b2b magazine may 2012 (issue 71)

MAY 2012b2bincanberra.com.au 71CANBERRA’S BUSINESS & GOVERNMENT MAGAZINE

$4.95 inc. GSTWHAT IS YOUR BUSINESS WORTH?Ross Beames explainsthe cold hard truth

TIPS FOR THE YOUNG PROFESSIONALRSM Bird Cameron gives you the good oil

STOP COLLABORATE AND LISTENFGD is back with a brand new invention

$4.95 inc. GST

ISSN 1833-8232

9

771833 823005

01

PART OF CANBERRABrookfield Multiplex ServicesBrookfield

NEW 20 PAGE B2B PROPERTY SECTIONEssential reading for everyone interested in the property industry

INCLUDES: • COMMERCIAL PROPERTY• INVESTMENT OPPORTUNITIES• BANKING AND LENDING• LEGAL SERVICES FOR PROPERTY

• BUSINESSES FOR SALE• ACT WINNERS AT REIA AWARDS• EXECUTIVE APARTMENTS IN THE ACT• INDUSTRY NEWS

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C O N T E N T S

B2B EDITORIAL

Why are we always looking for new industries in the ACT?This month we are excited about kicking off a property section. We have resisted starting a specifi c section related to property for almost six years. We didn't want to just mine the rivers of gold

that a property section can become. We wanted to provide a place where not only the property industry can call home, but a place where those wanting to get an insight into this great industry can gain access. Over the coming months B2B Property will develop and include articles and essays about property related issues, analysis of the local market, profi les of key people in the industry and contributions from the major industry bodies. Please contact me with feedback and suggestions for this new and exciting section in B2B.Without a doubt the property industry is essential to the ACT economy - but why is it that ACT Governments of all colours (red, green and blue) are always looking to fi nd that 'new' industry that will fi ll up the local coffers for years to come. VOX POLI in this issue of B2B asks our local political leaders 'What are the major industries that will see the ACT prosper in the 21st Century'. Only one of them, Greens Leader, Merideth Hunter, mentioned the public service. Surely this is the 'elephant in the room' when it comes to developing industries in the ACT. The question has to be of course 'how can we develop Australia's excellence in government and delivery of government services into a massive export business for the ACT?' Maybe a topic for another issue ... B2B is also proud to be supporting the RSPCA in Canberra and promoting the up coming Million Paws Walk 2012. This will take place on Sunday 20 May starting at Stage 88, Commonwealth Park. You can register online at millionpawswalk.com.au. B2B is also supporting the Cancer Council Canada Day Fun Run. Now in its 23rd year the Canada day Fund Run will take place on Sunday 24 June. Go to www.actcancer.org for more information and to register. It is rumoured that Mounties and a moose will make an appearance on the day. Please send all comments to [email protected]

17 COVER STORY

PART OF CANBERRA

photos by Andrew Sikorski

TIM BENSON

Editor

Brookfield Multiplex ServicesBrookfield

FeedbackThank you to those that provided comment in relation to last months editorial 'Small and micro businesses snubbed by Centenary of Canberra organisers'. It is rumoured that there may be an opportunity for Canberra busineses to get involved through a small contribution that may assist a local community organisation to put something on during the Centenary - and maybe even receive a nice certifi cate and a sticker that can be displayed in their business - I'll keep you posted.

C O N T E N T S

LEGAL NOTICEMan Bites Dog Public Relations (‘MBD’) owns the copyright in this publication. Except for any fair dealing as permitted by the Copyright Act 1968 (Cwth), no part of this publication may be reproduced without the prior written permission of MBD. MBD has been careful in preparing this publication, however: it is not able to, and does not warrant that the publication is free from errors and omissions; and it is not able to verify, and has not verifi ed the accuracy of the information and opinions contained or expressed in, or which may be conveyed to readers by any advertisement or other publication content. MBD advises that it accepts all contributed material and advertisements contained in this publication in good faith, and relies on various warranties and permissions provided to it by the persons who contribute material and/or place advertisements. Those warranties and permissions include that neither the material and/or advertisements are misleading, deceptive or defamatory, and that their use, adaptation or publication does not infringe the rights of any third party, or any relevant laws. Further, MBD notifi es readers that it does not, nor should it be understood to endorse, adopt, approve or otherwise associate MBD with any representations made in contributions and/or advertisements contained in the publication. MBD makes no representation or warranty as to the qualifi cations of any contributor or advertiser or persons associated with them, and advises readers that they must rely solely on their own enquiries in relation to such qualifi cations, and be satisfi ed from those enquiries that persons with whom they deal as a result of reading any material or advertisement have the necessary licences and professional qualifi cations relating to the goods and services offered. To the maximum extent permitted by law, MBD excludes all liabilities in contract, tort (including negligence) and/or statute for loss, damage, costs and expenses of any kind to any person arising directly or indirectly from any material or advertisement contained in this publication, whether arising from an error, omission, misrepresentation or any other cause.

ISSN 1833-8232

PUBLISHER I EDITORTim [email protected] 6161 2751

ADVERTISING ENQUIRIESTim Benson 0402 900 [email protected]

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FEATURES

08 Business valuation insights from Beames

12 Tips for the young professional from RSM Bird Cameron

VOX POLI10 What are the major industries that will see the ACT prosper in the 21st Century?

OPINION

14 Juliette Ford, Director, Farrar Gesini & Dunn, is back with a brand new invention

COVER STORY17 Brookfi eld Multiplex Services- Part of Canberra

21 ADVICE FROM THE EXPERTS22 ACCOUNTING Not-For-Profi t fi nancial reporting reform By RSM Bird Cameron

BUSINESS LAW High Court tells Occupiers – Clean up your Act! By Elringtons Lawyers

23 BUSINESS SERVICES The ATO’s new weaponry…revamped! By Kazar Slaven

COMMERCIAL PROPERTY Timing the Move!! By Ray White Commercial

24 CORPORATE GOVERNANCE Cash flow By Australian Institute of Company Directors

ESTATE PLANNING The alchemy of the 54/11 By Certus Law

26 RESIDENTIAL PROPERTY The silver lining in buying up in a down market By Ray White Kingston

STRATEGIC FINANCIAL ADVICE Safeguarding your personal assets By Perpetual

28 TALENT SERVICES Human Resource Management – What are the options? By Cantlie

WEBSITES Facebook Timeline – story of your life! By Synapse Worldwide

A2B: ASSOCIATIONS TO BUSINESS 30 ACT EXPORTERS: NICTA video analysis technology takes North American road trip

31 CANBERRA BUSINESS COUNCIL: Budgets, Business Strategies and Politics

32 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: A season of change in employment law BUSINESS NETWORKING34 B2B @ RSM Bird Cameron 90 Years of Connections

35 B2B @ Christchurch Earthquake Appeal Dinner

36 B2B @ Lifeline Canberra Annual Cocktail Party

37 B2B @ National Folk Festival

38 B2B @ ActewAGL’s Business Rewards Club Launch

39 B2B @ Chamber Business After Dark

40 B2B @ Act & Region Indigenous Expo

41 PROPERTY 42 BENDIGO BANK

44 RAY WHITE Property Advice

46 REIA AWARDS

48 RAINE & HORNE Win National Commercial Agency

50 RAY WHITE Talks invesetment properties

52 BRINDABELLA BUSINESS BROKERS Reducing risk to the buyer

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M AY 2 012 B 2 B I N C A N B E R R A8

F E AT U R EF E AT U R E

Did you ever hear the story about the American company that floated its shares on the public stock exchange during the ‘tech boom’ with no staff, no business plan, no core business products/services and no stated direction?

Would you believe at the height of the tech boom many investors flocked to this stock to subscribe for shares and push the share price to a multiple that was many times the cash asset backing of each share? I’m sure you can guess what happened next.

As Warren Buffet once said, Price is what you pay and Value is what you receive. Never confuse the two, and such confusion can be avoided through understanding some key concepts regarding business valuations.

The classic price versus value dilemma will raise its ugly head at every single residential property auction taking place this weekend all over Australia. When a ‘hot auction’ takes place for residential property, the property as an investment has only one value but the price investors pay may be something completely different. The same goes for bidding wars when two parties compete for a particular business.

The price of a business asset can vary with its value due to:

• Differing perceptions of risk• Differing perceived growth potential• The synergies that can be achieved by merging• The desire to make a strategic acquisition• The way a deal is structured• The net after tax benefit to the parties as

a result of different tax structures• The desire to achieve economies of scale• The desire to eliminate competition

DID YOU EVER HEAR THE STORY?

PRICE VERSUS VALUE

RULES OF THUMB- DO NOT USE THEM!!!

BUSINESSVALUATIONINSIGHTS

Ever been convinced to buy a business based on a widely accepted ‘rule of thumb’? ‘Rules of thumb’ are a dangerous valuation technique where it is being used as the definitive valuation tool in a business valuation exercise. Classic rules of thumb have been around for many years such as the small number of examples listed below.

You should never adopt ‘rules of thumb’ as your primary valuation technique because:

• they incorrectly assume every business is being run at its optimum efficiency and profitability

• they lead to businesses being more frequently overpriced and provide upside to the seller/vendor and downside to the purchaser

• vendors can artificially inflate the base number over a short period to increase the asking price

• the most recent trading results may reflect unique circumstances• you are not distinguishing between a bad and good business

within the same industry. Why should you pay for the upside you will generate?

• any multiple of a single year cannot reflect growth expectations

INDUSTRY OR BUSINESS

RULE OF THUMB’

Accounting practice Between 50 cents and 100 cents in the dollar of recurring gross fees earned

Insurance brokers Twice the level of annual fees

Newsagencies 75 to 85 times average weekly gross profit

Real Estate rent rolls Between 2 and 3 times the gross fee income

Take away shops Three times annual net profit before tax

Pharmacies One third of gross fees earned

Words by Ross Beames, Director, Beames & Associates

Remember the abbreviation for ‘Rules of Thumb’ is ROT- and that aptly describes this valuation method as a definitive valuation tool.

Ross Beames is a Chartered Accountant and Director at Beames and Associates providing specialist advice to SME clients.

F E AT U R E

To accurately assess the value of a business, you should be estimating the future net cashflows of the business. The estimation of net cashflows ensures that you are making a reasonable allowance for taxes, plant and equipment, and working capital needs (debtors, stock, creditors etc). Remember, when assessing investment returns you are assessing the net return after all costs and outgoings have been funded.

DO NOT LOOK BACK

CASH IS KING

PERSONAL GOODWILL - NO ME, NO BUSINESS!

Value should be based on future cashflows, and not the past. Any business valuation should forecast the business’s net cashflow for atleast the next five years. Historical results are of interest to provide the requisite frame of reference to estimate future cashflows, but they should not be the definitive valuation input. Take for example the following diagram which outlines the life cycle of a business. Like any business the diagram shows that the business experiences both volatility as business cycles improve/deteriorate and growth as the business matures, but any valuation forecast that does not seek to adopt the series of cashflows represented by ‘C’ will not produce a reliable estimate of value. Adopting ‘A’ will understate value, and ‘B’ will most likely overstate value. Always understand where your business sits within the business cycle and its evolution. Make sure the cashflows reflect reality and your expectations.

PROFIT

AB C

VALUATION DATE

TIME

Never buy a business that has a high level of personal goodwill unless the price is severely discounted. Exceptions to this golden rule will exist where the risk of personal goodwill can be mitigated through the use of carefully drafted contracts, however in most instances personal goodwill has no value to anyone but the owner. For example, take a highly specialised medical practitioner. Whilst the highly sought after medical specialist may be generating significant income from their business structure, the high level of income in this instance attaches to the individual and not the business.

For owners of a private business with less than 51% of the voting power, their interest tends to be much less marketable and the value of the interest is consequently reduced. This is because most buyers do not want to own a minority interest in a private company where they may be little or no assurance of any cash return on their

SHOULD I BUY OUT MY BUSINESS PARTNER?

The answer depends on the type of business you are operating. For example, in many professional service firms there is a physical limit as to how much revenue each principal can generate and service, consequently there is no sense in buying out your business partner where you are already at full capacity.

In this scenario, your business partner’s share is worth a lot more to someone else other than you, such as an internal manager looking to be promoted and take on an equity stake.

More is not necessarily better if you cannot service the additional workload.

• Predictable earnings• Low levels of customer

concentration risk• Large diversified customer base• Annuity based revenue streams• Size• Product diversification• Depth of management• History of profits and growth• Products/services that can

be easily leveraged

• High reliance on specific business owners

• Low barriers to entry • Minority interest(s)• Lack of management depth• Reliance on one or

few individuals• Reliance on personal contacts• Volatile earnings• Poor trade position

within industry

WHAT WILL INCREASE/DECREASE THE PREMIUM PAID FOR MY BUSINESS?

INCREASE THE VALUE DECREASE THE VALUE

There are a number of key factors that will influence the value of your business. The following table provides a number of indicators that increase and decrease the value of your business:

• Focus on value, not price• Don’t use ‘rules of thumb’ as your definitive valuation tool• Cash is king – forecast at least 5 years of expected net cashflows• Minority interest’s aren’t worth as much as you think

KEY BUSINESS VALUATION REMINDERS

Suite 7, Football House3-5 Phipps Close, DeakinT 6282 9500 F 6282 9200beamesandassociates.com.au

investment and little or no market available for the resale of their business interest. Take for example the business owner who owns 20% of a locally held private company and there is a dispute between the majority owners and the minority owner. The majority owners may elect to cease all dividend/profit distributions as a means by which to acquire the remaining 20% interest. No one wants to own a minority interest in a business unless they have a shareholders agreement and/or offered a significant discount for taking on such risks. Minority interests will always be worth less.


MINORITY INTERESTS


F E AT U R EF E AT U R E

Did you ever hear the story about the American company that floated its shares on the public stock exchange during the ‘tech boom’ with no staff, no business plan, no core business products/services and no stated direction?

Would you believe at the height of the tech boom many investors flocked to this stock to subscribe for shares and push the share price to a multiple that was many times the cash asset backing of each share? I’m sure you can guess what happened next.

As Warren Buffet once said, Price is what you pay and Value is what you receive. Never confuse the two, and such confusion can be avoided through understanding some key concepts regarding business valuations.

The classic price versus value dilemma will raise its ugly head at every single residential property auction taking place this weekend all over Australia. When a ‘hot auction’ takes place for residential property, the property as an investment has only one value but the price investors pay may be something completely different. The same goes for bidding wars when two parties compete for a particular business.

The price of a business asset can vary with its value due to:

• Differing perceptions of risk• Differing perceived growth potential• The synergies that can be achieved by merging• The desire to make a strategic acquisition• The way a deal is structured• The net after tax benefit to the parties as

a result of different tax structures• The desire to achieve economies of scale• The desire to eliminate competition

DID YOU EVER HEAR THE STORY?

PRICE VERSUS VALUE

RULES OF THUMB- DO NOT USE THEM!!!

BUSINESSVALUATIONINSIGHTS

Ever been convinced to buy a business based on a widely accepted ‘rule of thumb’? ‘Rules of thumb’ are a dangerous valuation technique where it is being used as the definitive valuation tool in a business valuation exercise. Classic rules of thumb have been around for many years such as the small number of examples listed below.

You should never adopt ‘rules of thumb’ as your primary valuation technique because:

• they incorrectly assume every business is being run at its optimum efficiency and profitability

• they lead to businesses being more frequently overpriced and provide upside to the seller/vendor and downside to the purchaser

• vendors can artificially inflate the base number over a short period to increase the asking price

• the most recent trading results may reflect unique circumstances• you are not distinguishing between a bad and good business

within the same industry. Why should you pay for the upside you will generate?

• any multiple of a single year cannot reflect growth expectations

INDUSTRY OR BUSINESS

RULE OF THUMB’

Accounting practice Between 50 cents and 100 cents in the dollar of recurring gross fees earned

Insurance brokers Twice the level of annual fees

Newsagencies 75 to 85 times average weekly gross profit

Real Estate rent rolls Between 2 and 3 times the gross fee income

Take away shops Three times annual net profit before tax

Pharmacies One third of gross fees earned

Words by Ross Beames, Director, Beames & Associates


Ross Beames is a Chartered Accountant and Director at Beames and Associates providing specialist advice to SME clients.

F E AT U R E

To accurately assess the value of a business, you should be estimating the future net cashflows of the business. The estimation of net cashflows ensures that you are making a reasonable allowance for taxes, plant and equipment, and working capital needs (debtors, stock, creditors etc). Remember, when assessing investment returns you are assessing the net return after all costs and outgoings have been funded.

DO NOT LOOK BACK

CASH IS KING

PERSONAL GOODWILL - NO ME, NO BUSINESS!

Value should be based on future cashflows, and not the past. Any business valuation should forecast the business’s net cashflow for atleast the next five years. Historical results are of interest to provide the requisite frame of reference to estimate future cashflows, but they should not be the definitive valuation input. Take for example the following diagram which outlines the life cycle of a business. Like any business the diagram shows that the business experiences both volatility as business cycles improve/deteriorate and growth as the business matures, but any valuation forecast that does not seek to adopt the series of cashflows represented by ‘C’ will not produce a reliable estimate of value. Adopting ‘A’ will understate value, and ‘B’ will most likely overstate value. Always understand where your business sits within the business cycle and its evolution. Make sure the cashflows reflect reality and your expectations.

PROFIT

AB C

VALUATION DATE

TIME

Never buy a business that has a high level of personal goodwill unless the price is severely discounted. Exceptions to this golden rule will exist where the risk of personal goodwill can be mitigated through the use of carefully drafted contracts, however in most instances personal goodwill has no value to anyone but the owner. For example, take a highly specialised medical practitioner. Whilst the highly sought after medical specialist may be generating significant income from their business structure, the high level of income in this instance attaches to the individual and not the business.

For owners of a private business with less than 51% of the voting power, their interest tends to be much less marketable and the value of the interest is consequently reduced. This is because most buyers do not want to own a minority interest in a private company where they may be little or no assurance of any cash return on their

SHOULD I BUY OUT MY BUSINESS PARTNER?

The answer depends on the type of business you are operating. For example, in many professional service firms there is a physical limit as to how much revenue each principal can generate and service, consequently there is no sense in buying out your business partner where you are already at full capacity.

In this scenario, your business partner’s share is worth a lot more to someone else other than you, such as an internal manager looking to be promoted and take on an equity stake.

More is not necessarily better if you cannot service the additional workload.

• Predictable earnings• Low levels of customer

concentration risk• Large diversified customer base• Annuity based revenue streams• Size• Product diversification• Depth of management• History of profits and growth• Products/services that can

be easily leveraged

• High reliance on specific business owners

• Low barriers to entry • Minority interest(s)• Lack of management depth• Reliance on one or

few individuals• Reliance on personal contacts• Volatile earnings• Poor trade position

within industry

WHAT WILL INCREASE/DECREASE THE PREMIUM PAID FOR MY BUSINESS?

INCREASE THE VALUE DECREASE THE VALUE

There are a number of key factors that will influence the value of your business. The following table provides a number of indicators that increase and decrease the value of your business:

• Focus on value, not price• Don’t use ‘rules of thumb’ as your definitive valuation tool• Cash is king – forecast at least 5 years of expected net cashflows• Minority interest’s aren’t worth as much as you think

KEY BUSINESS VALUATION REMINDERS

Suite 7, Football House3-5 Phipps Close, DeakinT 6282 9500 F 6282 9200beamesandassociates.com.au

investment and little or no market available for the resale of their business interest. Take for example the business owner who owns 20% of a locally held private company and there is a dispute between the majority owners and the minority owner. The majority owners may elect to cease all dividend/profit distributions as a means by which to acquire the remaining 20% interest. No one wants to own a minority interest in a business unless they have a shareholders agreement and/or offered a significant discount for taking on such risks. Minority interests will always be worth less.


MINORITY INTERESTS

V O X P O L I

What are the major industries that will

see the ACT prosper in the 21st Century?

VOX POLI Katy Gallagher

ACT Chief Minister

Zed SeseljaACT Opposition Leader

Meredith HunterParliamentary Leader

ACT Greens

Do we need to pick winners in the ACT?

You decide.

Canberra will always be the home of the Australian Government. More than 30% of our workforce is employed in the public service

and it is inevitable that it will remain the dominant sector in our economy for some time to come. Rather than looking to find another ‘major industry’ we need to recognise the diversity of other opportunities available to us and take advantage of each and every one.

This will mean both developing existing industries as well as recognising and fostering opportunities in new industries. The new smart economy that educates,

The Canberra Liberals understand that harnessing the expertise of local industry and helping them grow should be a priority for any

local government. There is no doubt that industries such

as tourism and housing help our economy prosper, but they are currently hindered by the ACT Labor Government through massive taxation and regulatory burdens. There are also lesser known but potentially prosperous industries which could and should be better supported by the government.

The Interactive Entertainment Industry for example, generates $2.5 billion nationally each year, but is not supported

Canberra’s reputation as the ‘clever capital’ is where our future economic prosperity lies. In this century ours will increasingly

become a knowledge economy and we will see industries in this sector, such technology, research and education, grow.

Government services continue to be our largest export, but education is in second place and I expect this will grow over the course of the century. Already we are seeing Canberra’s main universities growing and outlining plans for further expansion. They are maintaining strong international student numbers, in contrast to other Australian cities where this sector has suffered.

by an industry strategy here in the ACT. The Academy of Interactive Entertainment is a world-class centre which offers this specialised training right here in Canberra, but it cannot grow to its full potential without proper government support. Utilising industries such as interactive entertainment is an excellent way of diversifying the ACT’s economy and helping the ACT prosper into the future.

The ACT is well-placed to continue to grow its education and innovation sector. World-class institutions such as the Australian National University, the Commonwealth Scientific and Industrial Research Organisation and the University of Canberra provide an excellent base to continue to grow this critically important sector.

Tourism is an important industry which is not capitalised on by the ACT Labor Government. Tourism numbers continue to drop, and the government does not directly target strong international markets, such as India. Taxpayers and the ACT economy are the ones left short-changed by the ACT Labor Government’s refusal to harness this important industry.

We also continue to see a steady decline in ACT building approvals, which shows the detrimental impact of ACT Labor’s massive unit tax on the industry. The Canberra Liberals voted against this $50,000+ per unit tax deterrence which is clearly hampering an important local industry. For any industry to grow, it must not be hamstrung through overregulation and taxes. There is little incentive for industry to base itself in Canberra given these impositions, and the Government’s inability to pay local providers on time. We know that the Chief Minister’s own Department took five years to pay one provider, with other massive delays across the board.

The Canberra Liberals understand the importance of these industries and the local businesses which support them. If elected, we will ensure all providers are paid on time, or they will receive interest on the overdue amount. We will also ask the Auditor-General to review small business participation in government tenders.

There is a fantastic opportunity for the ACT economy to grow if we focus on our local strengths.

V O X P O L I

Our universities and other research organisations are likely to prosper this century.

Technology will also prosper. The ICT sector currently comprises more than 1,000 businesses and employs around 12,000 Canberrans.

In February the ACT Government announced plans to enter into a new four-year funding agreement with NICTA, Australia’s information and communication technology (ICT) centre of excellence.

This is a direct investment in Canberra as a centre for research and innovation and builds on and extends the ACT Government’s previous support for NICTA, which totals $26.35 million over the past nine years.

NICTA’s contribution to the ACT economy is significant, with the Canberra Research Laboratory attracting direct Australian Government expenditure of $90 million during the period 2003-2011.

The National Broadband Network will help the technology sector and other industries to grow.

I expect to see growth and prosperity in the private sector in the 21st century. There is huge potential for innovative small businesses to

grow in Canberra and ACT Government is committed to helping our businesses take their exports to the world.

Later this month the Government will release its Business Development Strategy. This is a comprehensive and detailed plan that puts business and innovation at the heart of Government. It will promote growth and diversification in the local economy, and encourage job growth.

The plan outlines how we will continue to support the business community and promote innovation. We will make it easier to do business in the ACT, and support investment in local businesses, including small and medium-sized businesses and start-ups.

ACT industries also have a significant competitive advantage thanks to a highly educated and highly productive population. Of the ACT’s population aged 15 to 64 years, 25% have a bachelor’s degree compared with 16.4% nationally. In 2008-09, Gross State Product per capita in the ACT was A$71,630, a level 30% above the national average of A$55,195.

innovates, and promotes new technologies and ideas will be the most prosperous in the coming decades. For some time now the Greens have been championing the opportunities a new low carbon economy will bring. We included in the Parliamentary Agreement the development of a green economy strategy which is nearing completion.

The education and construction sectors are the obvious place to start. Already we have well regarded institutions delivering the skills that people want to learn. Further investing in education will be one of the major ways the ACT can continue our economic strength. As the economy and the construction industry changes, CIT in particular will need to continue to adapt and teach new sustainable skills. We know that many parts of our city need revitalising, whether that’s turning surplus office buildings into residential accommodation in Civic or improving housing stock more generally, retrofitting and improving

Canberra’s buildings with new technologies will be an important part of our economic activity for years to come.

Canberra is a smart city, and delivering services has always been our strength, this is something that we need to build on particularly as ICT changes make it easier to export our good ideas. We need to encourage new ideas and creative thinking and not be shy in promoting ourselves. We need to be a vibrant and attractive city that people want to live in, we need to recognise our role in the region and create the right economic settings for business to flourish.

Turning challenges into economic opportunities is the real key to success. There are real benefits in changing the way we power our city, deal with our waste, the types of buildings we build and they way we move people around. It is important to reduce our reliance on the federal public service and use the intellectual capital to maintain our economic success.

B 2 B I N C A N B E R R A M AY 2 012 11

V O X P O L I

What are the major industries that will

see the ACT prosper in the 21st Century?

VOX POLI Katy Gallagher

ACT Chief Minister

Zed SeseljaACT Opposition Leader

Meredith HunterParliamentary Leader

ACT Greens

Do we need to pick winners in the ACT?

You decide.

Canberra will always be the home of the Australian Government. More than 30% of our workforce is employed in the public service

and it is inevitable that it will remain the dominant sector in our economy for some time to come. Rather than looking to find another ‘major industry’ we need to recognise the diversity of other opportunities available to us and take advantage of each and every one.

This will mean both developing existing industries as well as recognising and fostering opportunities in new industries. The new smart economy that educates,

The Canberra Liberals understand that harnessing the expertise of local industry and helping them grow should be a priority for any

local government. There is no doubt that industries such

as tourism and housing help our economy prosper, but they are currently hindered by the ACT Labor Government through massive taxation and regulatory burdens. There are also lesser known but potentially prosperous industries which could and should be better supported by the government.

The Interactive Entertainment Industry for example, generates $2.5 billion nationally each year, but is not supported

Canberra’s reputation as the ‘clever capital’ is where our future economic prosperity lies. In this century ours will increasingly

become a knowledge economy and we will see industries in this sector, such technology, research and education, grow.

Government services continue to be our largest export, but education is in second place and I expect this will grow over the course of the century. Already we are seeing Canberra’s main universities growing and outlining plans for further expansion. They are maintaining strong international student numbers, in contrast to other Australian cities where this sector has suffered.

by an industry strategy here in the ACT. The Academy of Interactive Entertainment is a world-class centre which offers this specialised training right here in Canberra, but it cannot grow to its full potential without proper government support. Utilising industries such as interactive entertainment is an excellent way of diversifying the ACT’s economy and helping the ACT prosper into the future.

The ACT is well-placed to continue to grow its education and innovation sector. World-class institutions such as the Australian National University, the Commonwealth Scientific and Industrial Research Organisation and the University of Canberra provide an excellent base to continue to grow this critically important sector.

Tourism is an important industry which is not capitalised on by the ACT Labor Government. Tourism numbers continue to drop, and the government does not directly target strong international markets, such as India. Taxpayers and the ACT economy are the ones left short-changed by the ACT Labor Government’s refusal to harness this important industry.

We also continue to see a steady decline in ACT building approvals, which shows the detrimental impact of ACT Labor’s massive unit tax on the industry. The Canberra Liberals voted against this $50,000+ per unit tax deterrence which is clearly hampering an important local industry. For any industry to grow, it must not be hamstrung through overregulation and taxes. There is little incentive for industry to base itself in Canberra given these impositions, and the Government’s inability to pay local providers on time. We know that the Chief Minister’s own Department took five years to pay one provider, with other massive delays across the board.

The Canberra Liberals understand the importance of these industries and the local businesses which support them. If elected, we will ensure all providers are paid on time, or they will receive interest on the overdue amount. We will also ask the Auditor-General to review small business participation in government tenders.

There is a fantastic opportunity for the ACT economy to grow if we focus on our local strengths.

V O X P O L I

Our universities and other research organisations are likely to prosper this century.

Technology will also prosper. The ICT sector currently comprises more than 1,000 businesses and employs around 12,000 Canberrans.

In February the ACT Government announced plans to enter into a new four-year funding agreement with NICTA, Australia’s information and communication technology (ICT) centre of excellence.

This is a direct investment in Canberra as a centre for research and innovation and builds on and extends the ACT Government’s previous support for NICTA, which totals $26.35 million over the past nine years.

NICTA’s contribution to the ACT economy is significant, with the Canberra Research Laboratory attracting direct Australian Government expenditure of $90 million during the period 2003-2011.

The National Broadband Network will help the technology sector and other industries to grow.

I expect to see growth and prosperity in the private sector in the 21st century. There is huge potential for innovative small businesses to

grow in Canberra and ACT Government is committed to helping our businesses take their exports to the world.

Later this month the Government will release its Business Development Strategy. This is a comprehensive and detailed plan that puts business and innovation at the heart of Government. It will promote growth and diversification in the local economy, and encourage job growth.

The plan outlines how we will continue to support the business community and promote innovation. We will make it easier to do business in the ACT, and support investment in local businesses, including small and medium-sized businesses and start-ups.

ACT industries also have a significant competitive advantage thanks to a highly educated and highly productive population. Of the ACT’s population aged 15 to 64 years, 25% have a bachelor’s degree compared with 16.4% nationally. In 2008-09, Gross State Product per capita in the ACT was A$71,630, a level 30% above the national average of A$55,195.

innovates, and promotes new technologies and ideas will be the most prosperous in the coming decades. For some time now the Greens have been championing the opportunities a new low carbon economy will bring. We included in the Parliamentary Agreement the development of a green economy strategy which is nearing completion.

The education and construction sectors are the obvious place to start. Already we have well regarded institutions delivering the skills that people want to learn. Further investing in education will be one of the major ways the ACT can continue our economic strength. As the economy and the construction industry changes, CIT in particular will need to continue to adapt and teach new sustainable skills. We know that many parts of our city need revitalising, whether that’s turning surplus office buildings into residential accommodation in Civic or improving housing stock more generally, retrofitting and improving

Canberra’s buildings with new technologies will be an important part of our economic activity for years to come.

Canberra is a smart city, and delivering services has always been our strength, this is something that we need to build on particularly as ICT changes make it easier to export our good ideas. We need to encourage new ideas and creative thinking and not be shy in promoting ourselves. We need to be a vibrant and attractive city that people want to live in, we need to recognise our role in the region and create the right economic settings for business to flourish.

Turning challenges into economic opportunities is the real key to success. There are real benefits in changing the way we power our city, deal with our waste, the types of buildings we build and they way we move people around. It is important to reduce our reliance on the federal public service and use the intellectual capital to maintain our economic success.


F E AT U R E

For more information please contact:Nathan Nash, Certified Financial PlannerRSM Bird Cameron Financial Services(02) 6247 5988 | [email protected]

Tips for the young professionalNathan Nash, Certifi ed Financial Planner, RSM Bird Cameron Financial Services

Life moves pretty fast. Are you on the right track? Should you be doing things a little differently?

We often find that we are so busy with our everyday existence we fail to give consideration to a number of

important areas that can help shape our lives. However the earlier you start planning your finances, the more opportunities you can take advantage of and the more funds you’ll have to achieve your dreams further down the track.

Spend less then you earnThe golden rule, which appears to be

common sense but the failing of this golden rule was a major contributor to a number of disasters during the GFC. However, the tide has turned and household savings have increased significantly to approximately 10% of disposable income the highest level in the two previous decades.

Saving requires a disciplined approach which can be assisted through the implementation of direct debits from your salary. This leads us to our next point on how to make efficient use of these savings

Make efficient use of resourcesLittle changes now can have a dramatic

impact over the long term through the power of compounding. Consequently it is important to review where resources are being directed sooner rather than later. A number of questions should be asked to ensure your affairs are structured efficiently and working hard for you.• Where is your super being invested?• Should you salary sacrifice or pay off the

mortgage?• What vehicle should you use to maximise

savings?• Are you paying too much in fees?

Invest regularlyStart planning for your retirement from

your first job. Generating regular savings can present an opportunity to establish an ongoing investment plan. We often find the best way to do this is to arrange a direct debit which helps with maintaining a disciplined investment strategy. A number of investment vehicles can be used and the most appropriate will depend on your objectives, time frame and risk tolerance.

Protect your greatest assetMost people don’t

hesitate to insure assets such as the car, boat or home but yet so many fail to insure their greatest asset, themselves. Your ability to earn an income is much more valuable than a car or home. It is essential to protect yourself in order to provide security of income in case of an illness or accident. This type of cover is not expensive and often equates to an after tax cost of approximately 1% of your income in exchange for 75% of your income to age 65 should you be unable to work due to accident or illness.

Financial planning is an ongoing process. Your financial adviser can help you set your financial goals, and then achieve them by making the best use of your financial resources.

Structure debt to provide flexibilityOne of the biggest mistakes that

people make when structuring loans is not building in adequate flexibility to handle unforeseen changes in personal and financial circumstances. Inflexibility can cost you in terms of interest, bank fees, opportunity, and tax. For example, when a person decides to move into a new home and rent out the old home we more often than not find that the associated debt is structured ineffectively. This can result in a significant loss of tax deductions and can be easily avoided through better planning and structuring initially.

This article does not take into account your personal circumstance, you should speak with an adviser before acting on these recommendations.

Assurance l Business Advisory l Corporate Finance l Risk Advisory l Tax l Turnaround and Insolvency

Keeping up to date with changes in financial reporting requirements is more challenging than ever. At the same time it is becoming increasingly important for preparers of financial reports, directors and management of entities to be aware of the current emerging issues. We are holding a technical update to help guide you through the latest changes in financial reporting which will affect your entity now and in the future. Connect with our experts today and hear insights on:

• changes to accounting standards• new financial reporting requirements for 30 June 2012• Corporations Act developments • not-for-profit regulation update• other significant issues for preparers of financial reports

This complimentary lunchtime session is a must for CFOs, directors and executives who wish to stay abreast of key financial reporting requirements to ensure they comply with regulatory requirements relevant to financial reporting.

To RSVP or for more information, please contact [email protected] or (02) 6217 0329.

Wednesday 23rd May 2012, 12.00 - 2.00pm

Canberra Business Event Centre at Regatta Point

Expert Connections

Connected for Success www.rsmi.com.au

Guiding you through the latest Financial Reporting Requirements

Seminar Invitation

Chartered Accountants Bird Cameron

F E AT U R E

For more information please contact:Nathan Nash, Certified Financial PlannerRSM Bird Cameron Financial Services(02) 6247 5988 | [email protected]

Tips for the young professionalNathan Nash, Certifi ed Financial Planner, RSM Bird Cameron Financial Services

Life moves pretty fast. Are you on the right track? Should you be doing things a little differently?

We often find that we are so busy with our everyday existence we fail to give consideration to a number of

important areas that can help shape our lives. However the earlier you start planning your finances, the more opportunities you can take advantage of and the more funds you’ll have to achieve your dreams further down the track.

Spend less then you earnThe golden rule, which appears to be

common sense but the failing of this golden rule was a major contributor to a number of disasters during the GFC. However, the tide has turned and household savings have increased significantly to approximately 10% of disposable income the highest level in the two previous decades.

Saving requires a disciplined approach which can be assisted through the implementation of direct debits from your salary. This leads us to our next point on how to make efficient use of these savings

Make efficient use of resourcesLittle changes now can have a dramatic

impact over the long term through the power of compounding. Consequently it is important to review where resources are being directed sooner rather than later. A number of questions should be asked to ensure your affairs are structured efficiently and working hard for you.• Where is your super being invested?• Should you salary sacrifice or pay off the

mortgage?• What vehicle should you use to maximise

savings?• Are you paying too much in fees?

Invest regularlyStart planning for your retirement from

your first job. Generating regular savings can present an opportunity to establish an ongoing investment plan. We often find the best way to do this is to arrange a direct debit which helps with maintaining a disciplined investment strategy. A number of investment vehicles can be used and the most appropriate will depend on your objectives, time frame and risk tolerance.

Protect your greatest assetMost people don’t

hesitate to insure assets such as the car, boat or home but yet so many fail to insure their greatest asset, themselves. Your ability to earn an income is much more valuable than a car or home. It is essential to protect yourself in order to provide security of income in case of an illness or accident. This type of cover is not expensive and often equates to an after tax cost of approximately 1% of your income in exchange for 75% of your income to age 65 should you be unable to work due to accident or illness.

Financial planning is an ongoing process. Your financial adviser can help you set your financial goals, and then achieve them by making the best use of your financial resources.

Structure debt to provide flexibilityOne of the biggest mistakes that

people make when structuring loans is not building in adequate flexibility to handle unforeseen changes in personal and financial circumstances. Inflexibility can cost you in terms of interest, bank fees, opportunity, and tax. For example, when a person decides to move into a new home and rent out the old home we more often than not find that the associated debt is structured ineffectively. This can result in a significant loss of tax deductions and can be easily avoided through better planning and structuring initially.

This article does not take into account your personal circumstance, you should speak with an adviser before acting on these recommendations.

Assurance l Business Advisory l Corporate Finance l Risk Advisory l Tax l Turnaround and Insolvency

Keeping up to date with changes in financial reporting requirements is more challenging than ever. At the same time it is becoming increasingly important for preparers of financial reports, directors and management of entities to be aware of the current emerging issues. We are holding a technical update to help guide you through the latest changes in financial reporting which will affect your entity now and in the future. Connect with our experts today and hear insights on:

• changes to accounting standards• new financial reporting requirements for 30 June 2012• Corporations Act developments • not-for-profit regulation update• other significant issues for preparers of financial reports

This complimentary lunchtime session is a must for CFOs, directors and executives who wish to stay abreast of key financial reporting requirements to ensure they comply with regulatory requirements relevant to financial reporting.

To RSVP or for more information, please contact [email protected] or (02) 6217 0329.

Wednesday 23rd May 2012, 12.00 - 2.00pm

Canberra Business Event Centre at Regatta Point

Expert Connections

Connected for Success www.rsmi.com.au

Guiding you through the latest Financial Reporting Requirements

Seminar Invitation



O P I N I O N

that we have learned through focussing on out of court solutions have been used with great success in litigation. In December 2011 Consensus, acting for a father, wrote to a mother proposing collaboration. She withheld the child which led to our client commencing proceedings. In the proceedings he sought a number of orders that went against the usual grain of litigation, about negotiation and positive parenting rather than the ordinary approach of positional negotiation. Ultimately he was successful in his application and the judgement focussed on his unusually positive and creative attempts to resolve the dispute.

Our tag line is “modern lawyers | real people”. This has a number of meanings. We are national leaders in our industry. We want to do things differently for our clients because we think using modern techniques of dispute resolution, and applying those modern techniques in a creative way in litigation and collaboration, is how we can achieve the best outcome for our clients.

Every day we see lengthy (and no doubt expensive) correspondence, discovery requests, court documents and demands from other firms. Those methods are, in our view, out of date and reflect a ‘standard’ approach to dispute resolution: that no matter the client, no matter the situation, lawyers go through the same routine and plod towards the same outcome.

We understand that our clients are real people; that a family law dispute can be crippling, both to our client’s financial position and emotional health; and that to some people, having to put their life on hold for years while their family law situation is resolved can have a destructive effect on so many other aspects of their lives including

their jobs and relationships with their children. We will focus on the needs of each individual client, offer a fixed fee pricing structure that is clear and fair, and form a real relationship with each of our clients so that we can openly ensure we are doing the right job for them.

Our lawyers are real people too. We have a team of talented, committed and clever lawyers who have all contributed to this rebranding and are committed to making our firm the best in Australia. We believe that our work should support our lives. Our new business cards give personal insights to our lawyers, so as well as their legal expertise you might learn they’re a famed poodle owner, a baseball star, a globetrotter or our own madam butterfly.

We are all excited about moving into the next stage of our business and we can’t wait to share it with you and your clients. Farrar Gesini DunnLevel 5, Colonial Mutual Building17-21 University Avenue, Canberra City ACTP (02) 6257 6477 F (02) 6257 4382E [email protected] www.fgd.com.au

Collaborate and Listen…Farrar Gesini Dunn; back with a brand new invention!

By Juliette Ford, Director, Farrar Gesini & Dunn

In 2008 we launched a new family law business specialising in and focussing on out of court solutions, called Consensus Family Lawyers. Consensus was well

received by our clients and our referrers and the practice moved well into emerging and modern areas of family law including negotiating and drafting complex agreements and collaborative divorce.

Meanwhile, Farrar Gesini & Dunn remained successful with a focus on client-focussed family law litigation. The service we offer is to give our clients certainty about fees and clear and realistic advice about the process and the likely outcome. If we can manage expectations in those fields, then our clients are better equipped to deal with the inherent delay, cost, and emotional toll of litigation.

What we found, when reviewing the differences between the two practices, is that our lawyers at Consensus wanted more exposure to litigation and our lawyers at Farrar Gesini & Dunn wanted more exposure to collaboration. The skills that lend themselves to success in each type of practice are so easily and appropriately transferable to the other.

For clients, despite electing to pursue an out of court solution, that doesn’t mean it will continue that way. Conversely, a client who has been unwillingly brought into litigation should not have to ride the litigation bus until the matter concludes. By being clever, by being different, by adopting a modern and client-focussed approach to each situation, there is often something that can be done to improve a situation, accepting the fixed and variable aspects.

The many skills, lessons and techniques

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Great local, community, family-friendly event

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Details and registration at www.actcancer.org or register on the day from 8.30am

ACT CANCER COUNCIL

NOW IN ITS 23RD YEAR

CANADA DAYFUN RUN

Proundly supported by:

Lisa Moore Massage

PART OF CANBERRA

So says Brookfield Multiplex Services’ Regional Manager (ACT & Government), Trevor Cronk, who has been overseeing the company’s

activities in the national capital since August 2011.

Brookfield Multiplex Services is quickly becoming the name to watch in the ACT, thanks to the company’s concerted focus on this region and its expanding commitment to

C O V E R S T O R Y

Underestimate the ACT and you’re missing a crucial piece of the picture.

delivering integrated real estate, facilities and project management services.

According to the International Facility Management Association (IFMA), the management services provided by Brookfield Multiplex Services are defined as ‘a profession that encompasses multiple disciplines to ensure functionality of the built environment by integrating people, place, processes and technology.’

photos by Andrew Sikorski

Brookfield Multiplex ServicesBrookfield

L-R: Lee Wormald, George Scarfe, Garry Chalker, Jon Grotto, Danny Cindric, Janette Moar, Geoff Begg, Chris Bunt, Lee Petrow, Peter McNally, Ben Glidden, Trevor Cronk.

C O V E R S T O R Y

Brookfield Multiplex Services currently provides services across a number of locations within the ACT including:• National Archives of Australia’s heritage

listed head office at Parkes, as well as its Mitchell and Greenway Repositories

• 134 Reed Street Greenway – three buildings totalling 15,300 sqm, purpose built for Medicare to support staff and their data centre

• Caroline Chisholm Centre, a 40,000 sqm building in Greenway (refer to case study)

• Sky Plaza residential apartment tower comprising 167 apartments, Woden

• Scarborough House at Woden – a 16,800 sqm commercial office block owned by IBA, tenanted by the Department of Health and Ageing “We are very much committed to this

region and industry can expect to see much more of the Brookfield Multiplex Services name,” promises Mr Cronk.

Across the country, Brookfield Multiplex

Services provides integrated real estate, facilities and project management services to a range of diverse property portfolios . These include a number of large commercial office, industrial, retail and special use portfolios on behalf of large public and private sector occupier clients.

Brookfield Multiplex Services also specialises in the management of complex social infrastructure and commercial office assets on behalf of investors and occupiers. This includes assets such as hospitals, justice precincts, convention centres, university campuses and large commercial office campuses. In addition Brookfield Multiplex Services provides Residential Property Management, Leasing and Sales services through its Morton and Morton business.

Brookfield Multiplex Services clients include some of Australia’s largest public and private sector occupiers such as the Department of Defence, State Governments of NSW and Victoria, and BHP. The company’s growing recognition as a viable commercial option in Canberra and

nationally is supported by some impressive national statistics:

• Over 8,600 properties and approximately 2,000 leases under management

• Over $350m rent and outgoings under management

• Approximately 150 real estate transactions negotiated per annum

• Over $150m of direct facilities maintenance expenditure procured and under management

• Project and program management of over $100m minor and medium works per annum

• In excess of 2.8 million sqm under management

• Three Defence contracts representing 42% of Defence’s $12 billion Australian estate under management

• Approximately 1,030 residential properties under management nationally

Department of Human Services National Support Office, Canberra

Case StudyTrevor Cronk

The Caroline Chisholm Centre (CCC) is a purpose built building for the Department of Human Services as tenants, constructed by Brookfield Multiplex Construction between 2005 and 2007.

The CCC building supports a total of 2,800 staff across some 40,000 sqm of net lettable area on 5.3 hectares. The site includes a cafe, kiosk, landscaped three-storey atrium, gymnasium, bike storage enclosure and locker rooms to enhance the work environment.

Brookfield Multiplex Services provides a guaranteed facilities management solution to the owners, providing the full range of facilities management services for a fixed price, and guaranteeing the NABERS performance of the base building is achieved. Services provided through a dedicated on-site management and maintenance team include: asset management; condition performance surveys, energy and water management,

C O V E R S T O R Y

• Approximately 100,000 sqm and $807 million residential assets under management

• Averaging 650 residential lease and 150 sales transactions per annum.

The local focus is fully supported by Brookfield Multiplex Services’ national leadership team, headed by Managing Director Jon McCormick.

“The ACT commercial property market is the third largest in the country, after Sydney and Melbourne,” observes Mr McCormick. “With around 60 percent of buildings tenanted by the Commonwealth Government, it would be simplistic to say that a company will achieve success purely through an understanding of the government sector, although that is clearly an important part of the picture.

The foundation of our integrated service provider model is a focus on being flexible and responsive to our clients’ needs,” says Mr McCormick.

Brookfield Multiplex Services’ Director Commercial Property, Richard Gee, notes that, “Our integrated platform draws on the strengths of the wider Brookfield Group, which allows us to apply the latest knowledge, most appropriate models, and best people to every contract we secure, regardless of where the ideas themselves originated.”

“This unique service offering is, in part, the product of the way our company has grown and matured, and of our broader presence as a builder, developer, owner and investor. Brookfield Multiplex Services and Constructions pioneered the integrated design, construct and facility management model in Australia.

We have successfully delivered more than 30 major projects over the past 12 years, including five major Public Private Partnerships.

This has resulted in the development of iconic facilities such as Melbourne Convention Centre.”

The wider Brookfield Group is a global

asset manager focused on property, power and other infrastructure.

It is listed on the New York and Toronto stock exchanges with assets under management of approximately US$150billion.

Brookfield Multiplex Services sees this approach as a perfect fit with the ACT commercial landscape.

As the major private sector industry in the ACT, the property industry makes a significant contribution to economic growth, jobs, salaries and tax revenue.

Its activities have beneficial flow-on effects to many other industries and it plays a major role in diversifying the ACT’s economy away from its narrowly based dependence on the Commonwealth Government.

Preeti Bajaj, Director Business Development of Brookfield Multiplex Services says, “We are in ACT for the long term. We are excited about the opportunities in ACT and committed to providing a high quality service alternative to the Canberra market.”

management of all major plant; lifecycle planning and Facility Service Plans across Risk, OH&S, Evacuations, Contingency and Environmental to name a few. The on-site Brookfield Multiplex Services Facilities Team is led by facilities services manager, Chris Bunt, along with team members Peter McNally, Ben Glidden and a range of base building service providers. Through the initiatives of this team, the Caroline Chisholm Centre is currently achieving a 4.97 NABERS rating. The continuous incremental increase in the NABERS rating has been achieved by vigilant monitoring of the building plant and infrastructure, to ensure optimum plant performance based on outside ambient temperature while achieving contractual internal space conditions. The Brookfield Multiplex Services Facilities Team is working to achieve a 5 star NABERS rating within the 2012 calendar year.



As the property industry’s pre-eminent representative body, the Property Council of Australia is a strong advocate for the industry in the ACT and region.

“The Property Council is the national representative of the property industry,” says Catherine Carter, Property Council ACT Executive Director, “Members like Brookfield Multiplex Services help shape, build and finance our cities and have a long term investment in the future of Canberra.”

Now these two major entities in the national property arena are joining forces to deliver the defining event on the Canberra property industry calendar: the 2012 Property

Council of Australia ACT Awards Night and Gala Dinner.

“We are delighted to be able to partner with Brookfield Multiplex Services as our Principal Sponsor for the 2012 event,” said Catherine. “Brookfield Multiplex Services’ contribution to the Canberra landscape is significant, and this partnership with the Property Council signals a strong commitment to Canberra and the region.”

“The Property Council and its members have helped shape and build today’s Canberra,” says Mr Cronk. “This is a logical and very satisfying partnership for Brookfield Multiplex Services.”

C O V E R S T O R Y

The 2012 Property Council of Australia ACT Awards Night and Gala Dinner is scheduled for Friday 3 August 2012 at the National Convention Centre. For further information, contact the Property Council on 02 6248 6902 or by email to: [email protected].

Brookfield Multiplex Services has also been involved in other aspects of the Canberra landscape. Danny Cindric, Brookfield Multiplex Services ACT Contracts Manager, has taken on the role of committee member with the ACT Division of Facility Management Association of Australia (FMA). He is heavily involved in activities provided by the FMA in Canberra.

Other sponsorships in part or whole provided by Brookfield Multiplex Services show this commitment to the region:

• Canberra Business Council Annual Dinner in November 2011

• The Property Council’s Pedal Pursuit in November 2011

• The Hargraves Institute’s Canberra launch in February 2012

• Universities Australia’s Higher Education Conference in March 2012.

Brookfield Multiplex Services has also contributed through its principal membership of the Canberra Business Council and was delighted to be part of the Australian Institute of Management’s new premises launch at Childers Square in January 2012. Brookfield Multiplex Services also plays an ongoing role as part of Canberra’s Division of the Australia Property Institute. Level 2, 4 Lonsdale Street, Braddon ACT 2601T 6246 7777 | F 6246 7799www.au.brookfield.com

Catherine Carter, ACT Executive DirectorProperty Council of Australia

ACCOUNTINGNot-For-Profit financial reporting reformby Rodney Miller, RSM Bird Cameron

BUSINESS LAWHigh Court tells Occupiers – Clean up your Act!by Craig Painter, Elringtons Lawyers

BUSINESS SERVICESThe ATO’s new weaponry…revamped!By Tony Lane, Kazar Slaven

COMMERCIAL PROPERTYTiming the Move!! By Andrew Smith, Ray White Commercial

CORPORATE GOVERNANCECash flowBy Phil Butler, Australian Institute of Company Directors

ESTATE PLANNINGThe alchemy of the 54/11By Stephen Bourke, Certus Law

RESIDENTIAL PROPERTYThe silver lining in buying up in a down marketBy Cory McPherson, Ray White Kingston

STRATEGIC FINANCIAL ADVICESafeguarding your personal assetsBy Sara Caggiano, Perpetual

TALENT SERVICESHuman Resource Management – What are the options?By Keith Cantlie, Cantlie

WEBSITESFacebook Timeline – story of your life!By Sam Gupta, Synapse Worldwide

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ADVICE


The establishment of a new national and independent Not-For-Profit (“NFP”) Regulator (the Australian Charities and Not-For-Profit Commission (ACNC)) was announced in the Federal Budget 2011-12 which will aim to simplify regulatory requirements and improve accountability and transparency in the NFP sector. The main concern the ACNC will address is the inconsistencies and duplications in reporting requirements which arise from the current position where Commonwealth, State, Territory and local governments regulate different parts of the NFP sector for different and overlapping purposes. The original proposed start date for operations was 1 July 2012, however this has been extended to 1 October 2012.

On Friday 9 December 2011 Treasury issued a number of papers for consultation which are intended to facilitate the establishment and operation of the ACNC, namely:• Exposure Draft (ED) - Australian Charities and Not-for-profits

Commission Bill 2012• Consultation Paper (CP) - Review of Not-for-profit Governance

Arrangements• Discussion Paper (DC) - Australian Charities and Not-for-profits

Commission: Implementation DesignThese papers provided an overview of the intended future

framework for the not-for-profit sector. Initially the reforms will only affect charities in the not-for-profit sector, but it is anticipated that this will be extended at a later date to include all not-for-profit organisations.

Some of the key changes that this framework will mean for the sector include:• The establishment of a “report-once use-often” general reporting

framework for registered entities. This will enable registered entities to fulfil all reporting obligations, initially across Commonwealth agencies by lodging required reports with the ACNC.

• Reporting requirements are to be calculated proportional to size, based on revenue thresholds and deductible gift recipient (“DGR”) status and is set out in a simple tired approach.

• Financial reports will need to be lodged with the ACNC in accordance with Australian Accounting Standards. For charities operating as incorporated associations this will, in many jurisdictions, result in a significant change in financial reporting requirements.

• It is envisaged that ultimately the current state-based reporting requirements will be replaced with the ACNC reporting requirements so as to avoid duplication. Defining “responsible individuals” as directors, trustees, receivers,

managers, administrators, liquidators and other decision makers of registered entities. The consultation process for the proposed framework ended on January 2012. The Government will continue to consult with the sector to finalise the legislation.

Not-for-profit financial reporting reform

ACCOUNTING BUSINESS LAW

If you would like more information on any of these changes, please contact Rodney Miller, Partner at RSM Bird Cameron, on [email protected] or (02) 6217 0363.

By Rodney Miller

In early March the Australian High Court confirmed the legal responsibility of an occupier of premises for the safety and well being of all who have, lawfully or unlawfully, entered the premises.

In the recent decision (Strong v Woolworths Ltd) Ms Strong was at the Centro Taree Shopping Centre. Whilst walking past Big W at around 12:30pm, the tip of her right crutch came into contact with a greasy chip that was lying on the floor. Ms Strong slipped, fell heavily and suffered serious spinal injuries.

Woolworths recognised that they owed a duty to take reasonable care for the safety of persons coming into the area and confirmed their obligation to have a system in place for the periodic inspection and cleaning of the area. Unfortunately, on the day of the fall, notwithstanding the system that was in place, there was no inspection.

It is well established law that an occupier has to take ‘reasonable care’ for the prevention of injury to the public. The occupier, in fulfilling its duty to prevent persons tripping and falling, is not required to have continuous presence of someone to inspect and clean the area; rather, it is required to provide for periodic inspection and necessary cleaning and the courts have indicated that inspection at 20 minute intervals is reasonable.

The difficulty for Woolworths in this case was that there were no inspections between 8:00am and 12:30pm, the time of the fall. In its defence, Woolworths argued that Ms Strong could not say when the chip had been dropped. They argued that even if there was an inspection at 12:10pm (20 minutes before the fall), Ms Strong still may have fallen. In rejecting this argument, the High Court ruled that in the absence of evidence indicating when the chip was dropped, it was more likely that the chip was dropped before 12:10pm rather than between 12:10pm and 12:30pm. Consequently, the chip would have been detected and removed by the operation of the cleaning system.

It appears that Woolworths would have met their obligation had they had a periodic inspection and cleaning routine in operation. In circumstances where the occupier outsources the cleaning/maintenance, it is still the occupier’s responsibility for the safety of its invitees and this obligation cannot be given to another.

The lesson is loud and clear: occupiers must ensure that their premises are safe and this includes maintaining a clear, clean floor which is free of tripping and slipping hazards. In certain circumstances, this includes the area near the entrance to the premises.

High Court tells occupiers – clean up your actby Craig Painter

Craig Painter is partner at Elringtons in litigation services.Contact Elringtons T: (02) 6206 1300, Level 7, 221 London Circuit, Canberra Cityvisit: elringtons.com.au

The lesson is loud and clear: occupiers must ensure that their premises are safe


As frequent readers would note, only two months ago in this column I speculated about the re-release of draft legislation by the Federal Government, designed to amend the tax law to make directors of companies personally liable for unpaid superannuation and other obligations. On 18 April, the Assistant Treasurer announced Tax Laws Amendment (2012 Measures 3 No.2) Bill 2012: Companies’ non-compliance with PAYG withholding and superannuation guarantee obligations.

Whilst the title appears a mouthful, it may not be nearly so difficult to digest for company directors as the Bill will be, if (or when) it becomes law. Postponed since late last year, and a government election commitment since 2010, the Bill if enacted, will impose personal liability on Company directors for unpaid taxation amounts by “ensuring that directors cannot discharge their director penalties by placing their company into administration or liquidation when unpaid PAYG withholding or superannuation guarantee remains unpaid three months after its due date” * [emphasis added].

The particular policy imperative of the government in this regard appears targeted towards unremitted superannuation guarantee payments by companies. However, the Bill also captures unremitted Pay As You Go Withholding amounts. In its explanatory material accompanying the Bill, Treasury notes:

“…as directors are provided 21 days notice of the penalty before the Commissioner is able to commence proceedings to recover the liability, some directors extinguish their personal liability by placing the company into voluntary administration or liquidation within that notice period and before the Commissioner can sue to recover their personal liability. This often means that the full amount of PAYG withholding liabilities is never recovered”.

The implication for directors is that unpaid taxation debts that comprise PAYG(W) or superannuation guarantee amounts, that are more than 3 months overdue (which for many companies is only one BAS period), will become personal liabilities of the director, once a director penalty notice is issued, regardless of whether directors place the company into a voluntary administration or liquidation.

Once more it is important to emphasise that the law, although effective from the date of Royal Assent, is likely to apply to existing debts that currently remain unpaid for more than 3 months. In those circumstances, directors with currently unpaid PAYG(W) and/or superannuation guarantee amounts should carefully consider not only their company’s financial position but also their own, as the likelihood of personal liability for their company’s taxation debts becomes ever more certain.

*Treasury Explanatory Memorandum

The ATO’s new weaponry…revamped

Tony Lane is a senior manager at Kazar Slaven and provides advice to clients in the areas of insolvency, business risk and financial conflict and dispute resolution. For more information, contact Kazar Slaven, Level 3, 11 National Circuit, Barton. T: 6215 8405 F: 6215 8450 E: [email protected] W: www.kazarslaven.com.au

By Tony Lane

BUSINESS SERVICES

We regularly deal with tenants who are reaching their lease end date and haven’t left themselves enough time to source and consider the options that may be available to them. This causes significant stress as people rush around trying to secure new premises or negotiate a new lease with their current landlord. Some forward planning and knowledge of the timeline required to facilitate a stress free move are critical in getting your business the best possible result.

Although this would not suit in every circumstance, as each tenant has differing requirements, the following is a generic timeline, attempting to allow you a reasonable and stress free amount of time to consider a move. • 12 Months from Lease end date – Start thinking about the following

criteria for you premises:• How much space do we need?• What locations would we consider?• What standard and amenity needs to be at the premises?• How many staff are we accommodating?• What is our budget for rent?• Do we have a budget for fitout?

• 9 Months out – Have a defined list of criteria that you can use to shortlist between sites.

• 6 Months out – Inspect a broad range of properties (at least 5 and probably 8 or more).

• 5 Months out – shortlist down to 2 – 4 preferred sites and ask for proposed leasing terms from each Lessor.

• 4 Months out – Negotiate with 1 or 2 Lessor’s on final terms.• 3 Months out – select preferred site and request formal lease

documentation from Lessor’s solicitor.• 2 Months out – Execute lease documentation for new premises and

provide any required guarantees and proof of insurance• 1 Month out - Be operational in new premises, allowing enough time

for make good at existing site.• Lease End Date – Obligations at existing site finish.

Assumption – No fitout was required at new premises.Tips –

1. Obtaining multiple offers allows you to compare the terms that lessor are willing to provide.

2. Viewing a large number of properties serves as a double check of your criteria and helps for you to be able to compare sites against each other.

3. Speak to commercial property agents, as they will know what space is coming up over the next 12 months.

4. Review your current lease to understand your end of lease responsibilities.

Timing the move

Andrew Smith is the Director at Ray White Commercial17-23 Townshend Street Phillip 2606T: 02 6162 0681 | www.rwcanberra.com.au

by Andrew Smith

COMMERCIAL PROPERTY


The establishment of a new national and independent Not-For-Profit (“NFP”) Regulator (the Australian Charities and Not-For-Profit Commission (ACNC)) was announced in the Federal Budget 2011-12 which will aim to simplify regulatory requirements and improve accountability and transparency in the NFP sector. The main concern the ACNC will address is the inconsistencies and duplications in reporting requirements which arise from the current position where Commonwealth, State, Territory and local governments regulate different parts of the NFP sector for different and overlapping purposes. The original proposed start date for operations was 1 July 2012, however this has been extended to 1 October 2012.

On Friday 9 December 2011 Treasury issued a number of papers for consultation which are intended to facilitate the establishment and operation of the ACNC, namely:• Exposure Draft (ED) - Australian Charities and Not-for-profits

Commission Bill 2012• Consultation Paper (CP) - Review of Not-for-profit Governance

Arrangements• Discussion Paper (DC) - Australian Charities and Not-for-profits

Commission: Implementation DesignThese papers provided an overview of the intended future

framework for the not-for-profit sector. Initially the reforms will only affect charities in the not-for-profit sector, but it is anticipated that this will be extended at a later date to include all not-for-profit organisations.

Some of the key changes that this framework will mean for the sector include:• The establishment of a “report-once use-often” general reporting

framework for registered entities. This will enable registered entities to fulfil all reporting obligations, initially across Commonwealth agencies by lodging required reports with the ACNC.

• Reporting requirements are to be calculated proportional to size, based on revenue thresholds and deductible gift recipient (“DGR”) status and is set out in a simple tired approach.

• Financial reports will need to be lodged with the ACNC in accordance with Australian Accounting Standards. For charities operating as incorporated associations this will, in many jurisdictions, result in a significant change in financial reporting requirements.

• It is envisaged that ultimately the current state-based reporting requirements will be replaced with the ACNC reporting requirements so as to avoid duplication. Defining “responsible individuals” as directors, trustees, receivers,

managers, administrators, liquidators and other decision makers of registered entities. The consultation process for the proposed framework ended on January 2012. The Government will continue to consult with the sector to finalise the legislation.

Not-for-profit financial reporting reform

ACCOUNTING BUSINESS LAW

If you would like more information on any of these changes, please contact Rodney Miller, Partner at RSM Bird Cameron, on [email protected] or (02) 6217 0363.

By Rodney Miller

In early March the Australian High Court confirmed the legal responsibility of an occupier of premises for the safety and well being of all who have, lawfully or unlawfully, entered the premises.

In the recent decision (Strong v Woolworths Ltd) Ms Strong was at the Centro Taree Shopping Centre. Whilst walking past Big W at around 12:30pm, the tip of her right crutch came into contact with a greasy chip that was lying on the floor. Ms Strong slipped, fell heavily and suffered serious spinal injuries.

Woolworths recognised that they owed a duty to take reasonable care for the safety of persons coming into the area and confirmed their obligation to have a system in place for the periodic inspection and cleaning of the area. Unfortunately, on the day of the fall, notwithstanding the system that was in place, there was no inspection.

It is well established law that an occupier has to take ‘reasonable care’ for the prevention of injury to the public. The occupier, in fulfilling its duty to prevent persons tripping and falling, is not required to have continuous presence of someone to inspect and clean the area; rather, it is required to provide for periodic inspection and necessary cleaning and the courts have indicated that inspection at 20 minute intervals is reasonable.

The difficulty for Woolworths in this case was that there were no inspections between 8:00am and 12:30pm, the time of the fall. In its defence, Woolworths argued that Ms Strong could not say when the chip had been dropped. They argued that even if there was an inspection at 12:10pm (20 minutes before the fall), Ms Strong still may have fallen. In rejecting this argument, the High Court ruled that in the absence of evidence indicating when the chip was dropped, it was more likely that the chip was dropped before 12:10pm rather than between 12:10pm and 12:30pm. Consequently, the chip would have been detected and removed by the operation of the cleaning system.

It appears that Woolworths would have met their obligation had they had a periodic inspection and cleaning routine in operation. In circumstances where the occupier outsources the cleaning/maintenance, it is still the occupier’s responsibility for the safety of its invitees and this obligation cannot be given to another.

The lesson is loud and clear: occupiers must ensure that their premises are safe and this includes maintaining a clear, clean floor which is free of tripping and slipping hazards. In certain circumstances, this includes the area near the entrance to the premises.

High Court tells occupiers – clean up your actby Craig Painter

Craig Painter is partner at Elringtons in litigation services.Contact Elringtons T: (02) 6206 1300, Level 7, 221 London Circuit, Canberra Cityvisit: elringtons.com.au

The lesson is loud and clear: occupiers must ensure that their premises are safe


As frequent readers would note, only two months ago in this column I speculated about the re-release of draft legislation by the Federal Government, designed to amend the tax law to make directors of companies personally liable for unpaid superannuation and other obligations. On 18 April, the Assistant Treasurer announced Tax Laws Amendment (2012 Measures 3 No.2) Bill 2012: Companies’ non-compliance with PAYG withholding and superannuation guarantee obligations.

Whilst the title appears a mouthful, it may not be nearly so difficult to digest for company directors as the Bill will be, if (or when) it becomes law. Postponed since late last year, and a government election commitment since 2010, the Bill if enacted, will impose personal liability on Company directors for unpaid taxation amounts by “ensuring that directors cannot discharge their director penalties by placing their company into administration or liquidation when unpaid PAYG withholding or superannuation guarantee remains unpaid three months after its due date” * [emphasis added].

The particular policy imperative of the government in this regard appears targeted towards unremitted superannuation guarantee payments by companies. However, the Bill also captures unremitted Pay As You Go Withholding amounts. In its explanatory material accompanying the Bill, Treasury notes:

“…as directors are provided 21 days notice of the penalty before the Commissioner is able to commence proceedings to recover the liability, some directors extinguish their personal liability by placing the company into voluntary administration or liquidation within that notice period and before the Commissioner can sue to recover their personal liability. This often means that the full amount of PAYG withholding liabilities is never recovered”.

The implication for directors is that unpaid taxation debts that comprise PAYG(W) or superannuation guarantee amounts, that are more than 3 months overdue (which for many companies is only one BAS period), will become personal liabilities of the director, once a director penalty notice is issued, regardless of whether directors place the company into a voluntary administration or liquidation.

Once more it is important to emphasise that the law, although effective from the date of Royal Assent, is likely to apply to existing debts that currently remain unpaid for more than 3 months. In those circumstances, directors with currently unpaid PAYG(W) and/or superannuation guarantee amounts should carefully consider not only their company’s financial position but also their own, as the likelihood of personal liability for their company’s taxation debts becomes ever more certain.

*Treasury Explanatory Memorandum

The ATO’s new weaponry…revamped

Tony Lane is a senior manager at Kazar Slaven and provides advice to clients in the areas of insolvency, business risk and financial conflict and dispute resolution. For more information, contact Kazar Slaven, Level 3, 11 National Circuit, Barton. T: 6215 8405 F: 6215 8450 E: [email protected] W: www.kazarslaven.com.au

By Tony Lane

BUSINESS SERVICES


Although this would not suit in every circumstance, as each tenant has differing requirements, the following is a generic timeline, attempting to allow you a reasonable and stress free amount of time to consider a move. • 12 Months from Lease end date – Start thinking about the following

criteria for you premises:• How much space do we need?• What locations would we consider?• What standard and amenity needs to be at the premises?• How many staff are we accommodating?• What is our budget for rent?• Do we have a budget for fitout?

• 9 Months out – Have a defined list of criteria that you can use to shortlist between sites.

• 6 Months out – Inspect a broad range of properties (at least 5 and probably 8 or more).


• 4 Months out – Negotiate with 1 or 2 Lessor’s on final terms.• 3 Months out – select preferred site and request formal lease

documentation from Lessor’s solicitor.• 2 Months out – Execute lease documentation for new premises and

provide any required guarantees and proof of insurance• 1 Month out - Be operational in new premises, allowing enough time

for make good at existing site.• Lease End Date – Obligations at existing site finish.

Assumption – No fitout was required at new premises.Tips –

1. Obtaining multiple offers allows you to compare the terms that lessor are willing to provide.




Timing the move

Andrew Smith is the Director at Ray White Commercial17-23 Townshend Street Phillip 2606T: 02 6162 0681 | www.rwcanberra.com.au

by Andrew Smith

COMMERCIAL PROPERTY


With a very tight Federal Budget looming and the prospect of the ACT election process also slowing the local economy, many owners and directors are carefully looking at how their business will cope in uncertain times.

While many will focus on how many orders are in the system and what sales may be on the horizon, one of the most critical areas to focus on is the cash flow of the business. Without sufficient cash, a business will quickly perish regardless of how good its products and services are.

A recent online discussion on the Australian Institute of Company Directors LinkedIn group caught my eye. One comment focused on the need to maintain a really positive relationship with suppliers as well as financiers.

Many older text books on cash flow management may refer to the idea of slowing payments to creditors as being a way of improving cash flow. However the current view is that such delays in payments only serve to put your loyal suppliers’ cash flow under stress, which can have a longer-term negative impact on your business. While you want to ensure that you are paid promptly by your debtors, likewise set out to form good relationships with your suppliers.

In a small city like Canberra, having a respected business image is critically important and can greatly assist in tough times. It is amazing how ‘word of mouth’ recommendations or referrals can help your business and these recommendations are much more likely when you are viewed as being in a trusted relationship with other members of the business community.

Good cash flow forecasting is important in good times, but is critically important when times are tougher. Such forecasting is generally based on historical data and can be inaccurate as we enter a tougher period. This makes the good supplier relationship even more important, such as when you need to make that phone call asking for a bit of extra time to pay.

For good cash flow management, ensure you have good relationships with suppliers and financiers; ensure you have good processes for collecting from customers; and most importantly, have the discipline to regularly review the status of your cash position.

With good cash flow management your business can survive the bad times setting you up to thrive in the future.

We often receive enquiries from people (or their spouses) who ask about eligibility to do what is colloquially known as a 54/11. Perhaps the easiest way to show how it works is to illustrate by a case study of a person faced with this very question.

For starters however it is important to understand that the 54/11 option is only available to those who are in the CSS.

The CSS Member in question was born in 1958 and is currently 54 years of age. She started work in the CSS in 1977. Her most recent member statement of 30 June 2011 showed she was earning $79,519 per annum. She had accrued $167,912 in her basic contribution and $53,578 in her productivity components.

She turns 55 (her preservation age) in a few months and now she it is time to think about whether she wants to take advantage of the alchemy of the 54/11. First off, let’s see what happens if she resigns shortly before reaching 55 compared with retirement shortly after passing that milestone.

Let’s assume her income has increased to $86,017 and she has been making 5% contributions. She would now have $200,183 in her basic component and $61,017 in her productivity component. Resignation from employment changes her membership in the CSS from being a contributing member to a preserved (also known as deferred) member. On her retirement her pension would be calculated by multiplying her basic contributions by a factor which at 55 is 23.125%. This means her CPI indexed pension would be $46,292 per annum. She would also be entitled to a lump sum of her productivity and basic component of $261,190. In other words, the pension is calculated by reference to the amount you have contributed to your superannuation and you also get a lump sum which also represents what you have contributed! You effectively are getting two slices of the cake.

If she continued to work and retired just after turning 55 then her pension would be calculated by multiplying her final salary by her pension factor (in this case 38.46%). This results in a CPI Indexed pension of $33,083. She would also receive a lump sum of $261,190 (the same lump sum she would have received if she had taken a 54/11).

As you can see from this example above there can be significant advantages in taking a 54/11 option for some people but we stress that this will not apply to everyone. It also does not factor in that you can continue to work and contribute to CSS until retirement at 65. It is important to ensure that your retirement options are carefully considered when preparing your financial and estate plans.

Cash flow The alchemy of the 54/11

Phil Butler is state manager of the Australian Institute of Company Directors’ ACT Division. For more information about AICD ‘s course programs and events, T: 02 6248 5954.

by Phil Butler by Stephen Bourke

CORPORATE GOVERNANCE ESTATE PLANNING

Certus Law specialises in superannuation, trusts and estate planning. Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au

It is important to ensure that your retirement options are carefully considered when preparing your fi nancial and estate plans.

With good cash fl ow management your business can survive the bad times setting you up to thrive in the future.

With a very tight Federal Budget looming and the prospect of the ACT election process also slowing the local economy, many owners and directors are carefully looking at how their business will cope in uncertain times.

While many will focus on how many orders are in the system and what sales may be on the horizon, one of the most critical areas to focus on is the cash flow of the business. Without sufficient cash, a business will quickly perish regardless of how good its products and services are.

A recent online discussion on the Australian Institute of Company Directors LinkedIn group caught my eye. One comment focused on the need to maintain a really positive relationship with suppliers as well as financiers.

Many older text books on cash flow management may refer to the idea of slowing payments to creditors as being a way of improving cash flow. However the current view is that such delays in payments only serve to put your loyal suppliers’ cash flow under stress, which can have a longer-term negative impact on your business. While you want to ensure that you are paid promptly by your debtors, likewise set out to form good relationships with your suppliers.

In a small city like Canberra, having a respected business image is critically important and can greatly assist in tough times. It is amazing how ‘word of mouth’ recommendations or referrals can help your business and these recommendations are much more likely when you are viewed as being in a trusted relationship with other members of the business community.

Good cash flow forecasting is important in good times, but is critically important when times are tougher. Such forecasting is generally based on historical data and can be inaccurate as we enter a tougher period. This makes the good supplier relationship even more important, such as when you need to make that phone call asking for a bit of extra time to pay.

For good cash flow management, ensure you have good relationships with suppliers and financiers; ensure you have good processes for collecting from customers; and most importantly, have the discipline to regularly review the status of your cash position.

With good cash flow management your business can survive the bad times setting you up to thrive in the future.

We often receive enquiries from people (or their spouses) who ask about eligibility to do what is colloquially known as a 54/11. Perhaps the easiest way to show how it works is to illustrate by a case study of a person faced with this very question.

For starters however it is important to understand that the 54/11 option is only available to those who are in the CSS.

The CSS Member in question was born in 1958 and is currently 54 years of age. She started work in the CSS in 1977. Her most recent member statement of 30 June 2011 showed she was earning $79,519 per annum. She had accrued $167,912 in her basic contribution and $53,578 in her productivity components.

She turns 55 (her preservation age) in a few months and now she it is time to think about whether she wants to take advantage of the alchemy of the 54/11. First off, let’s see what happens if she resigns shortly before reaching 55 compared with retirement shortly after passing that milestone.

Let’s assume her income has increased to $86,017 and she has been making 5% contributions. She would now have $200,183 in her basic component and $61,017 in her productivity component. Resignation from employment changes her membership in the CSS from being a contributing member to a preserved (also known as deferred) member. On her retirement her pension would be calculated by multiplying her basic contributions by a factor which at 55 is 23.125%. This means her CPI indexed pension would be $46,292 per annum. She would also be entitled to a lump sum of her productivity and basic component of $261,190. In other words, the pension is calculated by reference to the amount you have contributed to your superannuation and you also get a lump sum which also represents what you have contributed! You effectively are getting two slices of the cake.

If she continued to work and retired just after turning 55 then her pension would be calculated by multiplying her final salary by her pension factor (in this case 38.46%). This results in a CPI Indexed pension of $33,083. She would also receive a lump sum of $261,190 (the same lump sum she would have received if she had taken a 54/11).

As you can see from this example above there can be significant advantages in taking a 54/11 option for some people but we stress that this will not apply to everyone. It also does not factor in that you can continue to work and contribute to CSS until retirement at 65. It is important to ensure that your retirement options are carefully considered when preparing your financial and estate plans.

Cash flow The alchemy of the 54/11

Phil Butler is state manager of the Australian Institute of Company Directors’ ACT Division. For more information about AICD ‘s course programs and events, T: 02 6248 5954.

by Phil Butler by Stephen Bourke

CORPORATE GOVERNANCE ESTATE PLANNING

Certus Law specialises in superannuation, trusts and estate planning. Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au

It is important to ensure that your retirement options are carefully considered when preparing your fi nancial and estate plans.

With good cash fl ow management your business can survive the bad times setting you up to thrive in the future.

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How directors or owners of small and medium-sized enterprises can protect their assets against creditors or litigants in case something goes wrong. While many company directors and business owners rely on professional advice to assist them with their business, they often fail to invest in safeguarding their personal assets.

Even business succession plans are often too focused on the business and fail to look at the owner, their family, lifestyle and wealth. In some cases, this poor personal planning can result in costly outcomes. Complex family circumstances, significant wealth and valuable assets, require effective planning and preservation that will protect you and your family.

What is a personal wealth asset protection plan?Protecting your assets is about using sophisticated and legally

permissible techniques to ensure that they are secured should something unexpected happen. For example, protecting the family home is important, but can be complicated. The home and other real property can often be at risk if held in an individual director’s name.

A well-developed asset protection plan doesn’t just look at appropriate structures, such as trusts or companies, but also considers tax-minimisation, estate planning strategies and intergenerational wealth plans to provide personalised and holistic solutions.

Who would benefit from an asset protection plan?Most people need some form of asset protection, but it’s especially

important for individuals who are: • officers or directors of an organisation• operating a business or engaged in a profession • engaging in riskier activities, eg property development• litigation targets, eg those in the public eye or who are perceived to

be wealthy, and• anyone with significant personal or business assets.

The sooner you begin safeguarding your assets the better protected you and your family will be. Starting sooner can minimise costs. And, because every person’s situation is different, there is no “one size fits all” solution so seeking professional advice is important.

Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This article has been prepared by PTCo and is dated April 2012. It contains general information only and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances, we recommend that you seek professional financial, tax and/or legal advice.

I don’t think it would come as a surprise to most people to hear that the real estate market has cooled off slightly over the past couple of years. This has made people put their real estate transactions on hold waiting for the market to bounce back.

What may come as a surprise, is that the current real estate market provides opportunities that are being overlooked by many due to the emotional pain associated with the decrease in value of their own home. For the past 10 years when home values were consistently appreciating, we all felt good about the market and homeowners wouldn't think twice about selling their home for a gain and purchasing a larger more expensive home.

Here is a very simple example of what I mean: A couple of years ago, a real estate agent told you your house would

sell for $650,000. You weren’t quite ready to sell at that stage (Perhaps you were waiting for the kids to change schools). This year if your agent comes back, you may get the startling news that your much loved home is now valued at $585,000 in the current market. You’re looking a $65,000 shortfall in equity dead in the eye and therefore thinking how can we possibly afford to upgrade now?

But wait! When the tide goes out it takes all boats with it. The dream house you like was also valued for more a couple of years ago, let’s say $975,000. It’s very likely its price may have corrected by the same percentage (10%), which means this year, it’s worth $877,500.

Therefore you are now $32,500 closer to buying your dream home in the current market then you were in the peak of the market and there lays the silver lining.

Keep in mind that the markets aren’t as clear cut as this simple example, however the principle is powerful and a down market may be a good thing. Accept the reduction in value on your current home, because all you are doing is moving equity from one home to the next and it is all about the change over figure.

Eventually the market will turn around, and what you really should be thinking about is where do you want to wait for the market to turn around, in your current home, or the home of your dreams?

Call Ray White Kingston today to discuss how we can turn your dreams into reality.

The silver lining in buying up in a down market

Eventually the market will turn around, and what you really should be thinking about is where do you want to wait for the market to turn around

The sooner you begin safeguarding your assets the better

RESIDENTIAL PROPERTY

Cory McPherson is the Director of Ray White Kingston 1/28 Eyre Street, Kingston | M 0418 266 698 | T 02 [email protected] www.rwcanberra.com.au

Safeguarding your personal assetsby Sara Caggiano

STRATEGIC FINANCIAL ADVICE

Sara Caggiano is a Senior Financial Consultant at Perpetual PrivateLevel 6, 10 Rudd Street CanberraP: 6243 6507 | www.perpetual.com.au

by Cory McPherson

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How directors or owners of small and medium-sized enterprises can protect their assets against creditors or litigants in case something goes wrong. While many company directors and business owners rely on professional advice to assist them with their business, they often fail to invest in safeguarding their personal assets.

Even business succession plans are often too focused on the business and fail to look at the owner, their family, lifestyle and wealth. In some cases, this poor personal planning can result in costly outcomes. Complex family circumstances, significant wealth and valuable assets, require effective planning and preservation that will protect you and your family.

What is a personal wealth asset protection plan?Protecting your assets is about using sophisticated and legally

permissible techniques to ensure that they are secured should something unexpected happen. For example, protecting the family home is important, but can be complicated. The home and other real property can often be at risk if held in an individual director’s name.

A well-developed asset protection plan doesn’t just look at appropriate structures, such as trusts or companies, but also considers tax-minimisation, estate planning strategies and intergenerational wealth plans to provide personalised and holistic solutions.

Who would benefit from an asset protection plan?Most people need some form of asset protection, but it’s especially

important for individuals who are: • officers or directors of an organisation• operating a business or engaged in a profession • engaging in riskier activities, eg property development• litigation targets, eg those in the public eye or who are perceived to

be wealthy, and• anyone with significant personal or business assets.

The sooner you begin safeguarding your assets the better protected you and your family will be. Starting sooner can minimise costs. And, because every person’s situation is different, there is no “one size fits all” solution so seeking professional advice is important.

Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo), ABN 42 000 001 007, AFSL 236643. This article has been prepared by PTCo and is dated April 2012. It contains general information only and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances, we recommend that you seek professional financial, tax and/or legal advice.



Here is a very simple example of what I mean: A couple of years ago, a real estate agent told you your house would

sell for $650,000. You weren’t quite ready to sell at that stage (Perhaps you were waiting for the kids to change schools). This year if your agent comes back, you may get the startling news that your much loved home is now valued at $585,000 in the current market. You’re looking a $65,000 shortfall in equity dead in the eye and therefore thinking how can we possibly afford to upgrade now?



Keep in mind that the markets aren’t as clear cut as this simple example, however the principle is powerful and a down market may be a good thing. Accept the reduction in value on your current home, because all you are doing is moving equity from one home to the next and it is all about the change over figure.




Eventually the market will turn around, and what you really should be thinking about is where do you want to wait for the market to turn around

The sooner you begin safeguarding your assets the better

RESIDENTIAL PROPERTY

Cory McPherson is the Director of Ray White Kingston 1/28 Eyre Street, Kingston | M 0418 266 698 | T 02 [email protected] www.rwcanberra.com.au

Safeguarding your personal assetsby Sara Caggiano

STRATEGIC FINANCIAL ADVICE

Sara Caggiano is a Senior Financial Consultant at Perpetual PrivateLevel 6, 10 Rudd Street CanberraP: 6243 6507 | www.perpetual.com.au

by Cory McPherson

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Facebook timeline – story of your life

WEBSITES

by Sam Gupta

Sam Gupta is the managing director of Synapse Worldwide. Sam would love to hear your thoughts on this advice column. Please contact him on 1300 785 230 or [email protected]

Human Resource Management is a critical component for all organisations particularly during times of change. Some organisations have the capacity to employ full time HR resources whereas many small to medium sized organisations sometimes do not. Over the years I have spoken with numerous small businesses who feel they need to manage human resource matters on their own or invest large amounts of money to obtain a full spectrum of HR services. These organisations try to apply HR principles to the best of their ability sometimes re-inventing processes and procedures that are readily available, achieving varying levels of success.

Outsourced bespoke services could be the key for businesses that require critical aspects of a HR Service. This could include recruitment and candidate assessment enabling organisations to achieve better outcomes in talent sourcing and management. HR services and processes that can contribute to staff engagement include clearly defined position descriptions/duty statements, tailored on-boarding programs, identifying and supporting training needs and skills gaps or providing assessment tools to assist in getting the right “fit” for your organisation. Other services like attraction strategy development, performance management & career development programs can also add significant value and assist in the important area of staff retention.

Organisations can also utilise career coaching services to enhance the connection of their employees and build capability. We have found that there are significant benefits to employees taking time out to re-energise and to refocus their skills. Sometimes it’s just about the opportunity to get away from the day to day work and reflect on what makes them successful.

To find out how Cantlie can support you in your talent management, talent development and HR services contact us today on 02 6239 77 55 or visit ww.cantlie.com.au

We have found that there are signifi cant benefi ts to employees taking time out to re-energise and to refocus their skills. Sometimes it’s just about the opportunity to get away from the day to day work and refl ect on what makes them successful.

Human resource management –

what are the options?

TALENT SERVICES

by Keith Cantlie

Keith Cantlie, Managing Director Corner Flinders Way and Murray Crescent, Manuka ACT 2603T: 02 6239 7755 | [email protected]

What an idea! It is one of those things: you won’t know what you were missing until you see it.

In September, Mark Zuckerberg launched ‘Timeline’ along with social app for music and videos, new facebook profile layout and a bunch of other features.

So what is Timeline? Facebook created a vertical timeline starting from the top, being the present to as far back as you would like to go in the timeline.

From your birth to various milestones of your life, this app really allows you to tell the story of your life on a single page.

You can add photos, videos, events and even other apps to your timeline. Small unimportant updates will auto-hide on the time line and significant ones such as birthday parties, will be more prominent.

You can mark items as ‘featured’ if you like. In simple words, it allows you to express yourself better on your profile page.

'Timeline' is HUGE for businesses, brands and celebrities. It provides your marketing team a great platform to manage brands. From the time your business was incorporated, to the present date, you can put all about your business on one page.

Add corporate or community events your business was involved in, add promotions you run, trade shows you may have attended, change of location, feature awards you may have won, event photos and pretty much any milestones of your business. The possibilities are endless!

Privacy concerns? For personal use, be careful what you make public. For business pages, it is up to you how you wish to share information with your fans and public. For photos and videos, be sure to take everyone’s consent first.

If you want to find out more about Facebook Timelines, visit www.facebook.com/about/timeline. Let me know what you think of it anyway. Give me a call on 1300 785 230 or send an email to [email protected]. Have a nice day.

'Timeline' provides your marketing team a great platform to manage brands. From the time your business was incorporated, to the present date, you can put all about your business on one page.

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A 2 B A S S O C I AT I O N S T O B U S I N E S S

PRESIDENT, ACT EXPORTERS’ NETWORK

B R E N TJ U R AT O W I T C H

complete with their latitude and longitude. This information is incorporated by GeoNav into the sign inventories it supplies to its customers.

“There have been many attempts at solving the problem of automatically detecting road signs, but few of them have been successful on a very large scale. We have used our technology in the Australian market for some time, and this deal with GeoNav allows us to prove our technology in the North American market as well,” said NICTA Senior Researcher and AutoMap developer Dr Lars Petersson.

GeoNav’s clients in the utilities sector also require inventories of roadside objects relating to electricity distribution networks. To service this contract, NICTA has developed a new library of US signs and added the capability of automatically finding power poles in 3D point clouds.

Point clouds are created by a 3D scanner mounted on a survey vehicle and represent a relatively new form of sensing technology for mobile survey vehicles. The most common type of scanner, called LiDAR, sends out a wide beam of laser pulses and captures the reflections from roadside objects, such as signs and power poles, providing size, shape and position information about those objects.

The software will be taken to market in the US by Automapic, a business emerging from technology developed by the NICTA Automap team. “This contract not only places NICTA’s research in an important international market, it also delivers direct income to NICTA through a sales revenue sharing arrangement with GeoNav,” said NICTA’s Chief Operating Officer Dr Phil Robertson. “It is also an important validation for a promising emerging business which is looking to spin out of NICTA later this year.”

Being able to share experiences, share knowledge and encourage each other in their exporting journey, while drawing on assistance from those that provide assistance and support for exporters, is what the ACT Exporters’ Network is all about. If you would like to be involved in our events, or find out more about the Network, please visit our website (www.actexportersnetwork.com.au) or contact Craig Malcolm at [email protected] or on 0438 808 233.

ACT Exporters’ Network members continue to enjoy success on the world stage...


Members of the ACT Exporters’ Network continue to enjoy success on the world stage as they enter new markets and expand their activities in

existing ones.NICTA is a long-time member of the network

and under a new three-year agreement with US-based surveying company GeoNav Group International, automatic video analysis technology developed by NICTA will be used to help improve road safety through the creation of accurate inventories - or ‘maps’ - of road signs and power poles.

GeoNav Executive Vice President Guner Gardenhire says NICTA’s ‘AutoMap’ technology will help the company respond to a growing requirement for reliable road sign surveys to address maintenance, safety and regulation issues. “In particular there is a growing demand for up-to-date sign inventories to satisfy the Federal Highway Administration’s new traffic sign retroreflectivity requirements,” he said. These new requirements aim to reduce the number of road deaths which occur at night. GeoNav is 100 percent-owned by the National Rural Telecommunications Cooperative (NRTC), which represents the interests of around 1400 rural utilities and affiliates in 47 US states.

GeoNav mapping vehicles equipped with video cameras drive many thousands of kilometres collecting video, LiDAR and GPS track data. The resulting footage is then uploaded onto their servers in Montana. NICTA personnel remotely analyse the data from Canberra and create an inventory of signs

NICTA video analysis technology

takes North American road trip

The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry.

For more information on the ACT Exporters’ Network visit actexportersnetwork.com, orcontact the Network’s manager, Craig Malcolm, on 0438 808 233, [email protected].

Budgets, business strategies

and politics

The next 4-5 weeks will be critically important for business in the ACT. On 30 April the ACT Government will release its Business Development Strategy followed

later in May by its response to the Quinlan Tax Review. It is also Budget time - the Federal Budget will be handed down on 7 May 2012 and the ACT Budget a month later on 6 June 2012.

All of this policy activity is against an extraordinary political and economic backdrop. Governments are warning of tough times ahead as they try to rein in spending and return to surplus. The build-up to the ACT election on 20 October this year has already begun and there is a growing sense that a Federal election is not far away.

Where does this leave business in Canberra?The economic fundamentals in the ACT

remain sound. CommSec’s State of the States Report (released 23 April 2012) shows that the ACT continues to have one of the best-performing economies in Australia.

Measured against its decade average, the ACT has strong economic growth (up 18.2%) and above-average population growth (1.92%). Dwelling starts are up 55% and construction work is up 47%. The trend jobless rate of 3.6% is lower than in all other state and territory economies.

But there are worrying signs beneath these positive indicators.

The unemployment rate in the ACT may be the lowest in Australia but it is actually 5% higher than its “normal” level. The ACT is at the bottom of the leader-board for retail trade with spending up just 5.1%. Dwelling starts in the ACT actually peaked in the December 2010 quarter and are now down 11.9% on a year ago.

But the biggest risk to the ACT economy by far is the spending cuts which will be announced in the Federal Budget on 7 May. The Prime Minister is determined to produce a surplus budget for 2012-13 – an outcome that is more about keeping a political promise than economic necessity. Cuts to Federal Government agency budgets will inevitably

mean less work for the private sector, and many more cuts to Public Service jobs. These “savings” will have a disproportionately adverse impact on consumer and business confidence in the ACT because our economy is highly dependent on Federal Government procurement and employment policies. Over recent months the mere prospect of job and spending cuts has had an impact on consumer and business confidence. The reality of these cuts beyond 1 July 2012, when the 4% efficiency dividend also kicks in, is likely to be much worse.

Canberra Business Council has been active in raising with both the Federal and ACT Governments the issues that are important to business in Canberra, particularly the need to diversify the ACT economy.

At the ACT level, the Council has called for an integrated Small Business Policy and a Small Business Commissioner to focus on minimising red tape and reducing the compliance burden on small companies which account for 96% of ACT businesses. Our taxation framework also needs to be more competitive and government procurement policies should be used to build industry capability. The recent announcement that local SMEs will be given a weighting of 5-10% when they tender for contracts with the ACT Government is an example of an industry development policy that CBC has been advocating over a number of years.

The Council has also urged the Government to stimulate new technology-based businesses by supporting innovation contests, including InnovationACT and the Council’s Digital City proposal. Full copies of the Canberra Business Council’s Budget Submissions are available athttp://www.canberrabusinesscouncil.com.au/pages/submissions.asp

T 6247 4199E info@canberrabusinesscouncil.com.auwww.canberrabusinesscouncil.com.au

A S S O C I AT I O N S T O B U S I N E S S A 2 B

C H R I S FA U L K S

CEO

AFFILIATED WITH

Principal MembersACTEW Corporation, ActewAGL, Blue Star Printing, Brookfield Multiplex Services, Cre8ive, Canberra International Airport, Elite Sound & Lighting, eWAY, Hindmarsh, ISIS, KPMG (Canberra), Master Builders Association (ACT), National Australia Bank Limited, National Museum of Australia, PricewaterhouseCoopers, Staging Connections (ACT), The Village Building Company, Thyssen Krupp Marine Systems Australia, Toshiba (Australia) Pty Limited, TransACT

UPCOMING EVENTS

9 May 2012Federal Budget Breakfast

TIME: 7:30amVENUE: Parliament House

14 May 2012Canberra Times Business Luncheon

SPEAKER: James Strong, Chair, Board of Directors of WoolworthsTIME: 12:30pmVENUE: Hotel Realm

6 June 2012Budget Breakfast

TIME: 7:00amVENUE: National Press Club

Save the DateACT Election Debate: 12 September 2012CBC Annual Dinner: 18 October 2012

The next 4-5 weeks will be critically important for business in the ACT...



PRESIDENT, ACT EXPORTERS’ NETWORK

B R E N TJ U R AT O W I T C H

complete with their latitude and longitude. This information is incorporated by GeoNav into the sign inventories it supplies to its customers.

“There have been many attempts at solving the problem of automatically detecting road signs, but few of them have been successful on a very large scale. We have used our technology in the Australian market for some time, and this deal with GeoNav allows us to prove our technology in the North American market as well,” said NICTA Senior Researcher and AutoMap developer Dr Lars Petersson.

GeoNav’s clients in the utilities sector also require inventories of roadside objects relating to electricity distribution networks. To service this contract, NICTA has developed a new library of US signs and added the capability of automatically finding power poles in 3D point clouds.

Point clouds are created by a 3D scanner mounted on a survey vehicle and represent a relatively new form of sensing technology for mobile survey vehicles. The most common type of scanner, called LiDAR, sends out a wide beam of laser pulses and captures the reflections from roadside objects, such as signs and power poles, providing size, shape and position information about those objects.

The software will be taken to market in the US by Automapic, a business emerging from technology developed by the NICTA Automap team. “This contract not only places NICTA’s research in an important international market, it also delivers direct income to NICTA through a sales revenue sharing arrangement with GeoNav,” said NICTA’s Chief Operating Officer Dr Phil Robertson. “It is also an important validation for a promising emerging business which is looking to spin out of NICTA later this year.”

Being able to share experiences, share knowledge and encourage each other in their exporting journey, while drawing on assistance from those that provide assistance and support for exporters, is what the ACT Exporters’ Network is all about. If you would like to be involved in our events, or find out more about the Network, please visit our website (www.actexportersnetwork.com.au) or contact Craig Malcolm at [email protected] or on 0438 808 233.

ACT Exporters’ Network members continue to enjoy success on the world stage...


Members of the ACT Exporters’ Network continue to enjoy success on the world stage as they enter new markets and expand their activities in

existing ones.NICTA is a long-time member of the network

and under a new three-year agreement with US-based surveying company GeoNav Group International, automatic video analysis technology developed by NICTA will be used to help improve road safety through the creation of accurate inventories - or ‘maps’ - of road signs and power poles.

GeoNav Executive Vice President Guner Gardenhire says NICTA’s ‘AutoMap’ technology will help the company respond to a growing requirement for reliable road sign surveys to address maintenance, safety and regulation issues. “In particular there is a growing demand for up-to-date sign inventories to satisfy the Federal Highway Administration’s new traffic sign retroreflectivity requirements,” he said. These new requirements aim to reduce the number of road deaths which occur at night. GeoNav is 100 percent-owned by the National Rural Telecommunications Cooperative (NRTC), which represents the interests of around 1400 rural utilities and affiliates in 47 US states.

GeoNav mapping vehicles equipped with video cameras drive many thousands of kilometres collecting video, LiDAR and GPS track data. The resulting footage is then uploaded onto their servers in Montana. NICTA personnel remotely analyse the data from Canberra and create an inventory of signs

NICTA video analysis technology

takes North American road trip

The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry.

For more information on the ACT Exporters’ Network visit actexportersnetwork.com, orcontact the Network’s manager, Craig Malcolm, on 0438 808 233, [email protected].

Budgets, business strategies

and politics

The next 4-5 weeks will be critically important for business in the ACT. On 30 April the ACT Government will release its Business Development Strategy followed

later in May by its response to the Quinlan Tax Review. It is also Budget time - the Federal Budget will be handed down on 7 May 2012 and the ACT Budget a month later on 6 June 2012.

All of this policy activity is against an extraordinary political and economic backdrop. Governments are warning of tough times ahead as they try to rein in spending and return to surplus. The build-up to the ACT election on 20 October this year has already begun and there is a growing sense that a Federal election is not far away.

Where does this leave business in Canberra?The economic fundamentals in the ACT

remain sound. CommSec’s State of the States Report (released 23 April 2012) shows that the ACT continues to have one of the best-performing economies in Australia.

Measured against its decade average, the ACT has strong economic growth (up 18.2%) and above-average population growth (1.92%). Dwelling starts are up 55% and construction work is up 47%. The trend jobless rate of 3.6% is lower than in all other state and territory economies.

But there are worrying signs beneath these positive indicators.

The unemployment rate in the ACT may be the lowest in Australia but it is actually 5% higher than its “normal” level. The ACT is at the bottom of the leader-board for retail trade with spending up just 5.1%. Dwelling starts in the ACT actually peaked in the December 2010 quarter and are now down 11.9% on a year ago.

But the biggest risk to the ACT economy by far is the spending cuts which will be announced in the Federal Budget on 7 May. The Prime Minister is determined to produce a surplus budget for 2012-13 – an outcome that is more about keeping a political promise than economic necessity. Cuts to Federal Government agency budgets will inevitably

mean less work for the private sector, and many more cuts to Public Service jobs. These “savings” will have a disproportionately adverse impact on consumer and business confidence in the ACT because our economy is highly dependent on Federal Government procurement and employment policies. Over recent months the mere prospect of job and spending cuts has had an impact on consumer and business confidence. The reality of these cuts beyond 1 July 2012, when the 4% efficiency dividend also kicks in, is likely to be much worse.

Canberra Business Council has been active in raising with both the Federal and ACT Governments the issues that are important to business in Canberra, particularly the need to diversify the ACT economy.

At the ACT level, the Council has called for an integrated Small Business Policy and a Small Business Commissioner to focus on minimising red tape and reducing the compliance burden on small companies which account for 96% of ACT businesses. Our taxation framework also needs to be more competitive and government procurement policies should be used to build industry capability. The recent announcement that local SMEs will be given a weighting of 5-10% when they tender for contracts with the ACT Government is an example of an industry development policy that CBC has been advocating over a number of years.

The Council has also urged the Government to stimulate new technology-based businesses by supporting innovation contests, including InnovationACT and the Council’s Digital City proposal. Full copies of the Canberra Business Council’s Budget Submissions are available athttp://www.canberrabusinesscouncil.com.au/pages/submissions.asp

T 6247 4199E info@canberrabusinesscouncil.com.auwww.canberrabusinesscouncil.com.au

A S S O C I AT I O N S T O B U S I N E S S A 2 B

C H R I S FA U L K S

CEO

AFFILIATED WITH

Principal MembersACTEW Corporation, ActewAGL, Blue Star Printing, Brookfield Multiplex Services, Cre8ive, Canberra International Airport, Elite Sound & Lighting, eWAY, Hindmarsh, ISIS, KPMG (Canberra), Master Builders Association (ACT), National Australia Bank Limited, National Museum of Australia, PricewaterhouseCoopers, Staging Connections (ACT), The Village Building Company, Thyssen Krupp Marine Systems Australia, Toshiba (Australia) Pty Limited, TransACT

UPCOMING EVENTS

9 May 2012Federal Budget Breakfast

TIME: 7:30amVENUE: Parliament House

14 May 2012Canberra Times Business Luncheon

SPEAKER: James Strong, Chair, Board of Directors of WoolworthsTIME: 12:30pmVENUE: Hotel Realm

6 June 2012Budget Breakfast

TIME: 7:00amVENUE: National Press Club

Save the DateACT Election Debate: 12 September 2012CBC Annual Dinner: 18 October 2012

The next 4-5 weeks will be critically important for business in the ACT...


A season of change

in employment law

2012 is shaping up as a period of great change in the laws that govern the employment of Australian workers.

The year started with the adoption of a new Work Health and Safety law by about half the country, including the Australian Capital Territory, New South Wales, Queensland, the Northern Territory and the Commonwealth. Other states won’t adopt the new model legislation for at least another year, and Western Australia may be even further behind. Unfortunately, even though the ACT has enacted the Work Health and Safety Act 2011, there is still a substantial grey area around the actual obligations for employers because many Codes of Practice (intended to support the Act and Regulations) don’t yet exist. The ACT & Region Chamber of Commerce & Industry is actively involved, along with other employer bodies, in a consultation process aimed at improving a draft set of model Codes of Practice.

Another significant piece of employment law is the Fair Work Act 2009, which sets the framework for employing workers and specifies a number of rights and obligations for employers and employees. The Fair Work Act contains some major differences from the Act that it replaced, and some of the new provisions were really only tested out over the last 12 months. For example, one significant case based on the General Protections provisions of the Fair Work Act was initially decided by the industrial tribunal, Fair Work Australia, only to have that decision appealed through two different levels of the Federal Court. As the case is now headed to the High Court for yet another appeal hearing, the “case law” that determines how this provision will be applied in future is still developing.

The Federal Government has launched a Review of the Fair Work Act 2009, with a report due to be handed to the Government by 31 May. Any person could make a submission to the review panel, although unions and employer groups will no doubt provide the major inputs on behalf of their constituents. The ACT & Region Chamber of Commerce & Industry advocated on behalf of its members by submitting a paper to the review panel setting out employers’ views about what is wrong – and right – with the Fair Work Act 2009. Many employers are rightly concerned about those parts of the Act covering the General Protections, Right of Entry, Industrial Action, and other union-friendly provisions.

A further significant review currently under way is the review by Fair Work Australia into the 122 Modern Awards that operate underneath the Fair Work Act. The Modern Awards took effect from 1 January 2010, and the Act requires that they be reviewed periodically. The current review is the first such process, and written submissions were accepted until 8 March 2012, with hearings by Fair Work Australia commissioners yet to be scheduled. It is vital that employers take this opportunity to request changes to any applicable Modern Award if the current provisions of the Award do not allow them to conduct their business productively and efficiently. The next opportunity for improving Modern Awards won’t come for several years.

Employer groups, including the ACT & Region Chamber of Commerce & Industry have submitted requests for variations to many Modern Awards. Particular areas of concern include the inflexibility of Part Time work provisions, inappropriate restrictions on the allowed span of hours in some awards, lack of piecework rates, and many other existing provisions.

In a time of significant change in much of the framework of employment law, you might ask yourself the question: “Who is advocating on behalf of my business?” The ACT & Region Chamber of Commerce & Industry has a long history of providing advice and support to employers on a wide range of Workplace Relations and Human Resources issues.


DIRECTORWORKPLACE RELATIONS

G R E GS C H M I D T

Another signifi cant piece of employment law is the

Fair Work Act 2009, which sets the framework for

employing workers and specifi es a number of rights

and obligations for employers and employees.

Corporate SponsorsACTEWAGL, 104.7 / Mix 106.3, Prime TV, The Canberra Times, The Good Guys Tuggeranong, Duesburys Nexia, Synapse Worldwide, B2B in Canberra.

Associates and AffiliatesRetail Traders Association, Australian Industry Defence Network

Foundation MemberAustralian Chamber of Commerce & Industry


A season of change

in employment law


The year started with the adoption of a new Work Health and Safety law by about half the country, including the Australian Capital Territory, New South Wales, Queensland, the Northern Territory and the Commonwealth. Other states won’t adopt the new model legislation for at least another year, and Western Australia may be even further behind. Unfortunately, even though the ACT has enacted the Work Health and Safety Act 2011, there is still a substantial grey area around the actual obligations for employers because many Codes of Practice (intended to support the Act and Regulations) don’t yet exist. The ACT & Region Chamber of Commerce & Industry is actively involved, along with other employer bodies, in a consultation process aimed at improving a draft set of model Codes of Practice.

Another significant piece of employment law is the Fair Work Act 2009, which sets the framework for employing workers and specifies a number of rights and obligations for employers and employees. The Fair Work Act contains some major differences from the Act that it replaced, and some of the new provisions were really only tested out over the last 12 months. For example, one significant case based on the General Protections provisions of the Fair Work Act was initially decided by the industrial tribunal, Fair Work Australia, only to have that decision appealed through two different levels of the Federal Court. As the case is now headed to the High Court for yet another appeal hearing, the “case law” that determines how this provision will be applied in future is still developing.

The Federal Government has launched a Review of the Fair Work Act 2009, with a report due to be handed to the Government by 31 May. Any person could make a submission to the review panel, although unions and employer groups will no doubt provide the major inputs on behalf of their constituents. The ACT & Region Chamber of Commerce & Industry advocated on behalf of its members by submitting a paper to the review panel setting out employers’ views about what is wrong – and right – with the Fair Work Act 2009. Many employers are rightly concerned about those parts of the Act covering the General Protections, Right of Entry, Industrial Action, and other union-friendly provisions.

A further significant review currently under way is the review by Fair Work Australia into the 122 Modern Awards that operate underneath the Fair Work Act. The Modern Awards took effect from 1 January 2010, and the Act requires that they be reviewed periodically. The current review is the first such process, and written submissions were accepted until 8 March 2012, with hearings by Fair Work Australia commissioners yet to be scheduled. It is vital that employers take this opportunity to request changes to any applicable Modern Award if the current provisions of the Award do not allow them to conduct their business productively and efficiently. The next opportunity for improving Modern Awards won’t come for several years.

Employer groups, including the ACT & Region Chamber of Commerce & Industry have submitted requests for variations to many Modern Awards. Particular areas of concern include the inflexibility of Part Time work provisions, inappropriate restrictions on the allowed span of hours in some awards, lack of piecework rates, and many other existing provisions.

In a time of significant change in much of the framework of employment law, you might ask yourself the question: “Who is advocating on behalf of my business?” The ACT & Region Chamber of Commerce & Industry has a long history of providing advice and support to employers on a wide range of Workplace Relations and Human Resources issues.


DIRECTORWORKPLACE RELATIONS

G R E GS C H M I D T

Another signifi cant piece of employment law is the

Fair Work Act 2009, which sets the framework for

employing workers and specifi es a number of rights

and obligations for employers and employees.

Corporate SponsorsACTEWAGL, 104.7 / Mix 106.3, Prime TV, The Canberra Times, The Good Guys Tuggeranong, Duesburys Nexia, Synapse Worldwide, B2B in Canberra.

Associates and AffiliatesRetail Traders Association, Australian Industry Defence Network

Foundation MemberAustralian Chamber of Commerce & Industry


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What is the future for boards, governance and leadership?Monday 14 May 2012 – Hotel Realm, Canberra 12.00pm to 2.00pm

Join James Strong AO FAICD, Chairman of Woolworths Ltd and Kathmandu Holdings Ltd, and a Director of Qantas Ltd as he discusses current topics and issues of interest relating to boards, governance and leadership with his thoughts on future directions.

Register now w:companydirectors.com.au t:02 6248 5954 e:[email protected]

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B2B @ RSM BIRD CAMERON 90 YEARS OF CONNECTIONSNATIONAL GALLERY OF AUSTRALIA

Over 400 guests came together to celebrate RSM Bird Cameron’s 90th anniversary. A great evening was had by all in the great new Gandel Hall at the National Gallery of Australia.

CABINET LOUNGE BARFRANKLIN STREET MANUKA

FAT YAK, PERONI & BULMERS ON TAPCLASSIC COCKTAILS & WIDE SELECTION OF

BOTTLED BEERS AND SPIRITS

~ T A S T Y T A P A S M E N U ~

HAPPY HOUR 7 - 9PMFRIDAYS w $6 BASICS & $7 PINTS

OPEN WED TO SAT FROM 5PM TILL LATE2PM TILL LATE SUNDAYS

AT THE CROSS WALK ON FRANKLIN ST. MANUKA

COTTON CLUB AT CABINET

WITH SPECTRUM BIG BAND FEATURING SARAH BYRNEALL THE GREAT HITS OF THE 1930s

INCLUDING COUNT BASIE, DUKE ELLINGTON, ELLA FITZGERALD& CAB CALLOWAY

THURSDAY 31 MAY

6.30PM - 7.30PM & 8.00PM - 9.00PMNO COVER CHARGE

B2B @ CHRISTCHURCH EARTHQUAKE APPEAL DINNERNATIONAL GALLERY OF AUSTRALIA

Many local and national business people, diplomats and celebraties gathered in Canberra to raise funds for the Christchurch Earthquake Appeal. The evening was a great succes, with great food, friendship and entertainment.

CABINET LOUNGE BARFRANKLIN STREET MANUKA

FAT YAK, PERONI & BULMERS ON TAPCLASSIC COCKTAILS & WIDE SELECTION OF

BOTTLED BEERS AND SPIRITS

~ T A S T Y T A P A S M E N U ~

HAPPY HOUR 7 - 9PMFRIDAYS w $6 BASICS & $7 PINTS

OPEN WED TO SAT FROM 5PM TILL LATE2PM TILL LATE SUNDAYS

AT THE CROSS WALK ON FRANKLIN ST. MANUKA

COTTON CLUB AT CABINET

WITH SPECTRUM BIG BAND FEATURING SARAH BYRNEALL THE GREAT HITS OF THE 1930s

INCLUDING COUNT BASIE, DUKE ELLINGTON, ELLA FITZGERALD& CAB CALLOWAY

THURSDAY 31 MAY

6.30PM - 7.30PM & 8.00PM - 9.00PMNO COVER CHARGE

Z00

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0

B2B @ LIFELINE CANBERRA ANNUAL COCKTAIL PARTYTHE DECK AT REGATTA POINT

One of Canberra’s favourite services Lifeline served up another fabulous fundraiser out on The Deck at Regatta Point. Great atmosphere, food, cocktails and most importantly ... great message.

Z00

4751

0

B2B @ NATIONAL FOLK FESTIVALEPIC

For five days every Easter Exhibition Park in Canberra becomes a magic place, filled with colour and sound. Hundreds of the world’s best musicians perform daily, in a non-stop flow of entertainment across twenty two fabulous venues.

Be seen in...

B2B @ LAUNCH OF ACTEWAGL’S BUSINESS REWARDS CLUBACTEWAGL HOUSE

The ActewAGL Business Rewards Club offers small to medium business one-on-one energy advice, personalised customer care and free entry to regular seminars and special business networking events.

Be seen in...

B2B @CHAMBER BUSINESS AFTER DARKAUSTRALIAN INSTITUTE OF MANAGEMENT

A great networking evening was had at the, ACT Chamber of Commerce and Industry’s Chamber after Dark, new office of the Australian Institute of Management Canberra offices.

B2B @ ACT & REGIONINDIGENOUS EXPOHEDLEY BEARE CENTRE FOR TEACHING AND LEARNING

The 2012 ACT & Region Indigenous Expo was a great success as an opportunity to draw attention to Indigenous education, training and employment across the ACT and surrounding areas. The Expo brought together business experience and expertise as a key focus for 2012.

PROPERTY

Welcome to B2B’s new property section. We thought it was about time we gave the property industry in the region the recognition that is deserves. So from now

on B2B will run a dedicated property industry section. As you can see from this issue it will be a diverse and content rich section. In coming months we will run essays on particular parts of the industry and also profile key players. We would also welcome your feedback and suggestions.

Tim Benson B2B Publisher

It’s official, according to ACT Treasurer Andrew Barr, the ACT continues to have one of the best-performing economies in Australia. A recent CommSec report found the ACT has again remained in second place when ranked against the other states

and territories, equal with Victoria, and behind only the mining boom economy of Western Australia.

CommSec’s State of the States report ranks states and territories on their current economic performance against decade-long averages.

The report found that:• The ACT had the second highest over-performance against the

decade-long average in population growth. In the September quarter 2011 the ACT had a population growth of 1.92 cent, behind only WA (2.63 per cent). The ACT and WA were the only jurisdictions in which population growth was above the decade-long average.

• The ACT was one of the best performers in economic activity. In the December 2011 quarter the ACT’s economic output was up 18.2 per cent compared to the decade-long average, behind only WA (32 per cent) and Queensland (22 per cent).

• The ACT was one of the best performers in construction work

PROPERTY INDUSTRY LEADS THE ECONOMY IN THE ACT(comprising residential, commercial and engineering work). In the December quarter the ACT’s construction work was 47 per cent above the decade-long average, behind only WA (82 per cent) and Queensland (53 per cent).

• The ACT had the highest over-performance on housing finance, with housing finance commitments 6.2 per cent above the decade-long average.

• The ACT had the highest over-performance on dwelling starts, which were up 55 per cent on the decade-long average.

• This latest report confirms recent ABS figures showing the robust health of the ACT economy, notably:

• The latest ABS labour force statistics show that the ACT has the lowest unemployment rate in the country, at 3.6 per cent, which is well below the national average. The ACT also has the second highest participation rate (72.2 per cent) of all jurisdictions, and

• The ACT’s economic growth, as measured by State Final Demand, grew by 2.8 per cent year-on-year to the December quarter of 2011.The CommSec report reaffirms that the ACT economy is travelling

well. We have robust growth, underpinned by consistently and strong population growth, and low unemployment.

B 2 B P R O P E R T Y

B2B @ ACT & REGIONINDIGENOUS EXPOHEDLEY BEARE CENTRE FOR TEACHING AND LEARNING

The 2012 ACT & Region Indigenous Expo was a great success as an opportunity to draw attention to Indigenous education, training and employment across the ACT and surrounding areas. The Expo brought together business experience and expertise as a key focus for 2012.

PROPERTY

Welcome to B2B’s new property section. We thought it was about time we gave the property industry in the region the recognition that is deserves. So from now

on B2B will run a dedicated property industry section. As you can see from this issue it will be a diverse and content rich section. In coming months we will run essays on particular parts of the industry and also profile key players. We would also welcome your feedback and suggestions.

Tim Benson B2B Publisher

It’s official, according to ACT Treasurer Andrew Barr, the ACT continues to have one of the best-performing economies in Australia. A recent CommSec report found the ACT has again remained in second place when ranked against the other states

and territories, equal with Victoria, and behind only the mining boom economy of Western Australia.

CommSec’s State of the States report ranks states and territories on their current economic performance against decade-long averages.

The report found that:• The ACT had the second highest over-performance against the

decade-long average in population growth. In the September quarter 2011 the ACT had a population growth of 1.92 cent, behind only WA (2.63 per cent). The ACT and WA were the only jurisdictions in which population growth was above the decade-long average.

• The ACT was one of the best performers in economic activity. In the December 2011 quarter the ACT’s economic output was up 18.2 per cent compared to the decade-long average, behind only WA (32 per cent) and Queensland (22 per cent).

• The ACT was one of the best performers in construction work

PROPERTY INDUSTRY LEADS THE ECONOMY IN THE ACT(comprising residential, commercial and engineering work). In the December quarter the ACT’s construction work was 47 per cent above the decade-long average, behind only WA (82 per cent) and Queensland (53 per cent).

• The ACT had the highest over-performance on housing finance, with housing finance commitments 6.2 per cent above the decade-long average.

• The ACT had the highest over-performance on dwelling starts, which were up 55 per cent on the decade-long average.

• This latest report confirms recent ABS figures showing the robust health of the ACT economy, notably:

• The latest ABS labour force statistics show that the ACT has the lowest unemployment rate in the country, at 3.6 per cent, which is well below the national average. The ACT also has the second highest participation rate (72.2 per cent) of all jurisdictions, and

• The ACT’s economic growth, as measured by State Final Demand, grew by 2.8 per cent year-on-year to the December quarter of 2011.The CommSec report reaffirms that the ACT economy is travelling

well. We have robust growth, underpinned by consistently and strong population growth, and low unemployment.



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The ACT Division of the Property Council of Australia commissioned the AEC Group to test the contribution of the property sector

to the Territory’s economy. The report confirms the critical role the property industry plays in building wealth in the ACT – and why the right policy solutions are needed to sustain prosperity. Key findings from the report include: • The property sector generates more than

23,900 jobs across the Territory – the largest employer in the ACT after the public service and professional, scientific and technical sector

• Contributes $2.6 billion to the economy – just under 10% of the Territory’s total wealth

• The property industry generates a further $3.0 billion in flow-on demand for goods and services, bringing the total contribution to $5.6 billion

• Provided $1.2 billion in wages to ACT workers – and activated another $1.5 billion in flow-on salaries

ACT Treasurer, Andrew Barr MLA, recently released the second progress report on the ACT Government’s Affordable Housing

Action Plan. The report shows that 55 of the 84 initiatives have been completed. A further 26 are either ongoing or under way. After investigation, the remaining three initiatives were withdrawn due to market circumstances.

Since the Affordable Housing Action Plan was first released in 2007:• A record 17,000 home sites have been

released through the accelerated land release program.

• The Land Development Agency has delivered 264 affordable house and land packages through its OwnPlace program, with another 190 under construction.

• More than 1,000 blocks have been exchanged or settled through the Land Rent Scheme.

• Requirements have been introduced to ensure that 20 per cent of housing in greenfield developments is reserved for

Property industry the key to the ACT’s future

More affordable housing for Canberrans

• Paid more tax than any other industry, totalling $603 million – over half of all Territory taxes

• The property sector pays 23 cents for every dollar generated in economic growth – compared to an average of 4 cents among other industries. This confirms that the ACT Government

needs to promote policy solutions that foster and sustain the prosperity generated by the property sector, for the benefit of all Canberrans. For this reason, the Property Council will continue to advocate for: • A clear agenda for reforming and reducing

the tax burden on property – there must be alternative revenue streams

• Efficient development assessment with less red tape and more depoliticised decision-making to drive investment

• Smarter financing of urban infrastructure and a pipeline of major projects – backed with guaranteed funding

• Strategic growth plans for Canberra, backed by efficient and serviced land supply for housing.

The report – along with the policy solutions needed to sustain prosperity – have been sent to every member of the ACT Legislative Assembly, and other key policy makers. Want to know more? Contact: Catherine Carter, ACT Executive Director,[email protected] or 02 6248 6902

affordable housing.• More than 2,600 new rental dwellings will

be built and rented at no more than 80 per cent of the market rate for 10 years through the National Rental Affordability Scheme. This includes the development of 1,000 new student accommodation dwellings each at the University of Canberra and the Australian National University, and more than 600 dwellings to be built by CHC Affordable Housing.The report highlights

the work undertaken by the ACT Government to address housing affordability.

The ACT’s strong population growth and low unemployment rates have meant that demand for housing has remained high, maintaining pressure on prices, particularly in the rental market.

“The ACT Government will continue to build on its proven successes while also investigating new initiatives to further alleviate housing pressures,” Mr Barr said.To review the latest progress report, or find

out more about the Affordable Housing Action Plan, visit www.economicdevelopment.act.gov.au/affordable_housing/action_plan.


The Community Bank Model brings massive financial benefits to the Canberra and Queanbeyan communities. Much of the bank’s

profits come from home loans to customers. The continuation of that profitability relies on a healthy economy, a competitive building industry and sensible planning policies and land release programs. Any imbalance threatens an industry that provides a huge percentage of the territories revenue and the profits that flow from the Community Bank to the community.

There are real pluses in working in Community Banking, it allows community minded people to act in cooperation with the community to achieve mutual goals which make our community a better place to live in. It’s a genuine opportunity to opt in, define and own local issues and work for change. Community banking is a metaphor for so many other aspects of community life.

Canberra is so often and so inaccurately referred to as a city without a soul. Yet every day I see people putting others first and making life a bit easier for them. Lately I have been working to assist some new arrivals to our city – refugees with some very big challenges in front of them and it has been a privilege to watch how diverse groups across Canberra, voluntary organisations, unions and

Benefits of a strong community bank modelindividuals can come together for a shared objective. Canberra remains the nation’s best kept secret in terms of quality of life, but we need to be vigilant to ensure that all in our community are given the best opportunities to achieve their individual best.

The Bendigo model - at its heart is about listening to people and making their objectives happen, working within the community and for the Community. The truly unique part is the distribution of up to 80% of profits back to the community as grants and funding for local groups and charities. It’s logical to want to explore the implementation phase of community initiatives – but rarely does sausage sizzles and chocolate drives produce sufficient profits to allow recurrent commitment to good ideas that benefit the whole community.

It’s a matter of pride that since reaching profit in 2007 Molonglo Financial Services has added nearly a million dollars to the capabilities of local clubs, groups and charities to deliver services and benefits to our community. The board generally supports policies and programs that offer the most opportunities to the widest range of people. Canberra and Jerrabomberra’s community banks have achieved great things and continue to provide for the community, especially with initiatives for women and

children, medical facilities and advances in disability services, accommodation and practice.

We are lucky to live here, both in terms of day to day livability of the city, and in the longer term with such initiatives as the Arboretum, which is a magnificent example of future thinking and belief. Planting a tree is an act of faith and belief in the future, planting thousands is visionary. Similarly the Community Bank, about to celebrate its tenth anniversary, has sowed the seeds of something that will likely deliver millions of dollars to the community sector in years to come.

Canberra is a great city and it deserves to be championed by people who give a damn about the future of the entire community. The Bending Community Bank model is about creating an even better level of community amenity, and relies on affordable housing – successful builder business clients, and government agencies able to engage with the building industry and improve the delivery of services to the community.

We all need banking services and most of us need business or home loans, but ask yourself if your bank gives 80% of profits it makes from your money back to this community…… unless you are already banking with us…… I doubt it.

Calwell, Curtin, Jerrabomberra and Wanniassa

Community Bank Branches

Jayson Hinder is Chairman of Molonglo Financial Services

MFS operate the Calwell, Curtin, Jerrabomberra and Wanniassa

Bendigo Community Bank Branches.


....................................................................................................................................................................................................................................

DAVID TONERP: 0402 673 547E: [email protected]

CHRIS DRAKAKISP: 0417 438 931E: [email protected]

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ACT real estate agents cleaned up in the recent Real Estate Institute of Australia (REIA) National Awards for Excellence – taking home a

quarter of the awards on offer. “It is a real tribute to the strength and

depth of the local real estate profession that so many of our members were honoured at the REIA National Awards,” Real Estate Institute of the ACT (REIACT) Director, Craig Bright said.

“During the evening’s ceremonies Richard Keeley of Luton Properties was named Salesperson of the Year.

“Raine & Horne Commercial Canberra beat a tough field to secure the title of Commercial Agency of the Year.

“Peter Blackshaw Manuka was honoured

as the Large Residential Agency of the Year,” Mr Bright praised, “And Independent Property Group was recognised for its commitment to keeping up to date with the latest practices and presented with the Innovation Award.

“Congratulations to each of the winners on this outstanding achievement.

“I would also like to commend all of the finalists from the ACT who represented the Territory so ably. These are the real estate industry’s top awards and each of the finalists has proven they are amongst the best performers in the profession.

“Considering the size of the ACT, the success our members enjoyed last night suggests we are really batting above our weight in terms of the number of leading agencies located right here in Canberra.”

REIA NATIONAL AWARDS FOR EXCELLENCE WINNERS Richard Keeley, Luton Properties Salesperson of the Year Raine & Horne Commercial Canberra Commercial Agency of the Year Peter Blackshaw Manuka Large Residential Agency of the Year Independent Property Group Innovation Award

ACT REAL ESTATE SECTOR SHINES AT REIA AWARDS

RAINE & HORNE COMMERCIAL CANBERRAT 02 6239 6888 F 02 6239 6884 E [email protected] Level 1, 22 Giles Street KINGSTON ACT 2604www.rhccanberra.com.au

“Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.”

We at Raine & Horne Commercial Canberra love what we do and we do it well. So much so that we have been awarded National Real Estate Agency of the Year 2012.

C A N B E R R A’ S M O S T AWA R D E D CO M M E R C I A L R E A L E S TAT E AG E N C Y

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Raine & Horne Commercial Canberra wins REIA National Commercial Agency of the Year

Congratulations to Frank Morella, and his team, at Raine & Horne Commercial Canberra for being crowned Commercial Agency of

the Year at the recent Real Estate Institute of Australia’s National Awards for Excellence held in Darwin.

Raine & Horne Commercial Canberra (RHCC) is a highly awarded locally owned and operated multi faceted commercial property agency. RHCC provides comprehensive services including sales and leasing, property and body corporate management, property consulting and tenant advice services, by a team of skilled and dedicated professionals. Raine & Horne Commercial Canberra manage nearly 70 buildings and complexes throughout Canberra and Queanbeyan, including, Black Mountain Tower and Garema Court.

Real Estate Institute of the ACT (REIACT) Director Craig Bright acknowledged that Raine & Horne Commercial Canberra “beat a tough field to secure the title.”

Frank Morella, Managing Director Raine & Horne Commercial Canberra, who was clearly thrilled with winning national recognition, said, “The award recognised the hard work and commitment of the entire team, in what has been a particularly challenging time in commercial markets.”

“That said we expect that 2012 will be a positive year for ACT commercial markets as a consequence of Government funding concerns and Federal Budget constraints easing which will in turn increase business confidence and conditions,” said Mr Morella.

Mark Terracini, Director, Raine & Horne Commercial Canberra, also noted the win was significant, as it confirmed that “local agencies that foster long-term relationships, with key clients, can compete with the big four agencies”.

“We are a relationship-based business who has expert local knowledge and experience. Because we are a smaller firm, our clients deal directly with our principals, and we have a very strong team in place,” said Mr Terracini.

Angus Raine, CEO, Raine & Horne Commercial also applauded the historic win by Raine & Horne Commercial Canberra.

“Raine & Horne Commercial Canberra has been our leading commercial office for a number of years now, as they are deal making business committed to achieving premium results for their clients, which they are doing in spades.

“Frank Morella is also a born leader and natural negotiator who has immersed himself not only in the ACT commercial property market, but who has significant national experience too.”


Raine & Horne Commercial Canberra on behalf of the Dexus property Group, recently signed a major long term lease to the Commonwealth Government at the Garema Court office property in Canberra.

The new lease has seen the Department of Regional Australia, Local Government, Arts and Sport (DRALGAS) take 10,883sqm of space as the sole office tenant in the tower for a term of 12 years from 1 April 2012.

The new lease started the day after the lease expiry of the previous tenant the Department of Education, Employment and Workplace Relations (DEEWR).

DEXUS Property Group CEO Darren Steinberg said: “This is a great outcome that has been achieved due to our team’s focus on strategically managing forward lease expiries. This strategic approach to addressing upcoming vacancies in properties such as Garema Court has meant there has been no leasing down time at the property during a tenant transition.”

22 Giles Street Kingston ACT 2604(02) 6239 6888www.rhccanberra.com.au




Kingston

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Nick Ryle 0400 480 553

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ACT NOWTHE END OF FINANCIAL YEAR

IS ALMOST HERE!!!

Thinking about purchasing a ‘NEW’ property for investment purposes?

The strength of Canberra’s rental market continues to grow as young professionals attracted to the flexibility of renting rather than owning, search for housing options located within easy access of Canberra’s major business precincts.

The attraction of urban living with its diversity of amenities, shopping and transport provides an excellent opportunity for investors looking to purchase property and achieve secure rental returns.

When looking to purchase an investment property, there are some important factors to keep in mind:

• Is the population in the area growing or does it have high population growth potential?

• Does the property meet the needs of your intended target market?• Proximity to amenities, schools and transport facilities• Is the yield (percentage of rental return against cost) attractive?• Planned future infrastructure development

With the emergence of new suburbs throughout Canberra’s north, high quality affordable housing is becoming increasingly sought

after. Located in Gungahlin, the suburb of Casey is becoming a highly desired alternative as tenants look for the benefits of cosmopolitan lifestyle without the costs associated with renting closer to the City.

Only minutes from the Gungahlin and Belconnen Shopping Precincts, within walking distance to Gold Creek Village, Casey offers fantastic lifestyle benefits for young professionals and families alike. Moments from schools, sporting facilities, clubs and restaurants, Casey has been designed with everyday living in mind.

Casey’s landmark boutique development, Berwick Apartments, offers unparalleled entry level investment opportunity. Located in a high demand tenancy area, adjacent to the soon to be developed Casey Shopping Centre, with easy access to arterial roads, Berwick Apartments has the right ingredients for a successful short or long-term investment.

Tax depreciationIf you’re an investor, one of the big advantages of buying a newly constructed property is that you can claim depreciation as a tax-deductible expense. This includes the depreciation of assets in the buildings and the cost of the building itself, as well as wear and tear on fixtures and fittings in the property. The newer the property, the higher the level of depreciation.

Better quality tenantBrand new properties tend to attract a better quality tenant, which means a higher rental income and fewer headaches for you, the landlord!

Less maintenanceThe beauty of purchasing a new property is there is little or no maintenance required. New properties also come with a 90 day maintenance period which covers off any issue the property may have after settlement. Owners of second-hand properties are often faced with immediate maintenance issues. The costs of repair in older homes can significantly inflate ongoing expenses.

WarrantyAs a purchaser of a new property you are protected for a number of years against major building defects by home warranty insurance, which all builders of new homes in Australia are required to carry.

Expenses The ongoing expenses of an investment need to be considered in the transaction from the beginning so you know all the overheads upfront. Buying within a body corporate development as opposed to a free standing house has its advantages. The body corporate, that you as an investor contribute levies towards, means the upkeep of the building is managed for you. In addition to this, the rates are divided amongst the development as a whole which can reduce this expense dramatically which in turn also reduces your land tax payable.

Nick Ryle is a sales consultant at Ray White Kingston. Unit 1, 28

Eyre Street Kingston. T:6173 3000. [email protected]

If you are interested in discussing your finance options for property investment,

please contact Stephanie Brennan at Tiffen & Co. 6260 7880.

Top reasons why buying a ‘NEW’ property would attract investors

Kingston

SaleFrom $344,000

EER 6-8.5

View By Appointment


Nick Ryle 0400 480 553





from $344,000



IS ALMOST HERE!!!


Kingston

SaleFrom $344,000

EER 6-8.5

View By Appointment


Nick Ryle 0400 480 553





from $344,000



IS ALMOST HERE!!!

Thinking about purchasing a ‘NEW’ property for investment purposes?

The strength of Canberra’s rental market continues to grow as young professionals attracted to the flexibility of renting rather than owning, search for housing options located within easy access of Canberra’s major business precincts.

The attraction of urban living with its diversity of amenities, shopping and transport provides an excellent opportunity for investors looking to purchase property and achieve secure rental returns.

When looking to purchase an investment property, there are some important factors to keep in mind:

• Is the population in the area growing or does it have high population growth potential?

• Does the property meet the needs of your intended target market?• Proximity to amenities, schools and transport facilities• Is the yield (percentage of rental return against cost) attractive?• Planned future infrastructure development

With the emergence of new suburbs throughout Canberra’s north, high quality affordable housing is becoming increasingly sought

after. Located in Gungahlin, the suburb of Casey is becoming a highly desired alternative as tenants look for the benefits of cosmopolitan lifestyle without the costs associated with renting closer to the City.

Only minutes from the Gungahlin and Belconnen Shopping Precincts, within walking distance to Gold Creek Village, Casey offers fantastic lifestyle benefits for young professionals and families alike. Moments from schools, sporting facilities, clubs and restaurants, Casey has been designed with everyday living in mind.

Casey’s landmark boutique development, Berwick Apartments, offers unparalleled entry level investment opportunity. Located in a high demand tenancy area, adjacent to the soon to be developed Casey Shopping Centre, with easy access to arterial roads, Berwick Apartments has the right ingredients for a successful short or long-term investment.

Tax depreciationIf you’re an investor, one of the big advantages of buying a newly constructed property is that you can claim depreciation as a tax-deductible expense. This includes the depreciation of assets in the buildings and the cost of the building itself, as well as wear and tear on fixtures and fittings in the property. The newer the property, the higher the level of depreciation.

Better quality tenantBrand new properties tend to attract a better quality tenant, which means a higher rental income and fewer headaches for you, the landlord!

Less maintenanceThe beauty of purchasing a new property is there is little or no maintenance required. New properties also come with a 90 day maintenance period which covers off any issue the property may have after settlement. Owners of second-hand properties are often faced with immediate maintenance issues. The costs of repair in older homes can significantly inflate ongoing expenses.

WarrantyAs a purchaser of a new property you are protected for a number of years against major building defects by home warranty insurance, which all builders of new homes in Australia are required to carry.

Expenses The ongoing expenses of an investment need to be considered in the transaction from the beginning so you know all the overheads upfront. Buying within a body corporate development as opposed to a free standing house has its advantages. The body corporate, that you as an investor contribute levies towards, means the upkeep of the building is managed for you. In addition to this, the rates are divided amongst the development as a whole which can reduce this expense dramatically which in turn also reduces your land tax payable.

Nick Ryle is a sales consultant at Ray White Kingston. Unit 1, 28

Eyre Street Kingston. T:6173 3000. [email protected]

If you are interested in discussing your finance options for property investment,

please contact Stephanie Brennan at Tiffen & Co. 6260 7880.

Top reasons why buying a ‘NEW’ property would attract investors

Kingston

SaleFrom $344,000

EER 6-8.5

View By Appointment


Nick Ryle 0400 480 553





from $344,000



IS ALMOST HERE!!!


PROFITABLE CIVIC BEAUTY SALON

Businesses like this don’t come along very often, but every now and then one will come onto the market that shines above the rest.

The owner has put in place a business model, a client database of over 6,000, and a marketing system that allows for an owner to work on the business (not in it). This business has operated for over 20 years in a prime city location. Loyal and qualifi ed staff are in place so you only need to work part time.

Turnover 2011 $478,423Owner takes close to 6 fi gures for 20 hours per weekLease $760 per week | Price $175,000 + SAV

FYSHWICK HOME & HEATING

Established in 1975, this business sells a popular range of high quality fl ame heating products including wood, gas and electric fi res. Extensive showroom. Open 5 1/2 days a week. You do not have to have worked in the industry before. Within months you will be an expert in the industry and have very supportive staff to help you.

Turnover 2011 $2,500,000 | Average Gross Profi t 28%Rent per week $2,300 | Owner earnings are very healthy | $545,000 + SAV

CIVIC CONVENIENCE STORE

You could not fi nd an easier business to run yourself or have it managed for you whilst generating you excellent profi ts. This convenience store has been established for 5 years and attracts a mass amount of foot traffi c from the bus interchange, large Government buildings, night clubs and bars and tourist’s to Canberra. If ever location was so important - this convenience store has this covered.

The owners of this business generate very healthy returns and the business has not stopped them travelling overseas. Further it has a secure lease with 4 years remaining and 5 year option.

Turnover $1,600,000 | Gross profi t averages 30%Rent per week $1,530 | Price $585,000 + SAV

CANBERRA CERAMICS AND BATHWAREONLINE.COM.AU

Canberra Ceramics is a very well known business within the Canberra region. Its current location on Gladstone Street in Fyshwick has been a tile shop for almost 40 years. Open 5 1/2 days a week. Very good business for someone working in the construction industry or a DIY. The business also saw the need for a website to refl ect the nature of the product it was selling to a broader Australian market. www.bathwareonline.com.au was born and at the same time www.bathwareonline.com was also registered.

New 4 year with 4 year option leaseLease $2,300 per week | $495,000 + SAVbathwareonline price negotiable

REDUCE THE EXPOSURE OF RISK TO THE BUYER

One of the main factors that influences the length of time to sell a business and the price achieved is how easy is it to buy the business. We are not talking about financing the business but instead the exposure or risk the buyer is

opening themselves up to purchasing the business.When a buyer is evaluating the risk in buying a business, they

concentrate on 3 aspects:• What issues will I have to deal with if I purchase this business? • What are the inherent risks in buying this business? • To achieve my objectives for the business – what costs, delays,

problems and stresses will I have to deal with? If you are selling your business and you know buyers are going to

concentrate on these 3 main areas of risk, then the seller must try to anticipate what the buyer will look for and try to reduce, mitigate or eliminate those risks. The seller will not be able to anticipate all the risks, however the less road blocks the seller has, the increased chances the seller has of selling the business in the shortest period of time and achieving a higher price possible.

So what is risk to the buyer? It is anything which will cause delays in exploiting the business potential or opportunity. This includes anything that creates costs to the buyer to take advantage of buying the business. Detailed below are areas of risk a buyer will consider when determining if they will buy a business:

1. Lack of financial records 2. Staff knowledge 3. Systems for knowledge transfer 4. Client records 5. How clean the business is 6. Reputation of the business 7. Plant and equipment age and condition 8. Payroll information up to date 9. Supplier contracts signed and current 10. Harsh lease conditions 11. Poor quality products 12. Is performance being tracked – is it on track to achieving targets 13. Business reliance on the owner if no longer there 14. Competition 15. Can this business grow or is it in decline

Understanding potential risks to the buyer and resolving them prior to putting the business on the market is the best way of preparing a business for sale. As the buyer does not know the seller, every single step of the listing and negotiating process is being judged by the buyer to assess the level of risk. The higher the risk to the buyer, the less likely the business is to sell and achieve a high price.

Jason Klose, Managing Directort: 0414 890 [email protected]

Contact Jason Klose on 0414 890 286 for more information or visit www.bbbrokers.com.au

BOQ BelconnenCity Walk HLPP Ad 275x210.indd 1 4/04/12 11:58 AM


Deakin 12 Napier Close

Owner occupy in Deakin• 3 medical/office units• Unit 10 – 59m2*, unit 11 – 79m2* & unit 13 – 50m2*• Sold individually or in one line• All sold with vacant possession• Each unit has 2 allocated car parks• Fit out in place

SaleBy NegotiationView By Appointment

Andrew Smith 0409 600 4716162 0681 rwcanberra.com.au

Canberra

CommercialB 2 B P R O P E R T Y


Although this would not suit in every circumstance, as each tenant has differing requirements, the following is a generic timeline, attempting to allow you a reasonable and stress free amount of time to consider a move. • 12 Months from Lease end date – Start

thinking about the following criteria for you premises:

• How much space do we need?• What locations would we consider?• What standard and amenity needs to be

at the premises?• How many staff are we accommodating?• What is our budget for rent?

Andrew Smith is the Director at Ray White Commercial17-23 Townshend Street Phillip 2606T: 02 6162 0681 www.rwcanberra.com.au



Here is a very simple example of what I mean:

A couple of years ago, a real estate agent told you your house would sell for $650,000. You weren’t quite ready to sell at that stage (Perhaps you were waiting for the kids to

Cory McPherson is the Director of Ray White Kingston 1/28 Eyre Street, Kingston M 0418 266 698 T 02 61733000www.rwcanberra.com.au

Timing the Move


• Do we have a budget for fitout?• 9 Months out – Have a defined list of criteria

that you can use to shortlist between sites.• 6 Months out – Inspect a broad range of

properties (at least 5 and probably 8 or more).


• 4 Months out – Negotiate with 1 or 2 Lessor’s on final terms.

• 3 Months out – select preferred site and request formal lease documentation from Lessor’s solicitor.

• 2 Months out – Execute lease documentation for new premises and provide any required guarantees and proof of insurance

• 1 Month out - Be operational in new premises, allowing enough time for make good at existing site.

• Lease End Date – Obligations at existing site finish. Assumption – No fitout was required at new

premises.

Tips – 1. Obtaining multiple offers allows you to

compare the terms that lessor are willing to provide.




change schools). This year if your agent comes back, you may get the startling news that your much loved home is now valued at $585,000 in the current market. You’re looking a $65,000 shortfall in equity dead in the eye and therefore thinking how can we possibly afford to upgrade now?



Keep in mind that the markets aren’t as clear cut as this simple example, however the principle is powerful and a down market may be a good thing. Accept the reduction in value on your current home, because all you are doing is

moving equity from one home to the next and it is all about the change over figure.



Deakin 12 Napier Close

Owner occupy in Deakin• 3 medical/office units• Unit 10 – 59m2*, unit 11 – 79m2* & unit 13 – 50m2*• Sold individually or in one line• All sold with vacant possession• Each unit has 2 allocated car parks• Fit out in place



Canberra

CommercialB 2 B P R O P E R T Y


Although this would not suit in every circumstance, as each tenant has differing requirements, the following is a generic timeline, attempting to allow you a reasonable and stress free amount of time to consider a move. • 12 Months from Lease end date – Start

thinking about the following criteria for you premises:

• How much space do we need?• What locations would we consider?• What standard and amenity needs to be

at the premises?• How many staff are we accommodating?• What is our budget for rent?

Andrew Smith is the Director at Ray White Commercial17-23 Townshend Street Phillip 2606T: 02 6162 0681 www.rwcanberra.com.au



Here is a very simple example of what I mean:

A couple of years ago, a real estate agent told you your house would sell for $650,000. You weren’t quite ready to sell at that stage (Perhaps you were waiting for the kids to

Cory McPherson is the Director of Ray White Kingston 1/28 Eyre Street, Kingston M 0418 266 698 T 02 61733000www.rwcanberra.com.au

Timing the Move


• Do we have a budget for fitout?• 9 Months out – Have a defined list of criteria

that you can use to shortlist between sites.• 6 Months out – Inspect a broad range of

properties (at least 5 and probably 8 or more).


• 4 Months out – Negotiate with 1 or 2 Lessor’s on final terms.

• 3 Months out – select preferred site and request formal lease documentation from Lessor’s solicitor.

• 2 Months out – Execute lease documentation for new premises and provide any required guarantees and proof of insurance

• 1 Month out - Be operational in new premises, allowing enough time for make good at existing site.

• Lease End Date – Obligations at existing site finish. Assumption – No fitout was required at new

premises.

Tips – 1. Obtaining multiple offers allows you to

compare the terms that lessor are willing to provide.




change schools). This year if your agent comes back, you may get the startling news that your much loved home is now valued at $585,000 in the current market. You’re looking a $65,000 shortfall in equity dead in the eye and therefore thinking how can we possibly afford to upgrade now?



Keep in mind that the markets aren’t as clear cut as this simple example, however the principle is powerful and a down market may be a good thing. Accept the reduction in value on your current home, because all you are doing is

moving equity from one home to the next and it is all about the change over figure.



Barton 11 National Circuit

Premium office unit• Unit 17 – 305sqm & 7 car parks

• Currently leased at $140,993 plus GST per annum

• High quality fitout



Deakin 6 Geils Court Sale$2,100,000 + GSTView By Appointment

Andrew Smith 0409 600 471Troy McGuinness 0413 499 7356162 0681 rwcanberra.com.au

Stand alone head quarters

• 675sqm of high quality office space

• Sold with vacant possession

• Recent upgrade work completed

Canberra

Canberra

Commercial

b2b magazine may 2012 (issue 71)

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