every step
BMO BUSINESS CENTRE
SUCCESSFUL SUCCESSION PLANNING
finances, family and farming
Employing people the
right way Managing Stress Secret to marketing
ONE THING
YOU
Rental Property Mistakes
SHOULD DO WHEN ‘settling down’
Welcome There’s an old saying "You can’t really know
a man until you walk a mile in his shoes.” One of the things we are most proud of at BMO is our ‘real world’ experience. We’ve grown up on farms [p3] and helped in family businesses. We’ve invested [p6] and we’ve borrowed [p10]. We’ve been young and carefree, we’ve studied, and we’ve travelled. We’ve employed people and worked in a team [p12-13]. We’ve had health crises, and been stressed [p7] and we’ve lost loved ones. We exercise [p7] and enjoy a meal [p15]. We’ve married and had children [p6]. We know what it’s like to be trying to manage cashflow [p10] while praying for the rains to come. And we’ve had good times too, like winning an award or big contract or having a good day on the golf course.
Dave, Shane, Mich
elle, Peter, Mal, Ke
lvin and Adrian
Even though we’ve had similar experiences to our clients, we can’t assume what it’s like to be them. To do that, we have to walk alongside them and listen. It’s part of our team values [pg 4] – being understanding, open and honest, and committed to listening. That’s why we’ve embraced the ethos “We’re with you every step of the way”. We hope you enjoy “Every Step” magazine. It’s our way of sharing a little more about BMO and offering you some helpful tips for business and life. Best Wishes,
The BMO Team
What’s Inside
About Us
3
Partner Profile
4
Business
5
Succession
BMO is an award-winning accounting, business advisory and financial services firm with a strong focus on building relationships and supporting growth for local businesses and wealth creation for individuals.
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Wealth & Health
8
History
10 Finance 11 Community 12 People 13 Communications
BMO is a BRW Top 100 Australian Accounting firm, is highly ranked (at 58) in the ATO tax agents program, and has twice been awarded Dalby Business of the Year. With around 50 professionals on our team, BMO offers a full range of business and financial services. We don’t just ‘do your tax’, we’re your adviser and your sounding board. Whether you’re a student working your first part time job or a multi-million dollar business, we’re with you every step of the way.
15 Food
Web: www.bmo.com.au Facebook: www.facebook.com/bmodalby Twitter: https://twitter.com/bmodalby LinkedIn: www.linkedin.com/company/bmo-accountants
Published: December 2014 Cover Photo: Kelvin, Jilly, Nicholas and Jack Tyler on the family farm. Image courtesy of Fee Turner Photography.
Disclaimer – This magazine has been written and produced by BMO Accountants, 178 Drayton Street Dalby Qld 4405. Information provided in this magazine is general in nature. In preparing information BMO Accountants, BMO Financial Solutions and BMO Lending Services have not taken into account any particular persons objectives, financial situation or needs. Readers should, before acting on this information, consider the appropriateness of this information having regard to their objectives, financial situation or needs. We recommend obtaining financial advice specific to your situation before making any financial decisions or investments. BMO Financial Solutions is a corporate authorised representative of Charter Financial Planning Limited. AFSL Number 234665.
14 Tax & Technology
2 l EVERY STEP l WWW.BMO.COM.AU
PARTNER PROFILE
Finances, Family & Farming It’s 5am, the sun’s first rays are peering over the black-soil horizon and accountant Kelvin Tyler is viewing a crop of sorghum from the comfort of his spray-coupe cab. This is where he plans out his day. This is where he reenergises. This is his ‘golf’. As a Partner at BMO, it’s not unusual for Kelvin to send colleagues numerous emails before 6am with instructions for the day’s work or new ideas for clients. “I think being a farmer makes me a better accountant,” Kelvin says. “It helps me understand the realities of life – both the good times and the tough times.” Kelvin, his brother and nephew farm around 3000 acres of dryland grain and legume crops in the Blaxland-Irvingdale district just east of Dalby. But it was a flare for figures that lured him to accountancy back in the early 90s.
“I really enjoyed accountancy in high school, it just seemed to come naturally to me. Dad hated bookwork so from the age of about 14, I started doing all the farm books. Before long, I was the one doing all the grain trading and buying and selling machinery.” He joined BMO in 1993, working initially as a Clerk before progressing to an Assistant Accountant, and in just a few more years Kelvin achieved his Bachelor of Commerce and CPA status, and went on to make Partner in 2003. Kelvin and wife Jilly, who married in 2008, are also part owners of Sandalwood Feedlot at Irvingdale. A 17,000-head livestock business that is run as a company, with a board including both family and non-family directors. Jilly, an experienced Occupational Therapist, works in the day-to-day operations of Sandalwood alongside her parents, sister and brother-in-law. Jilly’s role is to manage human resources and workplace health and safety. “Communication is obviously very important when you are working with family. It’s important that there are no surprises. We don’t always get it right, but when I’m working with other family businesses I can appreciate first-hand the benefits and challenges,” says Kelvin.
“With my clients, I enjoy working out how we can make all the pieces fit together so we minimise tax while getting the structures right for big picture future planning. “It’s about partnering with families to build their business and helping the younger generation coming through. When he’s not working with figures, Kelvin gets his kicks from tinkering with machinery or as he calls it “playing with big boys toys”. “I can’t weld, but I do like driving and servicing machinery, learning new technologies and managing the logistics of the farm operation.” Kelvin and Jilly have two sons Nicholas, 5 and Jack, 3 (pictured on cover). The boys are full of action. They both love the farm and being outdoors. The Tylers are both Dalby born and bred, and are community minded. Most recently this meant bagging and selling manure for garden fertiliser as a school fundraiser. “It wasn’t pretty, but it made the school some good money,” Kelvin chuckles. Between servicing tractors, building a veggie garden with the kids and developing tax strategies, one thing’s for sure, life is never dull.
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7 Things every business must do to be successful
BUSINESS
Peter McKinnon, BMO Partner
Whether your business sells cattle, clothes, tools or services; there are eight things you can do to get on the road to success.
1. Set the direction. If you don’t know where you’re going, it’s very hard to get there. Make sure you revisit why you are in business and where you are headed. 2. Talk to your advisErs. A successful business will have a great working relationship with their accountant and advisers. Elle McPherson once said of her strategy for building her business empire, “If I’m the smartest person in the room, then I’m in the wrong room”. 3. Be prepared. Businesses who can handle bumps in the road are those who are watching out for what’s ahead. Assess potential risks (and plan how to manage risk) and make sure you have adequate insurance in place to handle the unexpected.
4. Don’t rush it. Remember being in business is more like a marathon, than a sprint. Give yourself time to reach your goals, if you go out too hard too fast you might run out of puff (and money). 5. Be Disciplined. Successful businesses have consistent record keeping procedures. It’s crucial that your staff are aware of the procedures you use so everything can run smoothly and be stored in the same place in the same way.
7. Adopt a positive vibe. Successful business owners believe in what they are doing and exude positivity. Remember “it is not your aptitude but your attitude that determines your altitude” (Zig Ziglar). Having the right attitude also includes looking after yourself, your family relationships and your health. If you start the day happy, your employees will take their cue from you. Bruce Lee said it well, “Choose the positive…. Optimism is a faith that leads to success”.
6. Be firm but flexible. Businesses who succeed, stand strong on their core vision and values, but make sure they are nimble enough to change, develop, and adapt to changing market trends and external influences.
Peter is a Fellow of the CPA and a business advisory specialist with a business degree and over 30 years experience in accounting. A founding partner of BMO, a former Dalby Town Councillor and former President of Dalby Chamber of Commerce, Peter is passionate about the community within which he and wife Jenny raised their four boys. He is Treasurer of the Dalby Golf Club and is involved in many local sporting clubs and community activities.
Values set foundations At BMO, our shared values drive the way we work. We call it the BMO A-E-I-O-U and it’s our commitment to each other and our clients. Awareness • Up-to-date with the latest legislation • Highest industry standards • Consistent systems and procedures Enjoyment • Enjoy the journey of working with you • Speak in plain language • Offer you a cuppa and have a laugh Innovation • Latest technology and software • Training and mentoring • Tailor innovative solutions specifically to your needs
If you’d like to nominate one of our team members for Value Star of the Month, just fill out a form at reception or go to www.surveymonkey.com/s/valuestar 4 l EVERY STEP l WWW.BMO.COM.AU
Outstanding Service • Quality and timely service • Strict confidentiality and respect for privacy • A “can do” attitude - go the extra mile Understanding • Professional and courteous with personal approach • Respect and good manners • Empathy and a commitment to listening
SUCCESSION
tAKE THE FIRST STEP TO
SUCCESSION
Michelle McVeigh, BMO Partner
As the old Chinese proverb says “The best time to plant a tree was 20 years ago. The second best time is NOW.”
business to the next owners. It’s your journey to exiting the business and moving to your next stage of life.”
According to BMO Partner Michelle McVeigh, “it’s never too early to start succession planning”.
Michelle would like to encourage families to focus on the positives succession planning offers.
“I’ve seen too many families wait for a ‘trigger point’ before they do something about succession. Sadly that trigger point is often something terrible like death, serious illness, or divorce.
“If it’s done right - it can create a huge morale boost in farming businesses and it can open up opportunities for important family discussions.
“As you can imagine, while you are battling other emotions like grief, sadness or anger, this can be the worst time to be trying to make rational decisions about your future.” Michelle says it’s important to realise that a succession plan is a process not an event. “In our experience, working with many families over the years, a succession plan is rarely black and white. It’s not like getting the cotton picking or cattle branding done. It’s more like getting your soil health or breeding right… it takes time and input, and there will be unexpected complications, but over time, you will get there. “A succession plan is a living, breathing changeable strategy for transitioning the
BMO’s Steps Forward program provides family businesses with the “10 W ‘s to Successful Succession”. The program is tailored to suit each individual family. If you would like to find out more, give us a call.
“If it’s done right it can create a huge morale boost” “Succession planning takes commitment, patience, specialist assistance, and constructive debate to climb hurdles and identify opportunities. “With the right approach, nothing is insurmountable.” So how do you move forward? “Talk to your family. You don’t have to have all the answers, just take the first step. Remember, you don’t have to be able to see the whole staircase to take the first step. It’s never too early to start succession planning.”
Michelle joined BMO in 1994 and was made Partner in 2008. She is a qualified CPA with a Bachelor of Business Accounting, is an Associate of Queensland Collaborative Law and a self managed super fund specialist. Raised on a grain property at Jimbour, Michelle and husband Andrew now run farming operations at Macalister and Condamine. They have two boys, aged 14 and 12, which keeps them actively involved in school and sporting endeavours.
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One thing you should know when you
WEALTH & HEALTH
‘settle down’ You’ve tied the knot, bought the house,
a baby is on the way and you have settled into married life. But have you considered organising or updating your life insurance? Now that it’s not just you anymore, you need to ensure your loved ones will be looked after if you’re no longer there. Here are some things to consider when choosing or adjusting your life insurance policy: Does your life insurance cover your debt? Having enough insurance to cover your house mortgage, car loan and credit card debt is the first step to safeguarding your family from inheriting your debt. What about child care and education? Everyone wants the best possible education for their children but this can be expensive. If you’re not there as the main ‘bread
Mal Smith, Principal BMO Financial Solutions
winner’ to support their learning, this can add extra strain on the household. Setting up your life insurance properly could see a payout to meet the cost of your child’s learning and education, guaranteeing them the best possible opportunities. How to get the best deal? Cheapest is not always the best. The cover may be inadequate or, worse still, may not pay out when you or your family needs it most. It’s best to get advice on what level is right for you and how premiums are calculated so you know you’re not going to be paying more than you need to over time.
Mal is a highly respected financial planner with over 20 years professional experience and specialist knowledge in superannuation investments. Mal and his team at Lifetime Financial Solutions merged with BMO in May 2010 to form BMO Financial Solutions which Mal now heads up with Shane Lee. Away from work Mal enjoys spending time with his family, camping and waterskiing, and coordinates a Christian Young Adults group.
PLANNING YOUR RETIREMENT is like training for a triathlon
Shane Lee, Principal BMO Financial Solutions
I thought I was relatively fit. And then I decided to do my first triathlon! It was only a short distance and I did make it (just), but it got me thinking about what I needed to do to make my next goal, and just how much training for a tri is like retirement planning.
Start early. It’s a lot harder competing in your first race at age 60. If you’d started training younger – at least in your 30s – you’d find that you have the stamina and techniques in place. The same goes for retirement planning, start making small contributions towards your nest egg as young as you can. Will you have enough? You think you’ve got enough steam to last, until you realise the distance is longer than you thought. We are all living longer, so make sure you have estimated the amount of money you’ll really need for a comfortable retirement. Be disciplined. Training requires consistency. In the same way, you need to take control of your superannuation, keep good records, be actively interested in what it’s earning and where it’s invested. Remember, super is your money. Remember the end goal. There is no better feeling than crossing that finish line, knowing you’ve done your very best. When it gets tough, keep focussing on the euphoria you will feel when you’re experiencing the freedom of the retirement you dreamed of. Get a coach. Retirement planning is a tricky area, especially if you are looking at aged care accommodation options. Don’t go it alone. Get good advice so that you can plan out the steps to reach your goals and have someone in your corner helping you get there. Read Shane’s full blog at www.bmo.com.au.
6 l EVERY STEP l WWW.BMO.COM.AU
Shane Lee is a Certified Financial Planner with 25 years experience in banking and finance backed by a Bachelor of Commerce and a Diploma of Financial Planning. He joined BMO in 2002, where he helped established the financial planning division. Shane and wife Barb have two daughters, and he enjoys training for his next triathlon goal and getting out for a hit of golf.
get running Taking to the streets
of Dalby for a 3-5km run twice a week, is the BMO Run Club. The participants, of varying fitness levels, support one another to achieve their goals. Run club regular,
Did you know? BMO has an in-house ‘home’ gym, hosts a weekly pilates class, run club, social golf club, cycling group and a pool comp.
ParaPlanner Jemma Brown,
shared some tips to help anyone become a runner. • Start out by doing walk/jog intervals - even if you only jog for two minutes and then walk for two minutes on your first day, you will find you can gradually increase the time until you’re jogging for longer distances. • Make a playlist and work out to music with a good beat. • Try an App on your phone such as ‘Map My Run’ and connect with your friends and family – this helps you to challenge yourself and makes for some friendly competition. • Sign up for a triathlon, fun run or marathon, this will drive you to keep up the exercise and reach smaller fitness goals. • Try to fit exercise into your lunch hour in colder months – so you don’t have to get out of bed on the freezing winter mornings. • Eat healthy – it’s the backbone of fitness because good food is what fuels your body to reach goals and feel good about yourself. Happy running!
BMO’s Shane Lee achieved a milestone in 2014 completing his first full Olympic distance triathlon at Noosa.
Stress is a normal part of life and can be both positive and
negative. It’s important to recognise when stress is becoming too much and develop strategies to manage it. Here are some suggestions for coping with stress. 1. Admit when stress is having an effect on you. Pay attention to signs of stress including fatigue, carelessness, apathy and vague aches and pains. Have a medical check up. 2. Make a commitment to take care of yourself. 3. Ask yourself if you have control over what is happening or not. Often, we worry about things that we have no control over, eg. the weather. 4. Work out your tensions. Exercise releases endorphins which are ‘happy hormones’. 5. Get adequate rest and relaxation. Try deep breathing exercises. 6. Socialise. Spending time with others who understand what you are going through can be very helpful.
Managing stress
7. Listen to music. Research shows music has a healing effect. 8. Talk. Find someone to talk to like your spouse, friends, clergy or your GP. Don’t be afraid to seek out a counsellor or professional assistance.
NB: BMO’s health and fitness tips are based on our own experiences. Readers should seek professional advice and consult a doctor before commencing any physical activity or making dietary changes.
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HISTORY
1994
Back to the future... the story of BMO Long ago, when Suzie Quatro was topping
the charts, Joh Bjelke-Petersen was Premier of Queensland, Peter Brock and Allan Moffat were battling it out at Bathhurst, and before Australia was connected to the internet, a teenage boy was kicking off a career that would later form the foundation of one of the region’s most successful accounting practices.
A young Peter McKinnon had accounting in his blood. Initially working in the back room during the 70s, writing up cashbooks to help his accountant father, Tud, Peter went on to do his study and start his own practice in 1988. In 1990, when Tud sadly passed away, Peter decided to expand, and merged his and his father’s practices with accountants Martin Moynihan and Martin Browne to form BMM (Browne, McKinnon, and Moynihan). And BMO, as it later became known, was born. The local accounting firm located in Archibald Street (now home to Sullivan Nicolaides) soon became a well known name around town. Young blokes Adrian Rasmussen and David Briese, who’d been working with Martin Browne at the time of the merger, were busy filing, typing, and watching closely how the business ran. As BMM grew over time, it picked up some more new recruits including an ambitious farm boy, Kelvin Tyler, who’s first role was data entry.
1995
In 1994, Gerard O’Sullivan joined BMM making it BMMO and an adding an office in Chinchilla. David moved out to join the
Chinchilla offi ce, and a 22-year-old Michelle McVeigh joined the BMO Dalby team. A year later the firm became the BMO Accountants Group, and a quick renovation rescue was done to update the Archibald offi ce. In 1998 John Howard was reelected as Prime Minister, Mark Taylor equalled cricketing great Don Bradman’s record, Ricky Martin topped the charts, and a 27-year-old Adrian Rasmussen stepped up to join the Partnership of BMO. The BMO team was outgrowing Archibald Street offi ce, and so plans commenced for a new custom built offi ce in Nicholson Street. “We listen to you first!” underpinned BMO’s customer service as the team undertook the big move to Nicholson Street, which was offi cially opened by the then Mayor Warwick Geisel, in 1999. The turn of the new millennium saw the introduction of GST and the next chapter for BMO. In 2001, BMO joined the world wide web and launched its first website.
8 l EVERY STEP l WWW.BMO.COM.AU
In 2002, BMO had an amicable separation from the Chinchilla offi ce leaving about 16 team members based in Dalby. This was also the year financial planner Shane Lee joined the team to head up a dedicated financial planning division for BMO. Then, in 2003, when Peter Beattie was Premier and Makybe Diva first won the Melbourne Cup, Kelvin Tyler bought out a retiring Martin Browne to become a BMO Partner alongside Peter McKinnon and Adrian Rasmussen. The formula must have been working well, as BMO was named Dalby Chamber of Commerce and Industry Business of the Year for 2003. BMO appointed Barry Jordan in 2004 to the role of Practice Manager and announced Michelle McVeigh as an Associate Partner. Meanwhile, David Briese, who’d been away for nine years working in Mackay, returned to the fold.
In 2005, BMO merged with John Derrick Accountants bringing the team to 25. With the staff numbers continuing to expand and the addition of human resources and marketing to the service offering, the partners unveiled the plans to renovate Dalby’s former local ten-pin-bowling alley into a state-of-the-art business centre. The ‘Dog Bowl’, as it was known, was transformed, and in January 2009 the doors opened on another exciting new milestone for BMO. That year, BMO also expanded to offer a finance brokerage service with the establishment of BMO Lending Services and the appointment of banker, Paul Logan, to head up the division. 2009 continued to be a big year, with David Briese promoted to Associate Partner and BMO named Dalby Business of the Year for the second time. 2005
In 2010 BMO Financial Services merged with reputable local firm Lifetime Financial Solutions headed up by Mal Smith. Mal and his team transitioned seamlessly with Shane Lee and his team to form BMO Financial Solutions. ‘Breakfast at BMO’ and ‘The Farmer Wants A Life’ road show have seen the firm connect further with the community over the past few years. In 2013, David Briese cemented his future in the business as a Partner. Today, BMO, with its team of 50 people, continues to hold true to its foundations as a locally-owned, community-minded firm that is committed to caring for its clients.
As we reflect on the road we have travelled, we are excited about where the path will take us next. We embrace our new catchphrase “We’re with you every step of the way” and look forward to the journey ahead.
2010
2014 9
FINANCE
surfing the cash flow wave Adrian Rasmussen, BMO Partner
Your financials may not be top-of-mind
when you’re enjoying a day at the beach, but for BMO Partner Adrian Rasmussen watching the waves slowly building and peaking is like experiencing good cash flow. “You can be right on the face of it, pointed in the right direction and surf it smoothly. You have a great ride, the wave runs its course, you’re never left too shallow, and you paddle back out for the next wave. “Other times you’re riding a wave that looks great until you discover it’s a dumper. All the water (or your cash) seems to disappear out from under you with little warning, and you find yourself scratched and scraped on the sand, wondering how you’ll ever surf again.” Cash flow planning can be tricky, but as Adrian explains, it is one of the most essential elements of successful financial management. Here’s some tips on how to surf the cash flow wave:
Check the conditions regularly Top surfers check the wind direction, rips and tides, and plan accordingly. You need to assess changes that will effect your business, like the economic environment, buying trends and the weather, and revise your cash flow plan regularly. Wax the board You need traction to help you keep the business steady during good times and bad. Make sure you do some risk management planning to help you ride through challenging times. Surf a different break Look for new opportunities to increase revenue or decrease costs. Explore different revenue streams that can help bolster cash flow at different times of the year. Put on your wetsuit It can get cold out there. You need to have resilience to be in business. Make sure you look after your health and surround yourself with supportive networks.
Change your board Use the right business structures for the conditions. Review your loans and restructure debt repayments to better suit your peak times. Don’t surf alone Communicate regularly with your accountant so they can help you strategise when the seas get rough. Adrian has been with BMO for over 26 years and a partner since 1998. He was one of BMO’s first trainees, studying his Bachelor degree and CPA on the job. Adrian and wife Narelle live on their property at Lake Broadwater. He is President of the Dalby State School P&C and enjoys spending time with his three children kayaking and playing tennis or cricket.
Be smart with your debt Paul Logan, Finance Manager
Borrowing money for houses, cars, business and equipment is a reality but very few people are actively structuring debt in a way that best suits their needs. I recommend reviewing your debt position at least every three years. Touch base with a respected finance broker, to be sure that you are aware of what other finance products are available in the marketplace. Be careful not to only focus on the interest rate. There are many factors that make a good lending arrangement such as flexibility for drawdowns, communication, and timing of repayments. Business owners should use their overdraft wisely. Don’t pick up a piece of equipment or a vehicle using your overdraft when you could finance by lease or chattel mortgage (CM) instead. Using a CM can really assist with business profitability, especially while interest rates remain low. Most importantly, consult with your accountant before making any purchases so that you can fully assess the taxation and cash flow consequences and make choices that are right for your business.
Paul joined BMO in 2009 to head up the loans and leasing division. He brings to the table some 30 years experience in banking and agri-business, having worked in roles both for the ‘big four’ and rural banking sectors. Paul volunteers as treasurer of the Dalby Diehards Rugby League, enjoys a hit of golf and spending time with wife Wendy and their three sons. 10 l EVERY STEP l WWW.BMO.COM.AU
COMMUNITY
Part of your community As a locally owned business, we understand the importance of
community. We pride ourselves on being connected to the communities in which our team and clients live and work. We continue to provide sponsorships, both financial and in-kind, use local suppliers and businesses, employ locals to join our team and run free events like our Breakfast at BMO and The Farmer Wants a Life Seminars.
Barry Jordan advising attendees at a HR Workshop.
Some of the BMO Partners with Denis Wagner at a recent Breakfast at BMO.
BMO proudly supports..
Dalby Golf Club . Basin Sustainability Alliance . Dalby Rugby Union Dalby South State School . Dalby Lions Club . Meandarra Show Our Lady of the Southern Cross College . Cecil Plains Golf Club Blue Care . Inglestone Golf Day . Moonie Sports Club . Red Cross Taroom Show Society . Jimbour State School . Dalby Art Group AFL Dalby Swans . Bell State School . CareFlight . Aussie Helpers Dalby State School . Hannaford Gymkhana . Taroom Show Dalby Rugby Union.
Adrian Rasmussen with Wendy Agar at the AgriFood Skills Farmer Forum.
Michelle McVeigh speaking at Australian Cotton Conference.
Peter McKinnon welcomes guests at The Farmer Wants a Life Seminar.
11
Employing people the RIGHT way
PEOPLE
Barry Jordan, Practice Manager/HR Adviser Employing people is no longer as simple as a handshake and some cash in an envelope at the end of the week. These days, employers have a number of obligations. Taking the time to set up your employment systems correctly will ensure you avoid penalties and have happy workers. Here’s the basics: Take out tax Employers must request a completed Tax File Number (TFN) declaration from all new employees, so you can deduct the correct amount of PAYG tax from the worker’s gross wage. This is to cover the employee’s income tax, Higher Education Loan Programme (HELP) repayments and the Medicare Levy. Use the ATO tax tables to calculate the amount. www.ato.gov.au Pay them the right amount Check out the National Employment Standards and the Modern Award related to your industry and the employee’s role. The awards set out conditions, minimum rates, penalty rates and allowances. Remember, you are required to issue each employee a payslip within one working day of pay day. Also the Government requires you to provide every employee with a ‘Fair Work Information Statement’. www.fairwork.gov.au/pay. Allow time off You are required to give employees time off from work. Make sure you understand the leave rules including annual leave, personal leave (previously known as sick leave), long service leave and parental leave (for parents
of newborns or newly adopted children). www.fairwork.gov.au/leave
Pay super Employers must make superannuation contributions, at least every three months, for each eligible employee to help them save for retirement. It’s currently set at 9.5% of an employee's “ordinary time earnings”. The government has introduced a compulsory new scheme for paying and reporting superannuation called Superstream. Go to www.bmo.com.au to get a copy of our Superstream fact sheet.
Make your workplace safe All businesses have a duty to provide employees, visitors and customers with a safe and healthy work environment. You must assess risks and implement control measures to prevent or minimise exposure to the risks. Get WorkCover Every Queensland employer must have workers' compensation insurance. If your employee is injured or becomes ill because of work, they can apply for worker’s compensation benefits. Premiums that businesses pay to WorkCover Queensland cover the benefits paid out to injured workers. Premiums are calculated using an online form at www.worksafe.qld.gov.au Put it in writing You can decide to remunerate the employee on a standard hourly rate (rather than remunerating as per the stipulations in the award), however you must be able to clearly
Barry Jordan was appointed Practice Manager in 2004 and has more than 30 years experience in business management, human resources and WHS. Barry and BMO’s HR team work with employers to provide practical solutions and systems relating to employment contracts and standards, modern awards, payroll, record keeping, WHS and other workplace policies and procedures. Barry enjoys travelling with wife Maree and is a keen golfer. 12 l EVERY STEP l WWW.BMO.COM.AU
demonstrate that you have the employee’s agreement to the terms and conditions and that what you are offering is equal to or better-off-overall than the award. It is strongly recommended that all employment arrangements and appointments are formally documented. Keeping good employment records is essential.
Happiness at work Sprinkling a little happiness at work can make a real difference to your bottom line. OPTIMISM Optimists make better leaders. Set big goals and share them with your team. GRATITUDE When you are faced with a stressful event, put it in perspective. Eg. if your computer shuts down, stop and think about how many people in the world will die today because they are hungry. About 22,000. Having to restart your computer doesn’t seem quite so dire. RESILIANCE Encourage team members not to be afraid to fail. “It’s better to have tried and failed than to live life wondering what would’ve happened if I had tried”. CELEBRATE Shine the light on what’s right. Reward positive behaviour and celebrate successes – big and small. Remember, it doesn’t cost you anything to say thank you.
Quiz Time
What style are you?
COMMUNICATIONS
3
, I: To relie t or task c e ve stres j o r p a n s, I: e iv A. Do so e b When g to s d m e e e n v t ig orous ac wha exercise tivity like ly decide n or sport A. Quick d make it happe B . L to ik d e n e a to socialise done ers involv pproach and others – with oth a lt to u s y n a o like to go interact with w C t s B. e b h e g u out for d or catch e th king thro inner up with determin C. Need time thin fr e ie nds m o n s a d th to n r e e s p le S th e . ra p to C D. Need process some alo re-energise To persuade someone to my the best ne time and reen in e to think ergise. point of view, I: jumping rstand th , e d n u I s re n u o s ti e xpecta D. Mak A. Get to the point by stating obvious rs and e p paramete ch it step by ste reasons why my way is correct a ro then app B. Use my natural ‘gift of the gab’ to be persuasive C. Cautiously approach the conversation, taking time to explain my point D. Detail the reasons in a logical fashion and back it up with facts
1
2
Mostly As – Dominating You tend to be assertive, direct and task-focussed. You are valued in a team for being results-oriented and always up for a challenge.
Mostly Bs – Influencing You tend to be social, talkative and optimistic. You are valued in a team for motivating others and being a creative problem solver.
Mostly Cs – Steady You tend to be stable, patient and sincere. You are valued in a team for being loyal, logical and dependable.
Mostly Ds – Compliant You tend to be analytical, precise and accurate. You are valued in a team for your high standards and objectivity.
Of course, no person is entirely one style! While this quiz is very simplistic, it provides a glimpse into the “DISC” behavioural styles tool BMO uses to assist workplaces and family businesses with understanding communication and how to work effectively as a team. Give us a call if you’d like to know more about DISC and our team building services.
Secret to marketing There is one fundamental secret behind every marketing success story. Understanding WHY. Why you do what you do and why people should care? When we develop marketing plans with clients, we’ll ask them: “So what do you do?” And it usually goes like this:
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Client: We sell widgets. Us: Really? What kind of widgets? Client: Very strong widgets. The best in the marketplace. Us: Why? Client: Ummm, I don’t know, but my father sold them, so I kind of … you know, took over. Us: Why? Client: Because it seemed like a good business. Us: Why? Client: Because the widget makes people’s lives better. Ah-ha. There we have it - the real reason you do what you do. Even if you have a great marketing plan that includes clever tactics like social media, media releases, advertising, sponsorship, websites, events, sales, catalogues, and billboards, if you don’t know why you are in business, then you are wasting your time. ‘Sell the sizzle not the sausage.’ Don’t tell your customers and potential customers what you sell, tell them what problem you are solving for them. Tell them why. Megan James was raised on a farm near Dalby. She studied a Bachelor of Business and worked in PR/Marketing roles in Brisbane and Newcastle. In 2007, she joined BMO and has done further training in facilitation and DISC profiling. Megan and husband Simon run a transport business, and she enjoys running around after her three children, playing netball, reading and singing.
Modern Facilities - Latest Technology - Ample Parking Excellent Service - Free wif i - Catering Packages Event Management - Registration Services Whether it’s a small private meeting for just two people or a large conference for 100, we are with you every step of the way. To find out more please contact our Conference Centre Coordinator, Chelsea Wyatt - chelseaw@bmo.com.au, 07 4662 3722 or via our online enquiry form at www.bmo.com.au.
TAX & TECHNOLOGY
It can feel like an exciting game of
monopoly when you start to develop your own property portfolio. If you select a good capital growth area, property can be a smart investment, and it can be tax effective. However, whether you own one rental house or 10, it’s important to understand the traps to avoid. 1. Getting the deductions wrong: There are basically only two categories of rental property expenses you can claim: ✔✔ Expenses deductible in the year you paid them - like council rates, repairs, insurance and loan interest; and ✔✔ Expenses that are deductible over a number of years - like borrowing costs, structural improvements and costs of depreciating assets.
5 most common rental property mistakes David Briese, BMO Partner
LunaseeStudios / Shutterstock.com
2.
Be warned, you cannot: ✘✘ Claim rental deductions for properties that are not genuinely available for rent. ✘✘ Incorrectly claim deductions for properties only available for rent part of the year, such as a holiday home. ✘✘ Claim structural improvement costs as if they are repairs when they are capital work deductions, such as renovating a bathroom or building a pergola. (Repairs are 100 percent deductible, while renovations and improvements may only provide you with a 2.5 percent deduction.)
3.
4.
Buying for the wrong reasons: Don’t just buy a rental property for tax benefits - it needs to be the right choice for your investment strategy and future goals. Not being prepared: You might have a period of time without regular rent, like when you are completing renovations or in between tenants, so you need to make sure you prepare cash flow plans and have access to funds that will help you through these times. Not getting advice: Talking to your accountant BEFORE you buy a property, do repairs or renovations is important, to ensure you are making the right choices for your own wealth
creation goals, and to avoid incurring a large penalty if you’re caught making inappropriate tax deduction claims. 5.
Missing depreciation deductions: It can pay to check if it is beneficial to obtain a quantity surveyor report, which may enable you to legitimately claim extra depreciations and building write-off deductions.
David Briese has over 26 years of accounting experience, backed by a Bachelor of Business and CPA qualifications. He was appointed Partner at BMO in 2013. David enjoys spending time with his wife Kathryn and three daughters. He is actively involved in his local church and keeps fit with regular cycling.
Up In the CLOUD
The ‘cloud’ – no I’m not talking about
that fluffy white thing in the sky. Cloud or hosted computing means businesses will no longer have to worry about common computer issues like backups, infrastucture security, updates to systems, wages for specialist IT persons and increasing energy costs. Using a cloud based service allows businesses to move their on-premises server, storage and backup equipment to a completely virtual environment, hosted by a service provider in secure data centres. Businesses can scale systems up and down as needed without having to install or decommission infrastructure. 14 l EVERY STEP l WWW.BMO.COM.AU
The rollout of the National Broadband Network across the country is making this new style of IT a significantly more cost effective solution for small to medium sized businesses. System uptime is significantly improved with data centre-grade redundancies built right in. Customers do not physically see any of the infrastructure. Instead, a web-based interface allows end users to manage their own virtual infrastructure from wherever they are in the world.
The new style of IT is empowering remote workers with the flexibility of cloud based services, as well as other initiatives such as ‘bring-your-own-device’ where companies are no longer supplying computers to employees, but instead allowing them to bring their own laptops or tablets to connect to their corporate computer system via remote desktops and file sharing. This
allows greater flexibility, communications and collaboration between business partners and colleagues. While in regional areas, we are still struggling with internet connectivity and access issues, BMO will continue to stay abreast of new technologies and provide clients with advice and tips that will create effi ciencies in their businesses. If you are a business operating within a server environment, feel free to talk to us about your IT needs. Hayden Spence joined BMO as IT Administrator in 2013, equipped with multiple certificates in IT, a high distinction in a USQ head start program for computer programming, and having developed his own commercial ‘app’ (while still in high school). Outside of work Hayden is a keen cyclist.
FOOD
BMO Recipes
Watermelon salad
Ingredients • Watermelon • Fetta • Pistachio nuts Method Heat a small frying pan over medium heat. Add pistachios and cook stirring occasionally for five minutes or until light brown. Transfer to a bowl to cool for five minutes then chop roughly. Slice watermelon quarters into 1cm thick wedges. Arrange on plates. Crumble fetta over watermelon. Sprinkle with pistachios and serve cold.
Marinated
Grilled Vegetables
Ingredients • 3 small slender eggplants • 2 small red capsicums • 3 medium zucchinis • 6 medium mushrooms • (Add cherry tomatoes, onion, button squash – you decide!) Marinade • 1/4 cup olive oil • 1/4 cup lemon juice • 1/4 cup shredded basil leaves • 1-2 cloves garlic, crushed Method Cut eggplant into diagonal slices. Place on tray in single layer; sprinkle with salt and let stand for 15 minutes. Rinse thoroughly and pat dry with paper towels. Trim capsicum, removing seeds and membrane; cut into long, wide pieces. Cut zucchini into diagonal slices. Trim each mushroom stalk so that it is level with the cap. Place all vegetables in a large shallow non-metal dish. To make Marinade Place oil, juice, basil and garlic in a small screw top jar. Shake vigorously to combine. Pour over vegetables and combine well. Store, covered with plastic wrap, in refrigerator for 1 hour, stirring occasionally. Prepare and heat BBQ. Place vegetables on hot, lightly greased BBQ grill. Brush vegetables frequently with any remaining marinade while cooking. Transfer to a serving dish, once browned. 15
Starting out in business can be like starting out in life. You take your first steps. You’re a bit tentative at first, you might even stumble a few times. But then you get some momentum up and get on a roll, and you find the business starts to kick some goals. But, as we know, life throws us many challenges and you might face a hurdle or two. You might find the business goes through a growth spurt, maybe hits some challenging ‘adolescent’ years and at times you feel you are teetering on the edge. However, with time, strategy and good advice, you walk through the tough times and manage to get the business firm and steady. You reach that exciting stage, when you are able to plan for the future and move into retirement years in the way that suits you. And you rest easy knowing you’ve done your best, enjoyed the adventure and are able to reap the rewards. No matter what stage your business is at, or where you are on life’s journey, you need advisers you can trust who will stand beside you. We’re not just accountants. We’re your business adviser and your sounding board. Whether you’re just starting out or ready to retire,
we’re with you every step of the way.
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