Business Pulse February 2018

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FEBRUARY 2018 BUSINESSPULSE

PERTH’S VIBE Selling it to the world

CARE FACTOR Massive growth on way

New remedies HBF chief’s 2018 diagnosis

Print Post Approved No. 100004175 ISSN 1328-2689


HELLO TO SOME OF CCI’S NEWEST MEMBERS Guardian Exercise Rehabilitation John McDonald Managing Director Worker’s compensation, rehabilitation using physio, exercise physiologist and occupational therapist.

Hotwash Australia Jim McDonald Director Manufactures aqueous-based parts and degreasing equipment for mechanical repair workshops. T 0408 918 213

T 0412 262 647

E jim@hotwash.com.au

E john@gerehab.com

W www.hotwash.com.au

W www.guardianexercise.com

Illuminate Project Solutions Rob Glew Principal Speciality construction and project management services. Over 25 years experience delivering complex engineering and construction tenders and projects in oil and gas, mining, water and infrastructure industries. T (08) 6189 8512 E enquiries@illuminateprojects.com.au W www.illuminateprojects.com.au

Ocean Grown Abalone Romolo Santoro CFO Sustainable aquaculture ranching of ocean grown abalone. T (08) 6181 8888 E romolo@oceangrown.com.au W www.oceangrown.com.au

HAVER & BOECKER Australia Pty Ltd Katrina Fewster Accountant HAVER & BOECKER is a leading manufacturer of diversified processing, storing, mixing, filling, packing, palletising, loading and automating solutions. T (08) 6240 6900 E k.fewster@haveraustralia.com.au W www.haveraustralia.com.au

InfraNomics Cameron Edwards Director Provides infrastructure project development and commercial advice. We aim to create sustainable value for our clients. T (08) 9226 2413 E cameron@infranomics.com.au W www.infranomics.com.au

“We joined CCI for HR/IR advice, networking opportunities and business meeting facilities” Yeeda Kimberley Tours

“We joined CCI to get quality information and support for our business”

Lorraine Lee Tourism Development Officer We are a family-owned Kimberley based tourism business offering outback experiences centred around our cattle properties. T (08) 9192 5815 E lorraine@yeeda.com.au W www.yeeda.com.au


WELCOME A NOTE FROM THE EDITOR ROBYN MOLLOY

FEBRUARY 2018

IN THIS EDITION Message from the CEO

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Message from the Chief Economist

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Pump on policy

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Business Pulse Editor

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he business of care is triggering a new era of job creation and economic growth across the state, which is why this month’s Business Pulse explores the ‘Profit for Purpose’ theme. Rollout in WA of the National Disability Insurance Scheme alone is expected to increase demand for jobs (directly and indirectly) from 10,507 last year to 20,144 by 2020, while Gross State Product for the sector will rise from $1.4b in 2015-16 to almost double at $2.7b in 2020. As Federal Minister for Aged Care Ken Wyatt points out in his guest column, 180,000 people will be required by 2022 in aged care, health and social assistance — that’s double the number of people employed in the mining industry during its 2012 peak. But with opportunity comes challenge and one of those challenges is finding the required number of workers. The Federal Government’s Pacific Labour Scheme might form part of the solution and we outline some early details of how the scheme might work before it kicks off in July. We also feature an interview with HBF chief John Van Der Wielen and profile a number of our Members operating in the sector. In addition, we welcome CCI’s new CEO Chris Rodwell and farewell outgoing CEO Deidre Willmott, who has penned her final column for CCI. Our next edition will look at ‘Green Shoots’. We welcome your ideas. Send them to robyn.molloy@cciwa.com.

It’s your business to register.

Lessons Learnt – Bethanie’s Chris How

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Meet CCI’s new CEO – Chris Rodwell

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Human care: A burgeoning industry Why WA’s retirement village sector is different

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The virtual doctor has arrived in WA

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HBF goes back to basics

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Complex realm for not-for-profits

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Guest columnist: Aged Care Minister Ken Wyatt

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Wake up world, Perth has a lot to offer Q&A: Your employee questions

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IR review

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Crackdown on franchisors

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Legal obligations when staff volunteer at emergencies

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Graduates program amps up

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Masters & Apprentices: Meet the next generation and their mentors

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Future of work

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Winners are grinners

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Published monthly by Chamber of Commerce and Industry of Western Australia (Inc) 180 Hay Street, East Perth WA 6004 T (08) 9365 7555 E info@cciwa.com W www.cciwa.com President Ray Sputore

If you employ workers in the construction industry you may be required by law to register in the Construction Industry Long Service Leave Scheme. Find out by visiting www.myleave.wa.gov.au or by calling 08 9476 5400.

Editor Robyn Molloy (08) 9365 7628 editor@cciwa.com

Chief Executive Officer Deidre Willmott Graphic Designer Katie Addison (08) 9365 7518 katie.addison@cciwa.com

Advertising sales Paula Connell (08) 9365 7544 advertising@cciwa.com

Disclaimer: This information is current at 1 February 2018. CCI has taken reasonable care in preparing this information, however, it is provided as a guide only. You should seek specific advice from a CCI adviser before acting. CCI does not accept liability for any claim which may arise from any person acting or refraining from acting on this information. Reproduction of any CCI material is not permitted without written authorisation from the Editor. © Copyright CCI. All rights reserved

FEBRUARY 2018 BUSINESS PULSE 3


PROFESSIONAL SUPPORT AND ADVICE CCI’s Employee Relations Advice Centre (ERAC) is just a phone call away. Our team of experienced Employee Relations advisors provide CCI members with over the phone advice on a range of employee relations and human resource issues — all designed to make it easier to do business. Where assistance beyond phone advice is required, our Workplace Consulting team offers support and representation at discounted rates for members. Have an urgent ER/HR issue? The ERAC telephone advice line is open from 8am to 5pm, Monday to Thursday and 8am to 4pm on Friday. Call us today on (08) 9365 7660

(08) 9365 7660 | advice@cciwa.com | cciwa.com 4 BUSINESS PULSE FEBRUARY 2018


ADVOCACY IN ACTION

Keep on with the ‘can-do’ attitude A MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

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he only impossible journey is the one you never begin’. As I write my last column and reflect on my time as CEO of WA’s peak business body, I felt that this quote was apt. There were, of course, times that I thought the challenge of transforming the Chamber of Commerce and Industry WA (CCI) to maintain our vision and relevance following WA’s economic downturn may have been too great — after all, to doubt ourselves is human. But the journey CCI has undertaken over the past four years is one that, although it may have seemed impossible at times, is a legacy that I am proud of and believe will ensure CCI is able to continue to evolve and provide impactful advocacy for the business community for many years to come.

West Australians’ confidence in the economy is continuing to grow, reaching its highest level in four years in the December 2017 quarter. But this recovery will only continue if the Government maintains a pro-development, business-friendly approach to development — not just at a political level but within the bureaucracy. This is the only way to ensure business can bring on new projects — not just in the resources sector but also in industries such as agriculture and tourism. When I first joined CCI in 2006 as Executive Director Policy, it was a time when WA’s resources sector was just starting to take off, with projects such as Chevron’s Gorgon Project yet to achieve final approval and Fortescue Metals Group was two years off its first iron ore shipment.

“It has been a privilege to lead CCI in advocating on behalf of WA’s business community for the past four years” With business creating four out of five jobs in WA, it is vision — from both a business and government perspective — that will be critical to our state’s future success. Green shoots in the WA economy are now beginning to be experienced by most West Australians and economic recovery is on track, with businesses using restoration, innovation and new technologies and strategies to move past the recent difficult years to position themselves for future growth. This is supported by CCI’s latest Survey of Consumer Confidence, which you can read in this edition of Business Pulse, has revealed that

It was also a time when many still considered Perth to be just a big country town. But as every West Australian knows, this didn’t last long, with WA fast becoming the country’s economic powerhouse and infrastructure developments beginning to transform our city and regions. But this economic boom would not have ensued if it weren’t for this pro-development approach. Enabling projects to progress — such as 3 Oceans’ Scarborough ‘Twin Towers’ and Mineral Resources’ J5 and Bungalbin East iron ore mines, which were recently rejected for development — is vital for WA.

Our state has a very strong business community and a ‘can-do’ attitude, but business can’t do it alone. These efforts must be fostered by the State Government and our WA Federal Government representatives to ensure WA’s voice continues to be heard on key issues that will affect the future growth of our state. These issues include GST reform, defence capability and procurement, energy and housing security and maintaining WA’s skilled workforce. I urge WA’s future business leaders to maintain their ‘can-do’ culture and their commitment to CCI as their peak representative body because it is these issues that will make or break WA’s economic recovery. It has been a privilege to lead CCI in advocating on behalf of WA’s business community for the past four years. I thank all CCI Members, Board, executive and staff for the opportunity. I wish incoming CEO Chris Rodwell the very best. Chris takes over at an exciting time for WA with new opportunities emerging which will position WA business and CCI for the future. I look forward to continuing to work with CCI and the WA business community to help make WA the best place in the world to live and do business.

Deidre Willmott Chief Executive Officer

TO GET INVOLVED: cciwa.com @CCI_CEO

FEBRUARY 2018 BUSINESS PULSE 5


ADVOCACY IN ACTION

2018 – the year to fix the GST CCI CHIEF ECONOMIST RICK NEWNHAM

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his is the year that the Turnbull Government should fix the GST distribution. It has never been clearer that the GST system is under such significant strain and requires an urgent, economy-boosting change. WA’s GST share won’t fix itself. It is a myth that after the ‘mining boom’ WA’s GST share will return from 34 cents in the dollar to pre-boom levels. The mining boom has contributed to WA’s falling share of GST but the major factor has been WA’s sustained increase in iron ore production and the royalties that have flowed to the WA Government.

The role of every state government is to create an economic and social environment that fosters growth and allows it to deliver a high standard of services for its residents. We should not accept that some state governments can sit back and let other states do the heavy lifting for them while they reap the benefits through the GST distribution. Australia’s GST system should be one that encourages every state government to forge ahead and develop their own economies, and pursue tax reforms that stimulate growth and increase the size of the GST pie, benefiting every Australian.

“WA’s GST share will fall to $0, while billions of dollars are redistributed to every other state to prop up their budgets” This is what sets us apart from the rest of the nation and why WA’s GST share will not return to its previous levels for decades to come. If the iron ore price rises to between $75-80 per tonne and remains there for three years, then WA won’t even receive 34 cents. Instead, WA’s GST share will fall to $0, while billions of dollars are redistributed to every other state to prop up their budgets. Given that the iron ore price passed $75 per tonne late last year and remains at about $76.10, the worst for WA’s GST is not behind us. This is the very problem that the Productivity Commission has warned us of — the task of redistribution has become too great for one state to bear. That is, unless the GST system is fixed. The reality is that every Australian should be frustrated by the GST.

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Simply put, every state should be expected to stand on its own two feet — and that is exactly what a change to the GST carve up will ensure. Ruling out a change to the GST formula is ruling out a long-term fix to the GST and the national economy will suffer as a result. Top-up payments, while welcome in the short term, can no longer be the answer. West Australians, or any other state that may be the ‘GST losers’ in future, should not be forced to go to Canberra, cap in hand, to beg for more of their own GST back. Federal Labor has missed the mark with its $1.6 billion GST plan. A plan that fails to acknowledge and adopt the findings of the Productivity Commission fails to address the root cause of the problem. The WA business community, represented by CCI, and the WA Government both agree that

changing the GST distribution to a system called ‘equalising to the average’ would be the major reform West Australians are looking for. Most importantly, it’s also a change that would benefit every Australian. This proposal was first put forward by CCI and has been backed by the Productivity Commission. If implemented, this change would have returned an additional $3.6 billion to WA last year, lifting the state’s GST share from 34 cents to well over 80 cents. Recently, the Productivity Commission was granted an additional few months to finish its inquiry into Australia’s GST distribution and its impact on the national economy. Initially due on January 31, the report will now be provided to the Federal Government on May 15. The Treasurer then has 25 sitting days to table the report in Parliament, which means it will be released by September 11. To enact such a reform will require a detailed implementation plan, complete with transition arrangements for each state, which is why it is not surprising that extra time has been requested. Despite many misconceptions, a change to the distribution does not require the agreement of all the states through COAG. The Federal Treasurer can immediately adjust the GST distribution through his annual terms of reference to the Commonwealth Grants Commission. This is a change that can be made immediately and every Australian stands to benefit. Without a change, WA’s GST share could fall to as low as $0, and weaker states will continue to lag behind instead of being incentivised to boost their own economy. Australia can’t wait any longer. The time is now — 2018 must be the year for GST reform.


ADVOCACY IN ACTION

Bring back boring energy policy Could 2018 be the year when certainty and stability enable secure and reliable energy supplies for Australia? JUSTIN ASHLEY

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fter a year of high drama in 2017, Australian Energy Market Operator chief Audrey Zibelman was quoted as saying “…we want to get back to the point where energy policy is boring and nobody is interested because we’re doing so well”. It’s a good point. Industry is craving the certainty and stability necessary to unlock investment and ensure secure and reliable energy supplies for our nation. This year is the year when all energy policy actors must stick to the script and deliver results. Last year, the Commonwealth Government proposed the National Energy Guarantee (NEG) to improve reliability and set an emissions reduction target for the so-called ‘National Electricity Market’ in the eastern states. The policy could have major implications for WA. With new investment under the Renewable Energy Target set to end in 2020, the emissions component of the NEG will likely replace it. The NEG also duplicates features of WA’s Reserve Capacity Mechanism, which ensures adequate supply for our Wholesale Electricity Market. While a national approach to emissions policy is preferable to individual state-based schemes, it is critical that a national framework is designed to fit WA’s energy markets and broader economy. The NEG currently does not do this and WA must have a role in the detailed policy

design, otherwise we risk being lumped with a framework that is unsuitable for our market. The results would be unpredictable and potentially disastrous. An interesting sub-plot to emerge from the policy writer’s room was the proposal to transport gas from WA to the eastern states via a west-east gas pipeline. Currently subject to a pre-feasibility study, the pipeline could be a major development opportunity for WA. It is still early days as the Commonwealth’s pre-feasibility study and any subsequent feasibility study will reveal if the proposal stacks up economically. Will the project be a hit or flop? Stay tuned. In WA, the McGowan Government made its debut and was immediately cast as the bad guy for increasing electricity tariffs. However, these increases were necessary for budget repair and moving towards prices that reflect the cost of supply. Crucially, achieving ‘cost-reflective’ pricing will neutralise an old excuse for holding back competition in WA’s electricity sector. Can the McGowan Government write a thrilling plot twist in 2018 and emerge a hero by committing to a competitive electricity market? CCI will certainly be advocating for a happy ending. Energy Minister Ben Wyatt also announced some major electricity sector reforms, including the move to a constrained access regime for Western Power’s network and a light-handed access regime for Horizon Power’s network in the Pilbara. Hardly blockbuster announcements for those outside the industry, but these legacy issues must be resolved.

Importantly, the Pilbara reforms will unlock competition on Horizon Power’s section of the network — this will be a win for commercial electricity customers in the region.

“This year is the year where all energy policy actors must stick to the script and deliver results” So, what are the coming attractions for 2018? The Turnbull Government must wrap up the emissions policy saga and deliver a solution that is truly national — not just for the eastern states. For the McGowan Government, seeing through the completion of its current electricity reforms is essential. WA’s electricity sector cannot afford another stalled reform process. Beyond that, WA needs a strategy for modernising the framework governing the electricity sector, including a plan for enhancing competition. The show must go on.

THE PUMP ON POLICY Justin Ashley is the Energy Policy Advisor at CCI. He can be contacted at (08) 9365 7575 or justin.ashley@cciwa.com.au.

FEBRUARY 2018 BUSINESS PULSE 7


CCI@WORK 1. LIGHTHOUSE LEADERSHIP SERIES DECEMBER 4 Outgoing CCI CEO Deidre Willmott was a fitting guest a CCI’s last Lighthouse Leadership luncheon for 2017. Since starting her career as an industrial relations lawyer in Perth, Willmott has worked with some impressive leaders including Fortescue Chairman Andrew Forrest and former WA premiers Richard Court and Colin Barnett.

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2. WA WORKS SUNDOWNER DECEMBER 6 Lendlease fleshed out the details of $1 billion in road contracts at the WA Works Sundowner, which attracted more than 130 interested suppliers. Lendlease was seeking expressions of interest from suppliers after being shortlisted for Main Roads’ Metropolitan Network Contract (MNC) and Statewide Electrical Contract (SWC), both due to run over seven years.

3. AGED CARE AND HEALTH FORUM DECEMBER 6 Deputy Premier Roger Cook outlined priorities for his portfolios as Minister for Health and Mental Health at CCI’s Aged Care and Health Forum, attended by CCI Members from the relevant sectors. He acknowledged the 3644-place gap in the number of residential aged care beds in WA compared with the number of operational beds as well as the additional strain and bed blockages that were being created in the public health system.

2 DIARY NOTE: HBF WELLNESS FOR BUSINESS CONFERENCE 2018 2018 In today’s day and age, health and wellness has never been so important both personally and professionally. The HBF Wellness Conference will provide innovative and practical strategies to create and sustain healthy people and organisations. Join us to hear the latest information from experts and leaders in health and wellbeing as well as gain insights into how to keep your business and your employee’s healthy and well. Topics will include mental health, managing drugs and alcohol in the workplace, nutrition and physical health, health insurance and employer responsibilities for health and wellbeing. To find out more and book tickets visit cciwa.com/events

To register your interest in receiving more information about any of our 2018 events, email functions@cciwa.com

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www.europeanbusinessexpo.com.au

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SPONSORS AND SUPPORTERS

FEBRUARY 2018 BUSINESS PULSE 9


IN BRIEF

FORMULA FOR DRIVING GENDER EQUITY

LESSONS LEARNT

CHRISTOPHER HOW, CHIEF EXECUTIVE OFFICER OF BETHANIE

Christopher How is Chief Executive Officer of Bethanie, WA’s largest not-for-profit aged care and retirement village provider. He has more than two decades of experience in management and senior management in a number of industries. Here he shares some of his ‘lessons learnt’. Growing up I learnt … Generosity without judgement from my parents

Australian companies at the forefront of their industry in women’s leadership representation do 10 things in common, starting with making a compelling case about why gender equality is good for the organisation. According to a new report, Women in Leadership, a correlation was found between representation of women in senior roles and the availability of more flexible working options, including part-time roles for managers. The report — a collaboration between the Business Council of Australia, the Workplace Gender Equality Agency and global management consultants McKinsey & Company — found 10 common actions to drive change across four themes: case for change, role modelling, reinforcement mechanisms and capability building. “This is a complex issue, but the report makes clear that a piecemeal approach doesn’t work. It’s essential for companies to follow the 10 practices in their entirety and really double down on them,” McKinsey & Company Partner and report co-author Jenny Cermak said. The 10 common actions are: 1. Build a strong business case for change 2. Role model a commitment to diversity and inclusion, including business partners 3. Actively sponsor rising women 4. Redesign roles to enable ‘flex’ and normalise uptake across levels and genders 5. Set a clear diversity aspiration, backed up by tangible accountability 6. Support talent through life transitions 7. Ensure flexibility-enabling infrastructure is in place 8. Challenge traditional views of merit in recruitment and evaluation 9. Invest in frontline leader capabilities to drive cultural change on the ground 10. Develop rising women and ensure experience in key roles.

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From my family I learnt … That success does not always mean that you have made a lot of money or had a significant career, as these things can come and go very easily. Success is about the person you become, how confident you are in yourself, how you hold true to your beliefs and that love and health are the things you should hold most sacred. The most valuable lesson I learnt in school … You will never be able to understand the complexity of a 15-year-old girl. This year I’ve learnt … You learn more from projects that don’t succeed in their outcomes than those that are a resounding success. One lesson I wish I had learnt earlier … Don’t be fooled that one system SHOULD talk to another. System integration is not easy and ICT experts DO NOT hold the dark art of getting this right the first time, every time. A small but crucial lesson to learn is … That symbols such as neck ties, large desks and corner offices do not make you a leader. They often get in the way of authentic leadership.

SMART PARK SET FOR CHINA A US$2.1 billion park dedicated to artificial intelligence will be built in Beijing within five years, according to a Beijing News report. The 55-hectare technology park is planned for the west of the city, as China pushes ahead with its plans to become a world leader in AI. Up to 400 enterprises will be included in the park, with developer Zhongguancun Development Group looking to partner with foreign universities, research institutes and companies.

The report said the park would invest in areas such as super high-speed data, cloud computing and biometrics to put it at the forefront of AI. According to the Chinese thinktank the Wuzhen Institute, the United States leads the world with 2905 artificial intelligence companies, followed by China with 709. Britain is next on 366, followed by India with 233, while Australia does not make the top 10.


IN BRIEF

New boss ready to shape policy agenda

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Former Austrade Commissioner Chris Rodwell replaced Deidre Willmott as CCI CEO on February 1

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The Undoing Project: A Friendship that Changed the World Michael Lewis, $24.99

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odwell has spent the past four years as Australia’s Trade Commissioner to Mexico, Central America and the Caribbean. He has overseen a transformation in Australia’s commercial relationship with Mexico across the resources, advanced manufacturing, food and agribusiness, infrastructure and education sectors.

His role included regular travel to WA to establish and foster relationships with many major businesses engaged in international markets, successfully securing participation of WA’s resources sector in Mexico following a historic reform program. Prior to this, Chris was the Queensland State Government’s Trade and Investment Commissioner for the Americas, and the Director of Australian Industry Group in Queensland. Rodwell said it was an honour to be appointed CEO and said CCI’s Members and the WA business community underpin WA’s prosperity. “To achieve greater prosperity, there can be no pause on economic reform. We must shape and challenge the policy agenda to ensure WA businesses are best placed to navigate the next era of globalisation,” he said. “Advocating for a regulatory framework that inspires innovation, and inserting WA businesses into global value chains will be central to our future success. “My commitment is for CCI to be the most contemporary reflection of the business community it represents. WA has an extraordinary pool of talent and expertise to draw upon. It is time for optimism, time to capitalise, and time for a new era of growth.”

Source: Boffins Books in Perth CBD

“The difference between successful people and others is how long they spend time feeling sorry for themselves.” Barbara Corcoran, real estate magnate and Shark Tank investor

A DAY IN THE LIFE... GRAHAM BAKER, OWNER AND OPERATOR OF COFFEE TABLE DELIGHTS

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normally arrive at work at about 9am and stay until about 6 or 7pm. I don’t have to be here early in the morning like a typical baker. Sometimes I take a few hours off during the day to go to the gym or do other things, but I’m always busy. My wife and I purchased the business in 2005. We make gourmet biscuits and slices with a small cafe in the front of the premises. There’s a window from the cafe into the kitchen so people can see our pastry chefs at work. We supply the city’s best hotels, cafes and upmarket retailers with premium quality products. My wife used to manage the kitchen when we first bought the business. We would be

here at 6am and work right through the day and on the weekends. At Christmas time, we’d be here making fruit cakes until 10 or 11 at night with our two grown kids helping us. But over time we’ve been able to structure the business to better suit us. A few years ago, we brought in a general manager so now I’m more involved in the higherlevel staffing issues and quality control. The three business divisions each have their own manager but it’s still good to be around the place even though I’m not needed for day-to-day operations. A retail trend that has impacted us is the move towards supposedly healthy products — gluten free and that type of thing. The challenge for us

is to keep the core value of making handmade product but keep up with technology and produce efficiently. I do most of my work in the afternoon when I feel I’m at my best. Over the years I feel we have developed a good culture in the business, so even if I’m not here, everyone knows what’s expected and what our drive is.

FEBRUARY 2018 BUSINESS PULSE 11


The business of

HUMAN WEL 12 BUSINESS PULSE FEBRUARY 2018


LFARE

PROFIT FOR PURPOSE

ROBYN MOLLOY

T

he care industry is alive and well and about to experience a major growth spurt in WA. The main drivers of growth are an ageing population and rollout of the National Disability Insurance Scheme across the country. In the disability sector, less than 100,000 people participated in the NDIS last year but 475,000 people are forecast to access the service by 2020, prompting a massive surge in demand for services and workforce. To meet the demand, it is expected that one in five new jobs over the next few years will need to be in disability care. However, workforce growth is too slow to meet this target. Meanwhile, demand for aged care services is also on the rise as the ageing population and an increase in dementia places an increasing burden on the system. On June 30, 2017, 15 per cent of the country’s population was aged 65 years and over and 2 per cent was aged 85 years and over. By 2027, 18 per cent of the population will be over 65 years (up from 3.8 million people to 5.2 million people) and 2.3 per cent will be over 85 years (up from 499,000 to 672,000). Not-for-profit organisations also have a significant presence in the human welfare space. WA’s charities have a combined annual income of over $12.7bn. The largest organisations in the sector include aged care organisations along with hundreds of social services providers. This month’s Business Pulse highlights Members working in these sectors, how they are meeting future challenges and some of their innovative ideas.

NDIS

<100,000

475,000

THE NUMBER OF PEOPLE WHO PARTICIPATED IN THE NDIS LAST YEAR

THE NUMBER OF PEOPLE FORECAST TO ACCESS THE NDIS BY 2020

$8 BILLION

CURRENT FUNDING OF NDIS

$22 BILLION

THE COST OF NDIS IN FIRST YEAR OF OPERATION

Source: Productivity Commission Study Report into the National Disability Insurance Scheme Costs (Released October 2017)

AGED CARE

15% 18%

PROPORTION OF AUSTRALIANS AGED 65 YEARS IN 2017

366,000

PROPORTION OF AUSTRALIANS AGED 65 YEARS IN 2027

PEOPLE ARE IN THE AGED CARE WORKFORCE

Source: 2016-17 Report on the Operation of Aged Care Act 1997 (Released November 2017)

NOT-FOR-PROFITS

52,000 $142.8B

10.6%

CHARITIES RAISED

AUSTRALIAN EMPLOYEES ARE EMPLOYED BY A CHARITY

IN ANNUAL REVENUE

Source Australian Charities Report 2016 (Released December 2017)

FEBRUARY 2018 BUSINESS PULSE 13


PROFIT FOR PURPOSE

Grave concerns for national approach National regulation of the retirement village sector is unnecessary in WA and may stifle choice and innovation, argues a top WA legal firm

CARRIE COX

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alls for national regulation of the retirement village sector in the wake of a damning media expose in mid-2017 are unfounded when it comes to the WA experience, according to one of the state’s largest independent legal firms. A joint investigation by the ABC’s Four Corners and Fairfax Media into east-coast retirement village company Aveo uncovered exorbitant fees, complex contracts and “questionable practices” at the expense of elderly Australians. Labor, the Greens and the Australian Competition and Consumer Commission immediately called for a federal inquiry into the industry and subsequent discussion has focused on the introduction of a ‘one-size-fits-all’ national regulation scheme. But WA firm Jackson McDonald, which represents owners and operators of retirement villages and individual clients in the drafting of contracts, says a national approach would not be the best way forward for this state. Partner Simon Moen, who specialises in senior living law and won Australian Lawyer of the Year

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2017 for his work in the sector, told Business Pulse it would be wrong to tarnish WA retirement village operators with the same brush as those highlighted in last year’s media investigations. “The issues that we have seen on the east coast do not apply to WA,” Moen says. “WA has its own state-based property laws that deal with real estate. The ownership mix of the sector in WA is different to the eastern states. The adoption by WA of the same laws as those over east might suggest that the same issues that apply there apply here — they do not.

sector and they offer different village amenity, experiences and have different fee structures. This is what one should expect because the seniors cohort is a diverse group.”

COMPREHENSIVE SAFEGUARDS Moen says WA’s own regulatory framework for the retirement village sector is sufficiently robust to adequately protect residents. “There have been a raft of changes at both state and federal level that have benefitted residents in retirement villages,” Moen explains.

“It would be wrong to tarnish WA retirement village operators with the same brush as those highlighted in last year’s media investigations” “I am cautious about the adoption of a onesize-fits-all approach and I think seniors would object to being treated as all the same. It’s important that the law permits diversity of choice for residents and does not stifle the introduction of innovative, cost-effective alternatives. “There is a wide variety of operators in the

“At the state level over the past five years, the rules in relation to the content of residence contracts have been substantially upgraded and modernised. These consumer-friendly changes allow for more meaningful village comparisons by prospective residents. “At a federal level, the Australian Consumer


PROFIT FOR PURPOSE

Simon Moen from law firm Jackson McDonald.

Law has had a positive impact on residence contracts for both residents and village owners and operators. “There are significant legal sanctions for operators who produce documents that fail to comply with the law or who fail to comply with the law in relation to such matters as disclosure time periods and residents’ cooling-off rights. “I would caution against further changes to residence contracts at this time. There are a number of reviews underway in other states and at a federal level. It’s also fair to say that, in our experience, village owners have been proactively seeking legal advice to ensure their contracts are in order.” Moen says the WA sector and the State Government are currently taking a ‘watch and wait’ approach to movements on the east coast and at federal level.

AVOID MISUNDERSTANDINGS While Moen rejects the idea amplified by last year’s media flare-ups that retirement village contracts are unnecessarily wieldy and complicated, he does believe a legal eye is essential to avoid misunderstandings. “For residents, it’s important to obtain advice

so that they understand the documents being signed,” he says. “Financial advice is also important because a decision to sell the family home and move to another residence may have pension eligibility implications. “One of the challenges for village owners is that the residence contract has two readers — that being the resident and, sometime later, their children. Knowing that the resident received independent advice is of value to village owners when dealing with children who may be confused or have misunderstood the documentation that their parents made an informed decision to sign.”

CHALLENGES AHEAD Moen says the biggest challenge now facing WA’s retirement living sector isn’t regulation but rather the need for rapid expansion. According to an ABC report in December, the state is facing a major shortage in senior living options as the population make-up rapidly shifts — a massive 16 per cent of WA will be aged over 65 in the next 20 years. Former Property Council of WA Executive Director Joe Lenzo says the current rate of development would not keep pace with WA’s ageing population.

“The real issue is the way the industry is overly regulated right now,” he says. “At the moment in WA we have about 14,000 units for people to move into as a retirement ... we need to double that within 10 years and we’re not going to achieve that.” Moen agrees. “We need to be planning now for the shortage,” he says. “There are simply not enough appropriately priced and designed products for seniors. “Retirement villages have a key role to play in keeping pressure off the aged care system and they can achieve economies of scale that other living options simply can’t. So these are important issues that we must deal with as a state.”

DID YOU KNOW? About 5 per cent of retirees move into retirement villages across Australia, but that figure is set to grow to about 7 per cent. In WA, an extra 24,000 retirement village units will need to be built over the next 10-15 years — a 75 per cent increase on the current level of stock. (Source: Property Council of WA and ABC Online)

FEBRUARY 2018 BUSINESS PULSE 15


Off to see the

3D DOCTOR

Holographic technology will soon allow Silver Chain clients to visit their doctor without leaving home HAMISH HASTIE

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he phrase ‘the doctor will see you now’ is going to take on a whole new meaning in 2018. Community home health provider Silver Chain Group is about to launch ‘mixed-reality’ technology that will do away with the need to sit in a crowded waiting room dodging guttural coughs and snotty-nosed kids. They’ve teamed up with Saab Australia and Microsoft to create the world’s first holographic doctor using the Microsoft HoloLens. The Enhanced Medical Mixed Reality (EMMR) application will enable Silver Chain’s 650 clients currently receiving services through their virtual hospital program to experience real-time interaction with health care professionals in their own homes. Doctors stand in a ‘capture room’ where they are being filmed with multiple cameras then, like something out of Star Wars, they appear as holograms projected via the Microsoft

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HoloLens headset being worn by the client. The procedure provides a more personal consultation than is currently available over the telephone or using video applications like Skype. Using EMMR, Silver Chain nurses can also use the Microsoft HoloLens to gain handsfree access to clients’ clinical data through a holographic dashboard. This lets the remote doctor effectively ‘see through the eyes of the nurse’ as the consultation takes place and share access to the clinical data in real time. Silver Chain CEO Chris McGowan says this technology is not just a first in the aged care sector, it’s a first in any sector and will greatly enhance its in-home health capabilities. “What we’ve done is ask ourselves how we can bring technology and health professionals together so patients have the confidence to remain at home,” he says. “One of the hardest things for older people is getting to a doctor but we know our clients like to have interaction with the doctor — so we wanted that to be as real as possible. “The ability to hologram a doctor into the

home so they can have a conversation with them and see them almost in person gives them confidence that they are getting the care they need while staying at home. “There’s no way on god’s earth I can explain to you the experience, because it looks like there is a person standing there. When you move, they stay still and when you look around the side of them they don’t rotate with you.”

“We can bring technology and health professionals together” McGowan says Silver Chain is trialling EMMR and, despite the lack of familiarity with technology of some of their clients, it has received extremely positive feedback. “So far it’s only a small number of people we’ve tried it on, but they have loved it,” he says. “One of our 88-year-old patients only got her first smart phone last year but gave it a try and she loved it. She said it felt like a doctor was at her home.”


PROFIT FOR PURPOSE

‘PORTABLE’ MEDICAL RECORDS Not all medical innovations are as glamorous as holographic technology. But some will have a major impact on the quality of service that patients will receive. Take, for example, the My Health Record system. Thousands of health and allied professionals are currently working feverishly to implement an online repository for medical records that anyone in the health sector, from GPs to pharmacists, can access and update. Patients will also be able to access the My Health Record system, giving them the ability to keep track of centralised immunisation records and scripts. The Turnbull Government launched the system in March 2016 with a trial of an opt-out system. As of December 2017, more than 5.3 million people had a My Health Record and by the end of 2018 the Australian Digital Health Agency is aiming for the majority of Australians to have one. An organisation driving adoption of My Health Record in WA is the WA Primary Health Alliance (WAPHA). WAPHA CEO Learne Durrington says conversion to the My Health Record is one of the biggest projects ever undertaken across the whole health sector. She says it will revolutionise the health system, improving co-ordinated care outcomes, reduce duplication (particularly in diagnostic testing) and provide vital information in emergency situations. “What it does is provide access for clinicians to have a person’s latest health information. So if you’ve been in hospital and then you visit your GP, they will be able to see your discharge summary online,” she says. “Conversely, if you have a chronic disease and you’ve seen a specialist and are moving between them, a GP and an allied health clinician, they will all be able to approach your treatment in a more timely, co-ordinated way. “It’s also great for the people who travel to regional areas for holidays, particularly older people. “If they’ve got their My Health Record and have a health scare or forget their prescriptions, they can visit a local health service and the health professionals can see what their medications are and any other information their regular GP has uploaded. “It is a quantum leap forward. It will have a great impact on the efficiency of the system as well as improve the patients experience of healthcare.” Durrington says the system is extremely secure as only registered personnel can access the My Health Record and she is confident few people will opt out because of the convenience of having all their information in one place. “I think the health system has been one of those systems that needs this connectivity and it’s been challenging but My Health Record is a good building block.”

The hand-held Smart Torch is designed to transmit high definition images of trauma victims from remote areas.

Beam me out of here A video transmission device created to save lives in remote area emergencies is attracting interest from international organisations

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idden away in an unassuming commercial unit in Cockburn is a man whose technical wizardry has the potential to save thousands of lives across the globe. Balconi Telecommunications Managing Director Con Michael has a created a world-first Smart Torch and kit that first responders can use to create a video connection in extremely remote locations with weak satellite connections. It means the extent of injuries sustained by a person in a remote area can be determined by a doctor sitting in a hospital hundreds of kilometres away. Some Australian and international medical humanitarian organisations, including the UN and Médecins Sans Frontières, have expressed interest in the device and its potential as an effective tool in tele-health. Michael, who has a background in broadcast communications and satellites, embarked on the Smart Torch project after being approached by St John Ambulance to potentially help save lives in remote areas. “In WA’s remote areas, usually ambulances are just a driver and the other guy is a first aider,” he says. “There are times where they may need extra help.” “You can’t describe a really complex situation on a phone and if you’re in the middle of nowhere satellite phones are difficult. It can be difficult to describe which bits are hanging out where and where the blood is coming from. “If you can’t describe it in 60 seconds you’re chances of a fatality greatly increase.”

He says the physical technology for the device, like the camera, was simple but the hard part was beaming the video stream from the remote location. “I had to design for a satellite with a 128kbps connection, which is not made for video conferencing,” he says. “That was the problem, we needed to make this for a very small bandwidth. I had to rethink how the whole thing came together.” With the help of global satellite giant Inmarsat and a little-known video company Vivitek, Michael cracked the nut beyond what even he thought was possible. “You can see the hairs on the arm with our connection,” he says. “We’ve developed the HD snapshot where the receiver of the video can click a button and it will take a full HD jpeg of the frame.” The Smart Torch first responders kit contains a torch, satellite, solar panels and head set, all coming in at under 7kg. Michael says the kit needed to be compact for use by the UN so their staff could take it on planes as carry-on luggage. He says that in addition to the better health outcomes for remote areas, the Smart Torch could save money. “It’s about stopping escalation,” Michael says. “Someone has to make a decision on whether they send a helicopter or fixed wing aircraft to an incident. In some situations, it isn’t the right decision because either it wasn’t that bad or because the patient died.” Michael says that in 2018 he hopes to take the Smart Torch and kit to market but trials will continue with St John, the UN, Rural Health WA and in Indigenous communities.

FEBRUARY 2018 BUSINESS PULSE 17


PROFIT FOR PURPOSE

HBF New prescription for

HBF CEO John Van Der Wielen

WA’s oldest and largest health insurer HBF is set to face industry challenges head on this year. CEO John Van Der Wielen talks to Business Pulse about his strategies ROBYN MOLLOY

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BF boss John Van Der Wielen says the company will seek to find an additional $10 million in savings, streamline its products and possibly expand its operations via acquisitions as the next steps towards keeping a healthy bottom line and improving customer service. Van Der Wielen — who has already reduced costs by $10m since becoming CEO of WA’s biggest health insurer in April last year — says 2018 will be a big year for health insurance. “We will end up simplifying our product range and giving the customer what they need. HBF has lost its way in the past few years,” he told Business Pulse. While HBF has 8 per cent market share and 35 per cent of Australia’s products, a review of HBF’s products has been earmarked as one of its most important undertakings for the year. “In 2018, HBF will be getting back to basics,” Van Der Wielen says. “Currently our telephony centre is not delivering good enough service and it’s just become acceptable in all contact centres that people wait too long. “I have a lot of empathy for our contact centre staff. It’s too difficult a job. When I get rid of the complexity, I’ll be able to run my contact centre in a more efficient manner.” Last year, the insurer closed three branches, reduced the opening hours of two branches and scrapped its hospital liaison service to rein in costs: “I’ve already taken out $10m of cost and I want to take out another $10m and get those savings passed back in terms of benefits to members and some of the government reforms.”

The Federal Government announced a package of private health insurance reforms in October to simplify the industry and make it more affordable. According to HBF’s annual report, in 2017 it returned 91.4 per cent of premium contributions as benefits to members in what was a challenging year for the health insurance industry. HBF paid 8 per cent more on hospital benefits on the previous year and 4 per cent more on extras. At the same time, the health insurer saw an 8.5 per cent decline in the number of new policies sold at 50,277 — down from 54,967 in the previous 12 months. While he wouldn’t elaborate on any plans for expansion, Van Der Wielen says the insurer “needed to gain more scale”. “I don’t want to say too much about that. It won’t just be by the use of aggregating or broker sites — we need to have a physical presence and that could come about by us physically opening up a presence in other locations. “We wouldn’t discount the other possibility of acquiring to make that work — but only when it’s for the benefit of our members. We would consider inorganic strategy.” Van Der Wielen says premiums will increase this year, but not as much as in previous years.

EVENT – HBF Wellness Conference HBF CEO John Van Der Wielen will be a keynote speaker at the CCI-HBF Wellness Conference. Visit www.cciwa.com.


PROFIT FOR PURPOSE

Hotel luxury lives on The Richardson Hotel in West Perth is being fitted out as high-end accommodation for the aged HAMISH HASTIE

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ne of Perth’s most exclusive five-star hotels that has played host to some of the world’s biggest celebrities, including Beyoncé and Oprah, will welcome clients of a different kind from July. The Richardson Hotel in West Perth is being transformed into residential aged-care accommodation by aged-care providers Oryx Communities after taking ownership in December. Retaining the Richardson name, the building will be the first of its kind in aged care, featuring 92 units across eight floors. Most of the hotel’s luxuries will remain and more will be added including a premium bar, restaurant and pool-side entertainment areas on the ground floor and elegant community lounge-rooms on each level. Each level will accommodate 10 to 12 residents to form ‘microcommunities’ that share access to a common room with dining room, sitting areas and views from the balcony across to Kings Park. Oryx Managing Director Nita Peploe says the redevelopment will retain the hotel ambience that was intended by British architect, Sir Terry Farrell, when he designed the building in 2005. Exceptional service, for which the hotel was renowned, will also be maintained for the

building’s new function, she says. “We want to maintain that level of service and the perceptions of a luxury environment by anticipating and meeting our residents’ and their families’ every need,” she says. “We are not an aged-care facility pretending to be a hotel. We will be offering genuine hotel-service in a warm, hospitable aged-care environment.” Peploe says Oryx has been working with a builder for the past six months on fitting out the building for elderly residents. There will be wider doorways and, in some cases, bathrooms will need some alterations for ease of access to showers and toilets. Oryx was looking at several locations and buildings but when The Richardson presented itself, it ticked too many boxes to ignore, Peploe says: “We started our investigations and found the building lends itself really well to what we’re trying to achieve.” “The Richardson has been a standout in the WA scene for high levels of service and luxury accommodation. So when it was presented to us, we felt it was something we could be offering WA clients who have been searching for something a little bit more than what’s been on the market. “We are creating an experience that our clients have long been demanding. We understand that people are looking for accommodation that is centrally located, well-appointed and well serviced.”

(Left) Oryx Communities Managing Director Nita Peploe. (Above) The Richardson will offer hotel-service in an agedcare environment.

New option offered for independent living

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ged care provider Bethanie has opened a new option in retirement accommodation that is a cross between an independent living unit and an aged care facility. Based in Menora, the $24 million, 48-apartment facility is targeted at seniors over 80 who want to live independently but receive a tailored level of support that includes freshly cooked meals and weekly cleaning and laundry. Bethanie CEO Chris How says the units were created to fill a gap in the WA market: “We are offering retirement living in a completely serviced apartment.” “We know how important it is within the ageing process to retain independence — what these serviced apartments offer is the option to remove some of the necessary everyday tasks that can become more difficult and perhaps keep us from staying at home for longer.”

Bethanie’s new Menora apartments.

FEBRUARY 2018 BUSINESS PULSE 19


PROFIT FOR PURPOSE

NFP not for the faint of heart Running a not-for-profit organisation involves dealing with a layer of complex social issues on top of regular business challenges

“I would like to see that the concerns being raised by the sector are being heard by governments at all levels”

CARRIE COX

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n any business day in WA, more than 93,000 people head off to jobs that exist not to make money but to engineer social change. Some are volunteers but most are wage-earners drawing from a sector that has a combined income of almost $13 billion a year, according Curtin University’s WA’s Not For Profit Sector 2017 paper — the first report of its kind on NFPs in WA. Often overlooked due to its non-commercial status, WA’s not-for-profit (NFP) sector is a vital cog in the machinery of the state — second only to mining in the size of its workforce — providing essential community services that government alone cannot deliver. The leaders who drive the state’s largest NFPs navigate many of the same thorny issues as any business chief — including cost pressures, people issues, technological challenges. But they also have the added challenges of tackling highly complex social problems with an income stream that could be switched off at any moment. It’s not a job for the fainthearted. It’s a job for people like Debra Zanella.

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BUSINESS WITH A BIG HEART As CEO of Ruah, an NFP community organisation employing just over 250 staff across WA, Zanella leads a team working at the coalface of the state’s toughest social issues — homelessness, family and domestic violence, justice and mental health. Ruah — named after the Hebrew word for ‘breath’ or ‘spirit’ — was an organisation started by the Daughters of Charity in Paris in 1533 and began in Perth as a soup kitchen in the 1960s. The organisation sits in a difficult space defined by interconnected problems requiring individualised, time-intensive solutions — a hornet’s nest of daily challenges that Zanella admits she instinctively gravitates towards. “I like those difficult spaces,” she tells

Business Pulse. “It’s extremely rewarding to provide solutions when the problems are complex and people have multiple needs.” Zanella joined Ruah two years ago after six years at the helm of an NFP specialising in drug and alcohol recovery and youth outreach. Her mission at Ruah was to preserve and continue the organisation’s decades-long reputation for quality community service while also navigating a stormy sea of change.

NDIS One of the biggest changes currently facing the organisation — and others like it — is the rolling out of the NDIS in WA. While touted as a cure-all funding mechanism for disability support, it is largely a model based on physical disability and


WHAT IS A NFP? NFPs are organisations established to pursue a purpose and for which members do not enjoy a pecuniary benefit. However, they must make profits if they are to be sustainable. The key difference between a NFP and For Profit entity is that the profit generated by NFPs must be retained within the organisation to support the beneficiaries or purpose rather than be distributed to shareholders or other owners. Charities are a sub-set of NFPs. All charities are NFPs but not all NFPs are charities.

DID YOU KNOW? There are more than 5000 registered and unregistered NFPs in WA. There are 54,000 registered nationally — collectively they employ 8 per cent of the Australian population.

may not prove as effective a salve in the area of psycho-social disability. “It’s too early to tell just how effective the NDIS will be,” Zanella says. “People having choice and control in their own life is a good thing — it’s always been our guiding principal. But the NDIS alone didn’t bring us that. “But the funding mechanism has pushed it to the forefront and it requires the way that our businesses are set up to be able to respond to that — we’re going to need to become much more agile. In terms of psycho-social disability, which is the space we operate in, the NDIS may be a fit but not a comfortable one. “Over the next 12 months, I would like to see that the concerns being raised by the sector are being heard by governments at all levels and that there is some process for understanding what needs won’t be met by the new system — one size doesn’t fit all. We need to be sure that we’re truly meeting consumer needs.”

ENDING HOMELESSNESS One of the key differences between the commercial and NFP sectors is that the overarching goal of the latter is to effectively bring about its own redundancy — to solve the problems it is up against. That might sound unrealistic in the case of issues that are as complex as youth suicide and

drug addiction. But not so, Zanella argues, for problems like homelessness and family violence, where the goal can and should be eradication rather than management. Indicatively, Ruah is the lead agency driving WA’s ’50 Lives 50 Homes’ campaign, which began 18 months ago with the aim of providing permanent housing and wraparound support services for 50 of the state’s most vulnerable rough sleepers. Already it has doubled that target and is on track to the ultimate goal of ending acute homelessness in WA. “This a solvable problem that needs a housing-first, collaborative response,” Zanella says. “We’re seeing people who have been homeless for an average of five years — some as many as 20 years — transition into permanent accommodation with all the right support to sustain that accommodation and actually get on with their lives. “The funding for the program will continue until 2019 and it’s our goal that 50 Lives 50 Homes won’t need to continue to run much beyond that because we’ll have ended it — we’ll have ended homelessness in WA. “The resources currently directed at chronic homelessness will be able to move upstream and effectively prevent people from getting to that point. It’s a solvable problem and collaboratively we are solving it.”

CORPORATE PARTNERSHIPS Like many community organisations, Ruah receives most of its funding from government — so when the economy is feeling the pinch, so does the NFP sector. Forging collaborations with other organisations can accrue economies of scale, but Zanella also believes there is greater scope for the NFP sector to forge productive relationships with the corporate sector. “I definitely think there is a great opportunity at the moment to see more alignment between the state’s community sector and the corporate sector — and not just the big end of town,” she says. “We need easier entrance points for small and medium sized businesses to get involved in projects at a grassroots level. “I would encourage those business leaders who may be motivated about a particular social issue to get in touch with organisations like ours and ask about how they can get involved. It may simply be a case of registering their business as a champion to end homelessness, for example, or they may wish to lend assistance in a particular area of expertise. “The main thing is that if a business wants to make a meaningful contribution, to become part of bigger solutions to our state’s social problems, then it’s our job to facilitate that and I’m really keen to make that happen.”

FEBRUARY 2018 BUSINESS PULSE 21


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FEBRUARY 2018 BUSINESS PULSE 23


DESPATCH BOX

New view needed on aged care The Federal Government is preparing for significant growth in the aged care sector, says Ken Wyatt

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e are entering a golden age of ageing. Australians are living longer thanks to better health and more active and engaged lives. Seniors are now making countless positive contributions to families, communities and commerce well into their 70s, 80s and, increasingly, to 100 and beyond. It’s vital we change our mindset on ageing: flexibility instead of burden, convenience instead of difficulty and opportunity instead of challenge. Ageing is everyone’s business, and it’s a rapidly growing industry. There are about 3.7 million people aged 65 and over in Australia, including more than 373,000 here in Western Australia. This new generation of seniors rightly want choice, flexibility and as much independence as possible when it comes to their aged care journey. It’s up to us to do our best to meet their needs, because the nation and the state we know today were built on the back of their hard work. We are embracing a once-in-a-generation opportunity to reinvent aged care for the benefit of all Australians.

Aged care workers support some of the most vulnerable people in our society, and growing the right care workforce is a key to success. The Turnbull Government continues working with the aged care sector on an ambitious reform journey, focused on placing the consumer in control of their care. We are backing this through record investment with more than $330 billion committed over the next five years to support senior Australians. The Productivity Commission estimates Australia will require almost one million aged care staff by 2050. In WA, it’s projected that employment in health, aged care and social assistance will reach more than 180,000 by 2022 as our population ages and the sector becomes increasingly diverse. This is about 50 per cent more than WA’s mining industry at the peak of the resources boom in 2012. Aged care providers make a $17.6 billion economic contribution to Australia, representing 1.1 per cent of GDP by producing outputs, employing people and through the purchase of goods and services. The direct economic component is akin to the contribution made by the residential building construction and sheep, grains, beef and dairy cattle industries. So this is about jobs of the future — from horticulture and catering, to nursing, caring, IT and senior management — with new technologies and innovation promising even more opportunities.

Our consumer-focused reforms are also encouraging business development, with over 300 more home aged care providers licensed to enter the market in the past 18 months, including 29 in WA. ABS figures confirm a clear and positive trend: aged care is one of our fastest growing job sectors, offering flexible hours, opportunities to extend skills and a growing variety of workplaces and experiences. With women making up 90 per cent of current aged care staff, there is also strong potential for increased male employment. To help support the expansion of aged care services, the Turnbull Government has two significant initiatives underway. In November, I launched a taskforce, led by Professor John Pollaers, to map out a national aged care workforce strategy that focuses on safe, quality care. The taskforce has begun comprehensive consultation on short, medium and long-term options to boost supply, address demand and build skills and experience. The strategy is due to be completed by July. The $33 million Local Care Workforce Program is also kicking off early this year to support local job creation in aged care and the National Disability Insurance Scheme. This program includes $4.1 million for the national Specialist Coordinator Initiative to streamline engagement with the disability and aged care sectors.

“For too long, aged care has been perceived as a poor cousin in the jobs market” For too long, aged care has been perceived as a poor cousin in the jobs market but it’s now time to realise it is a career of choice, can be a profession for life, and will be a major driver of economic growth.

A further $9.1 million will fund the Care Workforce Regional Coordinator Initiative, supporting NDIS and aged care providers in regional, rural and outer metropolitan areas as well as raising public awareness of employment opportunities. Working together with business, aged care and community organisations is fundamental to our plan to provide the affordable, sustainable, quality aged care that senior Australians deserve. Ken Wyatt, AM, is the Federal Minister for Aged Care.

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MEMBER MESSAGE

Check to protect Validating the identity and credentials of workers in aged care are important steps towards protecting against elder abuse PETRA NELSON

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lder abuse is, sadly, a serious problem in our society and one that is increasing as our population ages. The World Health Organisation defines elder abuse as “a single, or repeated act, or lack of appropriate action, occurring within any relationship where there is an expectation of trust which causes harm or distress to an older person”. Abuse can be physical, emotional, financial or sexual. The Australian Law Reform Commission estimates that up to 10 per cent of older Australians experience elder abuse in any given year. What can be done about the horrific exploitation that is undermining the dignity and autonomy of our older Australians? A key risk mitigation process is the thorough checking of people who work directly with the elderly, either in residential aged care homes or for service providers carrying out inhome assistance. It is critical that professionals and carers are exactly who they say they are, with verified identities and valid credentials. Unfortunately, you don’t have to look hard to find instances of unqualified people posing as doctors, drivers without valid licences or carers with expired credentials or visas. These issues are creating significant risks

in aged care facilities, where non-compliance can quite literally be a matter of life and death. Not only is the well-being of elderly people in jeopardy, organisations with non-compliant workers face significant reputational, financial and operational risks. Safety and security at aged care facilities are of particular concern to many. The revelations of abuse at the Oakden nursing home in South Australia that prompted a Senate inquiry shocked many of us.

“Up to 10 per cent of older Australians experience elder abuse in any given year” In May 2017, the Australian Law Reform Commission’s report, Elder Abuse – A National Legal Response, listed two key outcomes of its recommendations as: • improved responses to elder abuse in aged care and • the enhanced employment screening of aged care workers. The issue of identity crime — which can include the fabrication, manipulation or theft of identities — costs the country up to $3 billion every year. The Australian Federal Police describes it as ‘a critical threat to the Australian community’,

while the Australian Criminal Intelligence Commission says it is ‘a key enabler for serious and organised crime groups, and facilitates offences in nearly all crime markets, undermines the integrity of the economy, financial and banking institutions, licensing, immigration and welfare systems’. Credentials fraud is a very real threat for universities and colleges. An increasingly competitive global job market and international student mobility are not only resulting in growth in the number of online ‘diploma mills’ — where people can buy qualifications online — but also an increase in stolen and forged certifications. Aged care providers owe it to themselves, their clients, employees and shareholders to ensure the integrity of their workforce at all times. The Federal Government’s introduction of consumer-directed care, which gives people greater choice about their service providers, only serves to strengthen the criticality of a compliant workforce for the provision of aged care services. While workforce compliance is often regarded as labour-intensive and costly, it doesn’t have to be. An online system such as Bright’s Cited platform makes it easy for individuals and companies to not only verify people’s identities and credentials at the time of hiring, but manage workers’ ongoing regulatory and industry compliance with automated renewals and credentials storage. This platform enables information to be shared across industries so businesses can avoid duplication of costs and effort. Petra Nelson is the Managing Director of Bright People Technologies. Partnership: Bright’s platform Cited offers CCI Members discounted rates on checks and compliance services. Visit cited.com.au.

FEBRUARY 2018 BUSINESS PULSE 25


PROFIT FOR PURPOSE

Pacific islanders to fill job shortfalls in care The Federal Government aims to easily allow Australian employers to access overseas workers who can fill gaps in the local workforce ROBYN MOLLOY

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new scheme to help employers meet a shortfall in workers, especially in the healthcare and the social assistance industry, will be up and running in July. Under the new Pacific Labour Scheme — outlined in the Australian Government’s Foreign Policy White Paper released in December — workers from Pacific island countries including Kiribati, Nauru and Tuvalu will be permitted to take on non-seasonal low and semi-skilled jobs. Department of Foreign Affairs and Trade’s Lorenzo Strano, who has been liaising with WA businesses, says the scheme will help employers fill vacant positions for up to three years when they can’t find Australian workers. He says the Federal Government is currently

working on the finer points of the scheme and hopes to release information to stakeholders by the end of March. “What we are trying to do is make it as streamlined as possible while recognising there are some things that need to be built into the scheme to protect Australian workers and protect also the fact that these foreign workers need to be considered as vulnerable workers,” he says. “There will be some things employers will need to do but we don’t have a set timeframe, except that it will be a lot more streamlined than other labour mobility schemes that we’ve operated in the past.” “We’re working on the finer points of the policy now and we’re looking at engaging a contractor to run the Pacific Labour Facility, so those things need to be in place and ready to go for the launch in July.” The Pacific Labour Facility will connect

workers, employers and training institutions with employers able to recruit from a pool of workers. The scheme will be capped at 2000 workers and reviewed every year and workers from other Pacific Island countries may be included if more workers are required. “If the scheme works well and employers are happy and there’s a need, because it is demand driven, we assume the cap will go in the right direction.” Strano — who has been consulting with stakeholders, especially in the aged care sector — says the scheme had been met with a positive response: “There’s nothing worse than talking to an employer who can’t expand their business because they can’t find the workers — so this could be an option.” To find out more should contact PacificLabourMobility@dfat.gov.au.

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www.scott.com.au 08 9223 7788 4 Aberdeen St Perth WA 6000

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PROFIT FOR PURPOSE

Exceptional care

A classic Perth building left for dead has been resurrected and repurposed HAMISH HASTIE

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grade-one heritage listed precinct in Mount Claremont with over 110 years of history has been saved from dereliction and vandalism and turned into an iconic aged care facility. Montgomery House, previously part of a hospital, is nearing completion of a $35 million restoration and conversion into an exclusive 80-suite facility. Aegis Aged Care Group, which purchased the property and residual buildings in 2012, faced significant challenges repurposing the hospital buildings that closed in 1985. Montgomery House’s features include high ornate ceilings, polished jarrah floors, large windows, exposed beams and fireplaces. It will feature a café, beauty salon, cinema and landscaped gardens. Aegis has also upgraded the Montgomery Hall, which will be open to the public for events. CEO Michael Cross says the company wanted the restoration, which took four years to complete, to reflect Montgomery House’s 100-year history. “Much of the project has been made possible by talented local trades people who used old-world techniques to restore original heritage features,” he says. “Coupled with these original heritage elements, we have incorporated modern security systems and technology to give residents the very best in care.” Cross says the accommodation will be matched with a care model which allows residents to control the way they spend their day. Currently Aegis operates 27 facilities, including

two transitional care facilities. In total, it has more than 2500 beds that cater for elderly residents across the entire socioeconomic scale. Aegis Chief Operating Officer Kevin Brimblecombe says the organisation sees a growth in demand and expects to be offering 4000 beds in five years. He says upcoming projects include a Canning Vale facility, which is under construction, while three others are in the pipeline.

MEDIHOTELS Aegis will also be involved in the state’s first ‘Medihotel’ in Murdoch, expected to open in 2021. Medihotels were a State Labor Party election commitment aimed at reducing pressure on hospital beds by providing care to people who no longer need full hospital

accommodation but were still unable to go home. The Murdoch Medihotel is to be an 80-bed facility with an additional aged care precinct, apartments, hotel and retail shops. It is being developed by Fini Group and will be operated by Aegis.

PAYROLL TAX Being WA’s largest aged care provider is point of pride for Aegis — but it comes at a cost. Aegis employs about 3200 staff across its 27 sites, placing Aegis in the sights of the McGowan Government’s recent payroll tax hike for big employers. In September, the Government announced employers with a nation-wide payroll above $100 million would pay 0.5 per cent more payroll tax each year for the next five years. The situation is made worse by a Federal Government decision to cancel the payroll tax supplement in 2015 for the aged care sector. The supplement was used to offset any payroll tax paid by aged care providers and create a level

playing field between private and not-forprofit organisations that are not required to pay the tax. Brimblecombe believes they were unintended targets of that tax hike: “There’s an unintended consequence there. We run very tight margins because we are 70 per cent Federal Government funded. “While underlying viability is not the key, it does impact our ability to provide the best possible care for the elderly and vulnerable.” CCI would like to hear from other companies that have been caught in the net by this payroll tax issue. Contact Rick Newnham on (08) 9365 7654 or email rick.newnham@cciwa.com.

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Perth’s Deputy Lord Mayor Jemma Green is on a mission to get the hustle and bustle back into WA’s capital city STEPHEN BELL

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Selling the new

PERTH

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ith WA’s economy showing the first green shoots of recovery after the long downturn, Perth’s Deputy Lord Mayor Jemma Green wants to lure businesses from across the globe as the city takes on a new vibe beyond mining and energy. Freed up by lower leasing rates in premium office and retail space, Green says emerging sectors such as education and training, medical, health and life sciences and technology are drifting into the city’s heart. Yet the migration, alongside Perth’s once-in-a-lifetime $13.2 billion infrastructure boom, seems to have gone largely unnoticed outside the state’s borders. Green witnessed this ignorance a few months ago at the 2017 Asia-Pacific Regional Conference. About half the delegates were German and many had not travelled to Australia previously. “When I was speaking to people, they were genuinely shocked about what Perth had to offer,” she recalls. “I don’t think we’ve done a great job of selling what it is that makes Perth unique. “It’s probably because we haven’t found a way to characterise it and I think in the past we’ve perhaps had a bit of an inferiority complex in terms of what we have compared with other Australian cities.” But, in the wake of the recent building spree headlined by Optus Stadium, Elizabeth Quay and City Link, the insecurity about our place in the Australian landscape has been turned on its head. The infrastructure boom is also delivering much better accessibility via projects like the Forrestfield Airport Link and Perth Airport expansions, which will benefit tourism-related developments such as the Westin Hotel, Ritz Carlton and Doubletree Hilton. “I think there is a lot of pride now in what Perth offers,” Green says. “Our lifestyle is unique and we can enhance the amenities for all people here by growing the population, not just by waxing and waning in the resources sector, but through building more breadth and depth in the economy.” CCI’s outgoing CEO Deidre Willmott says that seeing the city achieve its full potential has long been a priority of WA’s peak business body. “As far back as 2006, when I was head of policy, we were lobbying for a new stadium, developing the


BUSINESS NEWS

foreshore, sinking the railway between the CBD and Northbridge as well as pushing for liquor licensing and retail trading hours reforms. “It is a credit to many people on both sides of politics, the City of Perth and in the business community that such tremendous progress has been made. “Our strongest advice to government, both state and local, is to continue reducing regulation and barriers to business so that new and established businesses in tourism, education and other fields can flourish. “It is also essential that we continue to welcome visitors and new residents to our city so we can grow our economy and our engagement and trade with Asia, and further afield,” Willmott says. City of Perth recently launched its Serious Business Move website, which showcases Perth’s growth opportunities as the economy moves into recovery. It is the key plank of a campaign seeking to spark up a debate about the city’s future.

to Perth commerce, the advent of much cheaper lease rates during the downturn prompted a more diverse crowd seeking to do business in the CBD. Education, for instance, is expected to continue growing as Perth universities try to lure more international students, many of whom prefer to live in the city precinct. This has inspired developers to target inner city locations, such as the former Wellington Surplus Stores site on the corner of Wellington and Pier streets, where Atira Student Living plans to build a $70 million accommodation skyscraper featuring a cinema, pool, bicycle-share scheme, 24-hour concierge and security. “Students want to be where the action is and if we want to be accessible to students, it’s important that we’re in the city centre,” says StudyPerth executive director Philip Payne, one of seven industry advocates featured on the City’s Serious Business Moves website. The others include CCI Chief Economist Rick Newnham and Harry Perkins Institute of Medical Research director Peter Leedman.

afoot. Qatar Airways is introducing the doubledecker A380 aircraft to its daily Perth route — expected to boost capacity by 44 per cent from May 1. Direct flights by other carriers to Tokyo and Shanghai are in the pipeline. “If you want to bring more people to Perth for business and tourism, you need the direct flights,” Green says. Hotel offerings, meanwhile, have improved markedly. She estimates Perth now has about 1600 rooms available, many of them new products, with a similar amount under construction. The Intercontinental opened in October, the Westin is opening soon and the Ritz Carlton has started construction at Elizabeth Quay. All these improvements, in the air and on the ground, add up to a potent argument for overseas and interstate companies considering a serious business move. Green’s message to them is loud and clear: Move your business to a city that’s growing.

“I don’t think we’ve done a great job of selling what it is that makes Perth unique” “We created the Serious Business Move campaign to change the conversation about what Perth can offer,” Green says. “We believe it is far more competitively-placed than ever before as a destination. “Combined with our unique position as the gateway to the Asia-Pacific region and sharing the same time zone as 60 per cent of the world’s population, Perth is on track to become Australia’s third largest capital city by 2036.” In the boom, Perth became known as the world’s mining capital as global companies built iron ore and LNG projects to fuel China’s rapid urbanisation. And while mining remains critically important

Green hopes the campaign will help sway companies seeking an Australian location to consider Perth over the alternatives. “If you want to get office space in Sydney or Melbourne, it is significantly more expensive and far more congested, so I think we offer something that is very high-quality and affordable.” Perth was recently voted the world’s seventh most liveable city globally by The Economist, well ahead of Sydney in 11th place. The WA capital is already regarded as Australia’s gateway to Asia and, with Qantas starting direct London-Perth flights in March, it will soon be opening doors to Europe. Other economy-transforming airline moves are

Perth’s Deputy Lord Mayor Jemma Green

FEBRUARY 2018 BUSINESS PULSE 29


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FEBRUARY 2018 BUSINESS PULSE 31


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Q & CCI ADVICE

An employee has revealed they are in the process of separating from their partner. They have received threatening phone calls and messages including unsolicited visits from their partner while at work. What should we do as a business?

While there are legal obligations to ensure an employee is safe at work, there are also practical benefits that can result from being proactive in assisting and supporting employees who experience family or domestic violence and other similar situations. The employer should reassure the employee that, in accordance with the relevant company policy, they can access a range of options to assist them during this difficult time. These might include, but are not limited to: • flexible working arrangements • flexitime • counselling services or employee assistance programs • assess to accrued leave entitlements, as required • access to authorised unpaid leave where paid leave is exhausted (this would be at the employer’s discretion) and • access to legal assistance and support networks. If an estranged partner of the employee attends the workplace and behaves inappropriately or aggressively, management

YOUR EMPLOYEE QUESTIONS ANSWERED

should be present and request they leave the premise immediately. If they refuse, management may consider calling security or the police for assistance to resolve the matter. It may also be prudent to create a procedure for dealing with aggression towards staff from clients and visitors and educate the staff and management on their rights and obligations. Screening of phone calls, introduction of security passes or access codes, putting protocols in place for staff working out of hours with limited people in the building and steps for ensuring staff get to and from their vehicle safely where they are not parked in the building are all considerations.

I have an employee who I suspect is coming into work under the influence of drugs. I’m concerned about their safety and that of others in the workplace. How should I deal with this? Safety at work should always be a priority. If an employer reasonably suspects an employee is unfit for duty or under the influence of drugs, they should act immediately and direct the employee to stop work and perform a drug

test in accordance with their own drug and alcohol policy. Subject to the test results and the relevant policy, the employee may return to work where it is safe for them to do so. Or they may be suspended from duty until further testing is completed and they are cleared as fit for work. In general, where an employee is deemed unfit for work due to the effects of drugs and/or alcohol, they may access any accrued personal leave during this time. Well drafted policies can greatly assist employers to navigate this difficult area. In instances where termination occurs, a robust drug and alcohol policy that is well communicated and enforced consistently will support the employer’s case should an unfair dismissal claim arise. Although drug and alcohol polices vary widely from employer to employer, it is considered best practice (as encouraged in recent cases before the Fair Work Commission) that policies incorporate an element of education and rehabilitation rather than solely focusing on discipline and dismissal.

WHO TO CALL If you’d like more information, please contact CCI’s Employee Relations Advice Centre on (08) 9365 7660 or advice@cciwa.com for FREE*, professional employee relations and human resources advice. *FREE as part of most CCIWA membership packages.

If you have a question for one of CCI’s experts, email editor@cciwa.com

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TOOLS OF TRADE

Fly through customs with confidence Getting your paperwork for equipment in order before leaving home can save you time and money when it comes to navigating international borders TIM TREVENEN

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hen Bunbury-based Lomax Media won a job to shoot video in New Caledonia, it turned to CCI to ensure a smooth transition for expensive equipment through customs check points. ATA Carnets — administered by the World Customs Organisation (WCO) and issued by CCI’s International Trade and Investment Centre — permit duty-free temporary import of goods for up to one year. Such goods include professional equipment, commercial samples and goods for international exhibitions, conferences and lectures. While carnets save time, money and avoid possible confiscation of goods, the benefits for Lomax co-owner, Dean Lomax, were all about accountability: “It was definitely about getting our gear through customs with everything accounted for, and the fact that customs is aware of your gear list.

“(The carnet) gave us a lot of confidence knowing that we were doing everything legitimately.” “It meant that we were able to easily take a lot of gear out of Australia and back, confident that it was all accounted for and that we would have no issues at the border entries,” he said.

Dean Lomax was able to confidently take his camera equipment through customs to New Caledonia without complications thanks to support from CCI.

“It also gave us a lot of confidence knowing that we were doing everything legitimately. And we had $40,000 worth of equipment, so we didn’t want customs to say ‘You owe us $40,000 in duty’. “When entering a country, we went through the ‘Goods to Declare’ line and on both occasions this was quicker than the line with ‘Nothing to Declare’. While customs go through and check the carnet and spot check your equipment, it was a very easy and smooth process.” At the time of publication, costs to CCI members for a carnet start at a base rate of $297 ($440 for non members). This includes entry and exit for one overseas country. An extra $40 is charged for entry and exit for an additional country. There is an additional fee if the application needs to be fast tracked for three full working days or 24 hours after the application. Applicants must also lodge a security bond or pay an indemnity insurance premium to cover non compliance of the conditions. For Lomax, it was a small price: “Considering the value of our equipment and the consequences if we were stopped and had gear confiscated or duties applied, the cost to have the carnet prepared is way more valuable than not having it done.”

GOING GLOBAL For more information about carnets and other international services visit cciwa.com/ international-trade-and-investment-centre or call the team on (08) 9365 7620.

FEBRUARY 2018 BUSINESS PULSE 33


CCI ADVICE

IR review set for release

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he findings of the first comprehensive review of WA’s industrial relations system in 15 years is expected to be released later this month. The McGowan Government announced the review in September 2017 as the first step in creating a system that was ‘contemporary, fair and accessible’. Commerce and Industrial Relations Minister Bill Johnston said the State system needed to be updated to address the changed employment environment and to meet the needs of its constituents, predominately small business employers and employees, as well as the public sector. It is estimated that about 11 per cent of private sector businesses in WA are covered by the State system. Senior counsel and former acting president of the Western Australian Industrial Relations Commission, Mark Ritter, has been appointed to undertake the review. Former AWU WA branch secretary and current Forrestfield MLA Stephen Price will assist. The review will consider:

the definition of ‘employee’ in State employment law to ensure comprehensive coverage • whether local government should be regulated by the State IR system • a process for updating of State awards for the private sector • the current relevance of minimum conditions and • the effectiveness of statutory compliance and enforcement mechanisms. CCI’s primary recommendation in its submission was for the State to refer its residual IR powers to the Commonwealth. A single IR system applying to all employment in all WA private sector workplaces would provide several benefits to employers, employees and legal bodies / government, and the entire WA community. The would include: a) removal of duplication and inconsistency as to which system, rights and obligations apply to employers and employees, and more certainty and clarity across the WA community on employment standards and obligations

UNIONS FAIL ON PENALTY RATES BID Two unions have failed in their appeal against an earlier decision to reduce weekend and public holiday penalty rates for employees in the hospitality, retail, fast food and pharmacy sectors. Unions United Voice and Shop Distributive and Allied Employees Association presented their challenge to the Federal Court, appealing the February 2017 decision of the Fair Work Commission that reduced the penalty rates. Labour’s Fair Work Amendment (Protecting Take-home Pay) Bill was introduced into parliament last year as an alternative attempt to the Federal Court challenge to preserve award penalty rates. The bill nullifies any decisions by the FWC that reduces award penalty rates and decreases an employee’s take-home pay. If passed, the amendments will apply retrospectively to decisions issued from 22 February 2017 onwards. In light of the failed challenge to the penalty rates decision, it is now likely that in 2018, once the dust settles on the dual citizenship issue, the focus will shift to progress the bill through parliament.

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In addition, there are currently applications before the FWC to reduce weekend and public holiday penalty rates in the Restaurant Industry Award 2010, the Hair and Beauty Industry Award 2010 and the Registered and Licensed Clubs Award 2010 with hearings listed in May 2018 and July 2018 respectively for the latter two awards.

BRIBES OUTLAWED BY FAIR WORK AMENDMENT It is now a criminal offence to give, receive or solicit a ‘corrupting benefit’ — defined as a financial benefit or good or service that is intended to influence decisions and actions by unions or their representatives in enterprise agreement bargaining. The Fair Work Amendment (Corrupting Benefits) Bill 2017, which took effect on 16 August 2017, also introduces requirements for bargaining representatives in agreement negotiations to disclose any financial

b) reduction of costs that come with having overlapping IR regulation, which according to the Explanatory Memorandum of the Fair Work Amendment Bill 2009 was to be upwards of $60 million per year for all states of taxpayers’ money for providing legal services and advice alone d) reduction of regulation and red tape to nurture business growth and innovation in WA e) closing the financial differential between state and national system wages to allow smaller businesses to remain competitive. In the absence of referral of its IR powers, CCI recommends harmonisation with Commonwealth laws to the extent possible / appropriate with an emphasis on recognising the needs of small business.

MORE INFORMATION CCI provides a number of recommendations, which can be found at https://cciwa.com/ advocacy/policy-and-discussion-papers.

benefit they stand to gain from the proposed agreement. Specifically, the changes make it a criminal offence: • to give a corrupting benefit to a registered organisation, or anyone associated with a registered organisation • to receive or solicit a corrupting benefit • for certain national system employers to provide, offer or promise to provide cash or in-kind payments (other than certain legitimate payments) to employee organisations or prohibited beneficiaries • to solicit, receive, obtain or agree to obtain any such prohibited payment. Significant increases in penalties — including 10 years imprisonment and fines of 5000 penalty points ($105,000) for individuals or 25,000 penalty points ($5.25 million) for body corporates — are also now enforceable for breaches of this part. The amendments are in response to the recommendations of the Royal Commission into Trade Union Governance and Corruption (TURC).


CCI ADVICE

ARE YOU PROPERLY INSURED?

Tougher laws for franchisors Penalties have been increased by up to 1000 per cent for franchise groups that break workplace laws KENDALL SCOTT

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ecent amendments to the Fair Work Act 2009 effectively hold ‘responsible franchisors’ or ‘holding companies’ accountable for certain contraventions by their franchisees/subsidiaries. Those contraventions include, but are not limited to, breaches of the minimum rates of pay, the national employment standards, awards, sham contracting, record keeping and pay slip provisions. However, this is only the case where there was a failure by the responsible franchisor or holding company to take reasonable steps to prevent the contraventions from occurring and where it ought to have reasonably known that the contraventions would occur or were likely to occur. For a responsible franchisor to be held liable, it needs to have a significant degree of control over its business network. The Fair Work Amendment (Vulnerable Workers) Bill 2017, which took effect last September, stems from recommendations by a Senate Committee Inquiry into contraventions of workplace laws by franchise groups. The bill amends the Fair Work Act 2009 to increase maximum civil penalties for certain ‘serious contraventions’ to 10 times that of current levels, up from $63,000 per breach to $630,000 per breach for body corporates and up from $12,600 per breach to $126,000 per breach for individuals (i.e. company directs/owners etc.) Under the changes, it is not necessary that the holding company knew the contraventions were occurring. It need only be established that they could reasonably have expected to have known that the contravention would, or would be likely to, occur.

The test is an objective one that takes into account the franchisor’s experience, knowledge and acumen. The test for whether reasonable steps were taken considers the resources available to the franchisor, its influencing power, action plans and action actually taken in the knowledge of a contravention.

“Increase maximum civil penalties for certain ‘serious contraventions’ to 10 times that of current levels” The amendments also clarify prohibition on employers unreasonably requiring employees to make payments in relation to the performance of their work. The changes also provide the Fair Work Ombudsman with greater evidencegathering powers. Kendall Scott is the Manager of CCI Employee Relations Advice Centre.

WHO TO CALL For more information on any of the above, or for information on any human resources or employee relations matters, contact CCI’s Employee Relations Advice Centre on (08) 9365 7660 or advice@cciwa.com. Our team offers CCI members with unlimited, FREE advice and support as part of most membership packages.

CCIWA has warned businesses to double check their insurance policies to ensure they are covered for workers’ compensation insurance. Senior Consultant, Safety and Risk Services Rachael Lincoln said WorkCover WA has reported that a number of businesses have discovered their insurance packages did not cover workers’ compensation. “It is a legal requirement for a business to have workers’ compensation insurance for anyone employed as a worker,” Lincoln says. “If you don’t have insurance, your business will be liable for the costs of benefits paid if one of your workers has a work-related injury or disease. “Additional costs may include legal costs in court action, liability for the costs of any action take at common law, and fines of up to $5000 per worker. “It is vital you check your insurance policies or confirm with your broker to make sure you have appropriate workers’ compensation insurance.”

WORKSAFE INSPECTIONS WorkSafe is conducting a proactive inspection program focusing on safety standards in musical instrument stores, pharmacies, selected retail franchise outlets and firewood suppliers. These stores record a high rate of work-related injury, with the most common being musculoskeletal injuries, according to WorkSafe. WorkSafe Inspectors will be concentrating on manual tasks, electricity, slips trips and falls, mobile plant and vehicle movement and use of hazardous substances. They will also look at safety issues related to new and young workers. If you would like a free one-hour OSH walkthrough (metropolitan businesses only), contact us via osh@ cciwa.com or 9365 7415.

FEBRUARY 2018 BUSINESS PULSE 35


CCI ADVICE •

Employers have legal obligations to effectively manage leave of their staff who serve the community as emergency management volunteers YASMIN AHMED

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ith bushfire and cyclone season upon us, employees who are emergency management volunteers will be called away from their workplace to help protect their community. And when staff answer the call, employers have legal obligations to effectively manage their leave.

COMMUNITY SERVICE LEAVE Community service leave — derived from Division 8 of the National Employment Standards (NES) contained in the Fair Work Act 2009 — allows employees to access unpaid leave where they are engaged in eligible community service activities that require them to be absent from work. While this can also cover leaving work for attendance at jury duty, it allows for engagement in voluntary emergency management activities, defined in the Act as: • activities involving dealing with an emergency or natural disaster where the employee’s involvement is voluntary and • the employee is a member of, or has a member-like association with a recognised emergency management body and • either the employee was requested by or on behalf of that body to engage in the activity or it would be reasonable to expect that such a request would have been made, circumstances permitting. Eligible community service activities include the time engaged in the activity, the time reasonably spent travelling in relation to the

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activity and reasonable time to rest immediately following the activity. There is no specified period of time for an absence. However, the period must be reasonable. When determining whether a period of time off is reasonable, employers should take into consideration the points previously mentioned. Employees who wish to access community service leave must notify their employer as soon as practicable, inform their employer of the expected period of the absence and comply with any requests for evidence. Where these requirements have been met, the leave request cannot be denied.

PAID LEAVE While community service leave under the NES is unpaid, there is also relevant State legislation that applies which may provide a greater benefit to employees in the form of paid leave. In Western Australia, the Emergency Management Act 2005 (WA) (EM Act) provides that employees, including casual employees, who are temporarily absent from work to carry out emergency management response activities are entitled to the following: • paid remuneration for the period of the employee’s absence, calculated at the employee’s ordinary rate of remuneration for the time they would ordinarily have worked • their service not to be broken by the leave period • their employment is preserved (i.e they must not be terminated, demoted, refused promotion or transfer or otherwise ‘injured’ in their employment). The EM Act defines emergency management response as:

the employee undertaking an activity that involves responding to an emergency • the employee carries out the activity on a voluntary basis • the employee is a member of, or has a member-like association with, an emergency management agency; and • the employee was requested by or on behalf of the emergency management agency to carry out the activity or no such request was made. But it would be reasonable to expect that, if the circumstances had permitted the making of such a request, it is likely that such a request would have been made; and • an employee does not carry out an emergency management response if the activity involves prevention of, preparedness for, or recovery from, an emergency. Training activities or other activities relating to recovery work, such as cleaning up in the aftermath of an emergency, will not be paid unless the employee wishes to access their paid annual leave entitlement.

PRACTICAL TIPS Having a good line of communication is the best way to manage employees wishing to access community service leave. Knowing whether your employees are part of an emergency management organisation will allow you to monitor the situation during or following a natural disaster or event and plan for absences accordingly. Where natural disasters occur that affects entire communities, employers often find that employees request to take time off to assist those in need. While it is important to recognise which employees have the right to access community service leave, it may be beneficial for employers to consider other options for employees wanting to volunteer in general. In times of need, employers could look to create a volunteer roster to facilitate employees who desire to help the community, as well as to meet the operational requirements of the business. Other ideas could include businesses organising fundraising events or having a day where all employees participate in volunteer activities. These activities serve as positive team building events and boost morale and comradery amongst colleagues.

WHO TO CALL Yasmin Ahmed is a CCI Employee Relations Advisor. For more information on employer obligations relating to community service leave, contact the CCI Employee Relations Advice Centre on (08) 9365 7660 or advice@cciwa.com.


CCI ADVICE

Graduates jump on energy circuit CCI is helping engineering graduates to extend their skills and experience by working with major players in the energy sector ROBYN MOLLOY

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rancois Pieters is in a powerful career position since completing his engineering degree. Gaduating from the University of WA with a Bachelor of Science in 2016, he has been learning the ropes via a graduate program administered by CCI that will see him work in companies such as Horizon Power, Synergy, Western Power and Alinta Energy. Pieters is one of the first engineering graduates to take part in the program, designed to meet the needs of a rapidly changing industry and soon fill a gap as a large group of engineers hit retirement age. He spent six months with Synergy at the Kwinana power station working on maintenance before moving to Horizon’s Bentley office. “Working for Synergy at the power station was quite an amazing experience because I got to see the generators and worked on them alongside electricians and mechanics,” he says. “I saw different types of plant, like gas, coal and a diesel system in Bremer Bay.”

“ That’s the strength of the program — it puts you in different environments and you build different skills” “The work at Horizon is different because it’s not about producing power and is more about long-term planning and computer simulations.” Pieters has just started the second year of a three-year rotation: “It’s an excellent opportunity because it will turn you into a complete professional with all these different experiences. “That’s the strength of the program — it puts you in different environments and you build different skills. By the end of the three years, I’ll be a capable engineer and a complete professional.” Other graduates have been based at the Muja Power Station near Collie, where they have worked on a plant that produces hydrogen for the station’s generators. This year, Synergy will host three graduates,

Horizon two, and Western Power four while Alinta will take on one. General Manager Power System Services Laurie Curro says Horizon Power is proud to be offering graduates practical experience on a range of projects, including the connection of an innovative 150kW renewable energy system in Broome. “The program adds value to the profession by supporting graduate development to drive innovation and engineering as a profession to grow with industry,” Curro says. CCI also runs a 12-week vacation program to help students gain the required 12-week work experience needed to graduate as an engineer. This experience also works as a stepping stone to the graduate program. The program’s manager Ann Brinkamp said it was borne out of conversations within the

industry and driven by the engineers, general managers, human resources and CEOs. Brinkamp says that by working with Engineers Australia and the universities, the programs ensure students and graduates are attaining the required skills and experience. “The industry is changing rapidly and requires fresh talent that understands the different areas and challenges of the sector. When key employers in the industry decided to collaborate, they opened the doors for an innovative way to invest in their future workforce,” Brinkamp says.

WHO TO CALL For information about the program, contact Ann Brinkamp on (08) 9365 7669 or email Ann.Brinkamp@cciwa.com.

PROGRAM CONNECTS BUSINESS AND STUDENTS Synergy came up trumps after having traditionally struggled to find university students to work for the business. Synergy Economist Antonia Cornwell said CCI introduced the business to the Work Integrated Learning (WIL) student internship program, which provides an opportunity for students to obtain experience and build networks while completing credit points towards a university degree. “We were lucky enough to secure a student who was aligned perfectly with the Synergy regulatory team. She was a polite, courteous, intelligent and hard-working team player,” Cornwell says. “Due to the student’s strong work ethic during the internship, we offered her casual employment throughout her final year of study and, eventually, a place in an industry graduate program.” “The program also lets us see what types of students are coming through and helps us identify key talent who we may want to continue having a working relationship with.” Interested in hosting a WIL intern in your business? Talk to the WIL team today on (08) 9365 7515.

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MASTER AND APPRENTICE

Persistence the road to success In this new section, Business Pulse explores the experiences of bosses and their apprentices. This month, a Broome mechanic and his apprentice tell how they drove hard to get their first break

THE MASTER

THE APPRENTICE

Broome Mechanical owner Wayne Bettesworth started out as an apprentice more than 40 years ago. Now he runs the show and passes on the nuts and bolts to the next generation. He’s trained about 20 apprentices over the course of his career.

Apprentice mechanic Liam Barratt is two years into his Certificate III in Light Vehicle Mechanical Technology. He did some work experience for the business while at school and worked on weekends before landing the apprenticeship by asking for the job.

How did you start out in this field? I always liked cars and was into the speedway, so I saw it as a natural progression to be a mechanic. My dad wanted me to be a butcher and take on the business. I told him I wanted to be a mechanic as cars always broke down. Dad said people always eat meat. I applied for about 30 places for an apprenticeship and knocked on doors. I was offered an apprenticeship when I asked a business that wasn’t looking at the time for an apprentice.

What do you do from day to day? I can nearly do anything mechanical. I do repairs to vehicles, work on gearboxes, clutches, tyres, put in new windscreens. I get introduced to new tasks all the time. I do whatever my boss asks me to do. The only thing I have not done really is the electrical side but will learn that this year.

What’s the benefit of hiring apprentices? We are hiring local youth who live here in the Kimberley. It gives them employment and one day they may be able to take over the business. How hard is it for them to adapt to your work practices when they have no experience? It is very easy because you show them a couple of times how to do the task, leave them to do the job and don’t watch over them while they are doing it. Come back and check it after they have completed it and go back through the task again with them. Once you have done this, most apprentices are able to remember how to do it.

What do you enjoy about your training? I like coming to work each day and learning something different all the time and having something to do every day. What are your career aspirations? My goal one day is to perhaps own my own workshop. How important are your bosses? They are very important as they keep pushing me in the right direction. If I am wrong, they will tell me, so they put me back on the right track again. What’s the best piece of advice they’ve given you? If you make a mistake or there is a fault then tell someone, don’t hide it.

What’s the most important piece of advice you pass on? Do the job properly, do it once and do it right. If unsure, ask the question as there is no such thing as a silly question. What have they taught you? To be tolerant of youth.

“It gives them employment and one day they may be able to take over the business.” Apprenticeship Support Australia are proud supporters of our Masters and Apprentices/Trainees. Call us on 1300 363 831 today for all your apprenticeship and traineeship needs.

38 BUSINESS PULSE FEBRUARY 2018


DISCOUNTED RATES FOR CCI MEMBERS

THE IDEAL VENUE FOR YOUR NEXT EVENT Centrally located in CCI’s East Perth building and featuring eight different types and sizes of rooms, state of the art audio visual facilities, extensive catering and beverage options and an experienced and professional events team, the CCI Function Centre provides the perfect solution to all your event needs. Contact us to find out how we can assist in making your next meeting, training course or conference second to none.

(08) 9365 7500 | functions@cciwa.com | cciwa.com/events-and-training/room-hire FEBRUARY 2018 BUSINESS PULSE 39


Future of work

Job terminator or creator? Humans will have to move aside in the future to automation and artificial intelligence, but there are still some places machines won’t be able to go HAMISH HASTIE

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he global workforce is set for unprecedented disruption over the next 12 years with greater machine and robot automation — but there’s no need to submit your employment to robot overlords just yet. The recent Jobs Lost, Jobs Gained report by the McKinsey Global Institute found automation could displace between 400 million and 800 million jobs depending on the rate of adoption across the globe. Automation is the use of robots and machine learning to replace tasks often done by humans. In this report, the institute looked at 46 countries and modelled the potential employment changes for more than 800 occupations, based on differing pace of automation adoption and labour demand. It found that at least one-third of activities in about 60 per cent of occupations could be automated. The most susceptible activities are physical ones in predictable environments, such as operating machinery and preparing fast food.

labour displacement, the report isn’t all doom and gloom. It predicts a growing economy being fuelled in part by new technologies that would actually create jobs. “These jobs would result from growth in current occupations due to demand and the creation of new types of occupations that may not have existed before, as has happened historically,” the report said. “This job growth (jobs gained) could more than offset the jobs lost to automation.” Some of the biggest employment will come from growth in the health care sector and the general rise in incomes the world will experience from economic growth. The report estimated that, combined, these two factors will add 130 million jobs by 2030. Another booming area is technology. “Overall spending on technology could increase by more than 50 per cent between 2015 and 2030,” the report said. “About half would be on information technology services, both in-house IT workers within companies and external or outsourced tech consulting jobs. “The number of people employed in these

“At least one-third of activities in about 60 per cent of occupations could be automated” Collecting and processing data are two other categories that machines and artificial intelligence can do faster and better than humans, exposing roles in mortgage origination, paralegal work, accounting and back-office transaction processing. Occupations less likely to be impacted involve management, social interactions or where they take place in unpredictable environments — like gardening, plumbing and childcare. While much focus has been devoted to

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occupations is small compared to those in health care or construction, but they are high-wage occupations. By 2030, we estimate this trend could create 20 to 50 million jobs globally.” For people to remain relevant in the new global workforce the report states they will need to change occupational categories and ensure they’re adaptable to increasingly capable machines. This will require high levels of education and training. “Some of that adaptation will require higher

educational attainment, or spending more time on activities that require social and emotional skills, creativity, high-level cognitive capabilities and other skills relatively hard to automate,” the report said. To achieve this, policy makers, business leaders, and individual workers all have important tasks on the road ahead — and they’ll have to make some smart decisions. “To achieve good outcomes, policy makers and business leaders will need to embrace automation’s benefits and, at the same time, address the worker transitions brought about by these technologies,” the report said. “History shows that societies across the globe, when faced with monumental challenges, often rise to the occasion for the wellbeing of their citizens. Yet over the last few decades, investments and policies to support the workforce have eroded. “Additional investments such as in infrastructure and construction, beneficial in their own right, could be needed to reduce the risk of job shortages in some advanced economies.” Chamber of Commerce and Industry WA Chief Economist Rick Newnham says automation has been changing the way we work for many decades and agreed that focus needed to be placed on training. “The tractor, sewing machines and ATMs are all examples of technology that has made our lives easier but impacted on employment,” he says. “The tricky part of technology changing employment is the skills mix changing — this has profound impacts on those who need to upskill. “Studies now show that older employees will be impacted far more than previous decades, as technology will change not just blue-collar roles but white collar-roles as well. “Our challenge as a society is to ensure re-training is as quick, seamless and practical as possible to ensure those who lose their jobs to automation can quickly re-enter the workforce.” View the report at www.mckinsey.com

‘THE FUTURE OF WORK’ IS A 2018 CCI POLICY PRIORITY


ACHIEVEMENTS

Winners are grinners

CCI congratulates its winning Members on their outstanding achievements BETHANIE PROPERTY COUNCIL OF AUSTRALIA NATIONAL RETIREMENT LIVING AWARDS - INNOVATION

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VASSE FELIX

NEW WORLD WINERY OF THE YEAR

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argaret River’s founding wine estate has been named New World Winery of the Year by US publication Wine Enthusiast in its 18th annual Wine Star awards. The Margaret River wine estate beat estates from South Africa, New Zealand, Argentina and Chile to win the coveted award. Wine Enthusiast Editor and Publisher, Adam Strum said the awards recognise leaders within the beverage industry. “Vasse Felix has lead Margaret River in quality since the beginning. They have consistently raised the bar for their region with outstanding, long-lived Cabernet Sauvignon

and complex, multifaceted Chardonnay,” Strum said. The award coincides with Vasse Felix’s 50th anniversary, along with that of the Margaret River Wine Region. Vasse Felix is the first Margaret River and West Australian winery to receive the US publication’s award, joining only three previous Australian winners — Penfolds (2013), Yalumba (2009) and Clarendon Hills (2006). Vasse Felix owner Paul Holmes à Court said the award was a tremendous honour and an acknowledgement of every individual who has contributed to the estate’s achievements in its first 50 years.

ethanie Gwelup Aged Care and Retirement Living Campus in Western Australia has won the inaugural CSR Hebel Award for Innovation, part of the 2017 Property Council of Australia National Retirement Living Awards. The awards recognise high achievement in the retirement living sector by people and companies helping to ensure senior Australians enjoy a quality retirement. Bethanie Chief Executive Officer Chris How said the recognition was “for all the vision, planning, energy, dedication and hard work that has gone into transforming a lakeside vacant piece of land into a fantastic outcome for Bethanie, the Perth community and our customers”. Consisting of 62 independent living apartments and a separate 112-bed aged care facility, Bethanie Gwelup was recognised for many innovations. Ben Myers, Executive Director — Retirement Living at the Property Council of Australia, says the Bethanie campus model enabled residents to have more control over their future and how they want to live: “The Bethanie campus model enables people to make that move with certainty, knowing their home can be adapted to their changing needs.” Independent living residents can directly access support and care services when needed without having to leave their building, and can order freshly cooked meals from the central kitchen via their televisions.

GUMALA ENTERPRISES 20TH ANNIVERSARY

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umala Enterprises — an Australian Indigenous business specialising in mining and contracting services, and tourism ventures — has marked 20 years of operation. The business was established in 1997 following the signing of the historic Yandi Land Use Agreement with Rio Tinto. Over the past two decades, it has delivered key services for a range of projects across the Pilbara and operated the globally-recognised Karijini Eco Retreat. GEPL Chairman Darren Injie said that partnerships had been key to the organisation’s success and relationships would remain at the heart of its business model.

If you have a winning story about your business or organisation you’d like to share, email editor@cciwa.com

FEBRUARY 2018 BUSINESS PULSE 41


FIVE FIVE

Trends to keep an eye on

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CRYPTOCURRENCY WRANGLE Facebook CEO Mark Zuckerberg has moved to take a bigger interest in cryptocurrencies indicating the speculative virtual currencies such as Bitcoin and Ripple that act as decentralised cash systems are not going away anytime soon. When the price of Ripple — a decentralised transaction network with a digital currency — surged past Bitcoin and Ethereum to become the second largest in the world, its co-founder Chris Larsen tied with Zuckerberg as the fifth richest man in the world. But only momentarily, its price soon fell and Larsen was back at number 15. Such is the volatility of cryptocurrency.

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2 DON’T MELTDOWN As new vulnerabilities in computer chips are highlighted, such as the Meltdown and Spectre flaws, cybersecurity and new ways to attack are never far away. While Intel issued a statement denying the vulnerabilities were unique to its chips, Apple confirmed all Mac systems and iOS devices were affected by the flaws. While no customers were said to be impacted by the vulnerabilities, which were uncovered by researchers, Apple and Intel went into update overdrive to mitigate the potential for hackers to exploit the flaws. If there’s one guarantee, it’s that it won’t be the last cyber scare for 2018.

UNBLOCKING THE CHAIN The ASX is gearing up to replace its CHESS system — which was world-leading when introduced in the 1990s — with next generation blockchain technology. The new system, known as distributed ledger technology or blockchain, is expected to be released for market feedback at the end of March. ASX researched blockchain for more than two years prior to announcing the switch, indicating the new system would put the security exchange at the forefront of innovation in financial markets. Blockchain is the technology behind Bitcoin, so now is a good time to learn the difference between the two.

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CASH IN ON CASHLESS Have you ever bought coffee with a cup fitted with a chip linked to a payment app or paid for an event with your wristband? Businesses are tapping into a trend that kicked off a few years ago with smartphones, banks and supermarkets. It’s based on Near Field Communication, which uses short-range wireless connectivity and a magnetic field induction to enable communication when devices touch or are close. Now it’s getting even more quirky with AccessToken promising to end queues, ticket fraud and chaos at entry to events.

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FUELLING EXPORTS Australian exports are back in favour after rising 17 per cent for the financial year 2017, hitting a record $373.2 billion after two years of declines in the value of total exports of goods and services. Minerals and fuels exports have kept the money flowing, accounting for more than 45 per cent of total exports. Iron ore was the hot commodity, accounting for 17 per cent of total exports of goods and services worth about $63 billion, while coal came in second at 14.5 per cent of total export sales. Minerals and fuel accounted for $42b out of a total rise of $53.7b in the growth in exports.


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AM I ELIGIBLE?

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To qualify, your business must have been trading for three years and have had turnover of more than $1.5 million but under $100 million in one of the last three years. Your business also needs to operate in one of the following growth sectors:

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MINING EQUIPMENT, TECHNOLOGY AND SERVICES AND/OR OIL, GAS AND ENERGY RESOURCES OR PROVIDE ENABLING TECHNOLOGIES AND/OR ICT AND PROFESSIONAL SERVICES TO ONE OR MORE OF THE ABOVE GROWTH SECTORS

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