AusBiz Magazine - April/May 2020

AusBiz.

NEWS+VIEWS | MINING | AGRIBUSINESS | INFRASTRUCTURE

p.8 agribusiness: buying livestock online P.16 mining: proximity detection p.22 propertybiz: buying a holiday home P.27 agribuisness: aussie nut producers P.32 business: the modern gym

Image: Andrew Barnes

FROM STRENGTH TO STRENGTH Kitson Manufacturing Solutions are leading the way in regional manufacturing and construction. p5

AUSBIZ NEWS

Sofitel Sydney Darling Harbour Book your next event at Sofitel Sydney Darling Harbour – Australia’s Best Luxury Hotel – and receive VIP treatment. Book before July 31, 2020, and we’ll upgrade your lunch and take 20 per cent of your room, with stunning Darling Harbour views and VIP amenities. Centrally located in Darling Harbour, next door to the International Convention Centre, Sofitel Sydney Darling Harbour features nine luxurious function rooms, world-class facilities and 590 rooms spread over 35 floors.

Contact us at sofitelsydneydarlingharbour.com.au 02 8388 8888 | H9729@sofitel.com

wowflowers.com.au

WOW Flowers, created by the Worn Out Wares family is a boutique floral studio that specialises in weddings and events. Located in the heart of Singleton we’re open seven days a week, and by appointment

WOW Flowers. 41-43 George Street Singleton, NSW Ph: (02) 65 721 866 enquiries@wowflowers.com.au Image: Raquelle Loraine Photography

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AUSBIZ NEWS

NOW LEASING NT

Now Leasing NT has been raising the bar in property management in Darwin since opening in November 2015. Joely Sullivan and Jo Griffiths have gone from starting up and running the entire business to now employing a small team, and consider themselves the first choice in property management in Darwin and its surrounding areas.

Recently expanding its office space within Darwin Corporate Park and with an ever-growing team, the company’s success shows that even in a challenging market these ladies are improving their business by thinking outside the box and doing things differently. Joely and Jo are regarded as the most well-informed property managers in the Territory, regularly investing in training and technology.

If you are looking for reliable property management, visit nowleasingnt.com.au or call today on 08 8984 4404.

Explore everything mining in Mackay The Queensland Mining and Engineering Exhibition (QME) will return to Mackay this July 21–23. QME will feature more than 230 suppliers showcasing leading products and solutions for the mining industry, as well as a free-to-attend seminar series, which will feature industry experts speaking across a number of key themes, including operations and maintenance, health and safety, and workforce and industry outlook.

QME is free to attend for those that work in and for the mining industry.

Register now at qmeexpo.com.au

Developing Boys into

‘Men for Others’ Saint Ignatius’ College Riverview is a Catholic boys’ school in the Jesuit tradition, located in Lane Cove, Sydney.

In Jesuit parlance, “men for others” are those who are committed to justice and understand the value of serving others to help create a better world.

Developing such men is a prime objective at Saint Ignatius’ College Riverview.

While the learning facilities, sporting opportunities and pursuit of the arts at Riverview are world class, it is our pastoral care that truly sets us apart.

Providing care and connection for each individual is at the heart of the College. It is here that our young men develop conscience, compassion and a “faith that does justice”.

Find out more and see if we’re coming to your town as part of our 2020 Boarding Roadshow: www.riverview.nsw.edu.au/boardingroadshow APRIL/MAY 2020

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AUSBIZ NEWS

GUILT-FREE G&T

The new low calorie, lower ABV craft G&Ts from Manly Spirits are all about natural ingredients, sophisticated flavours and Instagram-friendly design. Packaged in bespoke glass with signature Fibonacci patterning on the bottles, these miniature versions of their sibling 700ml bottles stand out from the crowd, thus catering for the more sophisticated drinker who doesn’t compromise on flavour when purchasing RTD beverages. The Pink G&T also has the added benefit of having zero sugar, and low calories – ideal for the health-conscious consumer.

“We were finding that people who enjoyed our premium gins at home were having to compromise when it came to bringing drinks to a barbeque, dinner party or picnics,” says Vanessa Wilton, co-founder of Manly Spirits. “If you appreciate high quality, craft gin, why should you have to compromise when you are choosing a nofuss, ready-to-drink option?” Available at all good retailers or online at manlyspirits.com.au

RAISING THE LUXURY BAR

Marsden Hotel Burwood’s has introduced a collection of unique dining experiences, inspired by Europe’s food and drink precincts. The indulgent offerings, which include an artisan patisserie, upmarket restaurant and an awesome rooftop bar has this hotel raising the bar on accommodation for the business or leisure traveller.

The hotel’s restaurant, Onyx Grill, boasts a curated menu where meat is the star attraction. The focus is squarely on quality steaks, including grass-fed angus and grain-fed wagyu, as well as in-house dry-aged meats. The kitchen was created to be predominantly powered by wood fire, and has been fitted with a mibrasa grill and charcoal oven, which helps to enhance the natural flavours of the ingredients. The super stylish rooftop Skye Bar boasts a champagne bar, and a delicious bites including oysters, antipasto and charcuterie boards. The sleek rooms and suites (some with generous modern baths) embrace simplistic luxury with a colour palette of cream, black and grey, with striking black marble and gold accents. Don’t head off without enjoying a fresh and flavourful breakfast at the Artisaint café, where a pink onyx communal table makes for a beautiful centrepiece. marsdenhotels.com.au

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SPECIAL PROMOTION

Parkes major projects continue to grow with the expansion of North Parkes Mines, Inland Rail and the Clean TeQ Sunrise Project. With these additional regional projects, Kitson Manufacturing Solutions (KMS) has continued its long list of wins over the past 12 months, going from strength to strength. In terms of growth, KMS recently moved to a larger workshop located on Matthew Street in Parkes to ensure the company is keeping up with the business demands of the marketplace.

Managing Director Glenn Kitson says: “In 2005, I walked into this shed on three separate occasions to ask PYBAR for a job. On my first two attempts I was turned away, but persistence does pay off, and after my third attempt I was offered a Fixed Plant Fitter position.

“As a teenage boy, I always wanted to work in the mining industry, and 14 years ago I was given that opportunity. With a vision, dedication

and a lot of hard work over the last six years, I have been working towards scaling and growing KMS.” KMS currently employs 12 full-time local employees and upwards of 20 sub-contractors for maintenance works.

As a regional-based company, KMS are fortunate to have skilled workers onhand, with many of employees based in Parkes, Forbes and Trundle. In addition, KMS recently employed a local first year Apprentice, allowing the company to educate and guide the future workers of these major projects, as well as employing local farmers that have been impacted by the recent drought with work during this time.

KMS’s focus for 2020 has been setting up a dedicated workshop facility to meet the requirements of major projects across NSW, and the company now has the capabilities for steel fabrication of all project sizes.

In addition, there’s an onsite workshop mechanical engineer that supports

Image: Kerry Fragar

Kitson Manufacturing Solutions – going from strength to strength

its engineering requirements along with drafting and certification. “With a highly qualified team, who will go above and beyond for our clients, KMS is vison is to become a leading supplier,” says Kitson.

For further information on KMS, please get in touch.

Email: admin@kitsonsolutions .com.au | Website: kitsonsolutions. com.au | Facebook: @ kitsonmanufacturingsolutions APRIL/MAY 2020

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Making the Right Choice

Interview with the CEO of Choice Hotels Asia-Pac, Trent Fraser Choice Hotels Asia-Pac began in Australia in 2002 with the acquisition of the Flag Motels group, and it is now are a wholly owned subsidiary of the parent company Choice Hotels International.

The brands under the Choice Hotels umbrella in Australasia are Ascend Hotel Collection – an upscale, boutique hotel offering, Clarion Hotels – upscale, full service hotels, Quality Hotels – midscale hotels across metro and regional locations with high quality amenities.

Comfort Hotels – a mid-scale brand offering a clean, comfortable night’s sleep in predominantly regional locations with additional amenities such as breakfast restaurants. Econo Lodge is the economy option for a great night’s sleep while on the road for work or travel.

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With a network of more than 300 hotels in the Asia-Pac region, and more than 7,000 hotels internationally, Choice Hotels is wherever you need to be.

What advantages does Choice Hotels offer for travelling professionals?

In addition to our significant regional and global footprint, Choice Hotels also offers a global loyalty program, Choice Privileges. The program has over 43 million members globally and offers guests the ability to earn points on every stay, and use those points to redeem free nights in Choice hotels across the world. Alternatively, Choice Privileges members in Australia and New Zealand have the option to convert their points to either Qantas Frequent Flyer points, Velocity

SPECIAL PROMOTION

Points, or Air Points with Air New Zealand. Choice Privileges members also enjoy perks such as free parking, free, WiFi, free late checkout, access to exclusive promotions and discounts – including 5% off the best available rate on choicehotels.com. Membership is free, and points do not expire.

Tell us about the growth of the Ascend Hotel Collection?

We're particularly proud of the growth of our upscale Ascend Hotel Collection brand, which guests can now find in every mainland capital city in Australia, and it is continuing to expand across New Zealand.

In the last twelve months we have welcomed number of new hotels to this collection across the region, including the CH Boutique Hotel, located in central Tamworth, which offers premium hotel accommodation just minutes away from the major, iconic attractions and popular restaurants of this regional hub.

The latest hotels to join the Ascend Hotel Collection in Melbourne include The Alto Hotel on Bourke, Ascend Hotel Collection, a boutique property, housed in the heritage listed former Australian Railway Union building which was built in 1914. Alto Hotel on Bourke is the first carbon neutral hotel in Australia and hotel staff have a strong focus on providing friendly guest service in a warm, welcoming environment and implementing environmental initiatives throughout the hotel in an effort to reduce environmental impact.

Two recent additions in New Zealand include The Classic Villa in Christchurch, and The Honest Lawyer in Nelson. The breathtaking Italianstyle historic hotel, The Classic Villa is conveniently located in central Christchurch, boasts multiple awards including winning TripAdvisor’s Certificate of Excellence consecutively from 2011 – 2018. The Honest Lawyer, located on the Monaco Peninsula

in Nelson, is an impressive ‘Olde Worlde’ English-style country pub on the waterfront. The hotel features picturesque grounds and views overlooking the stunning Waimea Estuary and mountains.

The Domi Serviced Apartments, Ascend Hotel Collection, is a brand new, upscale apartment complex, next door to the recently redeveloped "The Glen" shopping centre. The property is ideally located near shopping precincts, business hubs, as well as Monash & Deakin universities What new initiatives and projects are on the horizon for Choice Hotels?

Choice Hotels Asia-Pac continues to remain focused on expanding our local and global footprint. Recent

and upcoming openings across the region include Quality Apartments Dandenong; Quality Suites Willow on Square, Palmerston North, New Zealand; Quality Inn Ashby House, Tamworth; Quality Hotel Sunshine Haberfield, Sydney; Quality Inn O’Connell, North Adelaide; Quality Hotel Carlton and the Comfort Inn City Centre, Armidale. We’ve also opened Econo Lodge in Lilydale.

And the Econo Lodge Border Gateway in Wodonga Choice Hotels International has been offering great accommodation experiences across the globe since the 1930s, and is one of the largest, most successful accommodation franchisors in the world, with more than 7,000 hotels in more than 40 countries.

APRIL/MAY 2020

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AGRIBUSINESS: LIVESTOCK

~~~

The stock auctioneer at the local saleyards is synonymous with the bush. But with smaller stockyards consolidating into larger centres, plus a growing trend towards internet auctions, are their days numbered?

Words: Darren Baguley

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Image: blue cinema

IS THE FUTURE OF LIVESTOCK MARKETS ONLINE?

AGRIBUSINESS: LIVESTOCK

Few scenes are more evocative of the Australian bush than a saleyard full of livestock and a crowd of willing buyers – just ask any politician seeking to improve their image in the eyes of country voters. But just as rural Australia has been changing, so has the way we trade rural produce. Blockchain is quietly revolutionising grain sales, internet shopping is changing the face of retail, and online developments are changing the way we sell livestock.

There are several sites available for this, but the most successful is AuctionsPlus. It is certainly the business with the longest heritage, having started in 1986 as a project of the Australian Meat and Livestock Corporation (AMLC), now Meat and Livestock Australia (MLA).

According to AuctionsPlus CEO Angus Street, both organisations had the vision of seeing livestock traded electronically and were far ahead of their time.

“A lot of people see us as a startup, but even though we’ve seen exponential growth recently, we’ve been around 32 years. The first sale took place in 1987 and it took two kilometres of telecoms and a generator for the fax machines. When we did get into the Internet era, we had to deal with slow speeds from dial-up, data black spots and creating technology that simply didn’t exist at the time.”

In its modern form, Street says AuctionsPlus is “like eBay for cattle and sheep with a twist”. Livestock are assessed on-farm by accredited, rigorously trained assessors who undergo regular and random audits to ensure assessment is uniform, consistent and meeting the expectations of both buyer and seller. Sellers pay $7 a head for cattle and 90c a head for sheep.

And, just like eBay, stock can be relisted for free if they don’t sell. A buyer has 48 hours from delivery to raise any issues regarding assessment, animal condition

and so on. Street explains, “We have a dedicated integrity unit that monitors the platform, user management and dispute resolution.”

As well as one-off stud sales, AuctionsPlus has two auctions weekly – Tuesday and Thursday Sheep and Friday Cattle – which attract 467 attendees, on average. The company has created a national marketplace that stretches from outback Queensland through New South Wales to Victoria and South Australia.

According to Street, the company is “probably the number-one provider of interface stud sales, and facilitates the sale of $870 million livestock annually.”

Alongside the growing success of online livestock sales, the other major trend is consolidation of country town

and city saleyards into larger regional groupings; for example, the NSW Central Tableland Livestock Exchange (CTLX) amalgamated Bathurst, Blayney and Orange saleyards.

According to Garry Edwards, Managing Director of AAM Investment Group, the manager and operator of the Regional Livestock Exchange (RLX) portfolio, there are several drivers behind the move to consolidation.

“It’s a combination of factors around cost, freight and efficiency,” he says.

“If there’s a greater number of buyers, there’s more competition, which results in higher prices for sellers in general. It’s also easier for large buyers such as processors to fill a truck in one transaction at a large centre, and for buyers the cost of labour and 

~~~

Just as rural Australia has been changing, so has the way that we trade rural produce.

APRIL/MAY 2020

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AGRIBUSINESS: LIVESTOCK

FAST FACTS • The Australian cattle herd was 26.2 million head as at 30 June 2017, and the Australian sheep flock was 72.1 million head (ABS Agricultural Commodities 2016-17).

• In 2017, adult cattle slaughter totalled 7.2 million head, down 2 per cent year-on-year. Australia exported 69 per cent of total beef and veal production (DAWR, ABS).

• In 2017, lamb slaughter totalled 22.4 million head, down 2 per cent year-on-year. Sheep slaughter totalled 7.5 million head, an increase of 8 per cent (ABS).

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transport is the same to attend a sale no matter how many animals acquired.

“For sellers, their stock is under a roof and on a soft floor, which leads to improved environmental and animal health outcomes. For example, weight loss at the new facilities has been reduced by 2 per cent. If you’ve got a 500 kilogram animal, less 2 per cent is 10 kilograms, and it very quickly adds up if you’re selling 20, 50, 100 or more animals.”

Edwards also argues that, unlike local government which can struggle to justify spending ratepayers’ money on a facility that is used sometimes only once a month, companies such as RLX can afford to be more expansive.

“Our investors are super funds, and they take a long-term view. So with CTLX, it was designed to be a 20- to 30-year project, and we were able to build something quite modern and depreciate it over a long time.”

Perhaps not surprisingly, Edwards is sanguine regarding the impact of online auctions: “The online platforms have been around for nearly 30 years.

In recent years they have got more publicity, but they still only handle 4-5 per cent of transactions. Australiawide, 62 per cent of livestock goes through physical facilities.

“The advantage physical facilities have is high clearance rate – 99 per cent of animals sell because the physical 

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AGRIBUSINESS: LIVESTOCK

~~~

Advances in technology and the increased emphasis on animal welfare and ethics will see the business grow exponentially.

environment drives excitement. We use online systems to stream out to people who may not want or need to attend in person, so people can increasingly get the best of both worlds.”

One thing both Street and Edwards agree on is that traditional saleyards will still be around in 50 years. Street argues that online has definite advantages, such as “no freight charges, no expensive yard fees, no slippage in terms of weight and just generally better outcomes in terms of animal welfare because the animal stays in the paddock until it’s sold. In addition, as a seller you’re in control, you shift from price-taker to price-maker. “[Nevertheless, there is] always going to be a need for physical saleyards. However, generational changes, advances in technology and the increased emphasis on animal welfare and ethics will see the business grow exponentially.”

Edwards says that volume will be key: “We’ll see more amalgamations, whether that’s driven by councils or private investment. The number of animals being sold hasn’t changed much in 25 years, so it all comes down to the dispersion. There’s a definite link between cost efficiency and volume, and the other thing about a large facility is that it’s a very transparent marketplace with everything from feed lot buyers to restockers.”

APRIL/MAY 2020

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Tiny Surveyor Pre-Marking Robot Mark lines from the comfort of your car!

Tiny Surveyor is a robotic pre-marker tool that will save you time, increase safety and enable you to mark out road lines automatically. With the ability to interface to any GNSS or total station for precise height measurements, the Tiny Surveyor is a versatile and reliable tool that works for eight hours on a single charge.

Key benefits: • Up to 10 times faster than marking out on foot • Increase safety by following the robot from a car • Reliable, repeatable 2-3cm accuracy • Works as hard as you do with 8 hour battery • Versatile to accommodate different spray can sizes • Compact, portable design makes for easy transportation • Use with your existing GNSS and optical survey equipment • Works with a variety of standard file formats Visit our website to register for a demo roadshow near you in 2020!

Get in touch today:

1300 867 266 info@positionpartners.com.au www.positionpartners.com.au Australia • New Zealand • SE Asia

SPECIAL PROMOTION

Robot helps get Brisbane’s new runway ready ahead of schedule Brisbane Airport’s new parallel runway project is almost complete and set to become operational in July this year.

Putting the final touches on the $1.1 billion infrastructure project involves marking out the runway line work so that pilots and other airport personnel can taxi on and off safely.

With more than 50 kilometres of lines to mark out, the contractors predicted a 5–6 week timeframe because traditionally line marking is labourintensive work and involves surveyors walking along the design and marking points at intervals along the way.

With the help of an innovative robot called Tiny Surveyor, distributed and supported in Australia by Position Partners, the team was able to save at least four weeks of work as the robot completed all the pre-marking in a fiveday period.

Using an on-board, high precision GPS unit and a tablet for the operator to control the system, Tiny Surveyor automatically lays out a digital design quickly and accurately, to save time and increase safety.

“We look at it from an overall health and safety aspect and that’s what technology is about: making jobs and infrastructure projects safer and more efficient,” said Paul Coughlan, Head of Infrastructure Development and Project Director New Parallel Runway, Brisbane Airport Corporation.

“Productivity, speed and accuracy

are the three main benefits of using Tiny Surveyor on a project like this,” explained Karl O’Toole, Geospatial Applications Specialist at Position Partners.

Tiny Surveyor is ideal for other line marking applications such as roads, sporting grounds, fencing and car parks. It can be used with either GNSS or total station positioning to give accurate results.

For more information on renting, purchasing or getting a demo, contact Position Partners on 1300 867 266 or visit positionpartners.com.au APRIL/MAY 2020

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MINING: PROXIMITY DETECTION

DON’T STAND SO CLOSE TO ME

Proximity detection is the new technological frontier when it comes to preventing death and injury on mine sites.

Words: Darren Baguley

The majority of operators are eager to improve their safety as long as the technology is intuitive, simple to use and non-obstructive.

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MINING: PROXIMITY DETECTION

For many years, a mine was the most dangerous workplace in Australia.

But a relentless focus on safety has seen mining drop two places to Australia’s third-most dangerous industry. According to Safe Work Australia’s Key WHS statistics Australia 2019, mining is now behind Agriculture, Forestry and Fishing and Transport, Postal and Warehousing (with a rate of 3.7 fatalities per 100,000 workers).

While mining accidents such as the fatality at the Henty Gold Mine in Tasmania earlier this year grab headlines, miners are more likely to be injured or killed in accidents such as vehicle collisions, being hit by moving objects, being trapped between stationary and moving objects, and being trapped by moving machinery.

In reaction to the prevalence of such injuries, the Australian Mining Equipment, Technology and Services (METS) has responded with a range of innovative proximity detection (PD) and collision avoidance (CA) technologies in an effort to reduce – and potentially eliminate – these hazards.

While some commentators have lumped both technologies in together, Hexagon’s MineProtect global director Sean Perry stresses that PD and CA are two very different technologies.

“Object detection or PD is using radar and other sensor technology to detect the presence of physical objects and people around the vehicle, and to detect equipment and people.

“CA is predicting paths or vectors of where objects will be in the future

– we’re using technology that has come from the aerospace industry – and it’s often visualised as a red carpet rolling out in front of equipment. The faster you go the longer the carpet has to be.”

Currently PD and CA technologies are divided into three different levels, which were determined by the Earth Moving Equipment Safety Round Table (EMESRT), a global initiative involving major mining companies which was established in 2006. Since its formation, EMESRT has established nine levels of Incident Preventative Controls, but it is levels 7 (Operator Awareness), 8 (Advisory Controls) and 9 (Intervention Controls) that are the most relevant.

Level 7 provides a form of  APRIL/MAY 2020

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MINING: PROXIMITY DETECTION

situational awareness that helps machine operators see their entire surroundings while operating; Level 8 provides operators with audible and visual alarms to alert them to potential dangers; and Level 9 is a system that is able to detect potential hazards, provides warning, and as a last resort can take action to prevent a collision.

There are a number of Level 7 systems on the market, fewer Level 8 and no true Level 9 systems currently available.

According to Newtrax’s regional vice-president of APAC, Simon Waghorn, systems vary considerably between vendors, and the application and type of mining. “A PD system deployed on the surface in an opencut mine will typically use GPS, but in an underground environment GPS is not available and different technology is used,” he explains.

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“Newtrax specialises in underground applications, and we use a system of multiple radio frequency tags attached to people, vehicles and fixed assets to accurately determine where risks are apparent between 10 metres and 100 metres, and talk to each other to effectively form a peer-to-peer network independent of Wi-Fi, 4G or any other form of network.”

By contrast, Hexagon’s Perry says his company “also uses tags for individuals, while vehicles use radars – long range 50-plus metres, short range 3-5 metres, and cameras for less than three metres. The Hexagon system is also network-independent, communicating using vehicle-tovehicle ultrawide band. There are also cameras, and if the system detects an object it will automatically prioritise that camera view. The system

doesn’t use Wi-Fi or 4G, it uses radio and GPS, but if customers want the system to report back to base there needs to be some sort of public or private network available.”

While PD and CA systems promise much, particularly in the future as Level 8 and Level 9 systems become more available, there are still several challenges when it comes to deployment and implementation.

According to Waghorn, “There are several challenges from both a technological and a human perspective. Mines are an extremely harsh environment. For example machines smash into the sides of tunnels and systems need to be robust enough to cope with that. Geologically there are huge variations from mine to mine and areas within a mine, so the technology needs to be able to cope with considerable variation.

“The performance of the system needs to be consistently accurate, as false positives can lead to the operator ignoring the technology. Nevertheless, the majority of operators are eager to improve their safety, and as long as the technology is intuitive, simple to use and non-obstructive, they’ll use it.”

Perry agrees that acceptance onsite is a challenge, adding that a lot of sites aren’t making use of the data the systems are producing. “These systems are creating gigabytes and gigabytes of data, and it’s important for companies to try to get some value out of that data,” he says.

“A mine might record x-number of incidents avoided, but it’s critical that management receives feedback from that data in a way that it can be used to resolve issues. For example, data may show there is a haul road intersection that has a lot of traffic with heavy and light vehicles. That’s a risk.

Is there a way to minimise that risk?” 

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MINING: PROXIMITY DETECTION

FAST FACTS • There were nine fatalities in the mining industry in 2019.

• There is a wide range of PD technologies available, including radar, RFID, GPS, ultrawideband and electromagnetic.

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While there is an argument that PD and CA systems may become redundant in the not-so-distant future, Waghorn argues, “The reality of a human-free mine in the next 20 years is almost inconceivable.

There will probably always be a mix of autonomous equipment and humans within the underground workings because humans are needed to lay the infrastructure.

Running fibre for networks, building underground 4G networks and installing ventilation for diesel vehicles – these will need to be done by humans, so as autonomous equipment becomes more prevalent the need for humans in some parts of the mine will actually increase.”

Given the nature of the mining environment, with factors such as poor visibility, physical barriers and the heavy presence of mobile machinery of all types, the use of PD and CA systems is only going to increase as the technology becomes more capable and cost-effective.

PROPERTYBIZ

HOLIDAY HOMES: CASH COWS OR MONEY PITS? The pros and cons of owning a holiday home are far-reaching, but with solid homework and the right approach, Australians are reaping the rewards of short-term rentals.

Words: Kirsten Craze

APRIL/MAY 2020

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HOME TO OVER 75 STORES

87 BAYLIS STREET, WAGGA WAGGA NSW 2650 | T: 026931 7277

wagga-marketplace

@wagga.marketplace

WAGGA M ARKE TP L AC E .C OM

PROPERTYBIZ

Thanks to the sharing economy and property portals such as Airbnb, Stayz and Booking.com, an increasing number of short-term rentals are earning more than the average office worker does in a year as Aussies seek out holiday ’homes’ over hotel rooms.

While the exact number of so-called holiday homes is hard to determine (some otherwise primary properties only play the part seasonally), the last census noted that the Central Coast and Shoalhaven areas, both within close proximity to Sydney, were home to the largest concentration.

Matt Knight, buyer’s agent and director of Precium Property, operates across the Shoalhaven area. He says that while a popular rental can rake in thousands of dollars a night in high season, as well as brownie points with friends and family, they can also cost owners a pretty penny.

“If you don’t build the rental income, it will end up costing you money each year.

Bad management, or a home being overused by family, can result in $10,000 to $30,000 a year in negative cashflow,” he explains.

Other common pitfalls of owning a holiday home include owners not taking into account extended vacancies between peak seasons and the ongoing costs of maintaining the asset.

“Management fees, cleaning, council rates, maintenance and insurance are significant ongoing costs to factor in. Then there’s providing linen and keeping the gardens well kept, which are also important and cost money.

The best properties are expensive for a reason,” Knight says, adding that buyers should also check in with their accountant to determine the ultimate cost of income and capital gains taxes.

Today’s holiday homes are well-oiled machines, and while the motivation behind buying one is often about sun and fun, Christian Sergiacomi of Pacifico Property in Byron Bay says the dollar is still a major driver.

“I’ve had clients who never needed to rent their homes out. It’s amazing though, even if they don’t need to, even if they have all the capacity in the world, there’s a reason they’ve made it to that point – because they like the dollar. Some have asked, ‘How much did you say that house next to me was?’ When I tell them they can get $35,000 a week, they suddenly change their tune!”

However, Gold Coast buyer’s agent Tony Coughran of Simply GC says it’s not just about money.

“I had a client living on the land who bought because they wanted a beach holiday home for their family to use in the holiday periods, and rent out in the downtime,” he says. “So they’re not banking on an absolute return, but they’re picking up a lifestyle return.

It’s about weighing up the lifestyle benefits.

Like any investment, if you want to spend $60,000 on a pool it might only add $45,000 in value to your home, but you make up the balance in laughs, good time and memories.” 

IMAGES: PACIFICO PROPERTY IN BYRON BAY, NSW. APRIL/MAY 2020

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PROPERTYBIZ

TREAT IT LIKE A BUSINESS

DO YOUR HOMEWORK

While fun, holiday homes offer a taxable income stream, so handle them like a pro.

“Short-term rentals are like long-term investments, but they do require a little more focus, similar to owning a small side business.

If you want a purely passive investment, this probably isn’t it,” Knight explains. “Treat it like a business and profit from the peak season.

Don’t give in to your cousin who suddenly becomes best buddies and wants to stay the week of Christmas – and don’t take up all the peak periods yourself. The more you treat it like an investment in the early years, the better the financial rewards and the more freedom you will have later on.”

Sergiacomi says another good move for holiday rentals is a stylish backyard studio: “Using them for Airbnb is a brilliant business model because they’re rentable all year, as it’s mostly couples staying in them and they’re not confined to school holidays. Where it’s a big wedding venue, like Byron Bay, every guest needs somewhere to stay, and they’re not usually having big parties at your place.”

If it looks too good to be true, Coughran says, it just might be.

“Interstate buyers need to establish what holidaymakers really want in a location.

Consider the level of the unit, the aspect and its size. It can make a big difference if you know what you’re doing,” he explains.

“A lot of interstaters are paying an unnecessary premium and the selling agents love it.

Some of them are buying properties that are B- and C-grade, not A-grade. Get your money going further, otherwise you’ll be eating into your capital growth.”

Other things to research, particularly when buying an apartment with amenities, include body corporate acceptance of short-term rentals, whether the sinking fund covers beachside hiccups such as concrete cancer, and just how pricey the strata fees are.

IMAGES: HOTELESQUE HOLIDAY HOMES.

CONSIDER A NICHE People want a holiday experience to remember, and it can start with the accommodation.

"Australian tourists are happy with ‘quirky’ 

“Treat it like a business and profit from the peak season.”

APRIL/MAY 2020

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and will tolerate older homes as long as they are clean, well decorated and fun,” Knight says.

Then there are the successful listings with owners who think outside the square by offering things such as pet-friendly accomodation, themed decor, backyard glamping or eco-living.

But, in a mainstream destination, Coughran says it’s even more important to stand out.

“Buyers should be looking at the fundamentals of the property (is it going to increase in value?), but also make sure it has a significant point of difference,” he explains.

“Draw people to rent your property as opposed to the dime-a-dozen homes on offer.”

PRESENTATION IS KEY A picture tells a thousand words when it comes to booking a holiday, so how you look online and what you can offer is vital, according to Monique Eyles and Steve Keir of Hotelesque, a luxury concierge service for high-end short-term rentals.

“Presentation is key, with many owners setting up their holiday homes more like a hotel, so it’s best to pay attention to styling,” Eyles says. “Remove unnecessary items, as the modern traveller is far more discerning; they don’t like a massive amount of owner belongings. Use storage options in the home, or lock off a room for your personal items.

“Also make sure everything is working perfectly and create a guide of how to operate things in the home.”

HIRE THE HELP

Images: A. Wogas

“Many owners start out looking after their holiday homes but realise it can be a lot of work, and sometimes they’re not located close enough to easily support it when things go wrong,” Eyles says. “Being on call for broken appliances is not what owners dream of.”

Keir adds that being on call for a last-minute booking request or late-night call for help just doesn’t suit time-poor people.

“We’ve found one person’s ‘clean and perfect’ is not always up to someone else’s standards. At Hotelesque we have been honing our cleaning skills for more than 5000 guest stays – that gives us certainty that the guest will not be disappointed.

We call that Hotelessence,” he says.

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AGRIBUISNESS: NUTS

NUT JOBS

Meet the farmers who work for peanuts… well, pistachios, walnuts and hazelnuts anyway.

Words: Ian Lloyd Neubauer

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AusBiz.

AGRIBUISNESS: NUTS

Rising input costs. Price gouging by supermarkets. Vegan protestors and the worst drought in living memory. Farmers in Australia have never had it so tough, with more than one in four saying they are likely to exit the sector, according to the University of Canberra’s latest Regional Wellbeing Survey. Vignerons topped the list, followed by fruit, vegetable and rice growers.

But in any market, there are winners and losers. And in this case, the winners are totally nuts. Since 2011, the annual farm gate value of our nut industry has nearly quadrupled to $1.3 billion, according to the Australian Nut Industry Council, and it’s showing no signs of slowing down. By 2030, it’s projected to hit $3 billion.

“The whole industry is booming and the reason is pretty straightforward – the plant-based food trend,” says Jolyon Burnett, CEO of the Australian Macadamia Society. “Whether it’s paleo, gluten-free or vegan, nuts pretty much tick every box, and the health benefits of eating nuts are getting better documented all the time. Ten years ago, 70 per cent of Australian GPs said they didn’t consider nuts to be part of a healthy diet because they made you fat. Today, that figure has flipped on its head and 70 per cent of GPs recommend nuts as part of a healthy diet.”

So is growing nuts commercially a walk in the park? To find out, AusBiz speaks with three farmers growing three different nuts in three different states.

SOUTH AUSTRALIAN PISTACHIOS “I have a great deal of sympathy for any farmer doing it tough, because us nut farmers are growing something the whole world wants to eat. We can’t keep up with supply,” says Chris Joyce, Director of Nut Producers Australia in South Australia’s Riverland region, 

DID YOU KNOW? • People who eat nuts every day reduce their mortality by 20 per cent, according to the Harvard Medical School.

• Peanuts are actually legumes, not nuts. They can be eaten safely by expectant mothers.

APRIL/MAY 2020

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AGRIBUISNESS: NUTS

“If you look at the prices of other nutritious health foods, walnuts are more affordable.”

the country’s biggest pistachio grower.

But the cost of establishing a nut farm is a major disincentive, Joyce explains. “Pistachio trees need six years to mature, which means you need deep pockets and to find a way to feed your family for at least five years. In the sixth year, you just cover your costs.”

Birds – and figuring out how to scare them away – pose another challenge for nut farmers. “There are a variety of scaring techniques: guns, cannons, sound recordings; the big orchards use light aircraft,” Joyce says. “At a minimum, you need one person working four hours a day to protect 20 to 30 hectares of nut trees.

That means you can’t grow nuts commercially on a hobby farm because the cost of scaring birds makes the whole thing unfeasible.”

There are currently about 1000 hectares of pistachio trees planted in Australia and another 1200 hectares of immature trees in the ground – with all additional output slated for China.

“Right now about 45 per cent of

all Australian pistachios go to China, and that’s a result of two things,” Joyce says. “The hard work done by our industry to have all tariffs for our nuts abolished, and Trump’s trade war. China has slapped tariffs of 40 to 50 per cent on nuts from the US, which is our main competitor. So, you can guess who’s become China’s favourite origin for nuts.”

VICTORIAN WALNUTS Philip Farnell didn’t do much research before he bought Wellwood Wallace, a 60-hectare walnut farm near the Victorian city of Ballarat, in 2014. “I just fell in love with the place,” he says.

Fortunately for Farnell, the gambit paid off. As one of only two Australian Certified Organic walnut growers in the country, his produce sells for four or five

times the price of regular walnuts – and will continue to track north. “If you look at the prices of other nutritious health foods, walnuts are more affordable given their high concentrations of the vitamins omega-3 and omega-6,” he says. “Comparatively speaking, walnuts are still too cheap.”

In this robust market, one would think Farnell is laughing all the way to the bank. But that’s not the case, he explains: “Walnut trees are very thirsty.

The cost of water today is about $850 per megalitre and climbing. It’s a major drawback, as are equipment costs.

“You need very dedicated machinery for shaking and harvesting trees that can’t be used for any other crop. We’re also about to invest $375,000 in a computerised irrigation system that reads moisture levels in the soil. It’s a  APRIL/MAY 2020

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AGRIBUISNESS: NUTS

huge amount of money but it’ll save me a huge amount of time.”

Farnell’s advice for anyone thinking about investing in a walnut farm?

“You need to do your research and not jump into it like I did,” he says. “I wish I’d known more about what a big investment it would be and that the returns, even on an existing farm, would be spread over 20 years. I don’t regret buying – it’s a beautiful lifestyle – but I’ve had to forget about early retirement.”

TASMANIAN HAZELNUTS Australian hazelnuts are so much fresher and tastier than the imported varietals sold in supermarkets that most growers have never seriously contemplated exporting. “The market is booming now that hazelnuts are seen as an alternative protein source that’s both cheaper and healthier than meat,” says Carol Bracken of Tamar Valley Hazelnuts, a farm in north-east Tasmania with 5000 trees. “So we don’t have to accept global prices.”

But will the bottom drop out of the domestic market when the million hazelnut trees planted by confectionery company Ferrero Australia in the Riverina region of NSW begin bearing fruit this year?

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Bracken thinks not: “Ferrero won’t be selling their hazelnuts in Australia.

They will crack them open here and ship them overseas to their processing plants, then ship some of the hazelnut meal back to their Nutella factory in Lithgow. It’s complicated, you see.”

Tamar Valley Hazelnuts sell through their virtual and online farm gate store, and to retailers in Tasmania and Victoria. Business has been good – but they have grown tired of the work and are looking for an exit.

“We’ve invested quite a lot to build it up to a successful business,” Bracken says, “but the property needs more investment in processing, more irrigation and more trees.

We’ve been at it for 10 years and are ready for a change. So if you’re interested, let me know – we’re putting it up for sale.”

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BUSINESS: GYMS

SURVIVAL OF THE FITTEST A fresh look at the front line of the gym industry, to see how it’s working out.

Words: Ian Lloyd Neubauer

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AusBiz.

In 1847, circus strongman Hippolyte Triat opened the world’s first commercial gym in Paris – a vast dome of cast iron and glass filled with dumbbells and barbells, where the wealthy exercised for exercise’s sake.

As bizarre as it was, the concept caught on. Today there are an estimated 200,000 gyms around the world, including almost 3500 in Australia.

And with so much focus on healthy living, 200 new gyms are slated to open in Australia every year, according to an IBISWorld industry report.

But growth in the number of new memberships in Australia isn’t keeping up with the number of new gyms. “At the moment we have around 20 per cent of Australians with gym memberships, 6 per cent actually go to a gym regularly, and that leaves 80 per cent of the population doing whatever,” says Barrie Elvish, CEO of peak industry body Fitness Australia. “So we are not targeting those people.”

Justin Tamsett of Active Management, a consultant in the fitness industry, puts it like this: “As an industry, we’ve helped the fit get fitter and helped the fat 

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BUSINESS: GYMS

Named after the length of its classes, F45 has taken the fitness industry by storm. There are more than 500 franchises in Australia and 1300 more around the world. get more embarrassed to get fit. So how do we decrease the intimidation factor of gyms to welcome people in?”

The answer, market research dictates, is a new breed of gym that incorporates technology, sports science and innovative customer service models to attract new members and future-proof profit.

Here are three gyms setting the pace.

THE 45-MINUTE GYM With 2700 different exercises used to create challenging workouts that change every day, F45 was ahead of its time when former equities trader Rob Deutsch opened the first outlet in Sydney in 2011. It ticks off more than half of the Top 12 Fitness Trends for 2020 identified by Fitness Australia, including ‘functional’ training that mimics everyday movement, bodyweight training, high-intensity interval training and small group classes led by registered professionals.

Named after the length of its classes, the brand has taken the fitness industry by storm. There are now more than 500 F45 franchises in Australia, another 1300 more around the world, and plans to open as many as 10,000 new venues in the US alone.

“The reason they grew so fast was probably the low barrier to entry compared with other franchises,” says Tamsett, referring to F45’s simple equipment – free weights, pull-up bars, kettlebells and the like – and annual turnover of $400,000 per studio. “Their timing was also perfect because they came in at the front end

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AusBiz.

of the influencer marketing trend.”

Last year, actor and fitness icon Mark Wahlberg bought an undisclosed stake in the company. At the time, he said, “I’m a fitness fanatic and I fell in love with F45 after I walked into a gym and saw people from all walks of life, all levels of fitness, working out together.”

And in January, Bloomberg reported F45 had taken steps to list on the New York Stock Exchange. F45 declined to comment, but if Deutsch’s previous statements are anything to go by, it’s a done deal. “We’re the fastest-ever franchise rollout in Australia and we believe in the world,” he said.

THE NO-THRILLS GYM Fitness and Lifestyle Group, the company behind Fitness First, Goodlife Health Clubs and Jetts Fitness, is the largest player in the sector, with almost 30 per cent of industry revenue – a billion dollars per year.

The second biggest player, with 15 per cent of industry revenue and 520 outlets, is Anytime Fitness.

Established in the US in 2002, the company revolutionised the fitness industry with self-service gyms that have no full-time staff – only casual cleaners and personal trainers who are available on demand. Bored receptionists have also been taken out of the equation. Instead, members let themselves in – any time of the day or night – with keycards.

The no-thrills model has made it possible for Anytime Fitness to open gyms in country towns like Mount Isa and Narrabri on the North West Slopes of NSW, where people are 16 per cent more likely to be sedentary than city-dwellers, according to the National Rural Health Alliance.

“Our mission is to ‘Improve the self-esteem of the world,’” says Anytime Fitness CEO and Co-founder

BUSINESS: GYMS

Chuck Runyon. “It may sound like an audacious goal but we’re very serious about it. We’ll soon have 4000 gyms open in more than 30 countries.

Each of those gyms supports a small community of like-minded individuals who are determined to enjoy healthier, happier lifestyles.”

Anytime Fitness has mastered the art of acquiring new members.

Now it’s working on mastering the art of retaining them. “We built the franchise by focusing on convenience, affordability and a friendly, supportive atmosphere. That’ll never change,” Runyon says. “But we’ve sustained our growth by expanding our benefits for members, specifically our new group training sessions and our mobile app. It’s like having a personal trainer in your pocket.”

THE SPA GYM “Feels like a spa, works like a gym.”

That’s the mantra at Shelter, a luxurious high-tech health club that opened in the Sydney suburb of Double Bay last year. The focus is on spin classes – gym-talk for stationary bicycle workouts – though Shelter also offers hybrid spin-boxing classes, private infrared saunas and a smoothie bar with wacky ingredients like hydrolysed collagen and hemp protein. It also has the only freshwater ice bath in

Australia – a form of therapy used by professional athletes to accelerate recovery after exercise and injury.

“When I lived in New York I’d train at SoulCycle, sauna at HigherDOSE, practise cold baths at AIRE in Tribeca, box at Gotham in the West Village, and loved my juices from Juice Press,” says Co-founder Ben Mills.

“I questioned why someone hadn’t integrated these models that fall into the health and wellness space, and why no one had done so in Australia. Why couldn’t you leave a gym with the same feeling as you do leaving a day spa?”

A recent poll by Finder.com showed that more than 44 per cent of gym members rarely go to their gym, with wasted fees adding up to $1.8 billion per year. Shelter is among the gyms that have dumped this old pricing model. Instead, it sells single passes for $40 or discounted packs of 5-50 passes you can buy on-site or using your phone. “We’ve developed our own app,” explains Mills. “It’s a pretty seamless booking process.”

APRIL/MAY 2020

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PUZZLES

CROSSWORD

13. Large antlered animal

23. Golfer’s two under par

15. Comedian, ... Murphy

24. Grace

16. Shouted

25. Resource

18. Actor, ... Pattinson 19. Rot 21. Nauseous 22. Settles (debt)

APPLE JUICE CARAMEL CHOCOLATE COFFEE CORDIAL FIZZY DRINK

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GLASS ICED TEA LATTE LEMON SQUASH LEMONADE MILKSHAKE

ORANGE JUICE RICE MILK SMOOTHIE SOFT DRINK SOYA MILK TUMBLER

W O R A N G E J U I C E C

Y S S L R A H S R A P N K

H S A U Q S N O M E L A K

E U P E T A L O C O H C K

M I L K S H A K E M B K O

E M O A W I E W T P I J N

D O Y I L K C T L R T H I

A O A D D G E E D U E D R

N T M R E J J Y M E E R D

O H I O L U Z B F I C B T

M I L C I Z L F T D L I F

E E K C I E O E H A R K O

L U E F R C A R A M E L S

SOLUTIONS:

20. Ability to govern

L U E F R C A R A M E L S

11. Segregates

E E K C I E O E H A R K O

9. Movie performer

17. Sport parachutist

M I L C I Z L F T D L I F

6. Heaven’s ... Gates

16. Period of time

O H I O L U Z B F I C B T

14. Command to dog

Find all the words listed hidden in the grid of letters.

They can be found in straight lines up, down, forwards, backwards or even diagonally. Theme: DRINK UP.

N T M R E J J Y M E E R D

5. Communicative

A O A D D G E E D U E D R

12. Collapse (4,4)

WORD SEARCH

D O Y I L K C T L R T H I

4. Military student

E M O A W I E W T P I J N

10. Polar vessel

Y S S L R A H S R A P N K

3. Rock-pool crustacean

H S A U Q S N O M E L A K

2. Italian sparkling wine

8. Trattoria staple

E U P E T A L O C O H C K

1. Unload (suitcase)

7. Fracture

M I L K S H A K E M B K O

DOWN

1. Normal

W O R A N G E J U I C E C

ACROSS