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IN THIS ISSUE • Drought Assistance What Help is Available? • Are You Using the Sharpest Tool In Your Toolbox?

• Building Jobs for Infrastructure • SEQ Genetics are Flying High



elcome to the July/ August edition of PMG Pulse. No doubt, you will agree that the year is really flying by, and we have been exceptionally lucky to have helped a record number of new and existing clients to grow their businesses during the last Financial Year. We thank you for your ongoing support, your custom is always greatly appreciated. We hope you enjoy this edition of our magazine, and take some time to put your feet up, grab a coffee and read some of the articles.

As usual, we have some interesting information to share including; how growth in the construction and infrastructure fields is on the rise, as well as information on using debt for growth and investment in your business. For our clients on the land, we have information regarding some of the subsidies that are currently available for drought assistance. To all of our clients and their families who are being impacted by drought conditions, our thoughts and prayers are with you, and please know that we


are available to help wherever we can. Also included in this edition is news about our fundraising efforts, past and future and what we have been doing to support our chosen charities which are Zoe’s Angels, the Cancer Council, the RSPCA and Drought Angels. Once again we thank you for your wonderful support of PMG Finance and if you have not already done so, we ask you to like us on our social media platforms, which are Facebook, Linkedin and Instagram.


Are you following the PMG Finance Social Media pages? We are active on the following platforms and look forward to providing you with the latest news, tips and all that is fun in finance, Click the icons below to access our pages.

PMG Pulse July/August 2018

PMG Pulse Newsletter July/August 2018



he Australian Government supports farmers to manage their business risks and to prepare for, manage through and recover from drought and other hardship.

Managing Farm Risk Program The Managing Farm Risk Program encourages farm businesses to consider insurance options to cover against drought and other production risks. The program provides one-off rebates for advice and assessments to help farmers prepare and apply for a new insurance policy.

The Government currently has assistance packages available for those who may be experiencing hardships because of the drought. These include the following allowances and Rebates will be for half of the costs incurred by eligible farm assistance:businesses up to $2500 (GST exclusive). Further information Farm House Allowance Farm Household Allowance can be found at (FHA) provides up to four au/mfrp. cumulative years of support for eligible farmers and farmer’s Taxation Measures Accelerated depreciation to partners experiencing financial encourage investment in hardship. drought preparedness The allowance is equivalent to depreciation the Newstart Allowance and Accelerated is designed to help recipients arrangements for new water and fodder infrastructure and meet basic household needs. fencing are available to help FHA provides recipients the farmers prepare for drought, opportunity to take steps to assist with their cash flow and improve their circumstances encourage on-farm investment. and self-reliance through a Farm Financial Assessment, Financial These measures include: of water Improvement Agreement and • Depreciation facilities over 1 year additional activity supplements (previously 3 years) of up to $4,000. • Depreciation of fodder infrastructure storage over For more information visit • 3 years (previously up to 50 or call years) the Farmer Assistance Hotline • Depreciation of fencing over on 132 316. 1 year (previously up to 30 years).

Australian Taxation Office Advice Drought-affected taxpayers who need support with tax debts can ring 131 142 to talk about options to help manage their tax obligations. For more information visit drought.

If you are a farmer and a customer of Ergon Energy, you may also be eligible for the fixed charges on your account to be wavered, or for a deferral of your payments for a period of time. For further information on what is available to you, please click the button below




f a worker carries a tool around but never uses it to good effect, it’s merely a burden. Used inexpertly, or for the wrong purpose, it’s also downright dangerous. The same applies to business debt.

best to meet them?

It’s also a way to build relationships with lending institutions, some of which provide advisors who will be involved in business growth planning, and be available to offer assistance in future projects

Initially, the short-term benefits of taking on equity investors bearing cash might seem attractive. But what about the longer term costs, such as the loss of profit share and the On the other hand, when used relinquishing of at least some wisely and well, business debt control to investors? Debt For Growth is possibly the most valuable Add to that the complex process There are inherent dangers in item in your toolbox. taking on debt unwisely. Wisdom Debt can in fact, lies in strategic planning, and Although, in some cases, levels making sure, as far as possible, cost less than of fear and apprehension might that business will benefit from rise at the very mention of the alternative, borrowed funds. debt, when business operators and it is also a take on debt with knowledge And the key word is growth. and confident planning, what is good way to build perceived as risk can be viewed Borrowing funds to pay staff relationships as significant opportunity. wages and avoid the struggle of

with lending

In fact, three out of every four institutions. small businesses in Australia report having used external financing to promote growth. And for good reason. of finding appropriate investors, and the difficulty in formulating agreements, and debt starts to Why Use Debt? The greater availability of capital look like the better option. means greater opportunity. It can be the difference between a smart move and a missed chance. In practical terms, it means having the capacity to accept a substantial order, rather than turning away business for lack of immediate funds. In a competitive market, a business must explore and exploit every opportunity to attract and keep clients. But there are costs involved. How PMG Pulse July/August Newsletter July/August 2018 2018

In most cases, business can claim a tax deduction related to interest payments on business loans. This swings the balance further in favour of debt, and is another advantage, compared with raising capital through investors.

meeting day-to-day expenses may not spell growth. Unless it is a short-term measure, and there are plans or expectations of positive change, this move can spell danger instead. Taking out a loan in order to make cosmetic improvements, based solely on a vague hope business might improve is not wisdom. When debt is a growth producing strategy, with projected benefits that further the goals a business has articulated, then it is definitely a wise choice.

For example: • An investment in more Debt can, in fact, cost less than staff, with better and more the alternative. versatile skill sets, or in staff training with calculated long-term pay-off. That’s good business.

TOOL IN YOUR TOOLBOX? The Bottom Line Ask yourself: Think of debt as an investment in the business. How will debt help with any other investment, business growth As it’s essential to do a benefit-cost and how will debt analysis. Calculate benefits, increased revenue, and tax open up future deductions, then subtract expenses, including fees and possibilities?

• Remember too that major lenders are not the only option, especially if a business is in start-up or early growth phase. After considering all the factors is debt a good investment? How does the ROI look?

repayments of principle and • The purchase of new interest. In any plans to take When debt is under control, facilities and equipment, or on business debt, there are rather than taking control, it’s a smart tool that lets a business spending on improvements basic steps to take: ‘get down to business’. and upgrades that have a strong likelihood of After Source: producing growth. the-sharpest-tool-in-the-toolbox/?utm_ • Expansion or improvement of current offerings – to attract new clients, or protect an existing client base from the competition. Remember it’s less expensive to keep loyal clients than to acquire new ones.

considering all the factors is debt a good investment? How does the ROI look?

source=pmgfinance&utm_medium=social&utm_ campaign=blog&utm_content=sharpesttool

• Compare and check interest rates; calculate costs over • Using debt is also a ‘put your the entire duration of the money where your mouth loan. is’ approach that shows confidence. Confidence is contagious. And confident • Consider the timing of repayments; check whether clients are usually loyal there is flexibility, should clients. circumstances change. Before taking on debt, businesses need to ask the • Check and confirm all applicable fees. smart, but really quite simple, questions: • Find out how long the application process will take, • How will debt help business and how soon the funds growth? will be available; a valuable opportunity calls for a quick • How will debt open up future response. possibilities?



ith major infrastructure projects underway all over the country, PMG Pulse looks at the factors behind the construction job boom and how sustainable it is. The construction industry has been growing, with data from the Australian Bureau of Statistics revealing there were 1.13 million jobs in the industry in 2017. With high profile infrastructure projects like Sydney’s $16.8 billion WestConnex tunnel, the $11 billion Melbourne Metro Tunnel Project and Perth’s $5.2 billion METRONET creating thousands of jobs around Australia, it’s no surprise the industry is booming. But is it sustainable? Dr. Jago Dodson, Director of the Centre for Urban Research at RMIT University, says the construction industry’s job growth is due to a multitude of factors. “Principally, we have seen very high rates of urban development and growth. The housing market has been buoyant and with a lot of infrastructure investment, this growth is not surprising,” Dr. Dodson says. “There has been a noticeably high amount of population growth for a developed nation – about 2.2 to 2.5 percent. Because of this, we can anticipate there will be at least a medium-term continuation of the Federal and

PMG Pulse July/August 2018

State Governments’ focus on this can be problematic for infrastructure. the long term. It can lead to adhoc and politicised decisions “We’ve seen two major that are made on a project-byinfrastructure booms in the project base for the short term.” past few decades and the major infrastructure projects have Dr. Dodson says that while been contributing to the growth economic conditions are in the construction industry.” strong, governments are also more likely to fund large infrastructure projects, but “Governments that could change if there is a have tended to downturn in the economy and tax revenue. be somewhat

reactive to infrastructure demands, but this can be problematic for the long term”.

Prof. Kerry Brown, Professor of Employment and Industry for Edith Cowan University’s School of Business and Law, says Australia’s industry sectors are cyclical and dynamic.

“We’re coming through some cycles of construction as our apartments and residential “Another dimension to the construction is on the rise,” infrastructure boom is the Prof. Brown says. willingness of government to use infrastructure as a form “Older workers of stimulus in the context of are staying in the relatively weak overall economic industry for longer growth”. “Since the global financial crisis from 2008 onwards, we’ve seen governments be very forthcoming on expenditure on infrastructure,” Dr. Dodson says. He says there is also pressure placed on governments politically by the urban public about how cities are functioning. “Governments have tended to be somewhat reactive to infrastructure demands, but

while there is also a shortage of young people, creating a huge gap”.

She says that construction is starting to pick up, not just in overall contribution to the economy, but wages are increasing as well.

Prof. Brown also says there is a skills shortage in the sector as it grows while Australia’s population ages. “Older workers are staying in the industry for longer while there is also a shortage of young people, creating a huge gap. There’s also an institutional skills gap, which means workers trained in mining, for example, can’t just instantly transition into becoming builders.” She says that initiatives like the Victorian Government’s recent announcement to make priority courses in TAFE free are very important but warns that this can often create a lag.

Due to the nature of construction, humans will always be important”. “This pattern in the workforce has been seen before in the legal and accounting professions, there’ll be a huge scarcity of skilled workers then a response from the market. Because new workers take time to train, it can lead to an oversupply in the long run. It’s hard to get a good balance,” Prof. Brown says.

Federal Budget to support regional hubs. It’s a good sign to see the Federal Government supporting training in rural areas, especially where construction happens in fits and starts.” Where technology and globalisation of industries have had a significant impact on other industries, Prof. Brown says due to the nature of construction, humans will always be important. “Software that helps create good designs will be a boon to the construction industry. It can take a lot of the guesswork out of construction and speed up how we build things. IT will help the industry create beautiful buildings, but there will always be a need for the personal interaction with smaller subcontractors,” she says. “Automation also means we are able to improve safety, as we can do more things remotely, putting less people into possibly dangerous areas. What we’re bounded by is bandwidth and imagination.” Source:

“There have been some interesting funding pathways for regional areas in the 2018/19



ith our Director, Paul Dashwood being an avid pilot, we were super excited to have played our part in helping John Chapman of SEQ Genetics Artificial Breeding Services with his Sling 4 aeroplane purchase. John uses his plane to fly between livestock properties where he performs Embryo Transfer, Ultrasound Pregnancy Testing and Semen Collection for livestock.

The Sling 4 Plane Purchased by SEQ Genetics 2018

John purchased his plane from Global Aviation Products (GAP), and on behalf of the GAP and PMG Finance teams, we all wish John and his employees safe travels. PMG Finance Director, Paul Dashwood returning from his Pilot Exam!

HAVE YOU GOT YOUR WORKERS’ COMPENSATION PREMIUMS SORTED? orkcover accident and deemed workers? WORKCOVER insurance premiums are now due for renewal Did you also know that we KEY DATES


can provide you with finance solutions to spread your Work Cover premiums, your vehicle and business registrations and insurance premiums over the year, to even out your cash flow, and in most circumstances Did you know that all it takes is a simple phone when declaring your call to us to discuss your needs wages, you need to further. include superannuation payments and fringe Call us today if you would like benefits? Or that to know further information on some contractors our premium funding options, you engage may be our friendly team love to help!

so, it is important to understand who you should cover for Workers’ Compensation and what wages you need to declare.

PMG Pulse July/August 2018

1st July 2018

Renewal Season commences, from this date businesses can go online or call Work Cover to declare their wages and pay their premium(s).

31st August Wage declarations are DUE. 5% discount applies to premiums paid in full to Qld Work Cover by Friday 14th September 2018. 30th September All Work Cover premiums due.

AUSTRALIA’S BIGGEST MORNING TEA WEEK It was a week of decadent morning teas and Masterchef baking of all types during the 3rd week in May, when the team at PMG Finance took part in a full week of morning teas to support the Australian Cancer Council’s Biggest Morning Tea. With gorgeous strawberry sponge cakes, hand made sausage rolls, cheese cakes and decedant scones to choose from, the team raised more than $250.00 in support of this wonderful cause.

ZOE’S ANGELS - A CHARITY CLOSE TO OUR HEARTS For the remainder of 2018 and for 2019, The team at PMG Finance plan to play a major role in supporting the Queensland based charity Zoe’s Angels, who are raising much needed funding for a Pediatric Rheumatologist to service areas in regional Queensland. The aim of Zoe’s Angels is to bring awareness about children suffering from the chronic, debilitating, rare illness, Juvenile Idiopathic Arthritis, which is an incurable, painful and often debilitating disease with different sub-forms, including

SJIA, HIDS, TRAPS, CAPS and LUPUS, and it has been selected as our charity of choice, as it is an illness that directly impacts some of our team members and their families. At present, the amount of support Zoe’s Angels require to provide their services for the year is $250,000, which will enable them to not only provide a Rheumatologist, but also donate support packs to children newly diagnosed with the illness and provide support to the many children and their families trying to cope with this

extreme condition. We hope you will be able to support us in helping this incredible cause, and should you require any further information or wish to make a donation, please

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