Aussie Painting Contractor Magazine November 2021

CSQ Trade Ready Program Doing the Quote When you do up the quote list, everything you are going to do

Create a Powerful Framing for the World

Tips to save money on Tradies Insurance

Online quotes for standard trade businesses with up to five staff

www.aussiepaintersnetwork.com.au

From the

Editor

CONTRIBUTORS

• Andy Smith

Hey Everyone, Welcome to the 109th Edition of the Aussie Painting Contractor Magazine.

Well, what a month, APN have been absolutely flat out this month with a lot of setting up for an exciting 12 month program being put in place. You will hear about it all in the coming weeks.

Aussie Painters Network are running Trade Ready Programs getting unemployed people into apprenticeships. Have a look at what was done at the PCYC Zillmere, it was a great achievement and a special thanks to Trevor from Ants Pants Painting Service with helping and lending not just his own hands but also Neil’s and Ali’s. Without them, we wouldn’t have got it done.

As you will read in the story, APN through the Trade Ready Program are giving back to the community by helping non for profits upgrade and maintain their facilities, and at the same time give people an opportunity for a career pathway.

On another exciting note, we are in the process of moving into new premises. At the new premises we will be running some of our CSQ programs and training apprentices, as well as some exciting things to be announced in the New Year.

Till the next issue, Happy Painting!!

• Anthony Igra •

jeffpainterguy

• Jim Baker • Leo Babauta • Monroe Porter • Peter Martin • Robert Bauman • Sandra Price • Vanessa Petch EDITOR Nigel Gorman GRAPHIC DESIGNER J. Anne Delgado

Nigel Gorman

nigel@aussiepaintersnetwork.com.au

07 3555 8010

Advertise with us...

1800 355 344 07 3555 8010 info@aussiepaintersnetwork.com.au www.aussiepaintingcontractor.com

Contents 06

Is your staff making, or costing you money?

33

Tips to save money on Tradies Insurance

09

The Secret to Keeping Good People on Your Team

39

Managing your sales effort

13

How to get Your Business Noticed on a Shoestring Budget

16

CSQ Trade Ready Program

19

Doing the Quote

43 48 24

TAXATION

26

Create a Powerful Framing FOR THE WORLD

30

Know what you are measuring

Who Pays?

Common surprise costs that we regularly come across

As home prices soar beyond reach, we have a government inquiry almost designed not to tell us why

I don’t think we can really complain too much now.

Getting Your Money Starts with the Right Thoughts and Attitudes

52 53

Industry Idiots Important Contacts

Opinions and viewpoints expressed in the Aussie Painting Contractor Magazine do not necessarily represent those of the editor, staff or publisher or any Aussie Painters Network’s staff or related parties. The publisher, Aussie Painters Network and Aussie Painting Contractor Magazine personnel are not liable for any mistake, misprint or omission. Information contained in the Aussie Painting Contractor Magazine is intended to inform and illustrate and should not be taken as financial, legal or accounting advice. You should seek professional advice before making business related decisions. We are not liable for any losses you may incur directly or indirectly as a result of reading Aussie Painting Contractor Magazine. Reproduction of any material or contents of the magazine without written permission from the publisher is strictly prohibited.

Is your staff making, or costing you money?

Back in the day, as trade business owners, especially painters, we never worried about tracking performance at work, and we’d never heard the term “Key Performance Indicators” before.

When I was an apprentice, as long as you showed up every day, slogged it out in the trenches and hung up the tools after a hard days work you were considered a pretty decent tradie.

This was the approach I took too when I went out on my own and started my plumbing business almost 20 years ago. If a tradie, or office worker, looked like they were working hard, I assumed that meant they were making me money.

Well, you know what they say about Assuming…

As my business grew and I took on more and more

6 | Aussie Painting Contractor

staff, I wasn’t there every day to see if they were working hard.

I realised KPI’s were the ONLY way I was going to be able to manage my team and ensure they were making the business money.

AND THANK GOD I DID! I realised some of my tradies were making HUGE profits for my business. They were upselling on-site, had little to no acallbacks for incomplete jobs and were smashing their daily targets.

On the flip side, I had other tradies who were consistently underperforming and actually COSTING my business money.

If I hadn’t introduced these measuring tools, I would have had NO IDEA. Whilst upselling and callbacks might not be key performance measures for every trade business, other elements such as productivity - i.e does it take one of your painters TWICE as long as everybody else to complete the same job? How efficiently do they complete the work, and how regularly do they make mistakes? Are essential things to be monitoring.

The end result of tracking my staff was with this information and data at hand, I was able to better support the tradies who were underperforming and reward those who were consistently overperforming. It also gave me tangible data to refer to when considering raises, promotions and end of year bonuses.

If you don’t actively track KPI’s in your painting business, I’m telling you, it’s costing you money! To learn how to create and implement KPI’s into your business, download our free guide ‘KPI’S For Tradies’ by scanning the QR code below.

Alternatively, book a FREE Strategy Session with me if you want a second opinion or fast track your painting business. I’ll review your entire painting business, and together, we can get you back on track.

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Andy Smith

Andy Smith is a fellow trade business owner of Dr.DRiP Plumbing and co-founder of Lifestyle Tradie, a membership and community for tradies in business.

2021 November Issue | 7

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The Secret to Keeping

Good People on Your Team Whether you run a company with staff on your payroll or a business that employs sub contractors to help bring your painting or construction jobs to completion, good staff are not easy to come by. And once you think you’ve found a new staff member who fits into the team well I bet you’d love to keep them.

As many of my business clients have told me, this is easier said than done.

One of the characteristics of the painting and construction industry workforce is that it is very changeable, transient and casual with a lack of consistency in employment or business opportunities for aspiring tradies. When someone performs well, you’ll want to pay them a good wage to keep them motivated to work with you to achieve your business goals.

The best way to incentivise staff staying on the team and doing their best is undoubtedly income based, or through attractive employment or salary packages. To be able to do that though you’ll need firm control of your profitability margins. However, having the budget to pay them is not the only factor for most employees or contractors to stay the course.

Let’s look at the 3 most important issues that can make or break your team.

1. When the money isn’t quite enough To be able to attract highly skilled staff you need a profitable business. In my previous articles I’ve talked a lot about the need to have your financial management systems in order. One of the biggest financial drivers for any business is to make enough profit so you can pay your staff not just adequately, but enough so that they are happy with their employment situation. You’ll want to be able to pay them enough to keep them on your team. Staff retention issues or head hunting of high quality contractors can be a serious issue for business owners.

Why is it so important to monitor business costs and profitability in connection with staff retention issues? The answer is simple: so that you can make a higher offer to a staff member when you need to and be confident that your business can afford it.

Sharing a bonus with your employees is one of the biggest factors playing into staff and job satisfaction. It fosters motivation and engenders good will for staff to do their best for your business. I’d highly recommend that you make any bonus payments performance based, though. You don’t want to set up unrealistic expectations.

2021 November Issue | 9

2. Lack of good people management skills As a business owner you must wear many hats. Most business owners start their business on the strengths of the skills they have and what they do best. While some folks have a natural leadership ability, others may not feel quite comfortable in that role.

It’s well known that a good team is shaped by effective communication, good management and leadership. But how do you get there?

For starters, make sure you have regular meetings with your staff to check in. Many businesses have implemented robust performance management systems to help staff stay on track, or develop their career options through development programs the business could sponsor.

Further, as an employer with a duty of care you’ll also need to make sure your workplace practices are safe. Regular monthly safety meetings to keep everyone up-to-date are not just a legal requirement in the construction industry, they also demonstrate your commitment to your team’s safety.

Showing your staff or contractors a glimpse of your vision for the future of the business can also increase the level of engagement and loyalty, if they can see there’s something in it for them.

3. They’re not getting what they want The answer to this problem is to give them what they want (you’ll need to find out what that is first).

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So far, so obvious, right? But sometimes the most obvious is the most helpful. You find out what people want (and need) by listening to them and acting in their best interest.

So, what do people who work with you want and need to be at their best? Maybe it’s as simple as giving them a fuel card to ease their mind about the costs of travelling long distances to some jobs. It could be as involved as offering participation in educational or development programs (or paying for them) so they can keep up with their skill development aspirations.

Or - here’s the part where your listening skills will really be put to the test - maybe it means finding out who has child care issues and helping them work out a flexitime schedule; it could mean finding out who is being heavily courted by a competitor and offering new responsibilities and challenges at the right time to make the grass look greener over on your side.

Last but not least, make working with you fun. A good laugh can also smooth out many ripples and create a pleasant work climate, which is what most people want.

If you need any support with reviewing your business systems and monitoring tools, call my office on 3399 8844 and we will give you a FREE Business Systems Health Check. You can also visit our website at www. straighttalkat.com.au and complete your details on our Home page to request a free appointment.

2021 November Issue | 11

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How to get

Your Business Noticed

on a Shoestring Budget Very few small businesses have a huge marketing budget to work with. Fortunately, there are a number of simple, free and low cost ways to get the word out about your company that are also highly effective.

These tips will show you five simple ways to promote your local business without breaking the bank.

Get free press Advertising rates for local newspapers and radio stations can be way too costly for a small business.

Instead, think about how you might generate a story the media will want to share. For instance, a grand opening, anniversary, community fundraiser or special event can be the perfect opportunity for an interview on local TV or radio. Likewise, get in touch with your local newspaper to see if they’d be interested in an article about your latest product launch or move to a new location.

Cross promote Partnering up with another local business for a product release, new project, or service bundle can exponentially

increase exposure for your company. Brainstorm non-competing, complementary businesses in your area – then think about how you might work together to attract new customers. Cross promotion creates an opportunity to reach out to each other’s mail lists, add each other’s business name to any mail outs, post information about your partner’s company in store and team up on an event you can invite all of your customers to.

Support a cause Start or get involved in a local fundraiser. Giving back will raise your community profile and provide free advertising, while creating goodwill as you help an individual or organization in need. Schools, libraries, hospitals and not-for-profits all benefit from volunteerism and community fundraisers. And if that isn’t reason enough, customers want to support businesses that care. Demonstrate that your company is interested in improving the wellbeing of your community and you’ll instantly gain new fans.

2021 November Issue | 13

Host a workshop Contact your local library, Chamber of Commerce or small business bureau to arrange a free educational talk on a topic of interest to your target customer.

Providing valuable information is a great way to build credibility, trust and initiate customer relationships.

Consider a prize draw for a free product or service – and be sure to have promotional available to take away, including information on your loyalty program to entice new leads to make a first purchase.

tional information to (with permission, of course).

You can work together with other local businesses in your area to extend your reach when promoting the contest, with each company donating a prize to the basket. Without much investment, you’ll be able to offer a much more valuable prize this way – and reach many more potential customers with every business doing their part to get the word out.

Run a contest Offering a prize giveaway is a fantastic way to generate buzz online and in your community. It’s also a great way to build a mailing list you can send promo-

Sandra Price

14 | Aussie Painting Contractor

Final tips Marketing your business locally needn’t cost a lot of money, but it does take a regular time commitment.

Build free promotional activities into your annual business plan, get strategic about timing your marketing.

www.tradiebookkeepingsolutions.com.au Facebook : Tradie Bookkeeping Solutions

WHY DO TRADIES LOVE ULTRAGRIME?

Tradies not only need to keep their tools and hands clean, they also want to make sure their customers’ home is left even better than they found it.

UltraGrime are the go-to wipe of choice for many painters, decorators and plasterers – their size, strength and absorbency capacity makes even large mess manageable.

The wipes remove paint, oil, caulk and sealants. They are also safe on all surfaces including leather and upholstery meaning that you can clean up easily and safe in the knowledge you won’t cause any damage.

UltraGrime wipes are just as kind on hands! Aloe and vitamin E additives protect from dryness and irritation.

Find a Stockist

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BIGGER. WETTER. STRONGER.

2021 November Issue | 15

CSQ Back in April, Aussie Painters Network were approved and funded by Construction Skills Qld (CSQ) to run a Trade Ready Program to bring unemployed people to the painting industry as apprentices.

So far, it has been a great success with the 21 of the 22 students enrolled in the program, getting jobs in the construction industry.

Aussie Painters Network have been awarded another contract to continue running the 5-week Trade Ready Program for the next 12 months to 30 September 2022.

Aussie Painters Network have partnered up with the Police Citizens Youth Club (PCYC) throughout parts of Qld to donate ours and the participants of the programs time, to refurbish and repaint 11 of their facilities over the next 12 months.

Here are the pictures of the first PCYC Project we completed in Zillmere.

We are running 3 more programs this year.

Click Here for the details!!

We are also running a program in Toowoomba at the end of this month, doing up the Brothers Junior

16 | Aussie Painting Contractor

Trade Ready Program

Rugby League facilities. Once again, no cost to them for the labour!!

The program consists of 1 week working side by side with trainers and potential employers, during this time we Week 1 Life Skills training Ø Work etiquette Ø Resume writing & Interview skills Ø Healthy living & fitness in the workplace Ø Financial management and budgeting Ø Structured practical learning with skills required in the workplace conducted by qualified trainers through Aussie Painters Network Week 2 Formal Training to get started in the Construction Industry Week 3, 4 & 5 – Work placement with employer, potentially leading to apprenticeship. 120 hours required to be completed.

If you are interested in more information,

CLICK HERE!!

2021 November Issue | 17

Doing the Quote When you make the appointment time to quote the job, make it when you can get there, don’t let the client push into a time you just can’t keep. Being late is a terrible start.

The client will understand if you say, Sorry, I just can’t be there at that time, and I would prefer to make it a different time than be late.

Before you turn up, change into clean clothes, remove all paint and gap filler from your hands and face. If you don’t have time to go home and get changed, have fresh, clean overalls in your ute and change into these.

2021 November Issue | 19

Remember, a home is the most expensive thing you or your customer will ever buy.

Just imagine that you have a nice car you paid $150,000.00 for, and it needs some work done to it. You take it to two different garages. The first guy comes out of the garage covered in oil, dirty overalls and smoke hanging out of his mouth; his quote is $5000. You go to the second garage, and the guy comes out nice and clean; his quote is $5500; which one do you think might look after your car better?

When you arrive on time (if you are going to be late, Ring the client and let them know how late you are running) Take your boots off at the front door (even if they are clean). This shows respect to the client.

Now the next thing to do is hand the client the portfolio you have with you and say something like, “Thank you so much for letting me quote on your painting job. This is just a little about me and what I can do for you” Now ask the client to walk through the job with you and ask questions to establish what is required, like do you have children, do you entertain a lot (these questions let you know the best type of paint to quote using.) Explain to the customer why you are asking.

When you have all the info, you need to put the quote together, thank the client again and tell them you will leave the portfolio with them and tell them when you will have the quote back to them.

When you do up the quote list, everything you are going to do Prep Work: Sand the walls, remove all loose and flaking paint, fill all holes, clean down the walls, Paint system: list the paint you are going to use and the number of coats

Now, this bit is significant; hand-deliver the quote to the client. Let the client read the quote and ask if you have covered what they want to be done; also, ask if they have any questions. (note the persons you are quoting against have probably just sent a quote that said something like. Paint four rooms $3000+GST, and they mailed or emailed it) Quick tip NEVER use the words, cost or price in your quote. Always use the word investment.

IE: The total investment to achieve the outcome you want is $5500.00+GST Also, make sure you list your payment terms on your quote; this way, there is no misunderstanding later about payment.

Pro-tip, when you work out the amount you will quote, add 2hours of labour into the final amount. (to be used later)

Now also tell them why you are using that paint IE: I am quoting on this paint because you have young children and this paint is scrubbable, not just cleanable, so it will look better a lot longer than using cheaper paint. Include printouts of the products you will use from the paint company’s website with your quote.

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The more info you provide upfront makes you look more professional.

www.jeffthepaintguy.info

20 | Aussie Painting Contractor

jeffpaintuy

Experienced Territory Manager with a demonstrated history of working in the Paint industry. Skilled in Negotiation, Sales, Customer Relationship Management (CRM), Team Building, and Construction.

Is Painting & Decorating for you?

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Painting Apprenticeships brings Apprentices together with Painting Business owners.

TAX ATION Every year we put our personal and business transactions together to find out how much extra tax we must pay to the Government. But then again! You could get a huge surprise and be entitled to a refund.

Although no-one likes paying taxes, it is a necessity to keep a country going. As we must realise, the money generated is used to better the community by improving facilities and paying for government funded services. This has not always been the case though, as often throughout history we have seen ruling powers collect taxes for their own benefit (and it still exists).

The first documented mention of taxes is in the book of ‘Genesis’ (chapter 47, verse 25) when Joseph instructs the Hebrew people to give a fifth of their crops to the ‘Pharaoh’ as a tax. This is supported by other documentations showing a taxation system in the ‘Egyptian’ kingdom in 3000BC- 2800BC. The Pharaoh would conduct an annual tour around the kingdom collecting the taxes from his people. Records of granary receipts have been found on papyrus and on limestone as recorded proof of this.

The next taxation system to be documented was that of the ‘Persian Empire’ in 500BC. The Persian Empire was divided into different ‘Satrapy’ (sections) and each section was required to pay an annual tax according to what commodities it had. In each Satrapy

24 | Aussie Painting Contractor

there was a provisional governor whose job it was to collect the required taxes and send it to the emperor.

How the taxes were collected was left up to the discretion of the Satrap which of course led to a great deal of exploitation and bribery.

We winge and moan about paying, tax but consider the taxes that were introduced in years gone by, some of them were quite ridiculous. I thought I’d mention a few, just for your amusement.

England In 1696 in England, William III introduced a tax based on how many windows you had on a house.

It ranged from 6d per window to 1shilling if you had ten or more. Many houses bricked up their windows to reduce the number which caused health problems.

It was originally introduced to make up for the losses caused by clipping of coinage during his reign. After 156 years, it was repealed following campaigners branding it as a ‘tax on health’ and ‘tax on light and air’.

---------------------------------------------------------------------------------In the beginning of the 17th century an interesting tax on hats was introduced. Moreover, the tax rate was different for town-dwellers and rural residents. Towndwellers, who wanted to wear a hat, had to pay the treasury 2 pounds annually, and rural residents – 5 shillings.

Lady Godiva was known as a woman of considerable beauty and deep generosity. She was married to Lord Leofric, a powerful ruler of considerably less benevolence. Unsympathetic to the people of his kingdom, Leofric imposed a heavy tax on his subjects, causing them to suffer grievously. His subjects begged him to reduce his tax, but he refused. Lady Godiva implored her husband to slash the tax, but again he obstinately refused. A persistent woman keen to help the people under her husband’s rule, Lady Godiva asked him over and over again. Finally, Leofric lay before his wife a daring challenge: If she rode naked through the streets and the people of Coventry closed their shutters and remained inside their homes, the tax would be lifted. Known to be modest in spirit but generous in her actions, Lady Godiva accepted the challenge.

As dawn broke on 31 May 1057, the entire town prepared for the event, straining their willpower for the sake of their purse-strings. As the clock struck seven, ringing through the cobbled streets of Coventry, every townsman closed his shutters. The streets were deserted. Lady Godiva mounted her horse and dropped her velvet gown to the ground. Covered only by her long, lustrous hair, she rode through the streets of Coventry. The sound of her horse’s hooves galloping across the cobblestones echoed through the streets but not a single shutter opened. Upon her finish, cheers went up throughout the town. Leofric removed the onerous tax and Lady Godiva went down in history as a generous benefactor of the people of Coventry.

Of course, this is the legend. In fact, Lady Godiva was a real figure in history, but her famous ride has never been confirmed.

On an interesting note, according to the legend, a tailor named ‘Tom’ sneakily disobeyed the rules of the ride in one of the most famous tales of voyeurism.

He bore a hole in his shutters so that he could see the naked Lady Godiva but was struck blind for his sin.

He was thereafter known as ‘Peeping Tom,’ and the famous phrase was born.

AMSTERDAM

Amsterdam is famous for the narrow frontage of some of its’ buildings. One measures at 2.02 metres wide and only 5 metres deep, with just one small room on each floor. Another is unique in its structure, with a façade that is just over one metre wide but widens as you walk through. The reason for the narrow frontages was that in the 1600’s, a property tax was based on the width of a home’s street-facing side. It was introduced because Amsterdam was in the throes of

its Golden Age, and the town was expanding faster than it could keep up. It was running out of room, and something had to be done. Most of the reason Amsterdam was growing in population was because it was growing wealthier and wealthier by the day and more people were making it their permanent residence.

RUSSIA

Following Europe’s trend, ‘Peter I’ imposed a tax on beards in 1698. The state had laid down a number of requirements and taxes for all the citizens who had beards. Violation of the established requirements was punished by a monetary penalty. It is worth noting that all of the beards were divided into types, respectively, merchant, boyar, peasant and etc. There are known cases when bearded men, who had run into debts for taxes, were condemned to penal servitude to work off the existing monetary penalties and taxes.

AUSTRALIA

When radio broadcasts began in November 1923, they were only available to listeners that had a subscription. This cost 3 pounds 3 shillings and an additional fee of 10 shillings was also payable to the Postal Department. This subscription model was obviously not sustainable as people began to build their own radio sets enabling them to receive radio programs from multiple broadcasters. In January 1957, TV viewers were also required to pay 5 pounds for their viewing pleasure and an additional 2 pounds 15 shillings for the radio. Non-payment was a punishable offence with fines of up to 50 pounds.

The Postmaster General placed ads in local newspapers warning that house-to-house inspections were imminent. To avoid fines people took to hiding their TV antennas in chimneys and roofs and TV sets were even hidden in cupboards.

--------------------------------------------------------------------------------Looking at the previous taxes that were enforced in the past, I don’t think we can really complain too much now. But if there’s a tax you disagree with and want to make a statement or protest about it, get a petition going or go to the Media. If that doesn’t work, you can always do a ‘Lady Godiva’! That will certainly get the attention you require (or get you arrested).

Jim Baker

www.mytools4business.com

2021 November Issue | 25

Create a Powerful Framing

FOR THE WORLD The way we view life is usually invisible to us, and yet it is probably the most powerful thing in our lives.

For example, one person might hear the words of another person and feel incredibly hurt, stressed, angry, and then it ruins their entire week … while another person might hear the same words and feel compassion and love for the other person. Neither person is right or wrong, they simply have different views of the world.

The way we look at the world is called our “framing” of the world. The lens through which we see our lives. Our view of things.

There is no “right” lens or framing, nothing that we “should” choose. In fact, “right” and “should” are two common framings of the world. There are simply different lenses, different ways to frame anything. And if we bring awareness to the frame, we can choose.

I’m going to share a few examples of framing, and then share how you might create something powerful for yourself.

26 | Aussie Painting Contractor

Some examples: • An act of helping someone else might be seen as a way to impress others and get acknowledgement and love, or it can be a simple act of joyful connection with another human being, or a way to offer your gift to others.

• Answering an email can be another opportunity to mess up and look dumb, or it can be a way to connect with someone you care about, or a place of exploration and learning.

• Writing can be a dreadful chore full of pressure or boredom, or it can be a place of curiosity and play, or a place of deep contemplation and silence, or a way to sing your song to the world with exhilaration.

• Cleaning the bathroom can be a gross mundane task that you feel like avoiding, or perhaps a meditation practice helping you to be more present to your life, or maybe a way to connect your heart to all others who have to clean a bathroom.

2.9 Litres/min Flow Rate .027" Max Tip size Powerful slow stroke pump 15m Spray Hose Spray Gun2021 November Issue | 27

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28 | Aussie Painting Contractor

SUPPLIES

As you can see, there isn’t only one way to view a situation (or another person, or yourself). In fact, I’ve only listed a few in each example, but there are endless possibilities. And which view you choose will determine your experience, and often the results you get and what actions you take.

Our entire lives are shaped by our framing. And we usually don’t choose them, they are automatic.

Bringing Awareness to Our Framing So how can we make them less automatic and more of a choice? We have to shine a light on them.

How am I viewing this situation that causes me to feel and react this way? What kind of framing would have me avoid this task or situation? What lens would make me have this experience of life?

Some common ways to frame things: • A way I might fail, look stupid, be rejected, be seen as weird or incompetent or unworthy.

• Overwhelming, too much, too hard.

• Unchangable, something I should just resign myself to or get through.

• A burden, boring.

• Another way to prove myself as broken or shameful.

• A way I need to prove myself worthy or good.

• A thing I need to get right.

• Something I should do.

• Proof of my wrongness.

• A way that others are wrong or not doing what they should do.

• A huge injustice or disrespect.

• Something I can’t have.

• A way the other person is showing they don’t care about me (i.e. unanswered messages).

• Something I might lose.

• A way to be inauthentic.

• Something to hide because it’s shameful.

• Too much to handle, too tiring, too draining.

There is nothing wrong with these views — we all have them somewhere in a place we can’t see.

They’re automatic, and they shape our lives. Which of these might explain some difficulties you’re having with habits, relationsihps, work, health, happiness?

Choosing a Powerful Framing There are endless possibilties, too many for me to list. I’ll list a few anyway!

The idea is to look at a situation, bring awarenes to what your current framing might be, and then decide to reframe it for yourself. Try on the new framing, and practice seeing things in this way for awhile, and see what results you get. There is no right answer.

Pick a situation that seems particularly challenging: maybe you have not been eating healthily, or feel bad about yourself, or are frustrated with someone, or feel like you’re avoiding hard tasks, or have a hard time with a family member who is suffering through health problems.

Take that one situation, and examine your view. What framing might cause the reaction you’re having? You don’t have to get it exactly right, but take a shot.

Here are a few possibilities among the limitless number … a situation or task or person might be: • • • • • • • • • • • • • • • • • • •

An opportunity for play, adventure, earning.

An opportunity for curiosity.

An opportunity for compassion and love.

A way to express, your true self, to sing your song.

A way to connect with someone.

An opportunity for wonder, gratitude, appreciatio.

A way to practice mindfulness, being present to your life.

A chance to surrender, trust, relax with life.

A place to practice letting down your defenses.

An opportunity to deepen, to contemplate, to find solitude and silence.

An exhilarating experience of freedom and openness.

A place of spaciousness.

A chance to savor, find the deliciousness, find the delight.

A place to choose.

A way to experiment, try something new.

A way to meet your needs, to own what you want, to set boundaries with love.

An opportunity to lead, to serve.

A way to express your purpose.

An expression of your power.

These are a few of my favorite. I try them on all the time.What would you like to choose? Could you try it on for awhile, and see what emerges?

Leo Babauta ZEN HABITS 2021 November Issue | 29

Getting Your Money Starts with the Right Thoughts and Attitudes This is the most important article I have written because it points out what needs to be in place in your own mind before you try to get your money back.

Most contractors do not have the right thoughts and attitudes when pursuing bad payers. The mindset is too passive and assumes that the power relationship is such that the contractor has no power and the Non Payer holds all the cards.

If that is how you’re thinking you will not be too successful in getting your money. You need to clearly understand and pursue the value of your work, be determined to fight to get it back, and accept the reasonable expense in doing so.

Let me explain what I’m talking about by giving you two recent examples of how Contractors Debt Recovery handled two matters: Example 1 An earthmoving contractor carried out work on an hourly hire basis over 39 days, and invoiced the head contractor $46 000.00 for the work. The head contactor did not pay a cent and insisted that the earthmover chase the property owner for payment as there had been a “stuff up” saying it was not their project anymore and they had not been paid. The earthmover talked to the owner who provided a copy of the funds transaction showing that the head contractor had been paid in full for his work 3 weeks previously!

Then for his efforts he also received a fine from the local council for $3000 for carrying out unauthorised work!

How infuriating.

30 | Aussie Painting Contractor

Contractors Debt Recovery prepared and adjudication application and submitted a copy to the head contractor. Within 48 hours $44 000 was transferred to the earthmover’s account. [$2000 held on another job].

Contractors Debt Recovery also challenged the fine in court. We prepared a submission to the council setting out the case why the fine should be withdrawn. A day before the court case was due to be heard, they withdrew the fine.

The opening position was a $46 000 debt and a $3000 fine. The closing position was $44 000 in the bank and no fine. Total time for both outcomes; about 10 months.

Example 2 A plumber had been called in to a block of strata units to fix water leaking into the ceiling of the ground floor unit. As usually happens the investigations revealed the root cause to be a leaking sewer pipe on level 2.

There was extensive damage to the walls and fittings of both units.

The plumber carried out the work, including a full bathroom re-fit, with the full knowledge of the owners and the strata manager. On completion an invoice for $18 000 was rendered. After much delay the strata paid $10 000 and told plumber to ‘get stuffed’.

Contractors Debt Recovery took the strata to adjudication and got a determination for the full amount owing. We then registered the judgment in court. The strata refused to pay. We then wrote to the Director General of the Department of Fair Trading arguing that the strata managers were in breach of their own Act as regards the running of the strata scheme. This didn’t work but was done to put pressure on the managers. It also distracted from the fact that we had got a garnishee order from the court to take the money out of the strata’s account.

But there was a hitch.

The strata held accounts are held in Trust. They are Trust accounts. These accounts cannot be garnished.

But given it was a court order the bank set aside the money until expiration of the agency period. So 4 months later the plumbers received a cheque for the whole amount owing plus all costs and interest.

Total time for outcome; 6 months.

Now just think about the determination and ‘stick to your guns’ mentality that was required to get these payments. Without the right mindset this would not have been possible. But it was worth it, even on a purely ‘justice-has-been-done-taught-them-a-lesson’ level.

There are three key things you need to get clear in your own mind when chasing your payments.

Keep the FULL VALUE of your work front and centre.

Accept that you are STARTING A FIGHT and you will have to be determined to do what it takes to win.

Anthony Igra

1300 669 075 www.contractorsdebtrecovery.com.au

2021 November Issue | 31

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Tips to save money on

Tradies Insurance There are plenty of tradie memes about clients who choose the lowest quote. Typically it involves a picture of terrible building work!

1. Don’t assume direct is cheaper This is probably the biggest mistake that tradies make when trying to save money on insurance.

But the fact is that most people are looking for a cheap quote, and that includes tradies looking for business insurance.

They assume that going direct to a big brand insurance company, like NRMA or AAMI for example, will get them the cheapest quote.

When the client chooses the cheapest quote What’s important of course is to find the most competitive quote for quality insurance cover that suits your business.

We’re so used to doing this with our home and car insurance, that it just seems to make sense. You get a few quotes from the big guys, choose the cheapest and you’re good to go.

Whether you have Trade Risk do this for you, or you choose to go DIY and shop around yourself, these ten tips should help you to save money on your trade insurance.

Business insurance can be more complex in terms of pricing, and the big guys with their online quotes and call centres aren’t necessarily the cheapest.

The first five tips relate to starting a new policy, and the next five relate to existing policies and renewals.

Extend your search to some of the smaller players, and especially the trade specialist providers.

When starting a new policy If you’re starting a new business insurance policy, chances are you’re starting a new trades business.

We can provide instant online quotes for standard trade businesses with up to five staff, and you’ll find the rates are typically more competitive than the big name brands for similar (if not better) cover.

Cashflow is so important at this point, so saving money on your insurance is vital. These five tips should help get you started.

PS. We help plenty of trade businesses with more than five staff, it’s just that we provide more tailored quotes for these clients rather than quoting them instantly online.

2021 November Issue | 33

2. Package your policies If you have multiple policies you might be able to save money by combining them.

Most trade businesses, even if you’re just one person, will have a need for at least three policies. Your public liability, your tools and your vehicle.

You can probably include personal accident insurance.

Combining them can mean one of two things. It could mean combining them into a single policy with the same insurer, or it could mean having multiple policies with multiple insurers but managed via a single insurance broker.

our size and experience in having helped over 10,000 tradies with their insurance needs.

One of the first mistakes that a tradie can make with business insurance is assuming that using a broker will cost them more. In most cases, a good broker will actually cost you less.

4. Existing policies and renewals Once your business insurance is in place it can be easy to get lazy and let it roll over each year without shopping around or making changes.

The is especially true for tradies, as you have so much else going on trying to juggle work on site as well as all the paperwork.

But if you can spare an hour or two each year to look at your renewal properly, you could definitely save yourself some good money on your trade insurance.

5. Advise us if your business shrinks Most public liability insurance policies are priced based on the size of the business. It’s not the only factor, but it is one of the big ones.

Combining or packaging your policies is no guarantee of saving money. Sometimes spreading your policies across insurers can actually work in your favour, as a single insurance company isn’t necessarily going to be the cheapest across all of the covers you need.

Example: Company 1 might be cheapest for public liability and tools, Company 2 might be cheapest for your vehicle and Company 3 might be cheapest for your personal accident cover.

Never assume that having everything on a single policy will be the cheapest option!

3. Use an insurance broker We are an insurance broker, so of course we’re going to list this as one of our tips!

But we can back it up…

We save tradies money by doing the shopping around for them. You tell us all about your business, and we’ll use our knowledge and experience to find the most competitive premiums to suit your needs.

In many cases we’ll be able to find you a better premium than you could on your own, simply because of

34 | Aussie Painting Contractor

Size is measured differently by different insurers.

Some look at the size in terms of staff numbers, and other look at the size of your annual revenue.

Often we’ll ask for both measures, which allows us to obtain quotes from different insurers regardless of how they measure size.

A trade business can grow and shrink in size from year to year depending on many factors, including the timing of completion on larger projects.

If your revenue was $1 million last year and you don’t provide any updated figures for this year, your policy will be renewed assuming the same revenue.

But if you have fewer projects being completing this year, or perhaps you’ve just downsized, you’ll be paying more for your insurance than you need to.

So if you’re expecting reduced revenue in the upcoming renewal period, make sure you let us or your insurance company/broker know.

The same applies to staff numbers if that’s how your insurer rates your policy. If you’re expecting to have fewer staff this year because you have fewer projects on the go, make sure you update your policy.

As the construction industry continues to grow around Australia, so too does the demand for skilled painters - an integral part of the industry. The work can be both satisfying and rewarding, but as a painter and decorator, you are exposed to some unique occupational hazards, so it's important that you and your colleagues are prepared for any workplace emergency.

As a business based on the NSW Central Coast that specialises in first aid emergency solutions, SURVIVAL is on a mission to raise awareness about the importance of being prepared for medical emergencies while on the job.

SURVIVAL’s CEO, Mike Tyrrell, says that when you’re in the painting trade, the chances of having a workplace accident or injury are very real.

"Painting is a physically demanding job. You are often on your feet for hours at a time, carrying heavy loads and working with ladders, and when you add the hazards of paint and paint-handling materials, the potential for an accident increases," says Mike.

“According to data from Safe Work Australia, there are over 10,000 serious injuries in the construction industry each year, with painters and decorators being some of the most at-risk due to the nature of their work.

“Providing immediate and effective first aid to people who have been injured or become ill on the job may reduce the severity of the injury or illness and, in some cases, could even save a life,” adds Mike.

A family-run business, SURVIVAL was founded in 1988 by twin brothers Tim and Jerry Tyrrell in response to personal tragedy. Over the ensuing 33 years, the company has become a leader in first aid innovation, education and empowerment for individuals and workplaces around the globe.

Director of Marketing & IT, Jordan Green, explains that SURVIVAL is continually looking at ways to make first aid more accessible for people in 'hands-on' professions.

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“We’ve just released the latest update to our free iFirstAid app, which features step-by-step instructions and video resources to guide people, including trade professionals, through common emergency situations and help them remain calm and in control,” says Jordan.

“We have also adapted to offer personal safety equipment such as masks and sanitiser to individuals and businesses throughout the COVID-19 pandemic, as well as developing the SURVIVALSWAP audit compliance program to ensure your workplace remains fully stocked and compliant at all times, saving you time, hassle and money.”

There are over 10,000 serious injuries in the construction industry each year, with painters and decorators being some of the most at-risk due to the nature of their work.

It’s safe to say that work-related first aid is vital, and a SURVIVAL First Aid KIT can save the day when it comes to handling workplace injuries.

“The SURVIVAL Workplace First Aid KIT contains all the components you need to be workplace compliant, and will have you covered for any workplace emergency, so you’re never caught short,” urges Mike.

For all the latest in first aid products and innovation, visit survival.net.au

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2021 November Issue | 35

6. Subcontractor use Some insurers take into account the percentage of your revenue that goes to subcontractors.

The higher your use of subcontractors, the higher the cost of your public liability could be.

If you’ve reduced your usage of subbis from one year to the next, make sure you let us know as this could result in a significant saving on your public liability insurance.

7. Advise us if your activities change Another factor that the insurance companies use to calculate your public liability insurance cost is the activities you undertake.

Not just what trade you do (although that is part of) but any higher-risk activities you undertake.

For example, an electrician would be considered a standard trade under a liability policy, but if you’re doing work at power stations or airports, you’re now in the higher-risk category.

If you were undertaking this type of work when you

36 | Aussie Painting Contractor

took out your policy, you’d be paying considerably more than a standard policy.

You will continue to pay that higher amount until you tell your insurer or your broker that you’ve stopped.

If you don’t tell us, you could be paying hundreds (or thousands) more for your insurance each year than you need to.

The reverse is also true though… If you’ve started undertaking higher-risk activities and don’t tell us, you’ll be paying less for your insurance, but any claim relating to those activities will be declined.

So whether you’ve stopped or started undertaking higher-risk activities, make sure you tell us!

8. Pay annually if you can We’ve already covered this in the new policy section, but the same applies to renewals.

Paying monthly will almost always cost you more than paying annually. This is regardless of whether you’re going through a broker or direct to an insurance company.

But before you curse the monthly option for being more expensive, you need to consider the value of managing your cashflow.

If you’re paying monthly we can combine them all into a single monthly payment, even when the policies are with different insurers.

Spreading the cost of your trade insurance across the year might cost you more, but it could also free up cashflow that you can spend in other areas to help grow your business, rather than having to pay the full amount on day one of your policy.

We recently helped an electrical contractor who had most of his business insurance with us, but his five vehicles were insured elsewhere. He had them with the same big name car insurance company, but each vehicle was on a separate policy.

And don’t think that financing your insurance through a premium funding company is just for companies that can’t afford the full premium. Large companies with tens of millions in revenue often fund their insurance with premiums in the hundreds of thousands.

He thought he was doing the right thing, but we combined the five vehicles onto a fleet policy and managed to save him $250 a month!

9. Package your policies This is another tip that we already shared in the section on new policies.

A good broker (like us, with over 600 five-star reviews!) will not only help you when first setting up your insurance, but also at renewal time.

Packaging your policies can be done two different ways. If you’re dealing directly with an insurance company, it would mean having all of your covers with a single insurer.

Every renewal we’ll look around to see if we can find a more competitive deal for you, along with ensuring your cover is still appropriate for your trade business.

This rarely works out for the best, as the cheapest company for public liability mightn’t be competitive on tool insurance or vehicle insurance.

The other option is to have all of the policies with a single insurance broker, such as Trade Risk.

10. Use an insurance broker Last but not least, use a broker!

We’ll ask you the right questions to help us to shop around, which saves you having to do the running around. So not only will a good broker help you to save money, but also time. And in any business, especially a trade business, time is money!

We can have multiple policies spread across multiple insurers to ensure we’re getting the best deal on each one, but you still have a single point of contact, being us.

2021 November Issue | 37

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Managing your

SALES EFFORT One of the myths of paying salespeople commissions is that if they do a poor job, they do not cost you anything. In the old days, some car dealers would throw bodies on the sales floor and fire the bottom guys at the end of the month. Unfortunately, this is not a good way to get the most bang for your advertising bucks. Lost opportunity costs can be huge. Personally, I am not a fan of commission only salespeople but that is another subject and a topic to explore at a different time. Sales is like anything else, the more efficiently it is managed, the better it will become.

Here are some simple steps you can take to measure your sales effort.

Measure what you expect: A few years ago, it became fashionable not to keep score in little league and other children sports. Where does success come in life where you don’t keep score? Most people want to do well. If you don’t monitor performance and understand what is going on, how can you be a leader and help guide your people? This also goes for company’s where the owner may be the only salesperson. Institute a system to go over your closing ratios each and every month.

Know what you are measuring: To simply count the number of estimates given and divide by the number of jobs won is not adequate. You should track closing ratios by number of jobs and by dollars sold and type of lead. It is not uncommon to have a salesperson who sells a higher percentage by the number of estimates given but less when compared by dollars.

For example, a salesperson might sell 50% of the estimates given (200 estimated, 100 sold) but 30% by dollars ($2,000,000 estimated and $600,000 sold).

What this might tell us is that the salesperson can sell small jobs but not the big ones. Or your might have a salesperson who sells 30% of the estimates given but closes 60% of the dollars quoted. This might tell us the salesperson does not consider small jobs important or one large job may have distorted all of the statistics.

My favorite story about this is about the commercial company I consulted for and they bragged about selling 33% of the jobs estimated (12 million estimated, 4 million sold). What is interesting is that one job was 3.5m and when you looked at bids awarded by number of jobs, they had a 4% closing ratio.

Type of lead is also very important. Make sure you break out repeat customers. Closing percentages are much higher for repeat customers and a salesperson with seniority can rest on his or her laurels. We worked for another residential company that had been in business 50 years that bragged about their salespeople having a 50% closing ratio. With some investigation, we found the company had a huge customer base and following. Closing ratios on advertised leads were less than 20%.

2021 November Issue | 39

Evaluate post sales marketing expenses. Many company’s track advertising cost by the number of leads generated but this does not tell the entire story.

Lead generation has become very expensive and it is important to understand the true marketing costs including sales success. Suppose a lead cost’s your company $300 in advertising. That means 10 leads cost $3000. If you sold 3 out of 10 leads for a 30% closing ratio that would equate to $1000 advertising cost per job sold. If you sold 6, it would drop to $500 per job sold.

It is not uncommon for yellow pages and web lead services to generate cheap per lead costs but that does not tell the whole story. If closing ratios on those leads is low, then the sales and time factors can become devastating. One of the problems with web lead companies is that they usually give the customer several names and that is an endorsement.

If you are on a list with contractors who are sound technically but don’t have a clue of what their costs are, which is much of the market, the low guy gets the job. Consumer ratings can also be misleading.

Just because someone is personable, on time and nice does not mean the job will last. Few buyers go back on line and complain when the job fails two years later.

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With spreadsheets and other simple financial tools, it is easy to create something to help tabulate results. Easier yet, every estimate has a written copy.

Keep an extra copy and tabulate them to do see how you are doing.

So what’s the bottom line? Keep score and track what does and does not work. What works in Sydney may not work in Longreach due to market conditions, number of contractors in your trade or your salespeople’s ability, etc. Salespeople are like other employees. They have personal lives, illness, habits and numerous other things that can impact their day to day performance. You can’t be a sales leader unless you are a sales scorekeeper.

-------------------------------------------------------------------

Monroe Porter

is president of PROOF Management a firm that teaches seminars and runs networking groups for painting contractors.

www.proofman.com

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2021 November Issue | 41

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Who Pays?

The employment contract is the ultimate hidden extra contracts. It is rarely just the cost of wages that an employer pays. There are of course the obvious oncosts such as allowances, leave loading, superannuation, workers compensation, payroll tax. But what about the costs incurred by the employer or employee during the course of the employment?

Below are some of the more common surprise costs that we regularly come across.

Tools

workers to wear steel capped boots, or the site the employee is working on requires steel capped boots, then this would be classed as a safety measure and as such the employer is liable for either the provision or reimbursement of the boots. Interestingly though, the reimbursement does not need to be the exact cost of the boots. If a reasonable pair of boots can be purchased for $160 but an employee spends $200 then the employer is only liable to reimburse the employee $160. It is always best to have a set reimbursement allowance before purchases are made.

Under the Building and Construction award, employees are entitled to a weekly allowance for the provision and maintenance of standard tools of the trade.

For painters, this is $7.85 per week. If a specialised tool is required by the employer, then the employer will either reimburse the employee for the provision of the tool or the employer will purchase and provide the tool. If the employer purchases the tool, then it remains the property of the employer.

Other items you may not expect are to be the responsibility of the employer are dust masks, respirators, safety glasses, high vis vests and in some cases even sunglasses. Again, the employer does not have to provide the full amount only a reasonable allowance to cover the purchase of a suitable item ie a suitable pair of sunglasses can be purchased for $50 and as such an employer is not expected to cover the reimbursement of the employee’s latest Maui Jim purchase.

Clothing

Training

The determination of who pays for the clothing is determined by the requirements of the items and if the clothing is company specific. The requirement to wear white clothing would not consider to be company specific and as such this would be at the employee’s expense. The requirement to wear a specific set of white overalls however may be classed as company specific, even without a logo and as such could be determined to be at the employer’s cost. Certainly any clothing that has a logo would be determined to be at the employer’s expense.

If the training is part of an apprenticeship then all training costs including course costs, books and in some instances travel and accommodation are at the expense of the employer. The Building and Construction award allows for the employer to pay for these costs directly to the RTO or reimburse the employee after they have made payment. Under the award, the employer can delay reimbursement if satisfactory progress hasn’t been made however this is best done in conjunction with action by the RTO.

The other factor involved is whether the item is required as a safety measure. If a company requires it

2021 November Issue | 43

For all other training then the costs are by agreement between the employer and employee. If it is a requirement of the position, then the employer may pay full or partial costs but if it is not a requirement of the position then the employee may pay the costs and include them as a tax deduction. If the employer pays the full or partial costs of the training, then they can by prior agreement with the employment seek back payment of the training costs if the employee leaves the employment within a certain timeframe.

The timeframe and the amount are normally subject to the overall expense of the training. It would be reasonable for a $2,000 course to be back in full within 6 months and pro rata payment after 12 months but this would not be reasonable for a $300 course. Recovering of these costs is done through civil court action or by agreement with the employee could be withheld from the employee’s final pay but note you must have the employee’s written agreement before withholding any money.

Damage to Company Property

What happens when an employee damages company or client property? Can you hold them liable for the costs? Generally the answer to this is no. If during the course of employment, an employee damages

44 | Aussie Painting Contractor

property then the cost of this damage is worn by the employer and the employee is not held responsible.

There may be instances where the employer could take action to recover the costs from the employee, but they would either need to seek their employee’s agreement or pursue this through civil court action.

This is not an exhaustive list of all associated costs but represents some of the more common ones we come across. For the majority of these costs, there is an option to pay the employee a higher wage to offset these costs. For instance, our client’s employment contracts often contain a clause that the costs of their safety boots has been included in the calculation of the hourly rate. However, you need to ensure that the rate calculated passes the Better Off Overall Test before including this clause. If you have any questions about these extra costs or whether your rates pass the Better Off Overall Test, please don’t hesitate to reach out at vanessa@hrmaximised.com.au or 0418 190 106.

2021 November Issue | 45

www.oldfields.com.au

46 | Aussie Painting Contractor

Come and share your painting ideas! facebook.com/groups/aussiepaintersnetwork/ 2021 November

Issue | 47

As home prices soar beyond reach, we have a government inquiry almost designed not to tell us why Never has an inquiry into the skyrocketing price of homes been more urgent.

What people stretched to the limit or now locked out of the housing market are desperate to know is

Rarely has one been as insultingly ill-suited as the one under way right now.

why it is happening when it is likely to stop what (if anything) we can do about it.

Midway through last year in the midst of COVID, the average forecast of the 22 leading economists who took part in The Conversation mid-year survey was for no increase in home prices whatsoever in the year ahead (actually for slight falls).

At that time the typical (median) Sydney house price was A$1 million, where it stayed until the end of the year.

Then it took off. In the ten months to the start of this month the typical Sydney house price soared $300,000 to $1.3 million – a breathtaking increase (and an awfully big penalty for delaying buying) of $1,000 each day.

For apartments, the increase isn’t as big, although still extraordinary. The cost of delaying buying a typical Sydney apartment has been $334 each day.

The cost of delaying buying a typical Melbourne house has been close to $600 per day, the cost of delaying buying a typical Melbourne apartment $150 per day.

In that time, in the year in which the typical Australian home price climbed 20.3%, the typical Australian wage climbed just 1.7%

48 | Aussie Painting Contractor

Instead, we have been given an inquiry into affordability in name only. Seriously. The parliamentary inquiry commissioned by the treasurer in July and chaired by backbencher Jason Falinski is called an inquiry into affordability and supply, but the word “affordability” appears in none of its three terms of reference.

IT’S AN INQUIRY INTO ‘SUPPLY’

Instead, the terms of reference refer to the impact of taxes, charges and other things settings on “housing supply”.

I guess the idea is that it is obvious that supply is the key to affordability, but it rather negates the idea of holding an inquiry, and it sits oddly with the explosion in prices we have seen in a year in which building approvals have surged by a near-record 224,000 and our population has as good as stayed still.

In its submission to the inquiry the Reserve Bank includes a graph showing the supply of housing (the stock of houses and apartments) outpacing population growth for the best part of the decade leading up to the latest price explosion.

SUPPLY HAS BEEN HOLDING UP

But in a sense (and stay with me here) whoever drafted the restricted terms of reference is right. Housing affordability is linked to the supply of housing.

And housing affordability has been doing okay.

In evidence to the inquiry last month Treasury assistant secretary John Swieringa drew a distinction between housing affordability (best measured by the cost of renting housing) and the cost of buying a house, which was partly an investment.

When you are a purchaser of a house you are partly investing in an asset and partly buying dwelling services; whereas when you are renting it’s probably a cleaner read on what cost dwelling services is.

That clean read – rent as a proportion of income – hasn’t much changed in 20 years. For middle earners it has remained comfortably between 20% and 25% of household disposable income.

As it happens, it says another measure of housing affordability is improving.

The cost of home loan payments as a proportion of income has been falling since the onset of COVID. Dramatically lower interest rates mean payments take up less household disposable income than they did five years ago, even with the much higher prices.

It’s okay if you have a parent who can get their hands on money, almost impossible if you don’t. In the words of former Reserve Bank official Peter Tulip, it’s making home ownership hereditary.

THE PROBLEM IS ACCESSIBILITY

What has worsened is what the Reserve Bank calls “housing accessibility”, to distinguish it from housing affordability.

Accessibility is the ability of a first time owner or renter to get into the market at all by finding the deposit or bond.

Astounding price growth and five years of weak income growth have pushed up the cost of an average first home deposit from 70% of income to more than 80%.

On average it now takes a 24-35 year old nine years of tucking away one fifth of their income each year to save for a typical Sydney deposit, up from five to six years a decade ago.

Average First Home Buyer Deposit

Home loan payments take up less of income. hameleonsEye/Shutterstock

The Reserve Bank says advertised rents for units in Sydney and Melbourne have drifted down by $30 to $50 per week over the past five years while rents in other places have mostly drifted higher.

Owner-occupier; estimated as a share of average annual household disposable income using average first home buyer commitment size and assuming 20 per cent deposit.

Seasonally adjusted and break-adjusted. RBA, ABS

2021 November Issue | 49

It’s okay if you have a parent who can get their hands on money, almost impossible if you don’t. In the words of former Reserve Bank official Peter Tulip, it’s making home ownership hereditary.

He’s not the first person to have noticed.

Liberal backbencher John Alexander chaired the Coalition’s 2015 inquiry into home ownership. He said then we were “on track to becoming a Kingdom where the Lords own all the land and the biggest Lord will be King and the enslaved serf tenant is paying rent to the Lord to become wealthier”.

OWNERSHIP IS BECOMING HEREDITARY

Prime Minister Turnbull and Treasurer Scott Morrison used the 2016 election (in which they attacked Labor’s plan to limit tax breaks for landlords) to shut down Alexander’s inquiry, and only agreed to restart it with

The portable, inexpensive method to prevent paint waste-water polluting the environment.

someone else as chair. It had considered 30 hours of evidence.

The chair of this current (limited) inquiry seems unperturbed.

He opened September’s hearings saying no question was off-limits, no idea too stupid, all forms of inquiry were worthwhile. It’d be great if that was true.

-------------------------------------------------------------------Peter Martin Visiting Fellow, Crawford School of Public Policy, Australian National University

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The Industry Idiots

52 | Aussie Painting Contractor

IMPORTANT

Contacts

Aussie Painters Network aussiepaintersnetwork.com.au

Ph. 0430 399 800

National Institute for Painting and Decorating painters.edu.au

Ph. 1300 319 790

Australian Tax Office ato.gov.au

Ph. 13 72 26 / Ph. 13 28 65

Award Rates fairwork.gov.au

Ph. 13 13 94

Fair Work Building & Construction fwbc.gov.au

Ph. 1800 003 338

Mates In Construction matesinconstruction.com.au

Ph. 1300 642 111

Workplace Health and Safety Contacts Comcare WorkSafe ACT Workplace Health and Safety QLD Victorian WorkCover Authority WorkCover NSW SafeWork SA WorkSafe WA NT WorkSafe WorkSafe Tasmania

comcare.gov.au worksafe.act.gov.au worksafe.qld.gov.au vwa.vic.gov.au workcover.nsw.gov.au safework.sa.gov.au commerce.wa.gov.au/WorkSafe/ worksafe.nt.gov.au worksafe.tas.gov.au

1300 366 979 02 6207 3000 1300 362 128 1800 136 089 13 10 50 1300 365 255 1300 307 877 1800 019 115 1300 366 322

actcancer.org cancercouncil.com.au cancercouncilnt.com.au cancerqld.org.au cancersa.org.au cancervic.org.au cancerwa.asn.au

(02) 6257 9999 (02) 9334 1900 (08) 8927 4888 (07) 3634 5100 (08) 8291 4111 (03) 9635 5000 (08) 9212 4333

Cancer Council Australia ACT NSW NT QLD SA VIC WA

2021 November Issue | 53

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