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WHAT’S KILLING THE WEST? AWARD-WINNING BROKER RIDING IN STYLE WEBSITES AND YOUR BUSiNESS ISSN 1837-9869

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SAFETY

FIRST iMPORTANCE OF OH&S

ISSUE 22 DECEMBER 2012


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CONTENTS 5

UNHEALTHY LIFESTYLE What’s killing the West?

6

POSITIVE EXPANSION Matchworks’ next move

7

ON THE RIGHT TRACK McLeod rail’s success

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SECRET IS OUT Interior decorator on a budget

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SELLER OF THE CENTURY Agent’s award nomination

10-11 COVER STORY Meritor means safety

12-13 TAKING SAFETY SERIOUSLY The word from WorkSafe

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SMART AND SUCCESSFUL Award winning broker

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HITTING THE ROAD When your business needs a lift

REGULARS 4 FROM THE EDITOR 16-17 STRATEGIES Why you need a website, personal liability

18-19 OUT OF HOURS 20 Q&A

I have no doubt that most of you have prospective customers who are online right now… MARQUEZ COMELAB

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Justin Giddings

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MANAGING EDITOR Stephen Linnell stephen.linnell@starnewsgroup.com.au EDITOR Tim Doutré tim.doutre@starnewsgroup.com.au EDITORIAL Charlene Gatt charlene.gatt@starnewsgroup.com.au ADVERTISING Trish Di Vito trish.divito@starnewsgroup.com.au Mobile: 013 252 395 DESIGN Mark Dinnie mark.dinnie@starnewsgroup.com.au BUSINESS WEST Cnr Keilor Park Dve & Thomsons Rd Keilor Park 3042 Phone: 9933 4800 Fax: 9933 4844 Business West is a division of Star News Group Pty. Ltd. Celebrating our 102nd year as a family-run business. Proudly Australianowned and independent. Produced and published by Paul Thomas for Star News Group Pty. Ltd. ACN 005 848 108.

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Cover MERITOR’S DAMIAN DEL MEDICO Picture DAMJAN JANEVSKI

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FROM THE EDITOR Promote your business or service in BUSiNESS WEST… BUSiNESS WEST offers your business the opportunity to be seen by your target market; key business decision makers in the West! Stay tuned for the next edition of BUSiNESS WEST: coming out in February. Don’t miss out on the opportunity to promote your business or service to the business world of the West, call Trish Di Vito now on 9933 4800 to reserve your space. Advertising for the February edition of BUSiNESS WEST is now open. To register for BUSiNESS WEST visit: www.businesswest.com.au

SAFETY MATTERS LATE IN 2009, three workers were riding in the back of a trailer being towed by a tractor on a Werribee South farm. One worker jumped off the trailer before it began reversing into the loading bay. The worker fell to the ground and was not able to get out of the way in time. He died at the scene. Any life taken in such a way is a tragedy, but the fact that this death occurred in a workplace makes it even more horrific. Like many workplace accidents, this one could have been avoided with proper safety and training measures in place. The tragedy of a life taken at work serves as a constant reminder to businesses that the importance of health and safety can never be underestimated. The Christmas holiday period is one of the worst times of the year for workplace deaths.

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As we head in to what is sure to be the busiest time of year for many businesses, remember: your staff are the lifeblood of your business, treat them well and they will respond in kind. Or if you want the purely fiscal point of view: ultimately, safety in the workplace saves money: injured workers, means time off work, resulting in a loss of productivity. Most importantly, we all have families and at the end of the day we all want to get home to see them. Keep this in mind over the holidays (for those of lucky enough to have holidays). And from the Business West team; thanks for another great year. We look forward to 2013 as we continue to bring you the best of the West, including the news, features and profiles that matter to you. Be safe.

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S WYNDHAM BUSiNES OF THE YEAR MELTON BUSiNESS PARK KEEPING ORGANISED USING YOUR COUNCIL

Last year, nine of the 25 deaths that occurred in Victorian workplaces occurred in November and December.

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ISSN 1837-9869

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GAME RT THE BUSiNESS OF SPO

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WHAT’S KILLING THE WEST? AWARD-WINNING BROKER RIDING IN STYLE WEBSITES AND YOUR BUSiNES

Seven of those occurred in a two week period, according to WorkSafe Regional Director Shane Gillard.

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ISSN 1837-9869

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iMPORTANCE OF OH&S

ISSUE 22 DECEMBER 2012

“Historically, this time of year is a fairly dangerous time of year,” he told Business West. “We’re encouraging employers not to be complacent, and to stop and think before undertaking a task and not take any shortcuts.”

Tim Doutré Business West Editor tim.doutre@starnewsgroup.com.au

Madgwicks Lawyers - providing business legal services to the West since 1973 BPW Transpec Managing Director Alfred Unger and Madgwicks Managing Partner and Chairman of BPW Transpec, Peter Kennedy standing in front of BPW truck trailer axles ready to be fitted with brakes at BPW Transpec’s factory in Laverton. Madgwicks | Level 33, 140 William St, Melbourne VIC 3000 | T: +61 3 9242 4744 www.madgwicks.com.au 1039622-KG29-12

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UNHEALTHY LiFESTYLE BY CHARLENE MACAULAY WORKERS in the West drink too much, eat the wrong foods and are at risk of developing Type 2 diabetes. That’s the verdict from WorkSafe after testing nearly 43,000 workers across Brimbank, Maribyrnong, Hobsons Bay, Melton, Wyndham and Moonee Valley over the past three years. The workers received a free 15-minute health check that involved completing a short lifestyle questionnaire and having their waistline, blood cholesterol, blood pressure and blood sugar measured by a health professional. The results showed: ■ At least 93 per cent of workers did not eat enough fruit or vegetables, and seven in 10 workers were not doing any, or enough, exercise;

2 diabetes, one quarter had elevated blood glucose levels, one quarter had elevated cholesterol levels and one quarter had a high waist circumference. The workers fared similarly with overall Victorian results.

risky levels and have a high risk of developing Type 2 diabetes and heart disease compared to their white collar counterparts. “WorkHealth checks have shown that unhealthy lifestyle behaviours such as alcohol consumption and smoking and alarming

A healthy workforce means a safer and more productive workforce…

WorkHealth director Pam Anders said the results suggested workers in the West needed to stop smoking, reduce their alcohol intake, increase their fruit and vegetable intake and do more exercise.

■ Nearly half of all male workers in Maribyrnong and one quarter of female workers reported drinking alcohol at risky levels, while one fifth of workers currently smoke.

“A healthy workforce means a safer and more productive workforce, with lower absenteeism, higher morale, better injury recovery outcomes and the ability to attract and retain motivated, committed staff to deliver strong results for your business,” she said.

■ As a result, around one third of males and one in seven female workers had high blood pressure, one third of males and one fifth of females had a high risk of developing Type

Ms Anders said the findings showed blue collar workers in the manufacturing, construction and mining industries were more likely to have high blood pressure, drink at

conditions such as high blood pressure are particularly concerning among blue collar workers,” she said. “Given the significant challenges of labour and skills shortages, an ageing workforce and climbing rates of chronic disease, blue collar workplaces need to address the added challenge of poor worker health to future-proof their industries. “Business success is dependent on having a pool of motivated, healthy, safe and engaged people to deliver strong results, without whom the economy would grind to a halt. “The good news is there’s a great deal that employers can do to promote healthy choices and behaviours in their workplaces.” [BW]

BUNNINGS BONANZA BY XAVIER SMERDON

BUNNINGS’ expansion into Wyndham is set to continue with the hardware chain planning to build a new centre in Hoppers Crossing that will be one of its biggest in Australia. Bunnings Chief Operating Officer Peter Davis said the company was investing more than $44 million to build a new warehouse. “As part of our strategy to continually improve our network, Bunnings can confirm it has received development approval for a new warehouse in Hoppers Crossing,” Mr Davis said.

“This will replace our existing store which opened in 1999.

“Once completed, the huge new warehouse will cover over 20,000 square metres, making it one of the biggest warehouses in Australia and over double the size of the current store.” The news follows Bunning’s purchase of the Costa’s Mitre10 store in Cherry St, Werribee. Mr Davis said the new store would likely be opened by late 2013. “The proposed development represents an investment of over $44 million, and would provide employment for over 120 new team

members, who will join the current team. The project will also create over 230 jobs during the construction phase,” he said. The new Bunnings Warehouse will be located at 221-239 Old Geelong Road in Hoppers Crossing, on land between Harvey Norman and the Wyndham Municipal Depot. It is believed Bunnings’ rival Masters has plans to open a superstore at Williams Landing. [BW]

BUSiNESS WEST

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NEWS

POSITIVE EXPANSiON

BY CHARLENE MACAULAY EMPLOYMENT services provider MatchWorks is gearing up for a big 2013 when it expands interstate for the first time. MatchWorks, which currently operates from 23 locations – including Werribee, Airport West, Footscray, Flemington, Melton, St Albans and Sunshine – will grow to 55 sites from 1 March 2013, including offices in Queensland and South Australia. The major expansion has been made possible after MatchWorks won the Federal Government’s Disability Employment Services tender. MatchWorks is a division of Karingal, a not-for-profit organisation providing a range of services for people with a disability or mental illness, older Australians and those who are disadvantaged. MatchWorks General Manager Michael Wasley, who started as a MatchWorks consultant when the business opened in 1998, has seen the provider grow steadily since starting out with two offices in Geelong and Bacchus Marsh. “Now we’re on performance-based contracts, we’ve been successful in performing well enough that we’ve steadily grown at the end of each contract to now be a large national employment services provider,” Mr Wasley said.

MatchWorks General Manager Michael Wasley (centre), with staff Adrian Cugliari, Alysha Grandy, Narelle Ling, Jodie Hajduk and Lesley Bramich. Picture: KRISTIAN SCOTT “This program we’ve won is a specific service for people with disabilities, which is Karingal’s mission and vision. “We believe that by going interstate, it could help provide some community services that aren’t being met in these new locations, so Karingal could eventually provide its other services in those locations off the back of MatchWorks entering into those areas. “I believe that our success is due to the fact that we are part of a not-for-profit organisation, and we really live our mission every day. “Our staff go the extra mile for their clients. They’re passionate about supporting them to improve their lives, and I believe it shows in our results. “We very much have a focus on what’s best for the job seeker in the medium to long-term. “We believe employment is a very big part of people feeling socially included within their community, and not only does it give you extra

resources to make more choices in your life, but it certainly gives you a sense of belonging to your local community.” Today, MatchWorks has 350 staff supporting more than 22,000 people looking for work. MatchWorks is expected to appoint about 60 new staff members as part of the expansion. Mr Wasley said MatchWorks had been busy scouting new locations, including office space in Frankston, Dandenong, Ringwood, Box Hill and Glen Waverley. There will also be a few part-time locations across the state. “It’s very busy (handling the expansion). “No matter how much planning you do… once you find out what the reality is like, there’s always some things you haven’t quite ticked off yet. We’ll get there, but it’s going to be a very busy three month period.” [BW]

I believe that our success is due to the fact that we are part of a not-for-profit organisation, and we really live our mission every day.… MICHAEL WASLEY

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NEWS The specialised rail contractor has a range of corporate and government clients. Core services include scheduled and emergency track and infrastructure repairs as well as general maintenance and construction work. For Ms Thompson, who bought the business three years ago, the rail maintenance industry continues to drive her. Starting out in finance, Ms Thompson held a senior role at Macquarie Bank for 10 years before going out on her own and buying Tyldne Quarries in 2003. Keen to be a hands-on boss, Ms Thompson obtained a Victorian Quarry Manager’s Certificate and a licence to use blasting explosives in mines and open cut quarries in Victoria. She sold the quarry business in 2007 for “a healthy profit” and became strategic development manager for civil contractors Fulton Hogan, but after two years decided she wanted to be her own boss again. “No matter how much flexibility you may think you have as an employee, as a selfemployed person you never have to fill in a leave form,” the mother of three said.

McLeod Rail’s Mary Thompson. Picture: DAMJAN JANEVSKI

ON THE RiGHT TRACK BY CHARLENE MACAULAY MCLEOD Rail is going places – most recently, New South Wales. The West Melbourne rail maintenance company has branched out to the Hunter Valley with an office in Rutherford to service its growing client base in the region. McLeod Rail completed its first work in the Hunter Valley for the ARTC earlier this year when it was given the task of reconstructing the Muswellbrook level crossing. In September, the company successfully tendered for a six-month contract with the ARTC involving 23 staff working on the Ballast Rehabilitation program on the SydneyMelbourne corridor.

My role’s really to get the direction of the company right and manage the commercial and strategic direction…

Also on the Sydney-Melbourne line, McLeod Rail is providing welding crews, safe working, project management, signal maintenance technicians and fire-fighting capability to support Harsco Rail’s rail straightening work.

Rail is now a part of that growth. We see the region as an important part of our expansion plans.

McLeod Rail Managing Director Mary Thompson told Business West the new office was part of a strategic plan to have capability in the heavy coal rail sector.

“Whatever happens to coal prices and volumes, we’ll still need lots of maintenance and lots of work on that network into the future.”

“The Hunter Valley is a huge coal-producing region. All the coal comes from the mines, down through the Hunter Valley Coal Chain, to the Port of Newcastle, so that’s a very big asset,” she said.

McLeod Rail, which has been providing maintenance services to the rail industry for nearly 20 years, boasts a dedicated staff of 50 and prides itself on being compact enough to react rapidly to its clients’ needs but large enough to tackle the big tasks.

“The Hunter Valley is booming and McLeod

“It certainly makes it a lot easier to have time off – whether it’s picking up your kids’ runners because they’ve left them home or running to the orthodontist… that’s the main thing. “I’d done a bit of strategic work on rail and while some centres of the economy seemed to be in decline, for rail, in terms of infrastructure, the outlook seemed very strong… there was either a lot of maintenance, or a lot of new stuff being built. “If people say, ‘what do you know about rail?’ I say, ‘I know nothing about rail, really – but I do know how to run a business’. “I’ve got a really great team of people who are engineers and operational people and they’re the technical experts, and so my role’s really to get the direction of the company right and manage the commercial and strategic direction of the company.” And much like her quarry days, Ms Thompson isn’t afraid to get her hands dirty; rather, she embraces it. Ms Thompson tries to get to a job nearly every day to interact with staff, clients and construction crews while trying to understand the business. She often acts as flagman on projects. “It’s a great opportunity to interact with the staff in an environment that they’re more comfortable in, rather than an office-corporate environment,” she said. “Often, our clients are on-site as well, so it’s a great chance to get to know our clients and I find that every single job I go to, I probably learn something new. “It’s been a lot of fun.”

[BW]

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BUSiNESS PROFiLE BY CHARLENE MACAULAY A CHALLENGE to furnish his parents’ doublestorey house for $5000 turned into the ultimate business opportunity for Bill Huynh. The then-24-year-old begged his parents to buy new furniture to complement their new house when they issued him an ultimatum – spend less than $5000 and he could keep the change. Too easy, thought the Monash accounting student. Then he hit the shops.

“It was only until I went to the retailers that I found out I had underestimated how expensive the furniture was,” Mr Huynh said.

some by saying the first order would be a trial order, and then after that I could promise turnover.”

“There was no way I could have got the furniture that I wanted within budget.

He then started working out of a warehouse in Sunshine North, selling designer furniture online.

“I just kept shopping around with hardly any luck, it was very hard to find something that was affordable and really appealing, and with a new house, you want everything to look nice – you don’t want to spoil it with cheap furniture.”

“All the designer furniture was only available to the rich and affluent consumers,” Mr Huynh said.

One day, while looking at an entertainment unit, he spotted the suppliers label, which included the manufacturer’s details.

“Sourcing products direct from the manufacturers and just eliminating all those third-party agents meant we could give the cheapest price.

So, using a bit of cunning, he called the manufacturer direct and posed as an interior designer.

“The goal was to make designer furniture available for all Australians – mum and dads, your average Joe, even first home buyers.”

“They told me to send through my letterhead and a bit about the business, so I used my father’s business letterhead and they gave me the trade prices – which was pretty much cost price.

Mr Huynh said his family and friends questioned the abrupt career change. Likewise, many manufacturers supplying to some of Australia’s biggest furniture retailers would not work with him initially.

“It was half the price of what the retailers were selling it for.”

SECRET

iS OUT

Interior Secrets’ Bill Huynh. Picture: DAMJAN JANEVSKI

Before long, Mr Huynh’s $5000 mission was completed under budget, and Interior Secrets was born.

He ordered some samples in, and soon started turning a profit. He took it one step further and travelled to China to negotiate directly with manufacturers.

“It was a struggle, because I was 24 years old, and to them I was like a little kid. A lot of the manufacturers brushed me off, but I eventually convinced

“It was a bit of a risk to go down that path… three years ago, a lot of suppliers neglected online sellers, they didn’t have much confidence. “No-one ever imagined selling furniture online could be a thing that we do today. In the past, a lot of people didn’t have a lot of confidence making high-value purchases online. Now, people do it on a daily basis, and suppliers recognise this now.” And the manufacturers are signing on with Mr Huynh in droves, so much so that he has just completed designs for a new 5000 square metre warehouse and showroom in Derrimut – more than four times the size of his current premises. Today, the 27-year-old has six employees and delivers Australia-wide, enjoying an annual $1.7 million turnover. To top it off, Interior Secrets was recently voted as one of the 50 fastest growing companies in Australia by the 2012 SmartCompany Smart50 Awards, ranking 19th. [BW]

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NEWS important for real estate agents to leave their egos at the door when working with clients. “If you make it all about you, you’re in the wrong job,” he said. “You need to know why people are changing where they live – it’s about helping people through whatever stage of life they’re at. Compton Green’s Martin Rankin. Picture: KRISTIAN SCOTT

SELLER OF THE CENTURY BY CHARLENE MACAULAY LOOKING to sell your house, or buy a new one? Martin’s your man. Compton Green Senior Sales Executive Martin Rankin was a finalist in the recent Real Estate Institute of Victoria’s awards for the Residential Salesperson of the Year category. The highly sought-after award recognises committed salespeople who promote excellence in service, ethics and achieve

outstanding results. Although he didn’t receive the top gong on the night, Mr Rankin was humbled by the distinction. “I don’t like the limelight much. I’m not an auctioneer, I don’t like being out there in that way. I would never have nominated myself. It was sort of nice, though,” he said.

“The key to a great sales experience is communication; by offering continuous feedback I can lower clients stress levels and raise their excitement. “I see my profession as a long-term relationship building role with all clients, buyers and selling. Sales naturally flow on from that.” Former client Jill O’Callaghan deeply appreciated Mr Rankin’s customer service throughout the sales process.

Mr Rankin was working for an audio company when one of his clients suggested he get into real estate.

“I have sold a number of properties over the years but Martin Rankin is the best real estate agent I have met,” she said.

Mr Rankin heeded the advice and started off working for a private sales company.

“He thoroughly researches previously sold properties and knows the local market intimately.

He moved up the ranks to bigger real estate companies before settling at Yarraville’s Compton Green three years ago, where he sells on average between seven and 12 homes a month. Mr Rankin told Business West it was

“His valuations are realistic and he knows exactly where to pitch the sale. “(He was) honest, straightforward, and I always knew what was happening with the sale.” [BW]

business news west

What’s new in the business community? Calling all business operators! If you run a business in Hobsons Bay, then why not list your business for free on the Council’s new online business directory. Visit www.hobsonsbay.vic.gov.au to register your business today. If you want to stay across current issues and network with fellow business colleagues, join a local business group. There are four recognised traders’ associations in Hobsons Bay – Altona, Laverton, Newport and Williamstown, with many business networks also operating in the area. These groups represent like-minded business people whose focus is on marketing their area and addressing local issues that may affect your business and the region. Why not join one today?

Visit www.hobsonsbay.vic.gov.au/business for more information.

Workshops Hobsons Bay City Council has an exciting line up of business workshops scheduled for 2013. Topics include online marketing, social media, retailing, business planning and customer service to name but a few. To register your interest for next year, simply send an email to the address below.

Newsletter/eUpdate And don’t forget the Council publishes a free business newsletter titled Business Works. You can register to receive this and our regular electronic eUpdate by simply sending an email to the address below. Subscribe today!

For more information please call Sally Curtis, Business and Tourism Officer on 9932 1000 or email business@hobsonsbay.vic.gov.au

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COVER STORY

ATTENTiON TO DETAiL BY CHARLENE MACAULAY MERITOR is a stickler for safety – but you wouldn’t have known it a few years ago. The business, which is a global leader in providing innovative drivetrain mobility and braking solutions for original equipment manufacturers of trucks, trailers and specialty vehicles, employs around 10,000 employees in 19 countries. In Australia, Meritor has a presence with plants in Queensland, Sunshine, and a warehousing operation in Derrimut. It was at the Sunshine plant where the company first came under the ire of WorkSafe inspectors. Former Managing Director Robert Speed started with the company in mid-2010 and soon found his hands full when the company was inspected by a WorkSafe inspector on his second day in the role. “It was a rude awakening for the company, in terms of that we hadn’t met several targets or criteria that were not only important to any business, but were important to WorkSafe,” Meritor’s OH&S leader Damian Del Medico said.

Number one, we don’t want people to get hurt, but it also has a financial benefit for the company… “It actually got to the stage where we were very close to being prosecuted or fined, so that managing director, in his wisdom, was able to make a commitment to WorkSafe… and sure enough, he put in place a new management team and worked together with WorkSafe.” That new structure included establishing the Meritor Occupational Health and Safety Committee, a team made up of representatives from the two Victorian sites and the Queensland site as well as international representation. The committee, which meets on a monthly basis, discusses their progress for that month and details any issues that have arisen in that time. The format saw Meritor take out the Health and Safety Committee of the Year in the 2011 WorkSafe Awards. Mr Del Medico said being in the manufacturing industry posed many challenges for Meritor’s Occupational Health and Safety team.

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“The main hazards we have are traffic management and manual handling, so we’ve done a lot of work in those two areas, as well as a lot of others, to eliminate those hazards,” he said. “When I first arrived, the main issue we had was a lack of communication and a sustainable system going forward. “By the turnover of people, you’d lose the momentum (of keeping up Occupational Health and Safety measures), so we’ve put a system in place so that if I leave, or someone else leaves, the system is sustainable and can go forward.” Mr Del Medico said getting all employees actively involved in OH&S was a key feature in keeping the committee sustainable. All areas of the business are represented by elected employees and management, including Stores, Aftermarket, Production, Quality, Maintenance, Administration and Senior Management. “The committee is critical, because there’s no use in management saying ‘you need to do this’ when it may or may not work,” he said. “There’s no use forcing things upon people, but our committee, the way it’s structured, means everyone is working together. It’s important to get the right result and communicate up and down the line. “Each division of the business has representation in the OHS committee, so there’s a management representative and an employee representative for each individual component of the business, as well as international representation and interstate representation. “If there’s a couple of issues one division is dealing with, by having senior management there and other representatives from other groups, usually you can come to some sort of resolution or plan going forward. “It’s really dynamic – you usually get an answer, because the right people are in the same room at the one time. “There’s definitely been a decline in WorkCover injuries since the committee was formed. “Number one, we don’t want people to get hurt, but it also has a financial benefit for the company. “That’s not the main driver, but if you’re looking at a complete business model, you’re looking after your employees and yourself.” [BW]


COVER STORY Meritor’s Damian Del Medico. Picture: DAMJAN JANEVSKI

MERITOR’S SAFETY TIPS ■ Develop an OH&S Committee

■ Have open communication

■ Involve all levels of the business

■ Target biggest hazards

■ Structures to reduce injury risk

■ Streamline hazard identification

■ Update policies and procedures

■ Install new machinery BUSiNESS WEST

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OH&S

TAKING SAFETY

SERIOUSLY BY CHARLENE MACAULAY

WE’VE all seen the ads – young workers getting injured because they’re too afraid to speak up, the doorknock that no family ever wants to receive. But just how seriously does your business take workplace safety? A total of 20,499 WorkSafe claims were made in the West between July 2006 and June 2011, amassing a $428.8 million damage bill. Hobsons Bay workers received the most compensation ($101.3 million), followed by Wyndham ($96 million), Brimbank ($84 million), Maribyrnong ($71.8 million), Moonee Valley ($62 million) and Melton ($13 million). The claims include injuries where the worker was off work for 10 days or more and/or had medical treatment costs exceeding $580. The bulk of claims were made by workers in the manufacturing, construction and transport industries. Muscoloskeletal injuries, which include slips, trips, falls and dangerous manual handling, continue to be the leading source of workers’ compensation claims across the state, accounting for more than half of Victoria’s 29,000 serious injury claims every year. “The West has a high density of manufacturing, particularly around Altona,

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but also further out we have a transport distribution hub that runs from the western aspect of Altona through to Laverton, across to Derrimut and out to Truganina,” WorkSafe Regional Director Shane Gillard said. “As far as workplace safety is concerned, the statistics are fairly comparable with what we’ve got widespread. “We do have older industry (in the western suburbs), which means that employers need to be on the ball when identifying and assessing risks with safety. “Typically what happens with older workplaces is that they have older plant machinery, and that doesn’t take much for an employer to overlook plant machinery before an injury occurs.” WorkSafe has launched a new campaign focusing on dangerous machines, which in the last five years have been the cause of 450 amputations in Victoria. Across the state, 25 Victorians died on the job in 2011, with nine of the deaths occurring over November and December. Twelve of the deaths occurred in metropolitan Melbourne and 13 in regional Victoria, including eight in agriculture. All but one worker was male. Mr Gillard said it was vital that all businesses made workplace safety a priority for two reasons – employee safety and the company’s hip pocket.

WorkSafe’s Noel (Left), Cheryl and Shane. Picture: JOE MASTROIANNI

“Workplace safety is not really about the workplace – workplace safety is about the broader Victorian community, and the impact that workplace injuries has on the Victorian community. “It’s about family, and for an area like the western metropolitan area, it’s about industry groups and industry bodies making sure that they’re looking out for each other so that workers come home safe every day. “Talk safety – get the conversation started. Talk safety with your employee, because often they know best. The second thing would be to identify hazards and assess risks in the workplace. The third one, most importantly of all, is control the risks in the workplace.” Mr Gillard said workers needed to exercise extra caution in the lead-up to Christmas. “Historically, this time of year is a fairly dangerous time of year. “People are rushing to get things done for Christmas, this time last year we had seven fatalities within only 10 or 12 days, so we’re encouraging employers not to be complacent, and to stop and think before undertaking a task and not take any shortcuts.” For more information on how to keep your workplace safe, visit www.worksafe.vic.gov. au or call WorkSafe’s Advisory Service on 1800 136 089. [BW]


OH&S

OH&S CASE STUDIES DEAR BUSiNESS WEST READERS, EVERY YEAR, AROUND 29,000 WORKERS ARE SERIOUSLY INJURED ACROSS VICTORIA. When a worker is hurt, it not only affects their ability to work but also their family and social life, whether it is sport or playing with your children or grandchildren. It’s bad news for businesses as well, as they need to find ways to deal with the loss of productivity but also an increase in their workplace injury insurance premiums which in turn can affect their profitability. The good news is that all of these affects can be prevented, generally at little or no cost. Because tens of thousands of Victorian employers and workers recognise this and take action to keep their workplaces safer, we have the lowest premiums and safest workplaces in the country. Sadly though, when WorkSafe inspectors visit many workplaces, they find the same problems over and over again. This year, WorkSafe is focusing on dangerous machines, lifting and lowering objects that leads to serious manual handling injuries, domestic construction and falls from height as they are the biggest sources of injuries in the state every year. If they’re not dealt with they could lead to serious, often permanent injuries or a fatality, charges in many cases, and a hefty fine. While we come across some standout businesses that invest heavily in health and safety – and recognise them in the WorkSafe awards, we know more work can be done to make workplaces as safe as possible. Ensuring workers are properly trained and supervised, that they have and use appropriate equipment to lift and move loads, that machinery are guarded and that protective equipment is available will reduce the opportunity for these injuries to happen. Workers and supervisors can also contribute to keeping a workplace safe. Very often, people know what has to be done to get the job done safely, but shortcuts can be taken. We encourage workers to take responsibility for their actions and remind supervisors and employees that they also have a clear and long-established legal obligation to provide a safe workplace. We know workplaces are faced with a range of competing demands but we urge businesses to put some time aside to look around, find the hazards, assess the risks and fix the problem. Shane Gillard WorkSafe Regional Director

VEMBER 2009 WERRIBEE SOUTH – NO ident Worker killed in farm acc failing to Incident: vide a safe workplace and pro to ing fail of nts cou o rs. Tw rke Breach: and supervision to wo provide proper training $100,000 Fine: ed to a back of a trailer attach ers were sitting on the oth two and r rke . wo 09 20 The a shed on 23 November g tractor and returning to it reversed into a loadin ore bef t jus iler tra the off and ped up t jum ge d not die es and could The man who on to his hands and kne bay at the shed, but fell e. tim move out of the way in the driver continued plea to stop the tractor, iler move upwards. r’s rke wo r the ano r hea the tra Unable to only stopped after he felt to reverse the vehicle and ne. sce The worker died at the

TULLAMAR ARINE RINE – FEBRUA U RY Y 200 2009 0 9 Inciden In nci c dent de tt:: de Two Two manufac man anuf ufac uf actu ac turing turi r ng workers wor orke kers ke rs suffer suf uffe ferr serious fe seri se riou ouss hand ou haand injuries Breach Br rea e ch:: Occupational Health and Safety Act breech Fine: $50,000 and $9399 legal costs Two workers at a Tullamarine manufacturing company were installing a switch on a machine which activated and caused crushing injuries to the men’s hands. Hydraulic air hoses had been removed from the area being worked on, but this was not sufficient to fully isolate the machine and prevent it from causing injury.

DERRIMUT – JULY 2009 Delivery company workers at risk of musculoskeletal injuries Incident: Failing to comply with WorkSafe notice Breach: $15,000 and $1500 in legal costs Fine: in July A delivery company’s Derrimut site ignored a WorkSafe notice issued cages steel from s package loading and g unloadin workers 2009 addressing injuries. in an awkward position that exposed them to risk of musculoskeletal The company was given four months but failed to comply with the notice

009 20 ELLFIELD – OCTOBER ess M BE iies rrie AMP juri CA inju off in st o hosst of a ho skk of risk ri at risk kerrss at ke orke or wo w y ny pan pa om com c an a v a av rav ara ar Ca C : t nt: nt de ide i c Inc fe notices rkkSaafe W rkS 0 Wo ithh 10 l wit Failure to comply Breach: $8000 Fine: s addressing common ored 10 WorkSafe notice ign y, pan platform com n ava car eld Campbellfi forklift and mobile work trips and falls, an unsafe problems such as slips, racking. and dangerous storage

BUSiNESS WEST

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BUSiNESS PROFiLE

Smart Lending’s Melissa Gielnik. Picture: JOE MASTROIANNI

SMART AND SUCCESSFUL MEET Australia’s top female loan writer. Smart Lending Director Melissa Gielnik wrote $142.4 million worth of residential and business mortgages to be placed 14th overall, and the highest- ranking female, in the Elite Business Writers Awards 2012. Ms Gielnik was also in the top 10 for the number of mortgages written, and is the fifthranking insurance writer in the country. And she does it all working three-and-ahalf days a week. “I started the business in 2006, I had a baby in 2007 and one in 2008, neither are at school yet. On a Friday, I do kinder duty. I work on work-life balance… (and) I’m competing against all the guys who are fulltime,” she said. “We’re just super-organised. “We’re a very team-orientated environment, we work together really well. Even though I’m three-and-a-half days, my clients would never notice that, because I have such great support.” Ms Gielnik told Business West that she had been thrilled by the distinction. “It’s nice to be recognised. Some of the males that I sit under (on the list) are hugely

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BUSiNESS WEST

successful, I’m really flattered to be in that group. “I think it’s really good for people in the West, because a lot of the larger brokers are in Collins St, so it’s good for people in the West to know they have someone local to the area. I don’t need to be in Collins St to deal with those numbers.” Ms Gielnik is no stranger to awards. In 2005, she won the Australian Finance Group’s coveted Gold Broker Award for Best New Broker of the Year. The following year, Smart Lending went on to win the AFG’s Platinum Award for their use of the group’s customer management system. Smart Lending, which started out in Melton, also has offices in Altona and Geelong and employs four. Ms Gielnik specialises in business loans and super fund loans, as well as standard mortgages. HomeCall Conveyancing, which is run by Ms Gielnik’s mother, also runs out of the Melton office, while Ms Gielnik also provides an insurance arm. “Our goal is always about getting the best package for the customer, and giving the customer a really good experience.

“The reason someone would use a broker compared to a bank would be for the experience. It’s all about the clients – we have clients for life. “We really believe in what we do. “I would not do for a customer what I would not do for myself if I was in their situation. We have really streamlined processes, we try and help everyone. Ms Gielnik plans to double her business over 2013, and has already started by boosting her social media platform with pages on Facebook, LinkedIn and Twitter. She also plans to work with more real estate agents and clients to get her name out. But there is one thing she will not do – open another office. “I’ve tried to spread myself across the West as much as possible,” Ms Gielnik said. “We’re not looking at getting any more offices, but as we grow, we’ll get more support staff. “I don’t want 25 people running around selling my product, I want to be able to deal with the client – because that’s what I do really well.” [BW]


HITTING THE

BUSiNESS PROFiLE

ROAD

BY CHARLENE MACAULAY

NEED a car? What about a limousine? Or a bus? At Melbourne Star Taxi and Limousine Services, the choice is yours. The Keilor business, which has been running for the past 30 years, offers more than 16 different vehicles, catering to four main areas: weddings and classic cars; people movers and mini-vans; buses and coaches; and chauffeurdriven sedans. “We try to cater for as many people as we can,” owner Phil told Business West. “You’ve got your bus companies that don’t offer a limo service, your taxi companies that don’t offer a bus service. “There’s not too many companies that offer everything. Some just do weddings.

Gerrard is one of Melbourne Star Taxi and Limousine Services experienced drivers. Picture: MATHEW LYNN

“We’re a pseudo-type taxi service in one sense, but we’re pre-booked and you know what you’re in for.” But there’s one vehicle Phil refuses to buy: a Hummer, saying they’re flooding the market and would only be a passing fad. What he is passionate about is offering a pre-booked service with experienced drivers across metropolitan Melbourne and regional Victoria. All of his drivers are over the age of 50 and all, according to Phil, offer an exemplary standard of service. “Why use uninsured taxis and poor quality drivers, when you can travel in comfort and safety at much the same price? “Our drivers all have standards and a bit of etiquette – opening the door, etc.

“ BUSiNESS WEST

Why use uninsured taxis and poor quality drivers, when you can travel in comfort and safety at much the same price?

“They know how to treat people. They know to take out a woman with a walking frame and walk her in, give their card at the desk and come back when she’s done. “That’s not taught anymore.” Melbourne Star also provides baby seats at no extra charge and is popular among retirement homes and the elderly for safe taxi transport for the aged, retired, infirm and injured. The business has grown over the last three decades through a mix of word of mouth and advertising, with Phil starting out as a taxi service and slowly building his fleet to include luxury vehicles. “It’s a growing area, the West. “If your clients are happy, then they’re going to come back, and then they tell their neighbours, or a family member.” [BW]

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STRATEGiES

DiRECTORS BEWARE ATO CHANGES LEGISLATION MAKING YOU PERSONALLY LIABLE IN the May 2011 Federal Budget, the Australian Federal Government made its intentions clear in proposing amendments to the tax legislation surrounding “Director Penalty Notice” (DPN) provisions in an attempt to deal with “phoenix activities” by Directors.

WHAT CHANGES DO YOU NEED TO BE AWARE OF? The new legislation makes directors personally liable for not only unpaid PAYG withholding, but also unpaid SGC.

These proposed amendments formed the basis of the new Bill, passed on 29 November 2011, which aims to:

Under the new legislation, if the company has an unreported and unpaid debt that is three months or older, the Commissioner can and will commence recovery proceedings without issuing a DPN. Any inadvertent administrative errors could result in immediate recovery proceedings being commenced by the ATO.

1. Deter fraudulent phoenix company activity; and

Liability of Family Members

“Phoenix activities” are arrangements whereby a company incurs, but does not pay, various liabilities whilst carrying on business activities.

2. Protect employee superannuation entitlements. The Government aims to achieve these objectives by: ■ Extending the director penalty regime to make directors personally liable for their company’s unpaid Superannuation Guarantee Charges (SGC) (in addition to the existing liability for PAYG withholding); ■ Allowing the Commissioner of Taxation to commence proceedings against the directors without the need to first issue DPN’s if the company’s liabilities to the ATO are not paid by the company for three months or more; and ■ In some circumstances, make directors, family members and associates liable for PAYG withholding tax where the company has failed to pay amounts withholding to the ATO. HOW DOES THIS DIFFER FROM PREVIOUS LEGISLATION? Under the previous legislation, directors’ liability did not extend beyond PAYG withholding amounts. In circumstances where superannuation guarantee amounts formed part of the employee rights, if such amounts were not recovered from the employer, their benefit to the employee was lost completely. In addition, prior to the ATO taking any action, it issued a DPN and allowed directors 21 days to do one of three things: 1. Pay the full amount of PAYG; 2. Appoint an Administrator to the company; or 3. Wind up the company. This will no longer be the case.

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4. Contact your accountant immediately upon receipt of any DPN’s or other related correspondence from the ATO. Timing of remedial actions is critical! 5. Understand whether you, your co-directors, and even family members are potentially exposed. Ignorance is never an acceptable defence. Seek professional advice if you are unsure or concerned about your potential personal liability.

The new law also exposes ‘associates’ – namely family members and other associates of the company to personal liability. This will be done by imposing a new PAYG withholding non-compliance tax equal to the amount of any PAYG credits to which the family member is entitled in respect of payment received from the company. It is important to note that family members do not need to have any knowledge of the fraud committed. If he or she: ■ knew, or ought to have reasonably known of non-compliance; and/or ■ was treated more favourably than other employees (regardless of the knowledge); the tax can and most likely will be applied. Liability for New Directors New directors also have to be alert and keep in mind these new changes as they can become personally liable for outstanding PAYG and SGC after 14 days from their appointment. What should you do? We recommend directors follow this five step plan: 1. Immediately review your business’ PAYG and SGC lodgement histories and assess the extent of any unpaid and/or unfunded liabilities. 2. Immediately get your company’s BAS and IAS returns up to date. Always lodge these returns within three months of their due date. 3. Lodge your BAS and IAS returns even if your company can’t pay them! By not lodging the return, it is highly likely you will find yourself personally liable.

FABIO CAMMARANO is a Partner at Collins & Co and heads up the Business Valuations and Forensic Accounting division. He is a fellow of CPA Australia with a Masters of Taxation and has almost 20 years experience in public practice, providing tax and business advice to his clients. Having joined Collins & Co as a graduate, Fabio climbed the corporate ladder, where he now advises small to medium sized businesses rangingt in turnover from $500k to $100m in many industries including: Property and Construction, Real Estate, Transport, Manufacturing, Engineering, Retail and Professional Services. Fabio is Treasurer of the Footscray Traders Association, Treasurer of the Business Network International - Yarra Chapter, and also co-chairs the Western Region Business Club. Fabio can be contacted at Collins & Co on 03 9680 1000 or fc@collinsco.com.au.


STRATEGiES

YES, YOU NEED A WEBSITE FOR more than a decade now, we have heard that websites are important for businesses. In 2001, I began approaching small business owners, telling them they needed a website or else they would get left behind. Most were curious but many had no idea what I was talking about. Now, more than a decade later, and many Australian businesses are still attempting to compete without a website. Clearly, many small business owners do not really see or understand the benefits of having a website. Is it just another unnecessary cost? Is it an investment they are able to delay or forego altogether? There are three major reasons why a website is an important investment that benefits every business looking to compete in an increasingly global marketplace: A website widens your market and brings you more customers I have no doubt that most of you have prospective customers who are online right now, anywhere in the world, looking for businesses like yours. Your customer uses a search engine, like Google or Yahoo, to type in what they are looking for – be it the name or brand of a product or the type of service. Search engines then display to them the long list of websites where they are likely to buy the product or service. They find what they need, they visit the website and a transaction takes place. If you do not have a website, you do not show up on this list and you have lost out on that purchase. A website helps promote your business more cost-effectively Think of all the things you do to promote and spread the word about your business. Think of the cost of direct marketing: printing and

distributing thousands of flyers, brochures and catalogues. Let’s assume it costs $1 to print a brochure. On average, one per cent of the people who receive your brochure actually respond (this is called the response rate). How many would you need to print to get just 100 people to enquire about your product or service? The answer is $10,000 worth, and that is just the cost of printing. Add on top of that the cost of distribution and getting your print material professionally designed, and the number can easily double. A basic website provides information about your business to anybody who has a computer connected to the internet. The cost? Anywhere between $1000 and $3000. Unlike brochures, flyers or catalogues, you do not need to re-print more copies if you run out. With a brochure or a printed catalogue, you can only print so much information on a few pages. If you have a website, you can print unlimited pages of information for a fraction of the cost. Not only that, your website is available any time of the day, any day of the week! A website allows you to start and operate a business at a relatively low-cost Think of the costs of starting and operating a brick and mortar business. If you sell products, you need to pay rent, display shelves, fixtures, furniture and then you have staffing costs. These costs can vary dramatically depending on what kind of business you are in and the type of customers you wish to target. However, regardless of what your circumstances may be, websites can drive a lot of these costs down or eliminate them altogether. Let me give you a few examples.

MARQUEZ COMELAB is the Managing Director of Oranges and Lime in Melbourne, helping businesses do business online with web design, web development, SEO and other web services. Visit: www.orangesandlime.com RENT – If you have an online store, you do not need to rent floor space in a building located on a highly sought-after street. You can rent a small office space, or even operate from your own home and you can store your products in a densely-packed warehouse in a remote location where the rent is relatively cheaper. 24 HOUR, SEVEN DAY TRADING WITH MINIMAL UTILITY BILLS – You do not need to close your shop during non-business hours. Your website is always available for your customers to browse your online catalogue, make payments and send their orders through. You reduce staffing costs, rent and utility bills that are normally associated with keeping open after hours, on weekends and holidays. STAFFING COSTS – Having a website means you can automate a lot of your business processes. For example, a prospective customer can browse your brochure or catalogue and make payments for orders they place without the need for you or an employee to assist them. Having a website is like having an employee because it can be programmed to do basic, repetitive tasks for you. In summary, a website is very important for small business owners and managers. Having a website allows you to compete with more financed, more resourced competitors by providing access to customers from all over the world. A website also reduces your advertising and promotional costs by complementing your marketing, advertising and promotional activities. Lastly, a website provides small businesses many opportunities with which they can reduce their operating costs, rent, utility bills and staffing expenses. When you are a small or start-up business, there is nothing more important than keeping your costs under control to become or be a profitable business.

BUSiNESS WEST

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OUT OF HOURS ALTONA COMMUNITY BANK BRANCH THE Altona Community Bank Branch recently turned double digits, with a special event to celebrate its 10th birthday. Chairman of Altona/Laverton/Point Cook branches Henry Da Silva, left, celebrated with Altona Bendigo Bank Senior Manager John Dawson. Picture: DAMJAN JANEVSKI

1

COMMITTEE OF WYNDHAM THE Committee for Wyndham hosted its Annual Keynote Speaker Dinner at Werribee Mansion. 1. Western Bulldogs’ Tom Lister and Nick Truelson, Alex Fraser’s Peter Murphy and Michelle Murphy. 2. Jacqui Cooper OAM, was the guest speaker. 3. Commmitee for Wyndham’s Peter Wilks, Maxine Hudson, and Lesley Wilks. Pictures: MATHEW LYNN

GREATER MELTON CHAMBER OF COMMERCE

2

3

WESTWATERS HOTEL COMMUNITY GRANT PRESENTATION WestWaters owners Joe and Eddie Gauci hosted a community grant presentation dinner recently. Hawthorn Football Club’s Greg Cook, The Orange Pigeon’s Julie Toll and Dean O’Loughlin, and Westwaters Hotel Director Eddie Gauci. Pictures: MATHEW LYNN 1

2

THE Greater Melton Chamber of Commerce put on an Italian feast, wine tasting and winery tour, at Plumpton’s Galli Winery. Travis Bell, the Bucket List guy, pictured right, was the guest speaker. 1. Get Printed’s Tom Dickson. 2. Practical Outcomes’ Paul Gladwell. Pictures: MATHEW LYNN

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BUSiNESS WEST


OUT OF HOURS 1

WESTGATE CALDER BUSINESS FORUM

1. Bank of Melbourne’s Michael Carew and John Germano, Jim’s Antennas’ Andrew Parke and Graphic Effects’ Iain Gartley. 2. Harwood Andrews Lawyers’ Collin Twig, Tile Mart’s Steven Callendro, Commitee for Wyndham’s Nik Tsardakis, and West Side Building Surveying Rocco Di Raco. Pictures: MATHEW LYNN

THE Westgate Calder Business Forum hosted a sporting-themed networking event at Whitten Oval’s Pound Café recently. Head Coach of the Melbourne Tigers Basketball Team for the 2012/2013 season Chris Anstey took to the microphone, while the Western Bulldogs Football Club also gave an update on their growth plans over the next three years.

2

WESTERN REGION BUSINESS CLUB 1. Kevin Muscat, was guest speaker at the most recent Western Region Business Club networking event at Whitten Oval’s Pound Café. 2. Hobsons Bay City Council’s Sally Curtis, left, Western Melbourne Tourism’s Richard Ponsford and Intercept’s Ivon Lacy. 2 3. Finch Industries’ Blue Finch, left, Collins & Co’s Paul Kelly, Max Johnstone of Max Johnstone Real Estate and Verduci Lawyers’ Keith Box. Pictures: MATHEW LYNN 1

3

FEMALE entrepreneurs from across the West came together recently in a unique business networking event. More than 55 women attended the Wealthy Wise and Stylish Women workshop at Williamstown RSL, where Simone Outteridge, pictured right, from Outer Edge Business Coaching told the women the best ways to achieve more from their small business to give themselves the edge over their competition. Personal stylist and business image specialist Colette Werden, left, and event organiser Adrienne Rush were also guest speakers on the night. More than $2000 was raised from the event and a similar one held in July, with proceeds to be split between Fitted for Work and Women’s Health West. 1. Experience Wealth Consulting’s Kim Payne and Lisa Nguyen, and Newin Instutute’s Lorraine Bosnich. Pictures: JOE MASTROIANNI

WEALTHY WISE AND STYLISH WOMEN WORKSHOP 1

BUSiNESS WEST

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Q&A

FLYiNG HiGH 1. DESCRIBE A TYPICAL WORKING DAY.

There is no typical day being CEO of Avalon Airport. The operational aspects of the airport are managed by the management team and therefore I have little input into the day-to-day airport operations. Therefore my day normally consists of ensuring managers have the tools to do their job and also meet with prospective customers of the airport and also monitor the process of the airport. Normally I have three to four set meetings per day with people outside the company. I am in Melbourne a couple of days a week meeting with either government departments or shareholders. This year I have been overseas six times and interstate many more. 2. WHAT WAS YOUR FIRST JOB, AND WHAT SKILLS DID IT GIVE YOU TO GET YOU WHERE YOU ARE TODAY? My first job was as a trade assistant at a company call ASTAAS at Avalon Airport. This job provided me with the understanding of how a manager should treat his team. During my time there I was fortunate to work under many great leaders but also was subjected to working with some poor leaders. The difference in my performance was impacted by the leadership style of those leaders. 3. WHAT HAS BEEN YOUR BIGGEST CAREER SUCCESS TO DATE? I think seeing he continued transformation of Avalon Airport from a small regional airport to an airport recognised by all levels of government as being the next international airport is pleasing, however, hopefully my greatest achievement is yet to come when we commence international operations. 4. AVALON AIRPORT NEIGHBOURS ONE OF THE FASTEST GROWING AREAS IN AUSTRALIA – WYNDHAM. WHAT ARE THE BIGGEST CHALLENGES AVALON AIRPORT FACES TO ACCOMMODATE THIS GROWTH? We view the growth of the Wyndham area as a huge positive for Avalon Airport. The growth of Wyndham will provide greater demand for addition aircraft services. My role is to ensure that airlines are aware of this growth and our facilities are able to accommodate this growth.

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5. THE FEDERAL GOVERNMENT HAS RECENTLY AGREED TO ALLOW AVALON AIRPORT TO BUILD A NEW INTERNATIONAL TERMINAL AND BECOME VICTORIA’S SECOND INTERNATIONAL AIRPORT. HOW SOON WILL THIS COME INTO OPERATION?

At this stage we plan to focus on securing an international airline before we construct the terminal. This is because the airline which we secure will have unique requirements for the terminal building. It is then hoped, after securing the airline and constructing the terminal, that the terminal will be extended by stages to accommodate further growth. 6. LAST YEAR AVALON AIRPORT BECAME THE FIRST AUSTRALIAN AIRPORT TO RELEASE AN IPHONE APP THAT INCLUDES, AMONG OTHER THINGS, UPDATED JETSTAR DEPARTURES AND ARRIVALS, MAPS OF THE AVALON ACCESS FROM VICTORIAN LOCATIONS, AND A PLAN OF THE TERMINAL. WHAT ARE YOUR THOUGHTS ON THE INTERNET AND SOCIAL MEDIA – ARE THEY EFFECTIVE TOOLS FOR BUSINESSES LIKE AVALON? Yes, they have been very effective. We were the first airport to have an iPhone app and now many other airports have followed. Avalon Airport is a new airport and therefore many people have not been to the airport before. So the more information we provide about getting to and from Avalon Airport, its flights, and its facilities available, makes these people more comfortable about using Avalon Airport for the first time. 7. IF YOU COULD JUMP ON A PLANE RIGHT NOW TO YOUR DREAM HOLIDAY DESTINATION, WHERE WOULD IT BE, AND WHY? Firstly, my dream holiday would include departing from Avalon Airport, parking in the low cost convenient car park, checking in without queues and boarding the plane without delays. I think if we could achieve this out of Melbourne it would be a first and it would make my holiday a dream regardless of what destination.

JUSTIN GIDDINGS became CEO of Avalon Airport in December 2008. Previously Justin was the Commercial and Operations Manager at Essendon Airport for seven years. During his tenure he has negotiated with Tiger Airways to commence domestic operations, successfully resigned a new International Airshow agreement and is continuing to pursue international endeavours. Justin is a fully qualified Aircraft Maintenance Engineer, has a Diploma of Management, a Bachelor of Commerce majoring in Economics and Accounting and a Masters of Business Administration. 8. IF YOU HAD TO INVITE FIVE PEOPLE TO A BUSINESS LUNCHEON, WHO WOULD IT BE? ■ Jeff Kennett ■ Viv Richards ■ Lindsay Fox ■ Stephen Silvagni ■ Sir Stelios Haji-Ioannou 9. WHAT ARE THREE QUALITIES EVERY BUSINESS OWNER NEEDS? ■ Vision ■ Access to capital ■ A good CEO 10. HOW DO YOU RELAX AWAY FROM WORK? I enjoy going to watch my beloved Blues, although recently it hasn’t been that relaxing! I also enjoy test cricket and of course I have a wife and two young boys who always ensure my feet are planted firmly on the ground.


Tax

A BUSiNESS WEST PROMOTIONAL FEATURE

BUSINESSES will start to receive letters from the ATO advising them how the ATO sees them according to their risk rating model. Some of the factors they will probably take into account is your compliance and lodgement history, any capital asset sales, whether your business performance fits within your industry benchmarks, the industry you are in, the business structures being used, and your ATO debt history. While these letters will cause a number of people concerns when they are told they are in a high risk category, it is probably better that you know how the ATO sees you. So what can go wrong in these assessments? The first problem is in using industry benchmarks. Inherent, in the need to categorise everyone, the tax return requires you to choose an industry or occupation code. The first problem with this is that a number of businesses are actually multiple businesses in that they don’t conduct a business that fits one industry code. Secondly, industry benchmarks work on averages. We know that in some businesses they are outside of the norm due

HOW iS THE

ATO RATING YOU?

to their particular circumstances. For interest, compare a liquor outlet in Queensland with one in the ACT or NSW where in those states liquor can be purchased at supermarkets. Therefore liquor outlets in areas close to supermarkets would be directly competing and one would expect higher turnover and lower margins. Also the same type of business in a lower economic suburb would be expected to have high turnover of standard beer and cask wine with lower margins. Another example is a business that although in a standard industry code, may provide specialist equipment with low turnover and high margins, as compared to another that has high turnover and lower margins. What about a business that provides wholesale sales, as compared to another that only does retail sales? Recently, the ATO has received criticism, for amending tax

returns solely based on industry benchmarks, in recognition of these types of discrepancies. The benchmarks are just one factor to consider but need to be viewed in the light of the particular circumstances of the business. So what can you do if you receive this assessment and you disagree with the rating? The risk rating may indicate the likelihood of your business being subject to an ATO audit. It is suggested that you contact your WHK adviser and seek quality advice on why your rating is as advised. Smart Company recently published an article on the recent review by the Inspector General of Taxation that looked at the way the ATO uses benchmarks to target the cash economy and how it can affect SME’s (read more at www.smartcompany. com.au/tax/). The ATO wrongly investigated almost 6,000 small business

owners for being non-compliant cash economy taxpayers, according to a review by the Inspector General of Taxation released on 4 October 2012. The review looked at the way the ATO uses benchmarks to target the cash economy. It found general support for the benchmarking approach used by the ATO but it also found the Tax Office made adjustments in only 24 per cent of the 7,600 benchmark audit cases it considered, leaving 5,830 businesses wrongly accused. In some cases it may be prudent to advise the ATO of the concerns and your reasoning for being outside of industry norms or other identified factors. It might just save a costly audit. It might also be time to take out that audit insurance.

PETER MAYALL Principal, Accounting & Business Advisory, WHK Werribee office

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18 Synnot St, Werribee 3030 T: 9742 8444 E: werribee@whk.com.au Advicelimited is provided under licence of WHK Planning Pty Ltd ABN 51 060 631 238or 244. Liability by a scheme approved underFinancial Professional Standards Legislation other092 than forAFSL the acts omissions of Lending advice is provided under WHK Pty Ltd Australian Credit Licence number 389 054.

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www.whk.com.au BUSiNESS WEST

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WORD SEARCH Altona Beaspoke Safety Benlor Brimbank BTI Logistics C One Beauty Collins and Co Complete Hire Derrimut General Laser Highpoint Hire a hubby Hobsons Bay Insurance Jobs Lithocraft Management Maribyrnong Westgate Wise Employment

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BUSiNESS WEST


BW NETWORK Business West Network – a growing directory of local businesses ready to do business with you. You can join the Business West Network by registering online at www.businesswest.com.au to make sure you receive your personal copy of Business West AND receive a free onetime 30-word listing for your business in a future edition. BAYTI HALAL BUTCHER 55 Baltimore Drive, Point Cook, Victoria 0401 357 838 Provide Halal meats to local area.

ABLE INDUSTRIES ENGINEERING 5 Sutton St, South Kingsville, Victoria 9391 1522 Able Industries Engineering is a sheet metal and fabrication engineering business. Business sectors are defence, energy, rail, construction and mining. Able Industries Engineering has ISO9001:2008 quality management system. ACI ELECTRICS 10 Bethanga Ct, Taylors Lakes, Victoria 9390 2888 Electrical contractors including commercial industrial and domestic installations, supply and install split system air conditioners, data cabling, security systems supplied and installed servicing all suburbs. AGIFT PO Box 2106, Taylors Lakes, Victoria 9012 5429 www.agift.com.au Personal and Corporate Gift Solutions Simply log on to www.agift.com.au and choose your occasion, recipient or category. Find the perfect gift that makes you smile and order online. Or, call our friendly staff for a quote on corporate gifts or promotional products. AGRICOLA WUNDERLICH & ASSOCIATES 17 Alfrieda St, St Albans, Victoria 9366 4011 Legal services in variety of areas provided by experienced lawyers.

ANZ 17-19, 47 Little Boundary Rd, Laverton North, Victoria 0431 659 456 www.anz.com ANZ Small Business Banking provides small and medium businesses financial support and advice when starting, maintaining and growing your business. BADENACH CONSULTING C5, Level 1, 2 Main Street, Point Cook, Victoria 9394 6342 www.badenachconsulting.webs.com Badenach Consulting is a specialised law firm assisting clients in the areas of workplace relations law, human resources, industrial relations, EEO, workplace investigations, training and mediation.

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BANJAR GROUP PO Box 398, Essendon, Victoria 9337 3933 www.banjargroup.com.au Through excellent facilitation we can help anybody or any organisation, who share our passion, improve their sales environment and success.

Call 0419 546 159 now apmarketingworks.com.au

BOXFULL GIFTS & HAMPERS 17 Willowbank Way, Attwood, Victoria 0407 823 633 www.boxfull.com.au Box Full Gifts and Hampers offers a vast range of hampers, baskets and other gifts to corporate customers and the general public. Need a corporate gift hamper for a customer or employee? Celebrating a birthday or anniversary? Whatever the occasion, we have the perfect gift. Don’t be disappointed by a hamper that’s mostly filling! At Box Full we are true to our name. CAFE TERRONI 18 Ballarat St, Yarraville, Victoria 96878011 www.cafeterroni.com.au Cafe Terroni is an authentic Southern Italian restaurant located in the heart of Yarraville Village, offering rustic food, great coffee and unique local and Italian wines. Open 7 nights. COMMITTEE FOR WYNDHAM PO Box 2296, Werribee, Victoria 03 8742 4290 CFW brings together industry/business leaders with community/government organisations to identify and analyse local issues and work strategically to promote Wyndham as an exciting and dynamic place to live and work.

ALTONA GLASS & SHOWER SCREEN 233 Sunshine Rd, Tottenham, Victoria 9315 1983 Fast glass repairs, shower screens, new and repairs, affordable same day service.

Don’t Waste Marketing Dollars. Get Expert Advice Before You Spend!

BENDIGO AND ADELAIDE BANK LTD 15 Douglas Parade, Williamstown, Victoria 9399 9266 Company retail Branch of Bendigo and Adelaide Bank.

CUSTOMER-CENTRICITY 63 Steiglitz St, Ballan, Victoria 0417 344 864 I work with business owners and their staff to develop excellent relationships with their clients, which assists in business success. I specialise in working with sole traders, home based businesses, and SMEs. DILLON PARTNERS PO Box 98, South Melbourne, Victoria 9696 1788 Auditing, accounting, Taxation and management consultants for small and medium businesses. DPS PRINT MANAGEMENT 13 Habitat Court, Tarneit, Victoria 0407855095 www.dpsprintmanagement.com.au DPS Print Management offer a full range of printing and promotional services to get your businesses advertising out to your customers and your target markets. Very competitive pricing with 30 years experience. SUNSHINE INSURANCE BROKERS PTY LTD 3 Marti Court, Sunshine West, Victoria 0410581153 www.marsh.com.au/lambrosmoschoyiannis We help business owners identify risks and hazards so that the business is adequately covered. We then arrange coverage that achieves the best protection and value for money. WEST2EAST RECREATION PO Box 727, Williamstown, Victoria 93970975 www.linkedin.com To add value to sport and business related enterprise and their customers through strategic planning, enhanced relationships and social media marketing initiatives.

COMMONWEALTH BANK OF AUSTRALIA LTD Unit 3, 37-39 Little Boundary Road, Laverton North, Victoria 0424139314 www.commbank.com.au The Local Business Banking Western Metro team of expert bankers supports local businesses located in the West through the provision of tailored advice on financing, transactional banking and insurance solutions.

WEST MEADOWS HOMES 3 Alfred Langhorne Close, Seabrook, Victoria 0418548157 A family owned business which started in 1992. West Meadows Homes constructs new homes and unit developments on Vacant or knock sites. Ring Geoff Galea on 0418548157

COMMUNITY TELCO 83A Moorabool Street, Geelong, Victoria 0400 030 659 www.geelong.communitytelco.com.au By bringing together the telco spend of local businesses, these local Community Telco companies leverage national buying power whilst keeping profits and contributions local.

WESTERN ALLIANCE FOR GREENHOUSE ACTION Wyndham City Council, 2/10 Watton Street, Werribee, Victoria 0418901821 wyndham.vic.gov.au Facilitating action to address climate change in the western region.

COMPLETE COMFORT (VIC) 21 Comben Drive, Werribee, Victoria 9741 8507 Specialist Suppliers of premium quality adjustable beds, lift chairs, mobility scooters, daily living aids, compression products, incontinence products, and much more. Service and repair available.

WORKSAFE 222 Exhibition St, Melbourne, Victoria 99404532 www.worksafe.vic.gov.au State workplace insurance scheme and safety regulator.

CRASH IT PTY LTD Unit 6 - 61 The Gateway, Broadmeadows, Victoria 03 9359 1444 www.crashit.com.au Crash IT Pty Ltd, lowering your IT costs and increasing profits. We offer end to end, highly specialised and experienced IT professionals to deliver cost effective IT solutions.

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Werribee Hyundai is a third generation family owned & operated business situated in the heart of Werribee’s CBD. Since 1962, our family has been dedicated to meeting the automotive needs of the community & developing genuine customer satisfaction with all our customers. We continue to do so with a professional sales, service, parts & administrative team, all of whom are committed to providing you with the highest level of quality service & the latest Hyundai technology.

If your looking for a new vehicle for personal use or as part of your business eet call 9741 4444 and speak to Jim or one of his team who will only be to happy to assist.

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~ Paul Hopper Dealer Principal


Business West December 2012