wills basically leaving their estates to the children of their first marriage, except that the husband, in his Will, also left the home subject to a life tenancy in favour of the wife. You would assume these arrangements to protect your inheritance would be sufficient but they are not. In December 2008, the wife suffered a stroke and was admitted into full time residential care. The wife also developed dementia and did not return to live with the husband. However, the parties never formally ended their relationship. The husband put some money into a bank account to provide for the wife’s medical needs/costs. At first instance, the Magistrate divided the assets as to 57.5% to the husband and 42.5% to the wife. The wife’s care guardian (the wife’s daughter from her first marriage) had commenced the proceedings. The husband appealed to the Full Court but after the Appeal was heard, and before Judgement was handed down, the wife died. The Full 16

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Court subsequently allowed the Appeal and set aside the Magistrate’s decision on the grounds that the Magistrate had not sufficiently considered the effect of the Orders on the husband and “the fact that this was an intact marriage” in considering what was ‘just and equitable’. At the request of both parties (now in essence the executor of the wife’s estate - still her daughter – and the husband), the Full Court re-exercised discretion and ordered that on the husband’s death, the sum which had been fixed by the Magistrate as representing the value of 42.5% of the marital property to be paid to the wife’s personal representatives (the wife’s children of her first marriage in fact).The husband appealed the property settlement orders made by the Full Court on two grounds. Firstly that there was no power to make the property settlement orders because this was an ‘intact marriage’ and that, upon the wife’s death, the only persons to benefit would be the wife’s children of a different marriage. The second ground of appeal was that even if the Court had the power to make the orders, it should not have done so. The High Court confirmed the existing law in relation to the continuation of property settlement proceedings after the death of a party (if proceedings have already been commenced) and so the husband’s first ground of appeal was rejected. However, the High Court accepted the second appeal ground and set aside the property orders, resulting in the husband retaining all of the assets in his name. The wife’s daughter from her first marriage in effect received nothing. The possible implication of Stanford is that property settlement matters may need to be dealt with in the following way: 1. The first step is to identify the existing legal and equitable rights of the parties in their property. 2. The second step involves ascertaining

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whether it is ‘just and equitable’ to make an order to alter those interests. The question presented by what it ‘just and equitable’ is whether the existing rights and interests should be altered. In most cases, the just and equitable requirement is readily satisfied as the parties are no longer living in a marital relationship and are no longer sharing common property. In Stanford, the husband was the sole proprietor of the home and the parties had not actually ended their relationship. Accordingly, in the circumstances of this case, the High Court was reluctant to alter the existing interests in property. 3. Once the Court has concluded that it is just and equitable to make a property settlement order, it should then proceed to take the other steps associated with property settlement being the assessment of each party’s contributions and a consideration of the financial resources, means and needs of the parties and other relevant matters. Stanford confirms that although the Court has a very broad power to make orders in relation to property settlement (whether the parties are separated or not), “it is not a power that is to be exercised according to an unguided judicial discretion” and the Court cannot simply disregard each party’s interest in their property. It also brings to the fore the importance of considering “just and equitable” as a stand alone consideration before making a property settlement order. For Family Law Advice contact Farrar Gesini Dunn Level 5, Colonial , Mutual Building 17-21 University Avenue, Canberra City ACT P (02) 6257 6477 | F (02) 6257 4382 E fgd@fgd.com.au | www.fgd.com.au


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Proudly Supporting


F E AT U R E Stephen Durkin (Engineers Australia CEO) and Brett Norton (OPC Managing Director) Photos by Andrew Sikorski

BEST OF BREED

OPC AND ENGINEERS AUSTRALIA OPC has had a long and successful 27 year partnership with Engineers Australia. In an age when constant change is more likely to be the norm, especially in the area of ICT, we have been able to sustain an effective and mutually beneficial relationship between our two organisations.

E

ngineers Australia (EA) has more than 100,000 members and 200 staff across nine states embracing all disciplines of engineering. It is the largest and most diverse professional body for engineers in Australia. EA was OPC’s first customer when we opened our doors in 1985; they purchased typewriters back then! How times have changed! Over the years OPC has continually supplied EA with best of breed hardware, strategic advice and technical support services which, in 2011, resulted in OPC being appointed EA’s sole IT service provider in a fully outsourced arrangement. This was a huge step for EA and testimony to the strong, trusting relationship we enjoy.

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Under this arrangement OPC has provided Engineers Australia with many benefits. They have a business partner • Who can provide guidance and advice on the implementation of best of breed solutions, emerging technologies and standardised IT business processes, • Who can deliver a team of certified and qualified professionals with superior IT skill sets to target any requirement and • Who sees the value in a long term and mutually productive alliance that can progress the direction of both organisations


F E AT U R E

Dear Brett,

The OPC I.T. team

EA has been able to realise cost efficiencies and reduce downtime through reduced staffing requirements and by OPC being able to complete IT projects within business as usual hours. They have also minimised risk through OPC’s use of standards based methodologies as part of a continual service improvement. By being able to ‘leave it to us’, Engineers Australia has been able to focus on its core business – the advancement of engineering and the professional development of its members. In November last year they launched eChartered, which is a membership accreditation that further positions the registered members as the best of their breed. eChartered Members possess defined engineering competencies, are recognised by the community, industry and governments as professional and responsible contributors to the well-being of Australian society, have demonstrated engineering competence, and have a commitment to professionalism which has been formally assessed by Engineers Australia and tested by Member peers and senior engineering professionals in each area of practice. OPC’s technical expertise was key throughout the development and implementation of the eChartered site. ‘Our relationship with Engineers Australia is one we that we hold with great pride and a sense of privilege,’ says Brett Norton, Managing Director of OPC. ‘We like to think of ourselves as the leaders in our respective fields.’

OPC IT Pty Limited. 31-37 Townshend Street, Phillip ACT 2606 P: 02 6162 8300 F: 02 6282 6558 www.opc.com.au 25 March 2013

Mr Brett Norton Managing Director OPC IT Pty Limited PO Box 6005 MAWSON ACT 2607

Engineers Australia’s long-standing professional relationship with OPC IT dates back to 1985 when they were contracted to set up the organisation’s typewriters in our Barton headquarters. For almost 30 years, OPC have been providing Engineers Australia with reliable end-to-end IT support. OPC were 25 March 2013originally engaged on a needs-by-needs basis by Engineers Australia, however in the last two years they 25 March have since2013 taken on sole responsibility of our IT infrastructure Mr Norton andBrett service support needs across our nine state and territory Managing offices. Director Mr Norton OPCBrett IT Pty Limited As anDirector organisation with over 100,000 members and 200 Managing PO Box 6005 staffITacross Australia, OPC Pty ACT Limited MAWSON 2607 we create and transmit a staggering PO Box 6005 amount of information every day. To this end, we commenced 25 March 2013 MAWSON the rolloutACT of a 2607 nationwide renewal program for our Dear Brett management information systems. Mr Brett OurNorton organisation has moved to an IT engagement model Dear Brett Managing Director Engineers Australia's long-standing professional relationship with OPC IT of talking rather than telling. We recognised it’s no longer OPC IT Pty Limited contracted to set up the organisation's typewriters in our Barton headquar PO Box 6005 enough for organisations to post on arelationship website Engineers Engineers Australia's long-standing professional providing Australia with information reliable end-to-end IT support.with OPC IT MAWSON ACT 2607 or send an to email andthe expect this to create meaningful contracted set up organisation's typewriters in our Barton headquar providing Australiaon with reliable end-to-end interactions with customers. OPC were Engineers originally engaged a needs-by-needs basisIT bysupport. Engineers Austral Dear Brett since taken onAustralia sole responsibility of our IT minds infrastructure and service suppor Engineers engaged the best in the business OPC were originally engaged on a needs-by-needs basis by Engineers Austral offices. to help us with thelong-standing transition to an improved information Engineers Australia's professional relationship with OPCservice IT dates back since taken on sole responsibility of our IT infrastructure and suppor management system. OPC were part of this team to200 help us contracted to set up the organisation's typewriters in our Barton headquarters. almo offices. As an organisation with over 100,000 members and staff acrossForAustr providing Engineers with end-to-end IT support. effectively drive Australia changeevery andreliable implement technology.the rollout amount of information day. To thisimproved end, we commenced As were an organisation with over members and 200 staff across Austr OPC wereinformation fundamental in100,000 the successful andAustralia, management OPC originally engaged onsystems. a needs-by-needs basisroll-out by Engineers however in amount every day.ITscale To this end, we commenced rollout delivery of our most recent project, e-chartered. since takenof oninformation sole responsibility oflarge our infrastructure and service supportthe needs across management information systems. offices. 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Engineers Australia engaged minds in thesupport businessand to help us with development of the Engineers website, austhan management OPC were part of corporate this team to help effectively Our organisation system. has moved to an ITAustralia engagement model of talking rather telling. W Engineers Australia engaged the best minds in the business toemail help us with enough forthat organisations toover post6000 information on a website orin send an expec technology. website includes pages and receives excess of and interactions with system. customers.OPC were part of this team to help us effectively management over 100,000 visits per month. technology. OPC were fundamental in the successful roll-out and delivery of our most re Engineers Australia and engaged the best minds in the business to help us with the transition Computers technology always seem to fail when online chartered program enables engineers to take the step from being management system. OPC were part of this team to always help us effectively drive change needed most and OPC’s help desk team have OPC were fundamental in the successful roll-out and delivery of our most re professionals in a secure online environment. technology. online chartered program enables support engineersfortothe take the step from being demonstrated timely, professional professionals in a secure environment. OPC were in the successful delivery ourdevelopment most recent large sca They arefundamental responsible for online the administrative support of the organisation, trouble-shooting a roll-out broad and range of ITofand issues. online chartered programover enables engineers to take the step from being graduates to website thatdesk includes 6,000 pages and receives in excess of over 100,000 OPC’s help operates during business hours across all of professionals in a secure online environment. They are responsible for the administrative support and development of the Australia’s time zones, meaningpages the Canberra team remainof over 100,000 website thatand includes over 6,000 and receives in excessmost Computers technology always seem to fail when needed and OPC'sAu They arehours responsible for theour administrative support and development after to ensure Western Australia Division officeof isthe Engineers timely,that professional support for the trouble-shooting a broad ra website includes over 6,000 pages and organisation, receives in excess of over 100,000 visits per mo serviced. Computers and technology always to failtime whenzones, needed most and during business hours across all of seem Australia's meaning theOPC's Canbe timely, professional support for the organisation, trouble-shooting a broad ra Computers and technology always seem fail when needed most and OPC's help desk team Engineers Australia staff have very much appreciated Western Australia Division office istoserviced. timely, professional supportacross for the all organisation, trouble-shooting range of Canbe IT issu during business hours of Australia's timetheir zones,a broad meaning the the responsiveness of the OPC team, along with during business hours across all of Australia's time zones, meaning the the Canberra team rema Western Australia Division office is serviced. Engineers Australia staff have very much appreciated compassionate approach ensuring our technology does notresponsiven Western Australia Division office of is serviced. compassionate approach of ensuring our technology does not get the better o get the better of us. staff have very much appreciated the responsiven Engineers Australia Engineers Australia staff have very much appreciated the responsiveness of the O OPC effectively after ourneeds ITour needs to allow tonot compassionate approach of ensuring technology does get the o OPC effectively looklook after our IT to allow usget tous focus onofour core bu compassionate approach of ensuring our technology does not the better us. better focus on our core business, that is, delivering on our 100,000 members' needs. OPC effectively looklook afterafter our ITour needs allowtousallow to focus coreon business that bu is OPC effectively IT to needs us on to our focus our core members’ needs. members' needs. members' needs. We willwill continue to value their their IT services for many years to come. We continue to value IT services for many years towill come. We continue to value their IT services for many years to come. We will continue to value their IT services for many years to come. Yours sincerely

Yours sincerely

Yours sincerely

Stephen Durkin Stephen Durkin Chief Officer ChiefExecutive Executive Officer Stephen Durkin Chief Executive Officer


F E AT U R E

TO APP OR NOT TO APP? Photo by Andrew Sikorski

A

s the digital revolution marches inexorably to a tune most of us can’t keep up with, the latest exponential growth occurs with the uptake of mobile, smart technology. The increased use of tablets/smart phones has led to an explosion in the development of Applications, serving the consumers who demand them. Business is no different. According to David K. Williams, who writes for Forbes.com, many popular Apps for business can contribute to increased productivity. He cites a list of ten such useful Applications. PC magazine also gives their vote to the Top 25 Business Apps well worth examining. Google Apps For Business also need a look in, of course, as leaders in the field.

But it’s not just about being a consumer of Apps. As a business owner, you should give some consideration to cashing in on rapidly rising business trends. Can you imagine what it would be like if you had an App for your business? Just imagine all your customers who owned a smart device used your App regularly. And then imagine it drove business through your business door every single day! It’s possible and it happens. Now you may think that it’s outrageously expensive. But it doesn’t have to be. You may think that you need to go offshore to hire developers and that’s fraught with problems. But you don’t have to. You might think that you are not technical enough to implement such a step. But you don’t need to be. You simply have to hire someone who is. In fact, if you have an imagination and you know what your customers like, need or want, there are options. You could hire a freelance developer, who can work with you remotely, but within Australia. Or you might like to engage a firm right here in the ACT, which specialises in Apps development, has local business knowledge and who can make your ideas a reality. Planet Media in Phillip are one such firm. In fact there are quite a few. It doesn’t hurt to investigate the possibilities. Then you can decide whether to App or Not to App! Suzanne Kiraly (Digital Consultant, Business Storyteller & Social Media Trainer) suzanne@creativeknowhow.com.au


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“By supporting my staff to make healthier choices, l can see a healthier bottom line”

A healthier workplace works for me! Healthier Work is a free ACT Government service to help your workplace be healthier, happier and more productive. Visit the website to book a free consultation and find out more.

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A joint Australian, State and Territory Government initiative under the National Partnership Agreement on Preventive Health.


F E AT U R E

Community CPS Australia’s growth outperforms expectations R o be rt K e

particularly significant because it shows the resilience of the ACT property market and the positive impact the ACT Land Rent Scheme.”

ogh,

O

The Community CPS Australia Group is one of the largest customerowned financial institutions in Australia, with assets under management approaching $4 billion. The Group employs 598 staff across 46 branches, servicing more than 186,000 members. Community CPS is located in South Australia and the Australian Capital Territory, and operates as Wagga Mutual Credit Union in Wagga Wagga, Companion Credit Union in the Hunter Valley and United Community Credit Union in Western Australia. The Group comprises activities in banking, the community (through the Community CPS Foundation) and professional services (wealth management, tax and accounting services via Eastwoods). For more information visit www.communitycps.com.au

CEO, CPS

ne of Australia’s largest credit unions, Community CPS Australia, has outperformed expectations to post a $13.1 million after tax profit for the first half of 2012/13. In the six months to 31 December 2012, deposits rose 2.8 per cent, new lending was up 4.6 per cent and total assets under management grew by 3.1 per cent to $3.7 billion. The ACT arm of Community CPS Australia played a strong role in the business’ growth, with key achievements in the six months to 31 December 2012 including: • Overall business growth of 12 per cent; • Deposits rising 11.5 per cent despite strong retail competition; • New lending increasing by 15.3 per cent; and • Overall lending portfolio rising 12 per cent, despite this section of the market facing considerable pressure. Group Chief Executive Officer Robert Keogh says achieving asset growth in the current economic environment was a testament to the Group’s reading of consumer sentiment and competitive product offering. “As a mutually owned institution, our primary goal is to create and return value to our members and nowhere is that more evident than in ensuring our products and services are as competitive as possible.” “To achieve growth in our new lending volumes shows our commitment to offering a real alternative in the marketplace.” “Achieving a 15.3 per cent rise in new lending in the ACT arm is

help your kids own their own home. Our Parent Equity Home Loan could be the difference between your children buying a home or renting. By using the equity in your home as security you can help your kids buy the home of their dreams. To find out more about our Parent Equity Home Loan drop into your nearest branch, call 13 25 85 or visit communitycps.com.au Terms, conditions, fees and charges apply and are available on application or on request. Full details are available at time of application or on request. Community CPS Australia Ltd 15 087 651 143 AFSL/Australian Credit Licence 237 856.

CCPS0371 Parent Equity 115x186.indd 1

CCPS0371

26/03/13 2:37 PM


Special Olympics Australia invites you to be a fan of athletes with an intellectual disability by joinng us at the

GO FOR GOLD 5th Annual Sports Lunch celebrating Canberra Centenary100

Date Friday 24th May Time 12noon - 3:00pm Venue Hellenic Club Cost Corporate Tables of ten $1500 or $155 per person Dress Wear something yellow/gold

MC: Tim Gavel

RSVP 17th May 2013 Major Sponsor

Chartered Accountants

Sponsor Guest Speaker Laurie Lawrence


COVER STORY L-R Andrew Nesbitt, Ross Beames, Peter Beames, David Rae, James Watt

drew Sikorski

photos by An

Beames and Associates, one of Canberra’s most reputable and well regarded mid-size accounting firms has recently admitted its 5th partner making it truly open for business and ready to service new clients. “It was with great pleasure that we admitted one of our longest serving employees Andrew Nesbitt into our partnership ranks in July 2012,” says founding partner Peter Beames. “Andrew started with us as an undergraduate over 10 years ago. It is a fantastic example of what a young person with the right attitude and work ethic can achieve in a relatively short space of time”. Andrew Nesbitt joins accounting partners Peter Beames, Ross Beames, James Watt and financial planning partner David Rae in running

the successful Deakin based accounting and financial planning practice. Both Andrew and James began their careers under the guidance of Peter Beames, which means even now, as partners in their own right, they share a large number of clients and client relationships with Peter. “This is a great situation for our clients” says Peter. “Whilst James and Andrew handle the day to day work associated with running a client base, I’m always available for high end consulting work for both existing and new clients.

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COVER STORY

Some of the clients I service with Andrew and James have been with us for almost twenty years, so I like to think I’ll always be involved in their affairs in some way. However as a practice we also realised we had to innovate to remain relevant and we believe that we’ve found a great model where I can utilise my breadth of experience in the industry to help our clients with their high end issues whilst Andrew and James continue to provide them with the superb level of service and advice they have become accustomed to”. As James Watt explains, it is also a risk mitigation issue for their clients. “Our clients have peace of mind that if something was to happen to their advisor in any way, for example sickness, accident or even annual leave, there is another person they can immediately deal with who has the same intimate level of knowledge about their financial affairs”. 26

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Another reason the practice has the capacity to service new clients is the fantastic, young and motivated team of Chartered

Another reason the practice has the capacity to service new clients is the fantastic, young and motivated, team of Chartered Accountants currently on board. Accountants currently on board. “We’ve got the strongest team of staff we’ve ever had” says Ross Beames. “They’re motivated, healthy, energetic and keen to provide quality service, which really puts us in a great position to accept new clients – after all accepting new clients is great, but is pointless without having a powerful engine room of committed staff to deliver a quality service”. This, coupled with the firms dedication to utilising the latest technology in terms of

B2b M AGA ZINE

accounting systems (for example the relatively new online accounting software Xero) and its commitment to regular professional development and training for all staff ensures new clients will receive the most up to date, innovate service in Canberra. If you would like some advice and guidance to take your business and finances to the next level, the team at Beames & Associates would be delighted to assist you. Beames & Associates is currently welcoming new clients. If you would like to discuss your personal situation with one of the team please phone 6282 9500 to make an appointment. www.beamesandassociates.com.au


COVER STORY

SERVICES OFFERED BY BEAMES AND ASSOCIATES Taxation advice (both business and individual)

Self managed superannuation setup and administration

Advice on purchasing / selling a business

Profit improvement advice

Corporate structuring

Investment advice

Business valuation services

Succession planning

Wealth protection

For more information, please scan this QR code


COVER STORY

Y H W D N A G IN N N A L P L FINANCIA S S E IN S U B R O F N E WE’RE OP David Rae has been advising clients on their insurance and investment needs for the last 14 years but lately his focus has started to change. His starting point with clients is to understand what is important to them. Goal Setting and What is Important to You? “I’ve been spending more time recently talking with clients not just about their goals but the question of – what is really important to them?” David says. I was reminded recently again just how important this is. Bronnie Ware, an Australian nurse has worked with patients in the final months of their lives. She has recorded her experience with patients in a book, The Top Five Regrets of the Dying. The top five regrets she saw were: 1. I wish I’d had the courage to live a life true to myself, not the life others expected of me. 2. I wish I hadn’t worked so hard. 3. I wish I’d had the courage to express my feelings. 4. I wish I had stayed in touch with my friends. 5. I wish that I had let myself be happier. Like many professionals and small business owners, the regret of “I wish I hadn’t worked so hard” strikes a chord. I guess I’m lucky in that I love what I am doing. I genuinely feel like I am improving people’s lives and not always just in a financial sense. Having said that I’m also mindful of making sure work isn’t at the expense of spending time with the most important people in my life. In no time at all my 6 and 8 year old daughters who think Dad is fun and great to spend time with, will be teenagers and then on their way. I won’t get this time back.

It takes some deeper thinking to look at each aspect of your life and ask – what is important to you? But it is so worthwhile. Take Control of Your Cashflow David believes that taking control of your cashflow is the key to financial success. “So often we see people who don’t think they spend too much but at the same time don’t actually know how much they spend in a year. It is easy to get by another weeks or month and everything gets paid but there is nothing left over. At Beames and Associates we work out exactly how much money came in and out of a client’s personal bank accounts and credit cards in the last 12 months. In nearly every case it proves to be an enlightening experience for them! What we find is that spending is usually given priority over saving and debt repayment. Knowing exactly how much is being spent and where has a huge impact on clients. It makes them more focussed on what they want to achieve but more importantly it modifies their behaviour to help keep them on track. We’re finding this approach is striking a chord with clients – they love it! The financial strategies and investments remain a critical part of the process but they are dependent on knowing what is important and understanding the cashflow. The Beames team is getting SOCIAL youtube.com/BeamesandAssociates facebook.com/BeamesandAssociates


ADVICE 30 30

ACCOUNTING

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BUSINESS RELOCATIONS

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CORPORATE GOVERNANCE

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HEALTH

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RECRUITMENT

How effective is cloud computing? by Andrew Sykes, RSM Bird Cameron

BUSINESS LAW Is a creditors guarantee worth the paper it is written on? by Craig Painter, Elringtons Lawyers

Organisations on the move By Gary Green, Allied Pickfords Business Relocations

The governance of sport By Phil Butler, Australian Institute of Company Directors

DOCUMENT MANAGEMENT Is your document security up to scratch? By Iain Heddle, Ricoh

ESTATE PLANNING Gifts to self managed superannuation funds under your will By Stephen Bourke, Certus Law

You don't need to climb Everest to get into shape! By Robbie Manzano, Healthy Identity

Talent attraction By Allison Guy-Ritchie, PCA People

RISK MANAGEMENT How resilient is your business? By Rod Farrar, Paladin Risk Management Services

WEBSITES Five steps to improve your website By Sam Gupta, Synapse Worldwide B 2 b M A G A Z I N E   A p r i l 2 0 13

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ACCOUNTING

BUSINESS LAW

How effective is cloud computing?

By Andrew Sykes

Small to medium sized businesses are finding ways to streamline their business operations by moving away from traditional on-site servers to internet based servers, a process known as ‘cloud computing.’ Cloud computing refers to the storage of information, applications and other business tools online. The hardware used for this information is stored in a remote location and managed by a third party. The information is delivered over the internet, making it accessible anytime, via any device with internet connection. The users rent the ‘cloud’ from the provider, effectively reducing technology costs. Before making the decision to move business operations to the cloud, owners should weigh the positives and negatives of cloud computing. Positives of cloud computing Reduction of cost Cloud computing reduces paperwork, lowers transaction costs, and minimises investment in hardware (and the resources to manage it). Moving a business to ‘the cloud’ also reduces the need for IT staff. Pay for usage Like electricity and water, some cloud computing services allow businesses to only pay for what they use. As the business grows, more server space can be added. Levels the playing field Cloud computing providers offer small and mid-size businesses access to sophisticated technology at lower prices. Sharing IT resources with other companies reduces the cost of licensing software and buying servers. New cloud-based and mobile technologies mean smaller companies can now access cost-effective tools, such as a 24/7 online FAQ-style support centre that allows them to match the scale and capabilities of big business. Easier collaboration Since services in the cloud can be accessed anytime, anywhere from any computer, it is easy and convenient to collaborate with employees in different locations. Negatives of cloud computing Privacy One of the main questions businesses should be asking is, how much data cloud companies are collecting and how that information might be used. Availability As with all internet technology, the cloud service can go down unexpectedly, leaving businesses without important information for hours. Data mobility and ownership Deciding to stop using the cloud service means some data may be lost. Businesses cannot be certain that the service provider will destroy all data once the service has been cancelled. Having access to technology features previously only the preserve of bigger organisations is levelling the business playing field. Small businesses that embrace cloud computing are the real winners in today’s fast-changing technology scene.

by Craig Painter

As a provider of credit you insist on it and as the receiver of credit you baulk at providing it: a personal guarantee. How do they apply to sole traders? A sole trader is a person who trades without the use of a company structure, or partners, and who alone bears full responsibility for the debts of the business. A sole trader can trade under his or her own name or can register a business name. A business name is not a separate legal entity: it cannot own property in its own right, nor sue nor be sued in its own name.

...if you are a credit provider, is that you should ask the debtor to have a third party provide the guarantee. By incurring a debt as a sole trader, that person holds personal responsibility for the debts of their business. Often, providers of goods or credit to a business require sole traders to sign a contract of guarantee (Guarantee). A Guarantee is a contract by which one person (“the guarantor”) promises, whether personally or by providing a pledge or security, to answer for the debt, default or miscarriage of another (“the debtor”). Where a sole trader guarantees the debt of their business to a creditor, they are in effect guaranteeing a debt for which they have already accepted personal liability. If such a guarantee was deemed valid, it would be equivalent to saying: “If I can’t pay my debts now, don’t worry, I still guarantee to pay them”. Often when the debtor becomes bankrupt, the creditor seeks to rely on the Guarantee to assert it is a secured creditor. Barring exceptional circumstances, unfortunately the creditor gets in line like all other creditors. The exceptional circumstances could be where the guarantee contains a mortgage or security right over the debtor’s landholding, for example. The moral to this article if you are a credit provider, is that you should ask the debtor to have a third party provide the guarantee. This will give you additional pathways to enforce your debt, rather than just against the sole trader. However, if you want it to be worth the paper it is written on, you would want to assess the third party guarantor to ensure that they are solvent and have assets to “guarantee” your payment. The message for sole traders is that signing a guarantee (in the absence of a mortgage or security against specific property) puts you in no worse a position than incurring the credit in the first place! At Elrington’s, we can advise you on limiting your personal liability through business restructuring as well as prosecuting debts owed by individuals and business. For advice, call Partner Craig Painter or Will Atfield on (02) 6206 1300.

Bird Cameron

Chartered Accountants

For more information, please contact Andrew Sykes, Director at RSM Bird Cameron, on 02 6217 0333 or andrew.sykes@rsmi.com.au.

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Is a creditors guarantee worth the paper it is written on?

Craig Painter Contact Elringtons T: (02) 6206 1300, Level 7, 221 London Circuit, Canberra City visit: elringtons.com.au


BUSINESS RELOCATIONS

by Gary Green

Organisations on the move

We’ll get your business and your people set up, in place and ready for work on time. Total Solutions For You We have expertise in professional relocation management and commercial relocation services. We understand the wider issues, the need for careful planning, detailed project management and clear communication with your staff. Our experienced team takes total responsibility for your relocation, leaving you to concentrate on the day today running of your business. Whatever the scale of your business relocation and challenges we have the expertise and resources to make your relocation successful. Everything You Need We are able to do it all for you, whether a small office or a major corporate relocation. Allied Pickfords have the people, systems and specialist equipment on hand to have the best practicable office relocation. The Allied Pickfords Project Management Team has the experience to oversee and direct each stage of your move. From dismantling workstations, through to safe handling and transport of computer equipment, using our specialised equipment. Our Project Management Team leaves nothing to chance we work with you every step of the way to make for a successful relocation. Getting Back To Work Our aim is to minimise your downtime and should you wish to take advantage of our nightshift or weekend services, it’s often possible with proper planning and implementation, to finish work one day in your existing location and start back the following day in your new location. No fuss, no panic just a fast efficient and totally reliable service. Not An Office Not all businesses operate within the office environment and Allied Pickfords has the experience and knowledge to assist in these relocations. Our people understand the practicalities of moving machinery, specialised equipment, materials and stock. We have experience in relocating, Libraries, Laboratories, Hospitals, Factories and Warehouses, Hotels, Universities and Schools. Services We have a full suite of services designed to make your relocation quicker and easier. Packing, Asset Relocations, Internal Relocation Services, Handyman Services, Storage, Security Destruction, Paper Recycling, Refurbishment Programme, FF & E and Computer Disconnect and Reconnect. We can also assist with the relocation of staff locally, interstate and overseas. Organisations on the move are moving with Allied Pickfords Business Relocations.

Gary Green can be contacted at Allied Pickfords Business Relocations on 0423806702. visit: www.alliedpickfords.com.au

CORPORATE GOVERNANCE

by Phil Butler

The governance of sport

Another start to a sporting year, and the headlines have been mostly negative, whether it relates to the major football codes, cricket or indeed Olympic sports.

A very important element of achieving good governance is ensuring that all directors are made fully aware...what is expected from them. The reviews undertaken after the Olympics and recently announced by the Australian Sports Commission have clearly focuses on improving corporate governance. A couple of quotes from a recent statement affirms this view: “While good governance does not guarantee success, its absence almost certainly guarantees failure.” And further; “The ASC expects that good governance will pay dividends for both Australia’s high performance success, but also in the management of grass roots participation programs.” While reviewing this report I was also reminded of an article in the Company Director magazine in 2012, which referred to the importance of directors “making good decisions within risk and strategy frameworks”. Similarly it referred to the need for appropriate expertise being required on boards, and the need for directors to really understand their duties and responsibilities . Recently, the Australian Institute of Company Directors has been consulting on a set of Governance Principles for the Not for Profit sector. These principles are due for release in the middle of the year, however an overwhelming sentiment has been the importance of having appropriate governance frameworks in place that suit your organisation. The sheer diversity of the sector necessitates that governance is not a “ one size fits all approach”. However there was recognition that regardless of the size or type of organisation, that good governance was critically important. A very important element of achieving good governance is ensuring that all directors are made fully aware , not just of their legal duties and responsibilities, but also of what is expected from them. It is critical that this is explained at the time they are considering taking on the directors role. So ,for example, if you expect them to take an active part in fundraising that they understand this ahead of time. Similarly, if they are expected to be “champions” of he organisation that they are made aware of this early so that discussion can occur as to how they may undertake such a role. The Governance Principles can found on Company Directors website at http://www.companydirectors.com.au/Director-Resource-Centre/ Not-for-profit

Phil Butler is Manager - NFP, Public Sector & ACT at the Australian Institute of Company Directors. For more information about AICD ‘s course programs and events, T: 02 6248 5954.

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DOCUMENT MANAGEMENT

By Iain Heddle

Is your document security up to scratch?

by Stephen Bourke

Gifts to self managed superannuation funds under your will

With a huge escalation in the amount of information received by organisations it’s now increasingly important to keep sensitive information securely protected. Technology is a great enabler, and as much as it provides more opportunity for businesses to achieve success, it is unbiased in who and how success is achieved: just look at WikiLeaks.

Can you make a gift in your will to a self managed superannuation fund (SMSF)? Yes. But it is rarely used and potentially treacherous path. However, if you find a safe way through your beneficiaries could reap substantial rewards.

There are document management solutions available for organisations of all shapes, sizes and budgets.

A note of caution...It is subject to a number of caveats. Hence it is important to get good professional advice from suitably qualified experts in Superannuation and Estate Planning.

The challenge of protecting business critical information has never been greater. Failing to do so can effectively lead to financial penalty. In fact, the average organisational cost of a data breach in Australia is $2 million, which is cheap globally when you see that the same breach can cost $7.2 million in the United States and $4.7 million in Germany*. These ‘organisation costs’ include only those from breaches of personally identifiable information – it does not account for compromised sensitive customer information, lawsuits, fines or damage to brand. More importantly, though, compromised data will cost you the trust of your customers and probably their ongoing business. Earning your customers’ trust by securely managing their private information is essential to maintaining and growing in success. A simple step in greatly improving document security is to implement a document management solution that can track document-related activities on the network, automatically enforce rules, authenticate users and protect sensitive documents. There are document management solutions available for organisations of all shapes, sizes and budgets. Ricoh’s expertise and experience in this field offers the ability to implement tailored solutions individual to each business’ needs, including the ability to work within strict guidelines such as the Australian Federal Government’s ISM Protocol. Other than preventing security breaches, they also offer a host of features and benefits that help improve accountability and cost control. This can be done through the enforcement of duplex printing, limiting the use of colour printing, eliminating waste from uncollected print outs and the centralising of fleet management. * 2010 Annual Study: Global Cost of a Data Breach, Research conducted by Ponemon Institute, LLC, Sponsored by Symantic, May 2011.

Iain Heddle, Branch Manager – ACT 10/161 Gladstone St, Fyshwick T: (02) 6123 1888 E: iheddle@ricoh.com.au

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ESTATE PLANNING

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Take the following scenario. Carlisle has two kids Jasper and Alice. Carlisle gets bad news from his doctor and he knows his time is up. Carlisle has not seen Jasper for 15 years. Alice is 60 and has been caring Carlisle for a number of years. She has no income, savings or superannuation. Carlisle is concerned that when he dies Jasper will go after his estate. He wants Alice to get all of his estate in recognition for her sacrifices. However, he is aware that Jasper is entitled to make a claim for family provision. Carlisle establishes an SMSF and makes a contribution into it of $450,000 (the current maximum amount you can contribute to superannuation). Alice becomes a member and director of the SMSF. He then sets up a will with a direction that the executor of the estate (an unrelated third party) is to contribute $430,000 to the SMSF in favour of Alice’s member account. He also makes a binding death benefit nomination in favour of Alice. While the gift is still exposed if Jasper makes a family provision claim, the contribution of $450,000 is protected as superannuation falls outside the estate. The transfer from the Estate to the SMSF is allowed under superannuation law as the executor is not a related party. The SMSF can pay a tax free pension for Alice who can now retire comfortably. The $430,000 inheritance which Alice would be deemed to have contributed is still under her contribution cap limits. The $450,000 would have been a non-concessional contribution by Carlisle and would not be treated as a contribution by Alice. This would give Alice a total superannuation interest of $880,000. If the property had been inherited and invested she would have to pay tax on the income at her marginal rate. Carlisle has reduced the exposure of his estate to a claim and minimised the tax that Alice would have to pay in the future. A note of caution. The above example is complex. It is subject to a number of caveats. Hence it is important to get good professional advice from suitably qualified experts in Superannuation and Estate Planning.

Certus Law specialises in superannuation, trusts and estate planning. Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au

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HEALTH

By Robbie Manzano

RECRUITMENT

You don't need to climb Everest to get into shape!

What's the reason we go to work? What's the reason we eat? What's the reason we exercise? Firstly, we go to work because in this urbanised society a secure job that provides for our basic needs presents us and those around us a greater chance live a full and enriched life.

You don't need to climb to the base of the highest mountain in the world to get into shape. Any health-related event will get you climbing to personal health goals. Secondly, eating is a necessity of life. We eat to satisfy our physicalself so we are able to do the things we need to do each and every day. Thanks to advertising and marketing, competition within the food industry has increased and consequently, many food items have increased in simple carbohydrates and salts, causing healthy eating to become a noticeable industry. Thirdly, we exercise to keep in shape and lower the chance of heart disease and diabetes. Like eating, urbanisation promotes sedentary lifestyles and walking to the corner shop is nearing non-existent. Yet again, this issue is not in our societies favour and as a public health advocator it is my job to do something about it. If we ask ourselves 'what's the reason we go to work?’ we can list hundred's of reason right here and now, these reasons or 'motivators' push us to achieve work-related goals on a day-to-day basis. So, wouldn't it make sense to increase 'motivators' to improve eating healthy and exercise? As a health coach I take pride in regular exercise and a balance diet however, I find this practice automatic when I have a reason for doing it. On the 19th of February this year I set out to do a 12-day charity trek to the historic Mount Everest Base Camp in Nepal. What I found was six-months before the trek I started to run up local hills, attend the gym most days of the week and I'd walk to places most of us would normally drive to. My eating was more structured and I consciously consider the healthier option on most occasions. Although, this was a pretty extreme reason to start getting into shape, aspiring to achieve exercise-related events such as a local fun run will help you get into shape, whilst making easier to achieve workplace goals. You don't need to climb to the base of the highest mountain in the world to get into shape. Any health-related event will get you climbing to personal health goals.

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

Talent attraction

By Allison Guy-Ritchie

One of the key questions your Recruitment partner should ask you is “How do you define your culture in order to attract the best talent”?

By capitalising on your culture, companies get noticed by top performers who have goals and values that are aligned with those of the organisation. With over 14 years of Executive recruitment in the Canberra market I consistently hear the same old adage; “We offer a flexible and family friendly workplace with a good Worklife Balance”. This should then prompt a response; “How do you define this in comparison to your competitors?” It is a rare occasion that this prompts a clear and succinct answer that will differentiate them from their competitors. This is critical to understand so you can attract and retain the best talent. Many business leaders seek to create high-performing corporate cultures, however only a few succeed. What do those that succeed have in common? They all understand that the perceptions of the workforce are as significant in shaping behaviours as are the formal processes. They do invest in developing and communicating mission statements and corporate values but does this really change employee behaviour, or are there hidden, more powerful forces at work that make this investment ineffective? The key to developing corporate culture, particularly one that becomes a source of competitive advantage, requires gaining insight into how culture is formed; this includes the important role that employees' attitudes and perceptions play in the process. For those that create a culture aligned with their business strategy, the rewards are greater still: a workforce acting in unison as a dedicated powerhouse, moving the organization toward meeting its strategic goals. Your corporate culture refers to the conversations (both real and implied) that you have with your existing and potential employees about what it’s like to work for your organisation. It’s how we tell the world , “People want to work for us, and here’s why!” You might ask yourselves “What do we really stand for?” Organisations should consider the culture and vision, overall work experience, management practices and behaviours, and engagement factors to best determine this. By capitalising on your culture, companies get noticed by top performers who have goals and values that are aligned with those of the organisation. This results in a powerful synergy that drives not only business, but also future talent attraction and staff retention.

.

Level 3, Canberra House, 40 Marcus Clarke Street, Canberra City T: (02) 6257 1010 | www.pcapeople.com

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RISK MANAGEMENT

WEBSITES

How resilient is your business?

by Rod Farrar

We have seen major disasters over the past few years both in and outside of Australia that have caused significant disruption to businesses of all sizes. The Queensland floods, the Japanese Earthquake and Tsunami are two that spring to mind.

If we turn that around so that we are asking the question “what happens if?” we are going to be better prepared, more resilient and we will also have the ability to return to business as usual in a shorter timeframe, thus minimising the impact to our customers. It needn’t to be a major disaster, however, to render your business unable to operate in a ‘business as usual’ manner. It may be the loss of key staff, damage to infrastructure, loss of data or loss of access to business premises. Only a short time ‘off line’ can have a significant impact on your business and may result in the loss of customers to your competitors. So how do we improve our resilience? The first thing we need to do is identify our critical business activities i.e. those activities that, if not done, will mean that the business cannot undertake its core functions and achieve its objectives. Once we have done this we identify the events (risks) that would impact on their continued operation. These need to be treated to reduce the likelihood of the event, however, simply reducing the likelihood does not eliminate the risk so we need to put in place strategies to reduce the impact if the event does occur. These strategies may be as simple as having a back-up generator in the case of a power outage or off-site storage of data in the event of a server collapse through to more complex redundancy measures built into designs or alternate facilities in the case of a loss of access. Whatever the strategy, all personnel need to be trained so that they understand their responsibilities and these plans need to be regularly tested to identify any gaps that may exist. The most unhelpful attitude that a company can have is: “it will never happen to us”. If we turn that around so that we are asking the question “what happens if?” we are going to be better prepared, more resilient and we will also have the ability to return to business as usual in a shorter timeframe, thus minimising the impact to our customers.

PO Box 359, MITCHELL ACT 2911 Australia T 0400 666 142 | F 02 8208 7398 E rod@paladinrisk.com.au W: www.paladinrisk.com.au

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by Sam Gupta

Five steps to improve your website

What would you do if a potential customer walks through your office or shop door? Would you ignore them? Would you try to find out what they are looking for? Would you not direct them to the right department or shelf? Many potential and existing customers fly through your website every day. You can use following steps to improve your website and possibly boost your conversion rate. 1. Know your visitors First things first – you got to know who you are talking to online. Your website could be attracting many different types of visitors and it is obviously hard to please everyone. But, you should know your core visitors or target market. Where do they come from? Why to your website? How long do they stay for? How important are they for your business? Understanding the behaviour of your online visitors is the key to improving the effectiveness of your website. 2. Answer their key questions Once you know and understand your visitors, the next step is to address their problem. What are they looking for on your website? The best way to think is, what would you have answered if they were to come to you in person? Resolve their query through your website by pointing them to the right solution. 3. Establish trust online Trust is the most important ingredient of any relationship. There is no silver bullet for this; every business is different. It is not just about the look and feel of your website. Understanding the behaviour of your visitors will allow you to understand how to go about establishing trust online. In most cases, whatever works offline will work online also. 4. Seek customer feedback Although putting yourself in your customer’s shoes is a great way to analyse and improve a website, it just cannot replace the value of real customer feedbacks. Remember, small things count! Try it; you will be surprised by the feedbacks. 5. Manage expectations Represent your business well. Your website should reflect the core values of your organisation. The client should not feel any discrepancy between your physical and online presence. Don’t underestimate your website. It represents your business 24/7. Take the time to get it right. Once you have gone through the improvements, promote your website wherever you can. I would love to discuss your website and how you can improve it. We offer free one hour consultation for this. Simply call me on 1300 785 230 or drop me an email on admin@synapseworldwide.com.

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


MINISTER’S MESSAGE

A2B

Exporting Government solutions

C

anberra is a world leader in public sector administration. It’s the centre of Australian public policy - providing leadership in the development of innovative public sector solutions and services. Our private sector has grown to meet the needs of the public sector, and in so doing, has developed world class capabilities around corporate governance, public policy, security, public service delivery, and research and development. Last Month I launched the Centre for Exporting Government, established to actively prepare ACT companies to build markets for services and products aimed specifically at governments in overseas markets.

The ACT Government continues to be committed to trade development and supporting the ACT exporting community to develop new markets. I would like to thank the ACT Exporters’ Network and Austrade for their roles in supporting the Centre and I look forward to seeing successful results from the companies participating in the programs. The Centre is a result of the successful pilot program that began less than two years ago. As part of that pilot program, I led nine companies on a trade mission to Washington DC. A number of companies from that mission have made sales as a direct result, and almost all of them have found a way to be represented in the US market to continue to progress further opportunities. These outcomes are a strong endorsement of the opportunities that the Centre for Exporting Government will provide. In its first year of operation, the Centre will aim to prepare 8-10 companies to sell into the US public sector market. Over time, the Centre will work to position the ability of locally based companies to target opportunities in other markets, in particular those in Asia.

In response to the Australia in the Asian Century White Paper, the ACT Government will aim to maximise opportunities to engage and connect with Asia markets and in this regard it will not be news to most of you that I shall soon be leading our first trade mission to Indonesia. Built on this strong foundation, the ACT Government’s Business Development Strategy has established a single program interface, Global Connect, for the various trade development related activities the ACT Government supports, including the ACT Exporters’ Network, Trade Connect, and now the Centre for Exporting Government Solutions. During 2012, we undertook an extensive review of the Trade Connect Program and as result the government has enhanced the program to make it more accessible for companies progressing market development activities. We have doubled from $5 million to $10 million dollars the total revenue threshold for eligible companies and we have included travel and related expenses as eligible costs for reimbursement in the program however, as you would expect, conditions do apply. Under the new guidelines, eligible companies may apply for assistance with reasonable costs directly associated with export market development activities. Eligible companies need to clearly demonstrate how the activities align to the companies’ documented market development strategy. The ACT Government continues to be committed to trade development and supporting the ACT exporting community to develop new markets. I would like to thank the ACT Exporters’ Network and Austrade for their roles in supporting the Centre and I look forward to seeing successful results from the companies participating in the programs. For help or advice about doing business and investing in the ACT, or exporting, please get in touch with the Economic Development Directorate: www.business.act.gov.au

ANDREW BArr

ACT DEPUTY CHIEF MINISTER TREASURER MINISTER FOR ECONOMIC DEVELOPMENT

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A2B

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

City to the lake – A project to transform west basin and the city CHRIS FA U l K S

CEO CANBERRA BUSINESS COUNCIL

AFFILIATED WITH

Principal Members Australian Computer Society, Actew Corporation, ActewAGL Retail, BluePackets, Brookfield Multiplex Services, Canberra International Airport, CanPrint, Cantlie, Cre8ive, Elite Sound & Lighting, Ernst & Young, eWAY, Hindmarsh, ISIS, KPMG, Master Builders Association (ACT), National Australia Bank Limited, PricewaterhouseCoopers, Staging Connections (ACT), The Village Building Co, Toshiba (Australia) Pty Limited, TransACT Communication, PricewaterhouseCoopers 36

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T

he ACT Government recently launched its ‘City to the Lake’ initiative at the National Museum of Australia. This project which will connect the city to Lake Burley Griffin joins other recent ACT city planning developments such as the City Plan and Canberra Metro – a new Light Rail Transport network.

The “City to the Lake” plan is proposing that the Australia Forum be located adjacent to City Hill and not on the lakefront. Before any final decision is taken on a move away from the preferred lakefront site there will need to be comprehensive discussions with the ACT Government to ensure that the City Hill site is able to accommodate all of the requirements outlined in the detailed functional brief which was developed in the Australia Forum Scoping Study project, including associated infrastructure such as hotels and room future expansion. Canberra Business Council is very supportive of the City to the Lake project and particularly sympathetic to the broad planning objectives behind the project: extending the city to the lake at West Basin; facilitating access from the city to the lake across Parkes Way; activating the waterfront at West Basin and providing an opportunity for increased urban density which will both enliven the city and underpin the viability of an improved public transport system. The ‘City to Lake’ vision includes; the transformation of Parkes Way into a smart boulevard, allowing through traffic to bypass the CBD and improving pedestrian access from the city to the lake; construction of an iconic world class convention centre that will attract national and international conferences; over 1 million square metres of floor space for mixed use development; a 30,000 capacity Football stadium for sports, concerts and other large scale events; and a lakeside Aquatic Centre and urban beach.

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The Council has responded to the release of the “City to the Lake” plan by recommending that priority and a funding commitment for the redesign of Parkes Way be included in the upcoming ACT Budget for 2013-14. The Parkes Way ‘smart boulevard’ upgrade is critical to unlocking the potential of the plan for West Basin - particularly linking the city to the lake and opening up the public spaces and development opportunities. For the Canberra Business Council, a close second priority in the “City to the Lake” plan is the design and construction of an iconic world class convention centre – the ‘Australia Forum’. Business meetings, conferences and conventions are critical to the future of the ACT business and visitor tourism industry and to positioning Canberra as a world class city of ideas and big conversations. A new convention centre will significantly lift Canberra’s business tourism industry and be increasingly important as the ACT looks to diversify its economy. The Council believes that the proposed new convention facility has the potential, if designed and located appropriately, to sit alongside other national institutions and become a National icon, and for this reason continues to believe that the preferred site for the new convention facility is the lake front site on Lake Burley Griffin at West Basin. The “City to the Lake” plan is proposing that the Australia Forum be located adjacent to City Hill and not on the lakefront. Before any final decision is taken on a move away from the preferred lakefront site there will need to be comprehensive discussions with the ACT Government to ensure that the City Hill site is able to accommodate all of the requirements outlined in the detailed functional brief which was developed in the Australia Forum Scoping Study project, including associated infrastructure such as hotels and room future expansion. CBC will also continue to work with the ACT Government and key stakeholders on the other large infrastructure projects within the City to the Lake plan but will reserve judgment about their relative merits (economic, cultural and community), possible funding options and potential staging until more details are released.


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

A2B

Are you ready for exporting?

H

ow do you know that you’re ready to export? It all starts with making sure your business is export-ready and thinking about the best way of taking your product or service to market. Companies starting to export are more likely to succeed if they have a well thought out and planned export strategy. Prospective exporters need to have a strong understanding of their current business and how export fits into their overall plan. The ACT Government as part of their Global Connect Initiative has developed an online information portal with information sources relevant to entering the USA government market. In what is known as the largest single market in the world, the US Federal Budget is $3.8 trillion and US State and local spending is $2.4 trillion. The online information resource at www.b2g.net.au provides information, capacity building and access to opportunities to enable ACT companies to access this market. The information and online resources at www. b2g.net.au focus on buildings capabilities, identifying opportunity and promoting success. This portal is not a static brochure ware site, but has been developed by exporters with experience in accessing this difficult, but potentially profitable market. Within buildings capabilities on www.b2g.net. au there is a Market Sector Preparedness & Progress Matrix specifically designed for the US Public Sector. This matrix has 25 criteria areas, enabling you to self-assess where your skills and capabilities currently are at. Criteria cover many aspects of preparedness such as market sector experience and expertise and solution maturity.

Over time you do additional self-assessments and evaluate your progress and export readiness. An excerpt from this matrix is shown below. A really exciting part of this online information resource is the Opportunities icon. This link quickly and easily enables companies a one stop shop to access information on tenders, proposals and contracts available in the USA government departments. To check it out go to www.b2g.net.au Upcoming events ACT Chief Ministers Awards 2013 – 100 Years, 100 Countries, 100 Exporters I welcome all exporters to consider entering the ACT Chief Minister’s Awards in 2013. Entering the Awards will provide you an opportunity to network with other ACT companies, and to be seen as an outstanding performer amongst your peers. Previous winners have said that entering awards program enables them to improve their business, and winning an Award category can be used to great advantage as marketing tool. The ACT Government, through the Canberra Business Council, provides assistance to enter these awards. Free Exporting Newsletter Do you want to find out more and get up to date information about exporting? The ACT Exporters’ Network sends out a regular newsletter. If you are involved with exporting and international business, then please consider the advantages that being involved with the ACT Exporters’ Network provides.

ELLEN pOpE

EXPORTERS NETWORK MANAGER

The ACT Exporters’ Network works with exporters from the Canberra region, to build opportunities in overseas markets. If you require assistance, would like to be involved in our events, or find out more about the Network, please visit our website (www.actexportersnetwork.com.au) or contact Ellen Pope, ellen.pope@ canberrabusinesscouncil.com.au or 02) 6247 4199

Key dates for the ACT Chief Minister’s Awards in 2013 are: 1 May Launch and Applications Open 15 August Applications Close 26 September ACT Chief Minister’s Awards Gala Ceremony


A2B

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

Taking the journey with businesses GREG SCHMiDT

DIRECTOR, WORKPLACE RELATIONS

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

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he ACT & Region Chamber of Commerce and Industry has been serving the business community in the ACT for almost 80 years. As the ‘Voice of Business’ in the ACT, the Chamber represents the business perspective and advocates for local and regional businesses on current and emerging issues affecting them. The Chamber provides members with a range of services to help them meet the challenges facing business today and help them succeed. The passing of Dr Chris Peters, who led the Chamber for more than fifteen years, has had a big impact on the business community in general, but especially on the staff and Board of the Chamber. He has left big shoes to fill, but our team is determined to carry on with the work that Chris undertook. The Chamber will continue to participate in robust discussions with government, ensuring that the interests of our members find a voice and that business in the ACT remains strong and resilient. Staff from our Workplace Relations and Employment, Education and Training teams are in regular contact with both policy and executive arms of government and are always happy for the feedback we get from members as it allows us to strengthen our message, and ensure we are representing members accurately. Workplace Relations members of the Chamber have access to a specialist Workplace Relations team that provides business-specific services focused solely on the needs of the employer. Services include Industrial Relations, Human Resources, Work Health & Safety, Industry Awards, Individual Flexible Workplace Agreements and Enterprise Bargaining Agreements. The Employment, Education and Training team are delivering two programs to support education and training in the ACT, as well as representing the interests of members in the education and training sector and supporting workforce development programs. The Education and Training Adviser assists employers to find solutions to their employment needs by providing information about all aspects of the national training system and incentives available to employers and employees, as well as advising government on issues arising

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from the implementation of the system. The Ready program is part of the Commonwealth’s School Business Community Partnership Brokers program and supports partnerships that lead to increased attainment of year 12 or equivalent qualifications, and enhance young people’s transitions into the workforce. Employers are encouraged to take a long term view of their workforce needs, and contact the Chamber’s Partnership Brokers to help them engage with young people in a way that will support their attainment and transitions. Each fortnight our Chamber News ensures members are up-to-date with information relevant to the way businesses operate in the ACT and region. For those with an interest in education and training, the Ready Read provides a digest of opportunities and events that help to ensure young people are engaging with education, training and career pathways. And of course our events will continue to provide a platform for members to get to know other members with common interests and challenges, promote their business and get to know the staff who support them behind the scenes. The Chamber’s Annual Dinner will be held in May, and we will be celebrating businesses that have survived and thrived for an extended period in Canberra or the region. Other regular events continue, including the monthly Business After Business networking function, Federal and Territory budget forums, Young Business Network and Women in Business events. Members will always find Chamber staff and Board members with an open ear at these events or at the end of our phone line, and are encouraged to speak up about issues having an impact on their businesses. There is strength in consolidating these messages, and the Chamber will continue to work to represent the interests of the business community in all of our interactions and efforts. As the Chamber approaches its 80th year, we expect to see the business community in Canberra go from strength to strength. We’ll be there to take the journey with you, supporting the business community.


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p rO p ErT Y YOUR MONTHLY LOOK AT PROPERTIES AND PROPERTY RELATED INDUSTRIES IN THE ACT

COMMUNITY BANKING How can it contribute to affordable housing?

OWNER’S INVOLVMENT Jason Klose from Brindabella Business Brokers explains its significance when selling

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B2B PROPERTY

Should the government bank with the Community Bank?

B

endigo Community Bank will put back 80% or more of it’s profits into community services, groups, charities and events - profits derived directly from the level of funds in bank accounts with the Community Bank. So why doesn’t Government, and every government agency, invest some of their funds on term deposit with Canberra’s Community Bank Branches of Bendigo Bank? Understandably there is a tender process to do the government’s banking, and no doubt that contract sits with one of the big 4 banks currently. But not all of government’s revenue is part of that arrangement. What about Federal Grants Funding and other federal money earmarked for projects to be administered by the States and Territories? Why wouldn’t the ACT government invest some of those funds with the only locally owned bank in Canberra? The local Community Bank is unapologetically parochial in it’s endeavours to spend our money locally and to invest our profits in local groups that help local people. We hire local people, we buy our goods and services locally where possible, and our shareholders are almost all locals The Molonglo Community Bank Group has four branches locally at Calwell, Curtin, Jerrabomberra and Wanniassa. Each Branch has a Manager who runs the Branch and

makes the decisions. Advice is available everyday with no obligations. In return we hope locals will support our branches by banking with us. Because we have done a good job of helping customers since 2002, this year we will be able to contribute our one millionth dollar from profits back to community groups and projects. The Community Bank® model provide communities with more than just quality banking services – they deliver employment opportunities for local people, keep local capital in the community, are a local investment option for shareholders and provide a source of revenue for important community projects determined by the local community. Canberra is a diverse community but ultimately we are a community that cares about our fellow citizens. We can always do more and although an increase of a thousand houses in the last 11 years is something to be proud of the waiting lists are still not as short as we would like. One of the difficulties of Government is achieving balance between competing needs and sometimes demands. The latest changes to the tax laws, despite some of the fear mongering, mean that for people entering the housing market, costs are reduced and that ultimately the burden is shared. Personally I doubt that in the future

the traditional sources of Government revenue will be sufficient and I look forward to a time when we can generate greater community income from innovative practices in business, education and industry so that general services become more affordable through strategies designed to increase our sustainability profile. Governments around the country could partner with Community focused and proven philanthropic corporate like the Bendigo Community Banks to create community assets in the community without having to tax to pay for it. The Partnership announced in September by Minister Burch, between Canberra’s Bendigo Community Bank Branches, West Belconnen Health Co-Op and the ACT Government to deliver a Bulk Billing Health Co-Op in Chisholm early next year is an example of just such collaboration. We can also build on the domestic and export value of our marvelous tertiary education facilities and create employment opportunities and export potential through greener jobs in a carbon neutral and sustainable economy. I do believe in dreaming big, but that can only become reality when combined with working hard. The future of Canberra has never looked brighter.

Jayson Hinder is Chairman of Molonglo Financial Services MFS operate the Calwell, Curtin, Jerrabomberra and Wanniassa Bendigo Community Bank Branches. 42

Calwell, Curtin, Jerrabomberra and Wanniassa Community Bank Branches

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B2B PROPERTY

OWNER’S INVOLVEMENT

Jason Klose, Managing Director t: 0414 890 286 jason@bbbrokers.com.au www.bbbrokers.com.au Any business buyer who is looking at buying a business needs to understand what the owner currently does in the business. The business buyer wants to know the hours they work and what functions they perform.

All this is important as it impacts the sale price that can be asked for the business. An easy example is a chef in a restaurant. If the chef is the owner of the restaurant, the business buyer needs to understand what days they work, how many hours they work (day and night), if they do the food preparation, ordering, book work and once the owner leaves, can another chef replicate what the current owner prepares for customers. All this is important as it impacts the sale price that can be asked for the business. When a profit and loss is reviewed it needs to include all costs and this includes the true cost for the hours and functions the owner undertakes in the business. Using the example of the restaurant and the owner is the chef,

FOOD FRANCHISE WODEN UNDER FULL MANAGEMENT

BAR/PUB SOUTHSIDE UNDER FULL MANAGEMENT

if you want to make a net profit of $180,000 with a franchise food business run under management than you will need to move quick. Some of the benefits of this business: • No owner involvement • located in one of Canberra’s strongest food courts • Strong lease • like new fit out

This bar/pub is run under full management with no owner involvement. Short operating hours for a 7 day business. Some of the benefits of the business: • 2012 turnover $1m • Gp 69% • Net profit $186,000

$395,000 + SAV

$450,000

BEAUTY SALON NORTHSIDE UNDER FULL MANAGEMENT

44

if the profit and loss only shows a wage to the owner/chef of $30,000 for working an 80 hour week – the profit and loss does not represent the true cost of running the business. The profit and loss needs to be adjusted to show how much it would cost to employ 1, 2 or 3 people to do what the owner currently does. Once you know the true profit of the business, you can begin to understand what the value of the business. Further, you begin to understand what areas you need to address if you buy the business. So in essence we are trying to get the adjusted profit and loss back to if the business was run under management so it includes all costs. This does not necessarily mean businesses need to be run under management - a lot of business buyers want to buy a business so they can work in it. However business buyers are not going to pay much for a business that in essence is a job. Therefore if after including the true cost for the owner’s time in the profit and loss results in small bottom line i.e. the business only makes enough to pay the owners wage, what you have is a business that is actually a job. Once the business buyer knows the adjusted profit and loss for owner’s involvement, they can look at the business for what it is and decide if they want to proceed further.

5 DAY CIVIC CAFE - 40KG COFFEE

This run under management beauty salon has a like brand new fit out and revenues are continuing to grow. The salon mainly specialises in waxing and tanning but also focuses on makeup and skin care. With a strong database of 4,000 and located in a strong shopping centre - this is the ideal business for those working in the industry to own their own business.

Very strong cafe that is situated in the large Government building with no other competition. Owners rely on their strong staff to operate the 5 day cafe with the owners averaging just 16 hours in total per week. • Turnover 2012 $670,000 • rent per week $1,300 • Gp 58%

$115,000 + SAV

$405,000 + SAV

Contact Jason Klose on 0414 890 286 for more information or visit www.bbbrokers.com.au

A p r i l 2 0 13

B2b M AGA ZINE


B2B PROPERTY

INVESTMENT PROPERTIES GET THE BEST PROPERTY MANAGEMENT.

P

roud Property Management re defines levels of service and value for money. Ian Barrass founder of Proud said “We give concierge service at a lower price. Our business model takes out some of the biggest costs for an agency such as commercial rent and high franchise fees. You get the benefit of our savings: we give a premium service at a lower price!” Ian Barrass comes from a family with real estate in its veins. It all started in 1908, before the Ian Barass, founder, Proud Property foundation of Canberra and not long after Australian Federation! Ian, who purchased his first investment property at 25, said that

real estate has been an important part of his own investment strategy. “My property management likes and dislikes became the basis of the Proud Concierge Service model.” “In many agencies, managers can be responsible for over 100, or even 130 properties.” Ian asked “How can managers with that much on their plate look after your valuable investment?” At Proud Property Management, your personal manager is limited to a much smaller portfolio: there is always time to ask questions and to help you. Ian said that “taking time to properly address potential risks at the start of a tenancy helps determine results at the end”. We begin tenancies with a view to the desired outcomes at the end and throughout the relationship. Proud pays particular attention to vetting tenants, then reinforces this with robust contracts. “No one ever wants to front the rental bond boards or tribunals, but if it is required; we will represent our client’s interests to the fullest” said Ian. Good

“By supporting my staff to make healthier choices, l can see a healthier bottom line”

managers are part of your safety net and reduce the risk of poor tenants. But if there is a problem, your manager’s knowledge of legislation, willingness to follow through and then having the time to do it are your next levels of protection. If you are looking for concierge assistance with your rental properties, or if you have been unlucky enough to have already had problems, contact Ian Barrass for some no obligation assistance. Contact Ian Barrass at Proud Property Management M 0408 969630 | T 6162 0020 ian@proudrealestate.com.au www.proudrealestate.com.au

A healthier workplace works for me! Healthier Work is a free ACT Government service to help your workplace be healthier, happier and more productive. Visit the website to book a free consultation and find out more.

healthierwork.act.gov.au

A joint Australian, State and Territory Government initiative under the National Partnership Agreement on Preventive Health.


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6296 5214

Email enquiries to: admin@apollopatioscanberra.com.au

OR VISIT US ONLINE

www.apollopatioscanberra.com.au Builders Licence ACT 2009553 NSW 249576C ABN 27 151 944 183 *Conditions apply

Appearance is everything. Ainslie Laundrette makes looking the part easy. With the added convenience of a complementary pick-up and delivery service Ainslie Laundrette is perfect for the busy professional Laundry | Dry Cleaning | Ironing | Repairs | Free pick-up and Delivery

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B2B April 2013 issue 81  

B2B April 2013 issue 81

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