wsbaccess_11_03_2012

ISSUE 11 MARCH 2012 Your premier business network

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FOUNDED IN PARRAMATTA

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350 Church Street Parramatta NSW 2150 T 02 9630 4999www.mirvachotels.com E [email protected]

managed by Mirvac Hotels & Resorts

OUR COMMITMENT, YOUR SOLUTION

Let’s celebrate!

Firms raise concerns over regional unity

A SUBMISSION to the NSW government states financial, property and professional services are Sydney CBD-centric and calls for an increased presence in areas

such as Parramatta, Norwest, Penrith, Campbelltown and Liverpool.

By Red Dwyer

A report prepared by AECGroup for RDA Sydney * noted Central Sydney, which includes the CBD and 10 inner-Sydney suburbs, accounts for 91,771 workers in the professional and property services

sectors, compared to 57,885 in Western Sydney.Figures for specifi c areas were: Parramatt a, 15,945;

Th e Hills, 9,088; Penrith, 4,188, Liverpool, 3,438; and Campbelltown, 2,574.

Th e submission said the potential existed for Sydney-based fi rms to “export” fi nance, professional business and engineering services including global best practice and innovation to clients across the region

Th e submission said the presence of these sectors in these areas could contribute to the establishment of busi-ness parks, close to existing transport and infrastructure.

Th e submission, to the Professional Services Indus-try Action Plan being developed.by the NSW govern-ment, was based on feedback from the six workshops with a total of 250 participants.

A frequently raised issue was the lack of a consoli-dated business att raction strategy from the NSW gov-ernment that emphasised west and south-west Sydney as key areas when att racting national and international businesses to the region.

Th e submission suggested a NSW government pro-

gram be introduced to specifi cally coordinate the ac-tivities of local, state and federal government business att raction initiatives and resources, resulting in joint ini-tiatives to encourage more business to be located within the growth corridors of west and south-west Sydney

“Att racting and retaining the required industry ca-pability and expertise to Sydney and its sub-regions was seen as essential to build regional centres of excellence and att ract the fi nance, property and professional busi-ness services,” the submission said.

Th e submission said concerns were raised at the workshops about the lack of a unifi ed business voice for Western Sydney .

“Although there are a number of small chambers of commerce [in the region], it was felt that there was a need for a coordinating body to get partners together to work on strategic local economic development drivers,” the submission said.

Th e submission said the NSW government’s lack of compliance to a long-term, clearly defi ned economic de-velopment plan, with slow release of employment lands and delays in providing improved access to transport and skills, created barriers for companies to come and invest in Sydney and its specifi c regional centres.

* RDA Sydney, based in Parramatt a, is one of 55 voluntary committ ees across Australia working in partnership with federal, state and local govern-ments to strengthen regional communities.

[email protected] 4572 2336

Entrepreneur with a giving strategy

HE’S the archetypical entrepreneur; charming, energy pouring off ev-ery word and a sense of self-destiny that only comes from the University of Street Smarts with Honours in Hard Knocks. Rob Pirina, owner of the Glenorie Bakery and the Outback Bakehouse at Windsor has based his growth strategy on giving. See full story page 22.

Absolutely famous: Rob Pirina with some of his media coverage.

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Looking for a unique conference venue to plan your 2012 success?

Rydges Parramatta will match any price quotedby a competitor for your event

WHAT IS YOUR VISION FOR 2012?

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Plea for business to help city homelessPARRAMATTA City Council has made a plea to business leaders to overcome a major social problem affecting the growth of Parramatta – homelessness.

By Red Dwyer

Parramatta has the largest number of home-less people in Western Sydney raising con-cern for the individuals affected and the prosperity of the city and its role in the

metropolitan area.Th e 2006 census showed 599 homeless

households existed in the Parramatt a local gov-ernment area.

A council survey in 2011 recorded 354

homeless people in the Parramatt a CBD alone, including people sleeping rough and those in crisis or temporary accommodation.

Council’s concern ranges from individuals and families to the wider social and economic environment and the costs to the community, and ensuring Parramatt a emerges as a sustain-able city.

Homelessness creates diffi culties in att ract-ing investment and promoting growth, att ract-ing and retaining labour and att racting and re-taining visitors to the city, council reported.

“Small business owners are particularly concerned with ensuring the prosperity of the city and growing and maintaining its image as a place to live, work, play and visit,” the report said.

“Feeling safe is also high on the agenda of business owners, employees and residents,”

Council, in acknowledging the presence of visibly homeless people has the potential to impact on current and prospective resident, business and visitor perceptions of the city, has developed a homeless policy and implementa-tion plan.

“Th e aim of the policy is to minimise home-lessness by improving the wellbeing of those at

risk and those who are homeless, and support-ing the continued prosperity of the city for the benefi t of the wider business and residential community,” council said.

Th e report noted federal, state and local governments, not-for-profi t organisations and the business community have a real opportu-nity to work collaboratively and innovatively to maximise eff orts to assist the homeless.

Th e report said activity to ensure the suc-cess of long-term planning included high-level involvement from business leaders who are mo-tivated to aff ect change by bringing the very best that the corporate world had to off er and apply-ing it to this social need.

Time to celebratechampions of the West

THE stars will come out to honour western Sydney at an exclusive lunch to raise funds for the San Miguel Family Centre on March 16.

Held at the Waterview in Bicentennial Park entrepreneur Rowena Szeszeran, racing legend Ken Callander, rugby league great Phil Gould, boxing champ Jeff Fenech and Blacktown Mayor Alan Pendleton will be att ending the Celebrate the West event.

Celebrate Th e West recognises their achieve-ments as well as those of other Champions of the West.

San Miguel Family centre manager Jennifer Wood said Celebrate the West is an opportunity to highlight the success of local heroes.

“Our champions will share their stories and inspire others to strive for excellence. “It is also a great opportunity to help those less fortunate, with proceeds of the event going to the San Miguel Family Centre, she said.

For more than 30 years San Miguel Family Centre in North Richmond has been providing short term accommodation to families who are in crisis and experiencing homelessness.

San Miguel’s caring staff provides more than temporary, emergency accommodation, they off er support, counselling and guidance to help families tackle the issues creating their homeless-ness.

Event patron Bryan Brown will act as MC for the evening. For information or ticket enquiries contact 02 4579 6622.

Bryan Brown

Couthouse contract awarded

A W Edwards has been awarded the $6.5 million contract for the expansion of the Liverpool Courthouse, which was built in the 1970s.

Th e renovations include the construction of a fourth courtroom to accommodate increasing demand for facilities in Sydney’s south-west

New meeting rooms for court users such as prosecutors, Legal Aid, the Aboriginal Legal Ser-

vice and Corrective Services will be included.Other features of the renovations include ad-

ditional interview rooms, improvements to secu-rity, an upgrade of holding cells, and the reloca-tion of the Sheriff ’s Offi ce into the main registry.

Th e courthouse has closed for the renova-tions, with sitt ings relocated to Bankstown, Campbelltown and Camden courthouses. Th e building is expected to reopen early next year.

4 WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

Innovation ....................13

Opinion ........................14

Education .....................16

Aviation sector .............20

Entrepreneur ................22

Parramatta Council ......24

Blacktown ....................26

Online profits ...............29

Sales excellence ..........31

Technology ..................32

Business Culture .........37

People..........................38

Legal ............................40

Accountancy ................41

Insurance .....................44

CONTENTS SUPPORT

WSBA teamPublisher and Editor Michael Walls M: 0407 783 413 E: [email protected] Access CreativeIllustrator Don EverettContributors Steve Brown – Etienne Lawyers. Michaela Cladingboel - PD Training

Dexter Duncan – Empower IT. Red Dwyer - Westbiz Services

Kate Groom - Smart Franchise Kate Hill – Deloitte Private.

Craig Hingston - Your Image Media and Marketing Tony Issa OAM – MP for Granville.

Peter Knight - Smart Franchise Dr Geoff Lee- MP for Parramatta.

Christina Mathews – Taggart Group. George Mavros – Leaf of Faith Training.

Lindy McNocher – Gallop Solutions. Michael Mekhitarian – ATB Partners.

Amanda Rose – My Business Help. James Solomons – Elite Financial Solutions.

Narelle Stoker – Cumberland Business Chamber. Dr Jim Taggart – Taggart Group.

Councillor Lorraine Wearne – Parramatta Lord Mayor. Jill Woods – Penrith Valley Chamber of Commerce

Emeritus Professor Stuart Campbell - Stuart Campbell Consulting.

Printer New Age Printing, RydalmereWestern Sydney Business AccessABN 38 102 914 027Web www.wsba.com.auMail PO Box 186 Kurrajong NSW 2758Phone Sales and editorial 02 4572 2336Administration/Accounts 02 4572 2336Fax 02 4572 2340Email: [email protected]

Important notice for advertisersIt is the responsibility of all advertisers to ensure that advertisements comply with the Trade Practices Act 1974 as amended. Advertisements are accepted for publication on the condition that the advertiser indemnifi es the publisher, its agents and servants against all and any actions, claims, loss or damages that may result from anything published on their behalf. All advertising material must meet the approval of the publisher who reserves the right to refuse any advertisements on the basis of off ensive content or non compliance with regulations or company standards. Advertising cancellations will not be accepted aft er the deadline for material has passed and space will be charged at 100% of the booked rate for any cancellations. Copyright and disclaimerTh e publisher, authors and contributors reserve their rights in regards to the copyright of their work. No part of this work covered by copyright may be reproduced or copied in any form or by any means without the writt en consent of the publisher. No person, organization or party should rely on or in any way act upon any part of the contents of this magazine without obtaining the advice of a qualifi ed person. Th e publisher, editor and contributors have no liability for any actions that may arise from any content in this magazine. Th e views expressed by authors, writers and contributors are not necessarily those of the publisher.

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NEWS www.wsba.com.auwww.wsba.com.au

Tomatoe farm approvedBENNELONG Holdings has NSW government permission to

push ahead with a $24 million commercial glasshouse project, in Eastern Creek, which would create110 full time jobs and produce 6.5 million kilograms of truss tomatoes annually.

The lease is on 16 hectares of Western Syd-ney Parklands land on the Great Western Highway, with the glasshouse covering 10 hectares.

“It’s another step towards transform-ing this land into a thriving, sustainable commercial farming site and further secur-ing Sydney’s food supply,” Premier Barry O’Farrell, said

“Th e company also tells me the bulk of the tomatoes gown on the site will replace imported ones.”

James Hamilton, director, of Bennelong Holdings, said the East-ern Creek project was the fi rst in a series of national large-scale urban glasshouse developments being planned by the company.

Rail corridor land prime for jobsA WESTERN Sydney lobby group believes greater use of land adjacent to rail corridors would boost much-needed job opportunities in Western Sydney.

The Western Sydney Regional Organisation of Councils (WSROC) said the use of such land could contribute to “ensuring most new housing and jobs are located near pub-

lic transport”, an aim of the Metropolitan Strat-egy Review.

“Clearly (land adjacent to rail corridors) is not suitable for manufacturing, warehousing or logistics but is suitable for other employ-ment types such as retail, business, fi nancial and professional services, government services and

community services,” the group said in a sub-mission.

WSROC, which represents 10 local govern-ment areas in the region, made the submission to the NSW Legislative Assembly committ ee on transport and infrastructure’s inquiry into the utilisation of rail corridors.

Currently, Western Sydney was under-rep-resented in professional employment oppor-tunities, providing only 17 per cent of banking, fi nance and business services jobs.

WSROC regarded these jobs needed to be att racted to suburban centres in the region to provide a bett er range of employment opportu-nities for residents.

“Th ey are also the jobs which can be more easily accommodated as part of a strategic pro-gram of urban renewal and targeted economic development, including bett er utilisation of land adjacent to rail corridors.”

Land near rail corridors, especially as part of high-density residential and mixed-use develop-ment, could also be an ideal target for govern-ment decentralisation policies.

“Th e relocation of selected government agen-

cies and departments from Sydney’s CBD to stra-tegic locations close to rail lines in outer suburbs can be a signifi cant generator of jobs in regions such as Western Sydney,” the submission said.

“As well as providing much-needed local jobs they reduce travel time for a large number of commuters, potentially increase public transport usage and reduce congestion on roads.

“Further, they provide a magnet to att ract as-sociated private sector support activities and the employment opportunities they generate.”

Th e submission noted that an estimated 38,000 extra jobs would be needed in the region within the next 25 years.

Law firm finalist

PARRAMATTA legal firm, Coleman Greig Lawyers has been named

a finalist in two categories of the BRW Client Choice Awards.

The awards are one of the most prestigious recognition

programs for professional services firms in Australia. The

winner in each category will be announced at BRW’s Annual

Gala Dinner, on March 14.


NEWSAccountancy, taxation and business advice that’s sound, forward thinking & effective.

Suite 4, Lvl 3, 20 Charles St, Parramatta

T: 02 9687 1042 www.atb.net.au

7 tips for a successful start up

1 Get it on one page• By all means do a detailed business plan• But summarise the essence on one page• This is the who, what, when, where, how but also the WHY • Make sure this addresses both your personal and business goals

2 Do your budget• Do the detail and then drill down into the detail• Work your metrics • Detail your assumptions• Either engage your accountant to do this or have them do a critical analysis• Drill down on detail again doing a best case and a worst case scenario• Redo your budget after step 3 and 4 including all the set up costs required

3 Get your structure right• Seek advice from an accountant about which structure would be best suited to your

start up • The structure must take into account1. Asset protection2. Additional investors or business partners both now and in the future3. Quarantining IP from trading activities4. Future sale or part sale5. Future expansion , franchising licensing etc6. Tax consequences including the above events Income tax and Capital Gains Tax

4 Protect your intellectual Property (IP)• Seek specialist advice regarding patents, trade marks etc• Have your logos, colour and branding trade marked• Have your accountant and solicitors work together so the structure protects the IP

5 Do your cash flow• From your budget work out how much cash is required for the business to operate • Don’t make assumptions that are optimistic• Don’t assume you will be paid in 30 days. You may be but plan for 90 days• Identify lumps in your cash flows e.g. imports, Christmas wages, deposit bonds, GST

and PAYG payments• Calculate your total and maximum cash requirement for a 18 month to two year pe-

riod

6 Get your finances sorted• Make sure you have the finances to support the cash requirements in your cash flow• Make applications for finance before you commence business as finance rejection

may destroy you financially • Check your finance facilities to ensure they have the appropriate number of years

before refinance applications are required • Consider finance options for: equipment, motor vehicles, rental bonds, importation

of stock, over-draft, fit-out and floor stock.

7 go for it• Everything is in place don’t look back • Continually monitor performance against budget and cash flow forecast• Meet regularly with your account and critically review your metrics • Make sure you allocate the time to work on the business rather than in the business

Michael Mekhitarian has over 20 years experience as an accountant. His

firm ATB Partners has had offices in Parramatta for over 15 years. For further

information Mike can be contacted at [email protected] or 9687 1042.

DisclaimerTh e information is general in nature and is not indented to be

advice. No person should act on any of the matt ers commented on without seeking professional advice in regards to your particular cir-cumstances.

www.wsba.com.auwww.wsba.com.au

BRIEFS

Objection to suspension

UNIVERSITY of Western Sydney Hawkes-bury alumni chairman, Anthony Martin, has objected to the suspension of the agriculture course at the campus. “Th e UWS structure does nothing to foster the land sciences and this has been an ongoing problem for years,” Mr Martin said. According to the Dean of the School of Science and Health, Professor Grego-ry Kolt, demand for the agriculture programs at

UWS has been decreasing for a number of years in line with national trends.

Regulation to allow project

PROPERTY owners at Riverstone have welcomed a draft state regulation that will allow them to develop land which has been prohib-ited for more than 15 years because it was clas-sifi ed as scheduled lands because of a lack of in-frastructure and because the lots were too small.

Eclipse scales new heightsECLIPSE Tower in Parramatta, the latest commercial development

project by joint venture partners Leighton Properties and Grosvenor Fund Management Australia, celebrated a major milestone last week with construction reaching its highest point, known as ‘topping out.’

At a height of 88 metres, the 19-sto-rey, $170M Eclipse Tower, which is being constructed by John Holland, is the tallest commercial building in

the Parramatta CBD. Th e project is already 80 per cent

leased, having secured pre-commitments from Deloitt e, QBE Insurance and Land-com.

It is currently the only A-grade com-mercial building under construction in Parramatt a and as such is experiencing strong interest from the market for its re-maining space.

Members of the development team marked the milestone with a tree-planting ceremony, a long-standing construction industry tradition dating back to a time when all buildings were made of timber.

Considered a symbol of growth and good luck, a tree is placed on the roof to signal to the city that the builders had reached the top. Th e building is due for completion in August 2012.

Top end demand drives Parramatta office market

CONDITIONS continue to tighten in the Parramatta office market, fuelled by strong demand at the top end of the market, according to the Property Council of Australia’s latest Office Market Report.

Th e vacancy rate in Parramatt a decreased from 9.3 percent to 9.1 percent in the six months to January 2012, its lowest level since July 2008, said NSW executive director, Glenn Byres.

Th e vacancy decrease was due solely to posi-tive demand, with net absorption of 1063 square metres in the past six months, he said.

“Th e result was spread across the majority of the Parramatt a market, with only the C Grade segment posting an increase in vacancy rate, to 18.8 percent.”

“Net demand for A Grade space increased by 790 square metres and culled the vacancy rate from 2.4 percent to 2.1 percent.”

“B Grade also saw strong demand, with net absorption totalling 1,765 square metres in the past six months, cutt ing the vacancy rate from 5.6 percent to 4.5 percent.”

“D Grade vacancy fell to 15.3 percent over the period on the back of net absorption of 426 square metres.”

Mr Byres said 25,050 square metres of space was scheduled to enter the Parramatt a market in 2012.

Nothing was scheduled to come online in 2013; 3000 square metres of projects are planned to be completed from 2014 onwards; 61,905 square metres of space is mooted.

Key market indicators, Parramatt a (aggregate)

GradeVacancy,

Jan 12 (%)Vacancy, Jul 11 (%)

Net absorption, 6 months to

Jan 12 (sqm)

Net absorption, 12 months to Jan 12

(sqm)

A 2.1 2.4 790 -582

B 4.5 5.6 1,765 4,050

C 18.8 17.6 -1,918 -876

D 15.3 15.6 426 684

Total 9.1 9.3 1,063 3,277


NEWS

Dr Geoff Lee MPMember for Parramatta

My contact details:

90 George St ParramattaPO Box 1126, Parramatta NSW 2124Ph: 9891 4722 F: 9891 5618 [email protected]

I'm Geoff Lee. I welcome your thoughts on how we can make Parramatta a better place for business.

If you would like me to visit your business or to help you deal with state government departments and agencies, please contact me.


Golden Slipper party time

SYDNEY’S racing event of the year and Australia’s richest day of racing featuring the world’s best race for two-year-olds, the $3,500,000 Group 1 AAMI Golden Slip-

per, comes alive on April 12 at Rosehill Gardens. Whether travelling to Sydney for the long week-end or a Sydney-sider the day promises to be

an Easter weekend to remember. Rydges Hotel Parramatta is located opposite Rosehill Gardens. Sales director, Lyndall Hermara said she expect-ed a strong turnout at the venues two dining ven-ues Stock Café and the award winning Steeds Bar & Grill Restaurant. Phone 1300 729 668 to book race day tickets.

Energy firm launches carbon tax calculator

PARRAMATTA based independent energy management company, Energy Action has launched Australia’s first online carbon tax calculator that can approximate the cost impact of the carbon tax of Australian businesses.

“There is a great deal of confusion in the Australian marketplace about how the carbon tax will affect all manner of Australian businesses, as the debate

has largely surrounded Australia’s largest indus-tries and companies,” said Dr Ron Watts, Energy Action Chairman.

“Energy Action’s online calculator enables businesses big and small to quickly understand how the scheme will infl uence them over a three year period and what its impact will be on their most aff ected business cost – energy.”

Th e free online calculator is available for all companies with the modelling allowing busi-nesses to begin to more accurately predict cost changes derived from the carbon tax.

Th e Energy Action Carbon Adjustment Calcu-lator prompts businesses to enter their gas and elec-tricity consumption and length of billing period.

From this information (readily available on energy bills) the calculator, using a set of listed assumptions, then approximates a business’ likely carbon expense for 2013, 2014 and 2015 energy bills.

Th e calculator was developed by a number of Australia’s leading energy specialists as a forecast-ing tool for business and is based on information outlined in the Federal Government’s climate change policy, Securing a Clean Energy Future.

“Th ere is a common misconception in the market that the tax will only aff ect Australia’s Top 500 companies. Th e reality is that Australia’s largest energy generators are within that group and will pass new costs down the line, eventually reaching consumers,” said Edward Hanna, Head of Energy Effi ciency and Sustainability at Energy Action.

“Th e only way to beat the carbon tax is to emit less carbon in your operations. For all com-panies, understanding your cost exposure is the fi rst step in understanding what investment you should now be making to reduce your carbon footprint and energy expenditure.”

Users are encouraged to model the impact of increased and decreased energy usage then use this information to evaluate any investments in energy effi ciency measures.

Businesses can use the free online calcula-tor at www.energyaction.com.au

BRIEFS

Into administration

BEDDING chain Sleep City, at Wetherill Park, has been placed in administration amid a continuing downturn in the retail market. PricewaterhouseCoopers (PwC) has been ap-pointed voluntary administrator of parent com-pany Furniture and Bedding Concepts Ltd and four other related entities.

New uni in townTHE University of New England, in Armi-

dale, has leased two buildings in the heart of the Parramatt a CBD. Th e university has leased the 400-square-metre, two-storey, heritage-listed, for-merly Parramatt a’s fi rst post offi ce, completed in 1880 – and latt erly used as a restaurant – at 211-213 Church Street, and premises of 430 square metres, opposite, formerly a St George Bank branch.


NEWS

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Tenant demand steady for industrial: ColliersTENANT demand across Sydney’s west for industrial property

has remained steady over the past six months with the majority of deals done being renewals, according to Collier

Sydney Industrial Report for the second term 2011.

Tenants have looked to exercise their lease extension options due to the ongoing un-certainty in the global economy, which continues to keep business confidence low

and therefore postponing business expansion plans.

Th e sub-10,000 square metre market has

continued to drive the land market in the region with an increase in the number of owner occupi-ers purchasing lots in the last six months.

Th is demand from owner-occupiers has oc-curred due to the lack of existing suitable proper-ties available for lease or purchase, forcing them into the market to develop a purpose built asset.

Th is increase in demand also indicates that buyers now see land values have reached a point at which developing a property stacks up fi nan-cially.

Land values have reminded steady over the past six months ranging from $150 per square metre in the outer west to $600 per square metre in the inner west.

“Th e industrial market in the south-west has seen a number of large high quality assets trans-act over the past six months bucking the trend of the other Sydney markets and providing evi-

dence that prime grade yields in the region have begun to tighten by as much as 25 basis points,” the report said.

A positive story for the industrial market in the south-west over the past 12 months has been the success of Mirvac’s Hoxton Distribution Park at the former Hoxton Park Airport.

Th e Hoxton Distribution Park is one of Australia’s largest industrial developments and consists of two state-of-the-art logistics facili-ties which have been 100 per cent pre-leased to Woolworths Limited, according to the report.

Skilled staff leave citing regional image problemA PROBLEM with Western Sydney in attracting and retaining

professional skilled staff was its image in the business community

This was highlighted in a submission by the Parramatta-based Regional Development Australia – Sydney, to the Professional Services Industry Action Plan being devel-

oped.by the NSW government. RDA Sydney undertook a series of work-

shops in Western Sydney, in 2011,with fi nancial, property, professional services and industries.

In addition to the image problem, feedback included:

Professional services were Sydney-CBD cen-tric and would benefi t from an increased pres-ence in areas such as Parramatt a, Norwest, Pen-rith, Campbelltown and Liverpool.

Th e sector’s presence in these areas could contribute to the establishment of business

parks, close to existing transport and infrastruc-ture.

Greater coordination between industry and government in the development of strategies to address current and future skill shortages, which

was most evident in the west and south-west.“Th ere is a need for the NSW government

(Trade and Investment) to commission research into why large fi nancial companies such as PWC Ernst & Young and KPMG withdrew from Parra-matt a and have a very limited presence in Greater Western Sydney to ensure issues and known and addressed,” the submission said.

A recommendation was that the NSW gov-ernment facilitates local regional centres, for ex-ample, Parramatt a, the Hills, Penrith, Liverpool and Campbelltown LGAs, to work collectively to raise their profi le and promote their business assets and capabilities to demonstrate the need for fi nance companies to reside in these locations and operate locally.

Cloud provider BrennanIT best again

LEAD cloud computing provider, Brenna-nIT, a member of the Cumberland Business Chamber, has been named the number one managed services provider in Australia for

the third year in a row.At the same time as confi rming their top

spot Down Under, the 2012 MSPmentor 100 Global Edition Report showed that they are the 4th best provider in the world out of the 100 that were assessed.

Th e Report is conducted annually and based on revenue growth, managed services of-

fered and customer devices managed.BrennanIT recently presented at the Cum-

berland Business Chamber’s B3 Business Build-ing Breakfast on the topic of data security.

Th is sector has experienced record revenue growth driven in part by strong demand for its cloud computing services.

Cloud computing is expected to represent one-third of all revenue in the coming year.



REGIONAL ROUND-UP

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NORTH WESTAccess to airport

THE Tourism Industry Council NSW said regional fl ights should continue to access Sydney Airport, following media speculation that such fl ights use Bankstown Airport and the RA AF Base, at Richmond, to boost capacity at Mascot.

Council to appeal decisionPENRITH City Council has voted to appeal

a recent decision in the Land and Environment Court that could leave the community with a $1.8million bill to provide facilities in a new 71 lot residential development

Centre sold for $180mTHE 52,000-square-metre Home Hub Hills

homemaker centre, at Castle Hill, has been bought by the LaSalle Investment Management fund from Fenix Real Estate, for about $180 million.

$250,000 for projects TOUCH screens, iPhone apps and a loyalty

rewards program are among the fi rst local projects to be funded under a $5 million state government program to boost regional tourism, with the Blue Mountains Lithgow and Oberon Tourism has re-

ceived $250,000 in grants through the Regional Tourism Product Development Funding.

Authority seeks CEOTHE Sydney Catchment Authority, based

in Penrith, is seeking a CEO. Th e organisation is responsible for managing and protecting the bulk water supply for more than 4.5 million customers across Greater Sydney It has a budget of $130 mil-lion with a workforce of 250 people.

Chemical storage facilityTh e Department of Planning and Infrastruc-

ture is considering an application by Prime Con-structions for a proposed chemical storage facility within an approved warehouse complex, in the WestPark Industrial Estate, at Erskine Park.

ATO building soldA PRIVATE investor has bought the offi ce

building containing the Australian Tax Offi ce, in Penrith, for about $31 million, from Australian Unity’s unlisted diversifi ed property fund. Th e building in Henry Street is an A-grade commercial building with a net lett able area of about 15,416 square metres, and 100 underground car spaces.

SOUTH WEST$45 million substation

CONSTRUCTION on on Endeavour En-ergy’s $45 million Abbotsbury zone substation, at Bonnyrigg Heights, is expected to start in the middle of this year. Following feedback changes to the design include reducing the height of the control building by 1.2 metres and more extensive landscaping to screen the substation from adjoin-ing houses. Th e project will take about two years to complete.

New residential estateTHE New Brighton Golf Club is going to be

transformed into one of the most impressive re-al-estate and golf developments in NSW follow-ing a recently entered a joint venture with Mirvac Homes to develop up to 16 hectares of existing golf course for a new residential estate of up to 310 houses in Moorebank. Th is would bring the total number of new dwellings in the area to about 1200 houses and generate an additional 3000 residents in the next fi ve to eight years.

$6.5 million contractA W EDWARDS has been awarded the $6.5

million contract for the expansion of the Liver-pool Courthouse. Th e renovations include the construction of an additional courtroom to ac-commodate increasing demand for facilities in Sydney’s south-west. Th e courthouse has closed for the renovations, with staff being relocated to Bankstown, Campbelltown and Camden court-houses. Th e building will have four courtrooms operating when it reopens early next year.

Airports for saleBAC Holdco Pty Limited, which holds the

leasehold interests over the Bankstown and Camden Airports, has announced its intention to commence preparations for the sale of the two airports. Th e airports were privatised in 2003 and are held under long-term leases (85 years remaining) with the commonwealth government. Th e airports are to be off ered for sale together. Operations at the airports will be unaff ected by the sale process.

Large industrial projectA positive story for the south-west indus-

trial market over the past 12 months has been the success of Mirvac’s Hoxton Distribution Park at the former Hoxton Park Airport. The Hoxton Distribution Park is one of Austra-lia’s largest industrial developments and con-sists of two state-of-the-art logistics facilities, which have been 100 per cent, pre-leased to Woolworths Limited, according to Collier Sydney Industrial Report for the second term 2011.

Industrial marketTh e Sydney South West industrial market

has seen a number of large high quality assets transact over the past six months, according to Collier Sydney Industrial Report for the second term 2011, bucking the trend of the other Syd-ney markets and providing evidence that prime grade yields in the region have begun to tighten by as much as 25 basis points

CENTRA L WESTClub sells property

PARRA MATT A Leagues Club has sold a property with a net lett able area of 600 square me-tres, at Level 1, 50 O’Connell Street, North Par-ramatt a, for $3.175 million, to an owner-occupier.

President of Law SocietyJUSTIN Dowd, a partner at Watt s McCray,

in Parramatt a, has been elected president, of the Law Society of NSW. Mr Dowd has worked as a family law solicitor in Parramatt a for more than 17 years.

Decision deferredPARRA MATT A City Council has deferred

a decision which could see a mix of buildings of eight and 10 storeys for some 400 metres along either side of Church Street, between the Great Western Highway and the M4/Parramatt a Road. Apartment towers up to 30 storeys could be lo-cated behind these buildings on the western side of Church Street.

Awards contentionPARRA MATT A legal fi rm, Coleman Greig

Lawyers has been named a fi nalist in two categories of the BRW Client Choice Awards. Th e awards are one of the most prestigious recognition programs for professional services fi rms in Australia. Th e

winner in each category will be announced at BRW’s Annual Gala Dinner, on March 14.

Endorsement deferredPARRA MATT A City Council has deferred

a decision to endorse a proposal to rezone and increase building heights to 15 storeys on the University of Western Sydney site, at 158-164 Hawkesbury Road, Westmead

50 years in cityMATT HEWSFolbigg, a leading legal practice

in Parramatt a, will celebrate its 50th anniversary this year. Th e practice has grown rapidly since its early beginnings in 1962 when two brothers, Brian and John Folbigg, established one of the fi rst specialist property law practices in Parramatt a. Paul Matt hews began his practice in Blacktown in 1970, specialising in areas of property and commercial law. Th e two practices merged in 1997 to form Matt hewsFolbigg.

New man at the helmTHE board of the Parramatt a Eels has appoint-

ed Bob Bentley as CEO, of the Parramatt a Eels Football Club and Parramatt a Leagues Club. Mr Bentley has served as the leagues club CEO since April 2010 and as acting Eels CEO since December 2011 following the resignation of Paul Osborne.


SALE• 68sqm• Includes fit-out • Use of free meeting rooms and lounge

LEASE• 246sqm factory incl 87sqm office• Front unit with exposure• Parking at the door

LEASE• 284sqm• Suitable for many uses• Includes storage area

9899 16995/38 Brookhollow Avenue Baulkham Hills

(Norwest Business Park)

SALE/LEASE• Sizes from 79sqm-376sqm• Cutting edge construction techniques• Located opposite Norwest Private Hospital • 5 star presentation

SALE/LEASE• 10sqm-373sqm• On-site concierge, gym and restaurant• Investment opportunities available

SALE/LEASE• 56sqm-238sqm• Great value office space• Plenty of parking, some suites with fit-out

LEASE• 804sqm suite with fit-out• 32 car spaces• Balcony overlooking lake

SALE OR LEASEFOR

SALE - INVESTMENT• 8% net return • 5 year lease• Annual increases

SALE/LEASE• Open plan suite with natural light• Use of free meeting rooms• Close to banks, gym and restaurants

NO

RW

EST

BU

SIN

ESS

PAR

KCA

STLE

HIL

L

$281,400 pa plus outgoings

$34,800 pa plus outgoings$53,500 pa plus outgoingsSALE/LEASE• 61sqm-849sqm• High quality office/warehouse• Parking at your level, close to all amenities

LEASE• 173sqm• Includes fit-out• Fully furnished

LEASE• Fit out consists of offices, workstations, boardroom & reception• Includes furniture and network cabling• Computers & telephone

www.norwestcommercial.com.auDisclaimer: All care has been taken in providing this information, however it as been provided by a third party and Norwest Commercial and Industrial Real Estate does not warrant it as accurate or correct. All interested parties should make their own enquiries.

DEPOSIT

TAKEN

SOLD



INNOVATION with Craig Hingston

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Laser Line att racts world-wide att ention

AN invention developed by a western Sydney business that improves accuracy and operator safety with high speed saws is attracting world-wide attention.

By Craig Hingston

The CPAC IP67 Laser Line Generator is the brainchild of Ray Lemon, the managing di-rector of Bandsaw Supplies at Arndell Park.

Ray has been supplying the bandsaw industry with machines and blades for 33 years and when he saw a niche opportunity for a new type of product he decided to “have a go”.

“I see myself as an innovator”, says Ray, “I look sideways at a lot of things and think out of the box. When people say it’s impossible I say no it’s not. I have an engineering mind and I love

electronics and design,” Ray said.“Customers were asking for a low-cost, com-

pact laser guidance tool. Th ere were a few units available in Europe but they were very big and cost thousands of dollars.

“Also, they were cumbersome with separate control modules. Th e secret was miniaturisation.

“My fi rst design was mounted in a protective housing 50mm x 40mm x 20mm in size but the control module was a separate housing and still large.

“Th e design has evolved from Mark 1 to the latest design Mark 4. Th is design has the laser head and the miniaturised controls housed in a 12mm stainless steel tube with an overall length of 100mm. Th is tube design allows the Laser Line Generator to be mounted in very tight loca-tions on machines.”

Th e 12mm stainless steel tube body has made it very versatile and can be mounted to a range of high speed saws to indicate the cutt ing path.

Th e laser beam extends at least 20 metres and has a line that generates a one and half mil-limetre wide line.

Ray says the CPAC IP67 allows an operator to verify the cut before starting, while the blade is raised in a safe position, and there is no need for them to have their head anywhere near the blade to confi rm they are on the right path.

He adds that some manual saws have safety

cages and with OH&S laws gett ing tougher the operator is not near the saw when it is operat-ing, but with the CPAC IP67 he knows the cut is right because of what the laser line showed him.

“On some machines the operator lowers the blade, sets up the cut, presses start and then the machine makes the blade go up and down again before starting which means there is room for er-ror.

“Using my invention the operator knows where the saw will be cutt ing, there is no need for manual alignment, it is just a case of press start and let it do the job.”

Ray says the improved accuracy of cuts

means operators have more confi dence; they don’t waste time manually checking and re-checking, and they are able to fi nish a lot more projects each day.

Orders have been coming in from fabrica-tors and metal suppliers who cut steel and wood but Ray’s decision to make the CPAC IP67 wa-terproof has att racted interest from an unusual industry,

“I got a call from the New Zealand meat in-dustry asking for a laser for their butcher’s saws,” Ray said.

“Operators are not allowed to use safety gloves and they have to push the meat into the saws with their bare hands. I added a sensor so that it can turn the beam on and show if a hand is in the cutt ing path. Being waterproof - and blood proof - it is totally hygienic for this market. Th e laser has become a safety tool.”

Another opportunity could be the rail indus-try. Ray is talking to people responsible for weld-ing sections of train track together.

“As you would expect these sections must be millimetre-perfect when they are lined up. We are looking into using the CPAC IP67 as a lining up tool”, says Ray.

Ray is continuing to develop the CPAC to suit other applications.

If you have a western Sydney business inno-vation story to share contact Craig Hingston on 0488 60 7050.

Laser beam on hand


OPINION

Excelling in civic leadershipAS we farewell summer and welcome Autumn, it is clear there are

some other seasonal changes taking place around Parramatta.

By Councillor Lorraine WearneParramatta Lord Mayor

Parramatta’s invitation to the Council of Capital City Lord Mayors (CCCLM) in Canberra, heralds just one of these chang-es, and reflects Parramatta’s status as one of

the nation’s leading cities.It was a great privilege to be asked to att end

this summit and to address some of the chal-lenges we face as a major Australian city.

It also provided an opportunity to build relationships with other Australian councils and to meet with Federal Ministers to push the need for improved funding and infrastructure investment, such as our Western Sydney Light Rail Network, for the bett erment of the wider region.

There needs to be increased recognition of the growth of Western Sydney, which will house more than half of Sydney’s population within the next 25 years, and it’s vital that our

major federal decision makers provide the necessary support to aid our development.

One of my top priorities is to continue to strengthen Council’s relationship with both the Federal and State governments and share with them the strategic significance of Parra-matta as the engine room of western Sydney. Parramatta’s growth is intrinsically linked to the development of the wider region.

The State Government’s Community Cabinet meeting and public forum, held at Rosehill Gardens in February, signified the Premier’s willingness to listen to our plans about the future of Parramatta and Western Sydney.

At the meeting Council’s delegation spoke to the Minister for Transport, Gladys Berejik-lian, about the benefits of Parramatta’s light rail and regional ring road proposal.

We also spoke to the Deputy Premier and Minister for Trade and Investment, Andrew Stoner about the relocation of public servants to Parramatta and the provision of support to industries expected to experience significant growth over the coming decades.

The response from both ministers was very positive and I look forward to working more closely with other Cabinet members in the near future.

Another significant milestone that will facilitate the commercial development of Par-ramatta was held last month, when I attended

the Eclipse ‘Topping Out’ Ceremony with the NSW Premier.

Eclipse is the fi rst delivery of new commer-cial stock to Parramatt a since 2008, creating 25,660m2 of new offi ce space.

Deloitt e and QBE Insurance, two of Par-

ramatt a’s long term private sector tenants, have already started packing their bags in preparation for relocation to Eclipse to facilitate their expan-sion in the region. I expect this development will fuel further employment growth in the Par-ramatt a CBD and Western Sydney.

Parramatt a’s table at Community CabinetAS we approach the first anniversary of the election of Barry O’Farrell-led NSW Government, in late February I welcomed the Premier and his team back to Western Sydney for a Community Cabinet at Rosehill Racecourse.

By Dr Geoff LeeState Member for Parramatta

The visit was all about listening to the peo-ple of this region by allowing us to have our say on the direction of the state in the decades ahead.

Th e Community Cabinet in Parramatt a was the largest yet, with over 350 people represent-ing over 200 business and community groups present on the evening.

Remarkably, this is the 11th time the Pre-mier has visited Parramatt a since the election, underscoring the importance of this city to the fortunes of greater Sydney and the rest of NSW.

On this occasion the Premier brought 17 of his Ministers including Jillian Skinner, Minister for Health; Mike Gallacher, Minister for Police and Emergency Services; Gladys Berejiklian, Minister for Transport; and Mike Baird, Trea-surer.

Earlier in the day the Premier marked his vis-it by announcing an extra $200,000 in funding for Parramatt a Mission, delivering on a commit-

ment he and I made prior to the 2011 election. At the heart of discussions was the NSW

2021 action plan, a long-term strategy devel-oped by the Government to outline a list of pri-orities that the Government recognises need to be addressed.

Th ese priorities focus on rebuilding the economy, improving transport services, pro-viding bett er family and community services,

allowing all students to receive a high standard of education, and ensuring the personal safety of all citizens.

Th e Government’s number one priority is to restore strong economic growth and establish NSW as the ‘fi rst place in Australia to do busi-ness.’

Responsible economic management and improving Government’s productivity will sharpen our competitive edge and att ract invest-ment and enterprise to NSW.

A strong economy will allow for the creation of more jobs for the people of Western Sydney

and will allow our 11 billion dollar economy, the sixth largest in Australia, to grow in the decades to come.

More jobs will mean more people travelling to and from Parramatt a, the Capital of West-ern Sydney. As a result, an integrated transport system is required to ensure diff erent transport modes work together to ensure the interests of the travelling public are put fi rst.

Th e NSW 2021 plan sets out a timeline for the delivery of strategic infrastructure proj-ects and for the bett er coordination of diff er-ent transport modes, which will help provide

clean, reliable, safe and effi cient transport ser-vices.

Local communities on the night agreed that a strong economy and improved transport ser-vices were the top two priorities for the people of Western Sydney.

Th e Community Cabinet was highly suc-cessful with the govern-ment being able to draw out the top priorities of the region on the night, which matched those pro-duced in the NSW 2021 plan.

We look forward to welcoming the Premier and Minister for West-ern Sydney as well as his cabinet colleagues back to Parramatt a in the future.

From L to R: Dr Geoff Lee, Member for Parramatta, Lord Mayor of Parramatta, Councillor Lorraine

Wearne, The Hon Barry O’Farrell MP – NSW Premier, Mark Gray, Managing Director, Leighton

Properties and Anthony Lombardo, Head of Office Development, Grosvenor Australia, at the

Eclipse Topping Out ceremony. PHOTO COURTESY OF LEIGHTON PROPERTIES.



OPINION www.wsba.com.auwww.wsba.com.au

Challenge of att racting skills to AustraliaAUSTRALIA’S looming skills shortage has been well publicised for a number of years, so with the recent government announcements

that Living Away From Home Allowance (LAFHA) is changing - what does this mean for attracting skilled migration, which plays

a vital role in ensuring Australia’s future economic growth?

By Kate Hill

Not only can skilled migrants be used to fill short-term skill gaps but also can be utilised to develop and train local work-ers and implement best practice based on

their global experience.According to Deloitt e’s recent publication

‘Building the Lucky Country: Where is your next worker?’, the 168,000 skilled immigrants who arrived in Australia in 2009-10 boosted the Government’s bott om line by around $880 mil-lion in their fi rst year of arrival!

Th is is brought about by skilled immigrants typically paying higher marginal rates of income tax while receiving fewer Government benefi ts than an average Australian resident.

Deloitt e’s report also highlights other factors which must be considered that will aff ect labour shortages in the future.

In particular, the expected number of skilled Australian graduates and the retirement of ma-ture-age worker, this is supported by research conducted by the Department of Education, Employment and Workplace Relations which found the pace of retirement will ramp up over the next few years, but the number of students exiting education is expected to remain stagnant through to early 2020.

So what is LAFHA?In principle, employees should pay for their

housing and food costs out of income that has already been taxed.

However, to assist labour mobility within Australia and att racted skilled migrants, the cur-rent fringe benefi ts tax (FBT) and income tax rules provide for concessional treatment of cer-tain benefi ts provided to employees required to live away from home temporarily for work pur-poses.

If structured correctly, the payment of a liv-ing‐away‐from‐home allowance (LAFHA) for accommodation and additional food costs is ex-empt from FBT and exempt from income tax in the hands of the employee.

Th e Government has concluded that these

tax concessions have been subject to growing exploitation, allowing people to claim signifi cant amounts of tax-free income. In particular, the Government appears to be concerned by:

Th e application of living-away-from-home benefi t concessions to temporary resident employ-ees who are living away from a home outside Aus-tralia and they regard as having an ‘advantage’ in receiving tax-free income over Australian workers

Th e ability (in some circumstances) for em-ployees to access large amounts of tax-free remu-neration which exceed actual costs incurred.

So what are the changes to LAFHA? Th e Government has announced proposed

reforms which are intended to apply to both new and existing arrangements from July 1, 2012.

In essence, the reforms will require all em-ployees to:

Substantiate their living-away-from home expenses

For temporary residents to qualify, they must be living away from an Australian home which they maintain.

Furthermore, benefi ts paid as a living-away-from-home allowance (LAFHA) will no longer be considered a “fringe benefi t” and will there-fore be subject to income tax in the hands of the employee.

Employees who are Australian permanent residents will be able to claim an income tax de-duction for the cost of accommodation and ad-ditional costs of food incurred whilst living away from home.

Th e accommodation deduction must be substantiated for example by lease agreement or rental receipt.

Th e Government has indicated that substan-tiation will not be required for food expenses up to an amount considered reasonable by the Commissioner of Taxation.

A temporary resident holding a temporary visa, ie a 457 visa for skilled workers, will be taxed on a LAFHA if they are living away from

their home country and will only be able to ac-cess a deductible

LAFHA if living away from an Australian home - for example if a UK resident moves to Sydney they will not be eligible for a tax-free LAFHA but if required to temporarily move from a home in Sydney to Brisbane they may qualify for a tax-free benefi t.

What impact will the changes have on Australia’s looming skill shortage?

Notwithstanding the positive aspects of working in Australia, our cost of living is rela-tively high on a global scale.

In addition, skilled temporary residents may not be eligible for Medicare benefi ts, must pay fees for public schooling for their children and oft en pay the costs of maintaining a home in their own country.

It is not realistic to assume that employees would choose to live away from home unless they are remunerated or otherwise adequately compensated to cover any additional costs of liv-ing – and previously the tax concessions means the costs could be incurred by the employer with no additional tax cost.

Tax concessions, such as a LAFHA, have been a crucial factor in att racting talent, in eff ect gett ing the employee ‘over the line’.

Without an incentive, or at the very least a

method to reduce the fi nancial burden of employ-ees who are living away from home, there is a signif-icant risk that skilled migrants will choose to work in other countries - in particular countries with similar tax concessions designed to att ract talent such as nearby Asia Pacifi c English speaking coun-tries either with a lower tax rate or lower cost of liv-ing (ie Singapore, New Zealand or Hong Kong).

Th e removal of the tax concessions would mean that businesses would need to increase the employee’s remuneration – resulting in a higher cost to business.

We agree that reform of the LAFHA rules is needed to ensure that only those genuinely living away from home should be able to ac-cess the tax concessions. However, is the proposed discrimination against Australian businesses from hiring overseas workers the answer?

Questions for Australian businesses:Do you have trouble att racting Australian tal-

ent or need to fi ll skill shortages from overseas? Can you aff ord to increase remuneration to at-

tract overseas employees to fi ll your skill shortages?If you can’t fi ll a skill shortage due to our

higher cost of living – what will that mean to your business?

Will you have to outsource skills to overseas businesses, for example call centres in India?

Another side eff ect of the proposed changes – increased employer compliance and on-costs

Businesses should also be aware that to the extent that a LAFHA is now taxable for FBT pur-poses or paid as an allowance it will be consid-ered wages for both payroll tax and Workcover purposes.

Where the LAFHA is paid as an allowance, the allowance will also result in an increased Su-perannuation Guarantee obligation for the em-ployer.

If you would like to discuss any of the con-tent in this article please contact Roan Fryer, Deloitt e Western Sydney Tax leader: 02 9840 7374 or Elizma Bolt, Partner FBT 9322 7255.

Kate Hill is a partner at Deloitte Private based at the

company’s western Sydney office at Parramatta. Cont-

cat her at 02 9840 7021.

“Skilled migrants be used

to fill short-term skill gaps

but also can be utilised

to develop and train local

workers and implement

best practice based on

their global experience.”

“The payment of a

living away from home

allowance (LAFHA) for

accommodation and

additional food costs

is exempt from FBT and

exempt from income

tax in the hands of the

employee.”


OPINION

Honesty is the new niche“NOT only can a man be honest and grow rich, but it is almost impossible for a man to grow rich unless he is honest.”

J. J. Cor

By Amanda Rose

Would you believe it, honesty is now considered a niche service and strat-egy implemented by the leading (and soon to be leading) businesses.

Consumers and clients have been “once bitt en twice shy” so to speak, with the level of trust depleting by the minute through false claims, tricky marketing and sneaky sales strategies.

Th e most common form of dishonesty in the world of busi-ness is deception and thanks to CHOICE magazine’s Shonky Awards we are made aware of just a fraction of these cases.

Short cuts and sharp dealings to quick success are not smart practices on which to build a suc-cessful business. Th ey can ulti-mately lead to failure.

A tragic and recent example of a brand that damaged the trust of their market was Nurofen. By using the exact same pain killer but packaging it diff erently, giving the impres-sion one needed a diff erent name for a diff erent pain (and at diff erent price).

I recently heard Michelle Ahern, previous Brand & Marketing specialist for Th e Wiggles

say “honesty is the best policy” when dealing with business and especially when communi-cating a brand.

A perfect example of this was when the original “yellow Wiggle” had to leave due to illness. Everyone seemed to be in a panic and weren’t sure what to do or say. Michelle reiter-

ated her honesty policy and said “just tell the truth and people will understand” and they did. We all know how successful the Wiggles

became.Of course, the contrast occurred

when the original yellow Wiggle re-cently returned, displacing the sub-stitute. Michelle had moved on by then, and it seems without this com-monsense approach the Wiggles were left a litt le lost when they went public with diff erent stories, all of which made the “brand” look cold and cruel towards their colleague.

William Shakespeare said “Hon-esty is the best policy” and it still stands today!

If we practice honesty in our business dealings as well as in our personal aff airs, we may fi nd many will help us to build our business, paying handsome dividends.

So honesty, how are you going with your business? Feel free to let me know your experi-ences.

Amanda Rose is a connection specialist who runs My

Business help radio program on Alive FM 90.5FM.

Contact her at [email protected]


New options for business education THE qualifications marketplace in Australia seems to get more crowded year by year. How well do businesses understand the bewildering array of diplomas, certificates, degrees and other

credentials that prospective employees present with?

By Professor Stuart Campbell

One qualification that is gaining ground is the Associate Degree, a two year (or part-time equivalent) course that has shoehorned itself into a space somewhere

between the Higher Diploma and the Bachelor Degree. But identifying the exact space the Asso-ciate Degree occupies in the qualifications mar-ket is not so simple.

Th e best starting point is the Australian Qualifi cations Framework. Th e AQF defi nes the whole array of credentials from school through vocational education and training (VET) to higher education. Qualifi cations are assigned a level from 1 (Certifi cate I)) through to 10 (Doc-torate), and the learning outcomes criteria and notional duration are described for each.

While the AQF may seem dauntingly com-plex, a basic understanding is a must for business-es engaged in recruiting and staff development.

While some qualifi cations are off ered princi-pally by a specifi c sector, for example the School Certifi cate by schools and the PhD by universi-ties, the Associate Degree straddles the VET and higher education sectors.

In this respect it plays an important role in soft ening the boundaries between the sectors and making the transition from VET to higher education study easier. Th e notion of cross-sec-tor transition is based on the principal of articula-tion, which allows a qualifi cation from one sec-tor, e.g. a VET Diploma, to be counted for credit in a Bachelor Degree.

Th e Associate Degree was adopted by the AQF in 2004 and has been slower to get a foot-hold in Australia than its UK and US counter-parts.

In Britain, the two-year Foundation Degree is off ered in hundreds of fi elds, and oft en in-cludes workplace learning.

Th e US Associate Degree is usually the equivalent to the fi rst two years of a four-year junior college degree; paralegals, for example, commonly hold an Associate Degree. In both the UK and the US, these two year degrees can be “topped up” with university study.

Th e slower start to the Associate Degree may be partly due to the strength of Australia’s

system of VET qualifi cations compared to the UK and the US. Th e VET Higher Diploma is well entrenched as the credential that does the heavy lift ing at the technician and paraprofes-sional level.

In the AQF, the VET Higher Diploma and the Associate Degree are both at Level 6 and the learning outcome criteria of each are very similarly worded, although the Associate Degree

places more emphasis on underpinning theory and may be half a year longer.

Employers would be entitled to ask why we need another qualifi cation when the Higher Di-ploma is so widespread and has such high accep-tance.

In practice, four factors seem to make the As-sociate Degree distinct: accessibility, innovation, integration with work, and transition to a Bach-elor degree. Th ese three NSW examples each combine at least two of those factors:

Th e Associate Degree in Policing Practice off ered by Charles Sturt University meets the NSW Police requirement for a Higher Educa-tion credential, but is accessible to a wider range of applicants than a Bachelor Degree. Compo-nents of the course are undertaken through resi-dential training at the Goulburn Police Acad-emy.

Th e Associate Degree in Creative Industries off ered by the University of Western Sydney provides an innovative credential for an industry where students need to integrate study with di-verse types of work. Entry criteria include three years of industry experience.

Th e Tertiary Pathway to Accounting Stra-tegic Alliance in NSW entails a partnership of TAFE, universities and industry bodies, with students able to progress from a TAFE Associ-ate Degree to a university Bachelor Degree in Accounting.

Launching the Alliance in 2011, Minister Piccoli said that the program would off er “an ad-

ditional, accessible pathway to higher education, which is especially important for people facing disadvantage, including low SES, and Indigenous Australians”.

Th e key to acceptance of the Associate De-gree is acceptance by employers. Here are three things that Western Sydney business owners and managers can do to get involved:

Get informed: Learn the basics about the AQF at www.aqf.edu.au . Find out what Associ-ate Degrees are available to employees in your industry;

Get represented: Universities and colleges rely on industry input into the development and update of courses. Find out who represents your industry on university and college advisory boards, and make your voice heard;

Get creative: If you are in a new or rapidly changing industry where there is no relevant cre-dential, make a proposal to your local university of college. Just like industry, our educational in-stitutions thrive on innovation, and the Associ-ate Degree is set to become a qualifi cation that pushes the boundaries.

Emeritus Professor Stuart Campbell is a former Pro

Vice-Chancellor (Learning & Teaching) at the Univer-

sity of Western Sydney. Contact at him at info@stuart-

campbellconsulting.com

Disclosure: Stuart Campbell is a member of the

TAFENSW Higher Education Academic Board and a

non-executive board director of UWSCollege.

Education Minister, Adrian Piccoli.


celebrate the west2 0 1 2

You are invited to an exclusive business lunch with Bryan Brownto celebrate some of Western Sydney’s brightest stars and raise funds for San Miguel Family Centre.

Venue WatervieW in Bicentennial Park, Sydney Olympic Park

Date Friday 16 March 2012

Time 12 noon

Our Champions of the WestEntrepreneur - Rowen Szeszeran, racing legend - Ken Callander, rugby league great - Phil Gould,

boxing champ - Jeff Fenech and Blacktown Mayor - Alan Pendleton.

Entertainment

Tex Perkins will perform and Vince Sorrenti will host a live auction with attitude.

To secure your booking contact San Miguel on 02 4579 6622 or email [email protected]

San Miguel Family Centre in North Richmond provides short term accommodation to families who are in crisis and experiencing homelessness. Caring staff offer support, counselling and guidance to help families tackle the issues creating their homelessness. Parents receive support to improve life skills such as budgeting, cooking and communication and children receive support from child development workers to enter the local schools and return to education.

San Miguel Family Centre is a service of BoysTown.

Enjoy a fantastic afternoon with superb food, entertainment and inspiring stories.

Celebrate the West Patron - Bryan Brown 2012 Champion of the West - Phil Gould

Raising funds for the San Miguel Family Centre

$5,000 per table

gold table

$1,750 per table

silver table$200 per person

individual ticket

Book a table today


OPINION

Chambers open doors to advocacyA KEY role provided by chambers of commerce is providing the business

community with a service of an advocate or an ambassador.

By Narrelle Stoker

This means taking issues on behalf of the business owners to the relevant people of influence and decision makers to broker a positive outcome.

At the Cumberland Business Chamber we take this very seriously and have campaigned for many years on a wide range of issues.

Th ese include the new fi re station at Cabra-matt a/Canley Vale and the redirection of heavy vehicles away from school zones and residential areas in Smithfi eld.

With a 25 year track record in the Cumber-land district we have been able to build invalu-able relationships at local and state government levels on both sides of politics.

Testament to these eff orts was the invitation we recently received from the state government

to an invitation-only meeting with a select group of ministers

Six ministers made themselves available to meet a maximum of six people each and the Chamber was selected to see four of the six.

We tabled a number of documents includ-ing an important infrastructure challenge which will have an eff ect on many thousands of vehicles every day, plus a proposal for the government to launch a revolutionary new initiative that can prevent businesses in the greater west from going bankrupt and leaving people without jobs.

We met with Brad Hazzard, the Minister for Planning & Infrastructure and Minister assisting the Premier on Infrastructure, Katrina Hodgkin-son, Minister for Primary Industries and Minis-ter for Small Business,Andrew Stoner the Depu-ty Premier, Minister for Trade & Investment and Minister for Regional Infrastructure & Services, and Treasurer Mike Baird.

From time to time I meet a business person who is not aware of the benefi ts of a business chamber. Th ey might have turned up to a net-working event once, didn’t fi nd any new clients, and therefore wrote it off as a waste of time.

Chambers are an invaluable business building tool because they provide an environment for trust to develop. Finding new customers and making a sale is all about trust. We like to do business with people whom we respect and will look aft er us.

Blacktown business stimulus

Cumberland Business Chamber has an-nounced the introduction of additional network-ing and advocacy initiatives to encourage more business growth in the greater Blacktown area.

In addition to our existing calendar of events we will start Aft er5‘s in the heart of the region in March.

Th e fi rst function is on Tuesday, March 20 at 5.30PM and will be followed by another on Tuesday, April 17 at the same time.

Aft er5’s provide business owners with an op-

portunity to promote themselves and to meet potential customers, suppliers and strategic al-liance partners. Th ey will be led by President Craig Hingston, Treasurer Victor Prasad and committ ee member Rob Waddell who all work in the Blacktown area.

Th e venue for the Chamber’s events is the Outback Jacks Bar and Grill on Blacktown Road.

Narrelle Stoker is general manager of the Cumberland

Business Chamber. Contact the chamber on 9757

4794 or email manager@cumberlandbusinesscham-

ber.com.au

Rude people are taking overSIMPLE courtesies are expected, or in

fact taken for granted in our day to day dealings with people we meet,

some who are our friends, our family and some who are strangers to us.

By Jill Woods

Yes, we all seek courtesy and are quick to comment and feel annoyed when appro-priate manners and behaviour is not forth-coming.

We, those of us who rightly anticipate these general courtesies should then surely be repre-sentative of the majority of the population, isn’t that fair to assume? Aren’t we nearly all a decent lot of folk?

So based on that assumption, it would seem we should all be able to go about our everyday activities interacting in some form or another with lots of other nice people.

We also return phone calls and emails in a timely fashion as is required of good business manners.

How come if this is a realistic perception, certainly our preferred and oft stated choice, why is it there seems to be more and more rude and discourteous people regularly crossing our paths every day?

Take driving on our roads for instance to provide some quick examples to highlight my point.

Red lights almost seem an optional choice these days, rather than an absolute must obey by stopping, which I understand is still the law in NSW.

Probably some prett y good data around too, backing up why red lights matt er. Whatever hap-pened for people to ignore red lights in the fi rst place.

Are not our newspapers and tv’s plastered with visions of carnage for those who failed to heed the signals. Amber ones of course count for nothing, merely heralding the need to fl att en the accelerator and keep moving.

More oft en than not these days many drivers take these actions with others of the same mind-set. Rules are for others not them.

My other favourite of course is vehicle indi-cators. Th ey too are now so optional when you see them used it is quite something.

Once upon a time indicators would do just that - indicate the intention of the person using them. Why is it, these common courtesies espe-cially on the road, where surely obvious safety is paramount is just rapidly disappearing?

Th e rules don’t seem to apply to everyone anymore apparently, just you and me! So who determined when the rules stopped applying? Why is this mentality, this arrogance and total disregard for others increasing and being al-lowed to continue?

Unacceptable manners, courtesies and civil practices invade us all, oft en in the workplace and certainly in our personal spaces.

It is not just witnessed daily on the roads or using other public transport. People are rude at shop counters or in queues, pushing ahead of others quietly, patiently waiting their turn.

Of course we can pause to blame everyone else but seriously if ‘we’ don’t begin to seek posi-tive changes to these unacceptable behaviour patt erns in all walks of our lives then heaven help us.

You have rules or guidelines in your work-place - I bet you do! So why is this behaviour not transferable across our everyday society?

In the meantime those who do consider the needs and rights of others will continue to be confronted and aff ronted by this growing selfi sh mentality.

We can all contribute to positively changing this increasing ‘all

about me’ mindset. Let’s practice what is right and appropriate and display courtesies once popular.

Libraries and bookshelves are full of pub-lished works about good manners and behav-iour in the past. Let’s revive them.

Who knows, if enough of us do the right thing, it just might catch on and become the new trend;let’s hope. Good manners, best prac-tice!

Jill Woods is CEO of Penrith valley Chamber of Com-

merce. Contact the chamber on 02 4725 0303.


Treasurer, Mike Baird.


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We are a nation of entrepreneursAUSTRALIA has cemented its position as one of the most

entrepreneurial nations in the world, with a new study showing 10% of Australians were involved in the setting up or founding of

a new business, just behind global leader the United States.

By Craig Hingston

The report, conducted by the Australian Centre for Entrepreneurship and the Glob-al Entrepreneurship Monitor, studied 54 nations including 23 developed countries

and found 12% of US respondents were setting up or owned a newly founded business.

But Paul Steff ens, associate professor at

the Australian Centre for Entrepreneurship at Queensland University of Technology, says the Australian fi nding is surprisingly large.Th e 10% refers to people in the process of starting up or have started up already.

In another key fi nding, Australians are more likely than people in the US to set up a business out of choice, rather than necessity, at 21% ver-sus 15%. Steff ens says Australia has an “entrepre-neurial culture”.

“We always think of the US as the bastion of entrepreneurship, and on just about every di-mension we’re remarkably similar,” he says.

He says Australia’s conditions and culture are about right for new businesses.

“Th ere’s support by Government agencies. Th e barriers to starting a new business are very low, and the administrative burdens are reason-able, although many might not agree.

“Th ere’s also a reasonable investment in edu-cation that provides for opportunities, and busi-ness support networks.”

“And along with the entrepreneurial culture, there’s an element of legitimacy for early-stage businesses within the business community,

which has been building for some time.”Steff ens says although Australia’s sound per-

formance during the global fi nancial crisis has played a role in the high number of early-stage businesses, the economy is “not as rosy as we might think.”

“Th e two-speed economy is very real, and we are being propped up by the resources sector,” he says.

In total, 54 countries participated in the study, which is based on a survey of 2,000 people from each country.

Th e study also found that an equal amount of men and women were involved in young businesses.

Australia was the leader among developed countries for female participation, with 7.8% of adult of women involved in sett ing up a new business or owning a newly founded business.

But it’s not all smooth sailing. Women were less likely to be involved in high-growth areas of IT and resources and also had more modest growth ambitions than men.

Just 24% of Australian female entrepreneurs said they wanted to grow their business to larger than fi ve employers over the next fi ve years, com-pared with 42% of male entrepreneurs.

Similarly, just 6% of Australian female en-trepreneurs sought to have a substantial share of customers from international trade, versus 13.7% of men.

Steff ens says women’s more modest growth targets might be a refl ection of their changing family responsibilities. Women were more likely to be involved in the retail and services sectors.

Rob Pirina, the archetypical entrepre-neur: Page 22.

Work starts on Epping upgradeREJUVENATION works to the Epping Town Centre have started and

are expected to improve accessibility and public amenity.

Parramatta Lord Mayor, Cr Lorraine Wearne, said that Council had commit-ted about $900k to the project, with total works expected to be completed by the

end of September 2012.Th ey include an upgrade of the footpath

pavement and kerbs along Beecroft Road, Bridge Street and High Street. New widened access pathways have been proposed between Rawson Street and Boronia Park, in addition to nearby landscaping, tree planting, bike parking and seats.

Council will also carry out minor works at the intersection of Bridge and Rawson streets, which includes new footpath construction, kerb ramps and minor landscaping.

“Once complete, these works will deliver a high quality, att ractive and distinctive town cen-tre, which will benefi t business and the wider community,” Cr Wearne said.

Recent works have also been completed in Dundas, Granville and Guildford. Council has held meetings with the Epping RSL Sub-Branch

and Boronia Park Committ ee as part of plans to upgrade the Boronia Park Memorial.

Epping railway station.


FEATURE

AUSTRALIA’S airline industry is taking plenty of hits. Market volatility, intense competition, the corrosive affects of skyrocketing jet fuel prices

and the impact of wild weather are all creating hard landings for carriers.

While Australian airlines Qantas and Virgin Australia have already made significant cutbacks to survive – in-cluding the mid-February announce-

ment by Qantas that it will eliminate 500 jobs in catering and engineering – they are preparing for the worst.

Aviation is one of the fastest-growing sectors of the world economy. Over the next 20 years more than 27,000 new aircraft will be delivered and the number of air travellers will double to 9 billion over the same period.

However, airline companies are predicted to be among the biggest casualties of climate change as their output of greenhouse gas emis-sions grows quickly with the unprecedented de-mand for air travel.

Th e aviation sector will be signifi cantly af-fected if it is forced to absorb further cost in-creases, including, most outstandingly, the car-bon tax in Australia and a controversial tax on emissions for foreign carriers when fl ights take-off or land in Europe.

Th e latest Euro-tax with the aim of environ-mental protection, is distance-based, ensuring that skies are defi nitely scarier for carriers mak-ing long-haul fl ights from Australia and New Zealand.

Qantas, Australia’s fl agship carrier, has made it very clear that escalating costs pose a signifi -cant fi nancial risk.

In the short-to-medium term, the aviation sector is working hard to cut emissions by mak-ing incremental improvements to existing fl eets, taking weight off aircraft to lower resistance in fl ight, buying more effi cient aircraft and work-ing with alternative jet fuels that produce lower carbon emissions.

Qantas has 50 Boeing 787 Dreamliners on order, which it says will consume 20% less fuel than similarly sized planes, while its existing fl eet of Airbus A380s, newsworthy for operational

glitches, is also prized for its fuel effi ciency.Beyond climate change regulation, airlines

also face exposure to major physical risks. Fierce storms have now moved to the top of airlines’ risk agendas in the face of continued natural ca-tastrophes.

Scientifi c evidence suggests not only is the severity of weather events such as tsunamis, fl ash fl oods and typhoons increasing, but also the frequency.

Changes in weather patt erns – temperature, wind speed, direction and humidity – deter-mine aircraft performance. Extreme weather events or even changed weather patt erns can af-fect the jet stream (fast-fl owing air currents) and cause severe disruption to fl ight schedules.

Flying around a major weather event burns more fuel, so costs rise as aircraft change course to avoid more frequent extreme weather events.

Beyond the expense of additional fuel, changing fl ight tracks poses a major fi nancial risk for airlines due to related disruptions – chronic delays and cancellations, including the cost of accommodating stranded passengers. Transport chaos is predicted to become com-mon.

“Th e risk could be massive; we just don’t know how massive,” says Justin Wastnage, na-tional aviation manager of the Sydney-based Tourism & Transport Forum.

“Airlines can’t do much about bad weather. But to some extent the problem can be dealt with by developing more effi cient operational practices and bett er traffi c management. Th at means bett er aircraft landing procedures and more fl exible fl ight paths.”

Switching engines to idle Historically, planes have fl own pre-deter-

mined routes. Th ey fl ew in a straight line be-tween beacons or “way points” to ensure they were on track. Many of these routes have stayed the same despite technological advances.

Following these routes oft en meant planes “fought” against the wind. Now, with more di-rect routes, more fl exible fl ight paths and smaller separation limitations between aircraft in fl ight, pilots can use the weather system and take into account jet streams and prevailing winds.

Commonly, airlines now hold aircraft on the ground prior to departure – rather than in the air – if delays are anticipated at the destination airport.

However, the big money saver is “the new landing”. Pilots used to rev the engines to make a stepped descent before dropping altitude and queuing for landing.

Now, there’s a move for them to save mil-lions of litres of fuel by shift ing engines to idle when descending into airports, before gliding onto the runway on a straight path.

Th e new landing is facilitated by naviga-tion technology called Required Navigational Performance (RNP), which directs planes de-parting or entering the airspace around airports to fl y on pre-programmed computer-plott ed routes.

Some features of the RNP system are al-ready used at airports in Europe, Canada and Australia, and RNP trials are being held globally as companies seek to reduce fuel burn.

RNP saves Qantas an estimated A$20 mil-lion annually in fuel costs, according to John Va-lastro, Qantas’s head of business resilience and environment. Each RNP descent is estimated to save 3596kg in carbon emissions. “A lot of the new aircraft we purchase have this capability,” says Valastro.

Aviation sector prepares for worst

» » Improvements to air traffic management have been slow. Generally flight paths are fairly inefficient and could be improved.”

Continued on page 21



FEATURE

Qantas has been one of the leading propo-nents of optimised fl ight planning since its in-troduction in 2004.

“Being long-haul fl yers, we had to invest in RNP quite early and once you start developing that skill you start applying it to regional and do-mestic fl ying,” explains Valastro. “Obviously, the law determines how we fl y as well as the condi-tions at the time.”

Given Qantas is one of Australia’s largest fuel users – consuming 4.6 billion litres of jet kero-sene per year – improving fuel effi ciency is a ma-jor part of the carrier’s environmental strategy.

But Wastnage believes improvements to air traffi c management have been slow. Generally fl ight paths are fairly ineffi cient and could be im-proved, he says.

Bett er air traffi c management could cut fuel burn by 20%, suggests Wastnage, although sav-ings are diffi cult to calculate. Weather events are unforeseen and it is not possible to forecast how much fuel will be used to escape a catastrophic event.

Science is not advanced enough to under-stand the full impact of changing weather on airlines and the regions they service, says Ben McNeil, a senior fellow at the Climate Change Research Centre at the University of New South Wales.

“Some routes would make fl ying more cost-ly if jet streams slow down or not, but others would make it easier to fl y. Th e patt ern is not solid enough yet.” In the interim, adopting new radar technologies and algorithms for optimisa-tion makes sense.

Larry Dwyer, an expert in tourism econom-ics at the Australian School of Business, notes that technology can only make incremental ad-vances in fuel effi ciency.

“Airlines cannot come up with a whizz bang engine. But they can cut costs by looking at more innovative traffi c movement in the air and less time circling around airports,” he points out.

Flying in the face of uncertaintyCompanies must forge ahead with risk

management programs in the face of uncertain-ty. Th e trick is having the ability to adapt and change direction swift ly.

Adaptive techniques are required to identi-fy and manage potential risks without focusing too heavily on one type of risk.

“Climate change as a risk is evolving – as are other risks – so it’s about being very active in monitoring and adapting quickly to the envi-ronment,” says Valastro.

“We can try to anticipate and, importantly, be open to the possibility that change is com-ing. Rather than saying, ‘I can’t believe another weather event is happening’, we recognise and acknowledge the environment we are in and know how to adapt to it.”

Th e prevalence of severe weather events meant Qantas has had many opportunities to test scenario analysis. “We use scenario testing to check what might change the way we operate and how fl exible we can be,” says Valastro.

While David White, Virgin Australia’s manager of sustainability and climate change, acknowledges the potential for fl ights to be af-fected by more frequent and severe weather events, at this stage there is not enough infor-mation on the extent of any change and when it would occur.

Th at makes forecasting the impact diffi cult, particularly as any aft er-eff ects could be miti-gated by other factors, such as alternative fuels.

To Virgin Australia and Qantas, sustainable alternatives to traditional jet fuel will be essen-tial to long-term sustainability.

“While we will continue to fl y as effi ciently as possible using traditional fuels, in light of the fact that passenger numbers continue to grow markedly worldwide, biofuels are the key to achieving signifi cant emissions reductions,” White says.

Th e technology already exists to produce plant-based fuels but the next step is produc-ing the required quantities at the right cost. It’s early days.

Virgin’s biofuel partners have 13,000 hect-ares of mallee – small eucalyptus shrubs and trees native to Australia – in the ground in Western Australia, but essential work is still to be done on the supply chain to ensure fuel made from the plants can be delivered sustain-ably at the required volumes and price.

A number of airlines have fl own commercial fl ights with alternative fuel blends primarily to get stakeholders comfortable with the concept.

“Th ere is still a lot of work to be done to en-sure that not only does conversion of biomass to fuel make economic sense, but that we are also able to produce the right quality from sus-tainable sources,” says White.

Dwyer believes the lack of a commercial-scale low-emissions alternative fuel market is stopping the aviation sector from switching to low greenhouse-gas-emitt ing operations. And McNeil agrees.

Strategically, advanced bio-fuels seem like the only technology for the long-term. And, creating effi cient planes and non-oil renewable fuels that aren’t dependent on geopolitics and price shocks would be an enormous economic advantage for whoever gets there fi rst.

“Th e airline business is one of the most technologically inelastic areas to make big revo-lutionary changes towards clean technology, as the car industry did on hybrids and electrifi ca-tion, for example,” says McNeil.

“Toyota and Honda did it for cars and reaped the rewards. Th e question is, who will be the fi rst for airlines? Th e race is on. Th e US military is probably the place to look to, since they use 7 billion litres of fuel annually. Th ey have already fl own many of their jets on biofuel and are retrofi tt ing them all to potentially run on biofuels by this year with the aim to have 50% fully run biofuel jets by 2016.”

Destination reputationTh e highly visible nature of the aviation sec-

tor makes it vulnerable to reputation damage, even if such att acks are disproportionate to the sector’s overall greenhouse gas contribution.

Th is negative view was infl amed by Austra-lia’s lateness – 44th in the world – to introduce a carbon tax.

Australia has a comparatively low profi le in world news. Only major events, such the Queensland fl oods, receive overseas news coverage.

As debate raged in Australia over whether to introduce carbon mitigation measures, the overseas coverage (limited as it was) was re-porting that some Australian political parties did not believe the climate change science.

Due to the protracted debate, the eventual passing of legislation for a climate tax in No-vember 2011 did receive coverage. However, many suggested Australia looked like a laggard, and that perception may stick in the minds of potential visitors.

Th e threat of tourism numbers shrinking poses a serious problem for the airline business.

According to Nina Mistilis, from marketing at the Australian School of Business, the impact of climate change on tourism is already being felt.

“It’s not just the actual event, such as the (2011) Queensland fl ood, that aff ects tour-ism, but the images of those fl oods projected around the world made people think the whole state was fl ooded,” she says.

Other countries have bett er organised me-dia handling as part of their tourism risk man-agement process, Mistilis points out. Imme-diately they distinguish between aff ected and unaff ected areas.

“Many Asian countries are well prepared here. For example, aft er the 2004 tsunami, the Th ais promoted the beaches that weren’t de-stroyed, including large parts of the beaches in Phuket. We need to be more proactive, because in Queensland the wrong message got out un-intentionally.”

Th e tourism sector faces climate change challenges globally. Changing snowfall patt erns and the resultant huge cost in relocating ski re-sorts and infrastructure is one.

Th e erosion of beaches on tropical is-land destinations – as well as hurricanes or typhoons wreaking havoc with planes fl ying those routes – is another, while airports lo-cated on low-lying coastal land face the risk of inundation by heavy rain and storm-surge events. Qantas and Virgin’s economic future is intrinsically linked to preserving the earth’s natural assets.

Australia has well-defi ned seasons, but any change will mean tourism companies will have to become more strategic with their marketing – altering fl ight schedules and pricing in the dif-ferent seasons, Dwyer suggests.

“Given its topology, bush fi res and tropical cyclones, Australia will be one of the biggest losers. It has a huge coast and increasingly high-er shorelines. And our airlines depend more on tourism than business travel.”

Australian airlines have weathered the “con-stant shock syndrome” well. Th e phrase was of-ten used by former Qantas chief Geoff Dixon as he steered the carrier through the vicissitudes of 9/11, SARS, bird fl u and a currency crisis in Asia.

Th en came a global fi nancial crisis and mas-sive escalation in jet fuel prices. Now, as they face a global economic slowdown, it’s tougher than ever to be a long-haul carrier.

ARTICLE COURTESY KNOWLEDGE @

“Qantas, Australia’s flagship

carrier; has made it very

clear that escalating costs

pose a significant financial

risk.”

“Australia has well-defined

seasons, but any change will

mean tourism companies

will have to become

more strategic with their

marketing – altering flight

schedules and pricing in the

different seasons.”

Continued from page 20



ENTREPRENEUR

Rob’s School of Street SmartsHE’S the archetypical entrepreneur; charming, energy pouring off every word and a sense of self-destiny that only comes from the

University of Street Smarts with Honours in Hard Knocks.

Rob Pirina, owner of the Glenorie Bakery and the Outback Bakehouse at Wind-sor walks the talk. Sure, he’s not in the big league with a national chain of franchised

stores, but that may come later; he’s barely 30.What’s important is that Rob’s businesses are

successful and he built them from the ground up using a home-spun philosophy of business suc-cess based on giving back to your community.

Rob spoke exclusively to WSBA editor, Mike Walls about what it takes to be a successful en-trepreneur.

Rob how would you defi ne the qualities that have made you successful?

Th inking outside the square is essential Mi-chael, a perfect example of this is recently with the fl oods at the Hawkesbury river, the region was inundated with tourists fl ocking to see the action, I decided to make the “Rising River Pie” at the Outback Bakehouse one of my bakeries in Windsor, now not only did we sell hundreds of these pies over the weekend but we raised awareness of our brand to millions of people through channel 7,9 and 10 we also received a half page write up in the daily telegraph and multiple radio interviews with 2gb ABC radio and more, to talk about this “Pie”. As a business owner its these type of opportunities you need to pounce on, as they don’t come around to of-ten if ever.

Individuality in this type of market is the key and over the years we have set the bar quite high with our quirky marketing techniques, this has really sets us apart from others trading in a simi-lar business.

Being a young person in a market where there are more mature people who are in compe-tition to me – for example I have the big players trying to knock me of my perch and put me out of business.

But it’s the fund raising, putt ing back into the community which has been our untouchable point of diff erence.

It’s no longer about how much money you make it’s more about how much you put back into your community and we put a lot of eff ort into this type of support and it has been very re-warding for us and business.

So there’s connection between bott om line and giving?

Th ere is a connection to the bott om line. A lot of people can’t understand the spending of fi ve or 10 thousand on an event ….sure it’s going to raise money for charities, but at the end of the day it’s a mini investment within your communi-ty and if others could get their head around that type of investment it would be so much easier for them to do business successfully in their com-munity.

We work in a network of regional style com-munities and a good comment goes a long way - bad ones go further - but good ones go the dis-tance.

In today’s world business people in the city appear a litt le lost, in that they don’t have a com-munity; they don’t have that gelling feeling – I have mates who have businesses in the city and its very hard for them to get involved in their community so its hard to work this business model in the city, but there is always other ways of doing business in the city.

So what are the defi ling qualities of an en-trepreneur?

Being an entrepreneur is all about personal-ity and about connecting with your customers – if you can connect with your customers half the batt le is won. I have a relationship with my cus-tomers that if I stuff up, they will come and tell me that I have stuff ed up and give me a chance to rectify it.

It doesn’t matt er what product you are trying to sell if you can connect your consumers half the batt le is won.

It’s all about connection. I make a big eff ort at the weekends, I know a lot of people don’t like to work at the weekends but I love working the weekends; it’s a time when I get to spend time with my customers who are enjoying their free time.

Weekend is the time to share with my cus-tomers, I sit down with them and make sure I am out their shaking hands giving kids cup-cakes and for me in my business that’s connecting with my consumer.

Why do entrepreneurs fail?A lot of entrepreneurs fail because of prepara-

tion and not working on the project long enough behind the scenes – it’s about fi nding out exactly what can go wrong, and then multiply it by two – a lot of people show me business plans and want me to help them out and I say look at your

turnover projections cut that in half. Aft er all that if the plan still works your on a winner. People need to address worst case scenarios when creat-ing a new business, this is key for success

I am not conservative by nature mainly be-cause I am in a position where I don’t need to be. I’ve made mistakes, I’ve set up businesses that have failed. a few years ago I set up a business and spent a lot of money doing so, I thought it would conquer the world It will change everyone’s lives.

I pushed it really hard; great marketing, great eff ort, but had a bad business partner. I set up and funded the business, but fell short on my home work. I failed to visualise worse case sce-narios. For example if my business partner fails what is my plan B?

I didn’t have a plan B, I struck to plan A and I had nothing to fall back on which is business suicide and yes I lost money a lot of it, I guess it was it’s all part of the learning curve and it was cheaper than most business coach.

What were your major lessons from fail-ure?

I learnt to stick to what I know. My father tried to teach me that back in the day and I would say: What do you know? But he taught me to stick with what you know unless you’ve done your home work and today that’s exactly what I do, lots of homework

Right now I am focussing on my bakeries and some consulting for other small businesses. Currently both of these businesses are going very

well and I am very happy in the space I am in.Could you work for someone else?I could never work for a boss again. I started

working for someone when I was a lot younger and I got treated and paid badly and worked like a Trojan, because I always give it my all. So I took it for a while, but eventually started my own landscaping business.

I started this small business at the age of 18 and fresh out of school, then I was earning $60 an hour and had four fi ve guys working for me.Some time later my father asked me to buy in to the family business and I did just that moved into the bakery business,

I’ve never looked back. It’s opened many doors for me and given me a lot of satisfaction and recognition.

How credible are business awards?I’ve won many awards that have meant

absolutely nothing to a lot people, but whether they mean something or not to them doesn’t bother me at all, for I know their true value of to me.

As a kid I was told that I would never achieve anything. I grew up believing I was going to be a failure full stop, from people around me, many of them were my teachers, who never believed in me. I became a bit of an outcast at school and copped a lot of crap, which sounds funny when looking back.

At school I was a bit like a fi sh out of water - I was only one or two Italian boys at the school which was tough, but my personality got me through - I didn’t let anything hold me down and I went to school every day swinging, literally.

If I hadn’t gone through that process of copping a hiding I surely wouldn’t be the person I am today. I hated school, but I learn’t respect and family values too.

I also learnt street smarts amongst other things. For example I’d go to Bali the family and bring watches back to sell to the other kids at school and then I found this fantastic chewing gum from states that I would sell for 20c a piece. Th ey were the days no need for cash projections and profi t and loss statements.

How do you see Western Sydney developing?

Western Sydney is buzzing. Look at the place; there are people investing, new businesses are opening up. I’d love to see us gett ing together as a community, yes that’s what I’d like to see; a business community who gives freely.

If like me you too want to succeed in your business, I would love hear from you so that I could share with you some of the opportunities to help raise the profi le of your business. Contact me at [email protected]

Rob Pirina with some of the many awards he has won.

Rob at work in his bakery.



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PARRAMATTA CITY COUNCIL NEWS

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PARRAMATTA CITY COUNCIL NEWS

Content on these 2 pages is sponsored by Parramatta City Council in the interests of informing residents and businesses of Council initiatives and events. Any views expressed in these pages are not necessarily those of the editors of Western Sydney Business Access

(WSBA) nor does WSBA accept any responsibility for claims made in these pages.

Breathe Easy campaign launched in Parramatt aLocal dining patrons can Breathe Easy as Parramatta City

Council launches its outdoor smoke-free campaign.

The Breathe Easy smoke-free campaign is aimed at promoting community and business awareness in the lead-up to the prohibition of smoking in all alfresco din-

ing areas Council controls, manages, or owns, from 1 May 2012.

Cafes and restaurants in Parramatt a will be presented with a resource kit, detailing Coun-cil’s recently adopted Smoking in Public Places Policy, along with marketing collateral and in-formation about the new regulations.

Eligible restaurants that choose to adopt the smoking ban before 1 May will receive six-months’ free lease on their outdoor dining areas.

Two restaurants in Parramatt a, Th e Bite and Nut N Fancy, were the fi rst establishments to commit to the new policy and have already started to enforce the smoke-free ban in their respective outdoor dining areas.

“Most people are aware of the impacts of second-hand smoking and as business own-

ers we need to be responsible and att entive to the needs of our customers,” Th e Bite owner, George Barakat said.

“It’s also pleasing that Council has ac-tively engaged and consulted with businesses throughout this whole process, which will make the transition period a lot easier for own-ers, managers, and of course, our patrons.”

Before implementing the new Smoking in Public Places Policy, Council surveyed resi-dents, diners and businesses over a 12 month period to understand their concerns and im-pacts of the proposed ban.

More than 900 participants took part in the survey, which found that 68% of residents and 60% of diners supported the smoking ban.

“It’s understandable that some businesses were a litt le reserved aft er the smoking ban was fi rst announced and concerned how it would impact their revenue,” owner of Nut N Fancy, Michael Barakat, said.

“But this is something that the majority of

our community wants. If you look at the stud-ies that have been undertaken and the fi ndings from other metropolitan areas that have imple-mented a smoking-ban, you realise that this is going to be positive for the community and

your customers.”Th e new policy will also see smoking pro-

hibited within 10m of children’s playgrounds, sporting fi elds, aquatic centres, sports facilities and bus and taxi stands.

The Lord Mayor’s outrageous hair needs your support

The Lord Mayor and staff at Parramatta City Council will shave and colour their heads as part of the Leukaemia Foun-dation’s World’s Greatest Shave and are

calling on the Parramatta business community to show its support by sponsoring their team.

Th e World’s Greatest Shave fundraiser is being held between 15-17 March to raise much

needed funds for the Leukaemia Foundation.Th e Lord Mayor, Cr Lorraine Wearne, said

she is proud to be part of an event for such a great cause and encourages businesses to donate.

“Th e Leukaemia Foundation provides in-valuable support for patients and families living with leukaemia, lymphomas, myeloma and re-lated blood disorders,” Cr Wearne said.

“By taking part in World’s Greatest Shave, staff and community members will help make a diff erence to the quality of life of those af-fected and help fund vital research into bett er treatment and cures.”

You can participate by:1. Sponsoring our team - Search online at

www.worldsgreatestshave.com for team name

Parramatt a City Council, or call Team Captain, Lauren O’Connell on 02 9806 5438 to get in-volved.

2. Att end Council’s event and make a dona-tion on the day. Th e Lord Mayor and Council staff will be colouring and shaving their heads on Th ursday, 15 March 2012, 12:00-1:00pm in Church Street Mall, Parramatt a.

NRL season to kick-start local economy The 2012 NRL season kicked-off earlier this month and for Parramatta this signifies the start of 31 weeks of increased

visitation by sports fans from near and afar.

Although the Eels didn’t get off to the start they’d have hoped in their first round clash against the Brisbane Broncos, the good news for Parramatta fans is that

they’ve still got another two games at home this month to get their NRL campaign back on track.

Parramatt a Lord Mayor, Cr Lorraine

Wearne welcomed the return of rugby league and said the City carries a great vibe on game nights.

“At maximum capacity Parramatt a Stadium can hold up to 22,000 fans who may stay and explore Parramatt a, eat at our restaurants and relax in our pubs and bars. Th e NRL is a major economy booster for the City,” she said.

In addition to an increase in visitation to Parramatt a, the NRL season brings with it great opportunities for businesses to take advantage of the Eels corporate packages.

Th ere are a number of game day packages suitable for a range of budgets, starting with the premium Chairman’s Club packages, the middle range Corporate Suites and Open Air Corporate Boxes.

Parramatt a Stadium is one of the best grounds at which to watch Rugby League, with

corporate suites providing panoramic views of the entire fi eld.

Th ere is also a range of one off corporate events that businesses have the opportunity to participate in, including the 2012 Presentation Night and a golf day, where teams can compete and mingle with Eels players.

For more information on 2012 corporate entertainment options at Parramatt a Stadium, contact the Pirtek Parramatt a Eels on (02) 8843 0300.


BLACKTOWN

Blacktown faces CBD challengeBLACKTOWN faces significant challenges in transforming

the central business district (CBD) into a desirable destination for the relocation of government departments and the construction of other new office development.

By Red Dwyer

These challenges, according to a Blacktown City Council report, include current economic condi-tions, particularly the rising costs

in construction which makes redevel-opment cost prohibitive; high vacancy rates of lower grade office space in plac-es like Parramatta increases competi-tion; and the draft planning proposal for the CBD is yet to be finalised and tested in the marketplace.

“Th ese impediments makes it dif-fi cult for council in the short-term to att ract small start-up businesses and small commercial operators to take up existing commercial space in the Blacktown CBD,” the report said.

“Council therefore needs to con-sider taking a long-term perspective on this issue. Sett ing the foundations now is important so that when condi-tions change, Blacktown is well placed to take advantage.”

Th e relocation of state govern-ment departments to Blacktown has been a long-standing issue dating back some years, with council making con-certed eff orts to see these relocations

happen.Blacktown is one of the fast-

est growing areas in Australia where employment opportuni-ties are needed to support that growth, the report said.

Council made rrepresenta-tions, for example, to the NSW government to have the NSW Police Service Headquarters and the head offi ce of Sydney Water relocated to the Blacktown CBD

Council was unsuccessful with both organisations relo-cated from the Sydney CBD to Parramatt a.

Th e report said council should continue to make repre-sentations for the relocation of government agencies.

“However, before it does, and based on government feed-back, council should explore new and creative ways to pro-mote and market the CBD as well as to promote development opportunities to secure new high-grade offi ce space that is att ractive to large government agencies.”

Blacktown has 15,000 square metres of NSW government offi ce

space in the CBD and a further 25,000 square metres in the local government area.

Th is includes the Department of Att orney General and Justice, Depart-ment of Education and Communi-

ties, Workcover Authority of NSW, Corrective Services, Juvenile Justice, Housing NSW and Legal Aid NSW.

Blacktown CBD.



BLACKTOWN

Visitor focus in tourism stakes BLACKTOWN is not recognised as a major tourism destination but

Blacktown City Council will implement a five-year plan to boost visitation and increase the sector’s contribution to the local economy.

Destination NSW (formerly Tourism NSW) considers it unlikely that Blacktown could meet the requirements to become a Syd-ney tourist precinct in the foreseeable fu-

ture. “Th is is because it lacks a distinctive, cohe-

sive ‘experience’ such as food, culture or history and it is also surrounded by areas with stronger product off erings along with natural beauty and sites of signifi cance or tourism ‘icons’.” according to the Blacktown City Tourism and Marketing Promotion Action Plan.

“However, at certain times, such as during major niche events including motorsport, sport-ing and other events, the city does att ract such tourists to the award-winning Featherdale Wild-life Park, Eastern Creek Raceway, Sydney Drag-way and Rouse Hill house and farm.

“It is also expected that the new Wet n Wild theme park will also att ract interstate and possi-bly international tourists once opened.

“Overall, Blacktown City would benefi t most from focusing on visitors rather than tourists.”

Th e plan said this meant focusing on maxi-mising opportunities and increasing the aver-age spend and length of stay of existing visitors, while increasing the number of visits from areas including the South Coast, Mid North Coast, Central NSW and Central Coast.

Domestic overnight visitors average 57,000 annually, with domestic day visitors totalling 471,000 and International overnight 28,000

Th e estimated spend by a total of 656,000 visitors was $130 million annually.

Eastern Creek Raceway

Native animal are an attraction at Featherdale Wildlife Park.

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ACCESS

Why managers have more brain powerMANAGEMENT presents ongoing and well-documented challenges, not

least the need to deal with others’ demands and monitor their output.

But new research from the University of New South Wales (UNSW) appears to have uncovered a hidden benefit in later life from embracing the responsi-

bility of rising through the corporate ranks – it boosts brain power.

For the first time, researchers have iden-tified a clear link between managerial expe-rience throughout a person’s working life and the integrity and larger size of the hip-pocampus – the area of the brain respon-sible for learning and memory.

It seems managing other people at work triggers structural changes in the brain, protecting its memory and learning centre well into old age.

Using MRI imagery, on subjects be-tween 75 and 92 years of age, scientists discovered that the rate of shrinkage (of the hippocampus) with age, in those with challenging careers, was much lower than those who were engaged in less complex, daily tasks.

The findings refine the understanding of how staying mentally active promotes brain health, potentially warding off neu-rodegenerative diseases such as Alzheim-er’s, says Michael Valenzuela, leader of the School of Psychiatry’s Regenerative Neuro-science Group at UNSW.

“We found a clear relationship between the number of employees a person may have supervised or been responsible for and the size of the hippocampus,” he says.

“This could be linked to the unique mental demands of managing people, which requires continuous problem solv-ing, short-term memory and a lot of emo-tional intelligence, such as the ability to put yourself in another person’s shoes.”

While you don’t have to be managing director of a top-performing company to get the cognitive benefits, Valenzuela says the brain-enhancing effect was particularly strong in those who had been in charge of more than 10 people.

And while it’s men, statistically, who head some of the largest business empires, researchers also found that it wasn’t neces-sary to have followed a traditional manage-ment career trajectory to have a more resil-ient brain.

In fact, larger hippocampal volumes were also seen in women who had taken on managerial roles in nursing or teaching, for example.

These results align with research into ageing and employment by Peter McDon-ald, director of the Australian Demographic and Social Research Institute at the Austra-lian National University and deputy director of the UNSW-based ARC Centre of Excel-lence in Population Ageing Research.

A study of older workers by McDon-ald for the National Centre for Vocational Education Research, based on 2006 Cen-sus data, showed that, for men, as age progresses beyond age 65, managers and professionals make up increasing propor-

tions of those employed, while technicians and trades workers, clerical and administra-tive workers, and machinery operators and drivers make up decreasing proportions. For women, the increase is also strong for those who are managers.

This would seem to indicate that those at a higher level in their career, who are forced to use their brain to solve complex issues, are mentally active, as well as fully employed, for longer.

“Cognitive ability is very likely to be a feature of people working longer at older ages,” says McDonald. “Certainly the reverse would be true (low cognitive ability would lead to people not working).”

Hanging in at workThese findings in the area of brain

health are encouraging for Australian poli-cymakers facing the challenge of a rap-idly ageing workforce and escalating rising health costs.

The recent Intergenerational report (2010) on population ageing estimates that between now and 2050, the number of people aged 65-84 years will double, and the number of people aged over 85 will quadruple.

This will have a huge impact on the worker/non-worker dependency ratio. Cur-rently, there are five working aged people for each Australian aged 65 years and over, but by 2050 this is set to drop to 2.7.

One long-touted solution to the dilem-mas presented by the ageing population is keeping older workers in the workforce for longer.

Part of the challenge is maintaining

mental muscle: it is estimated that about 250,000 people in Australia have dementia but by 2030 that number may swell to more than half a million.

Dementia is an umbrella term that re-fers to symptoms caused by changes in the functioning of the brain. These can include alterations in memory, personality and be-haviour.

UNSW is actively involved in contributing to the development of social policy for older citizens with brain disorders and promot-ing education about the brain and ageing through its Brain and Ageing Research Pro-gram, of which Valenzuela’s study was a part.

The program, led by Perminder Sa-chdev, has been actively monitoring the cognitive function of 1000 people for five years, with various research objectives and outcomes.

One of the most significant, yet to be published studies, shows that being social-ly and physically active, as well as mentally active, protects against cognitive decline, says Sachdev.

Staying socially active has previously been linked to a lower risk of dementia by researchers at the Karolinska Institute in Sweden.

In 2009 it reported that socially active people who were not easily stressed had a 50% lower risk of developing dementia compared with men and women who were isolated and prone to distress.

At a recent UNSW conference, Henriette van Praag, from the US National Institute on Aging, presented research showing a caus-

al link between exercise and brain regen-eration, or neurogenesis (which continues throughout life, until the age of about 70), in the learning and memory centre in the brains of mice.

“What is most exciting is that a cheap, simple, lifestyle intervention like exercise can influence the production and integrity of new nerve cells in the brain, which sug-gests our behavioural choices have influ-ence over the functionality of our brains,” she said.

“This is especially important as obesity rates continue to rise. And, as neurogen-esis continues throughout life, the find-ings suggest significant cognitive benefits from exercise across all age groups.” How much exercise is required is uncertain though.

Train the brainActively training the brain is also benefi-

cial. Acclaimed scientist and author Ryuta Kawashima, who developed Nintendo’s Brain Training programs, suggests the brain is a muscle like anything else – if you don’t

use it, it is going to get flabby and out of shape.

Kawashima’s programs concentrate on what he believes are the most challenging brain tasks, including verbal, numerical and memory games – much like life in upper management.

McDonald points out that international literature suggests a strong positive rela-tionship between education and cognitive ability at older ages.

In the debate about what causes, or pre-vents, cognitive decline, one of the most in-teresting concepts that may be especially relevant to senior professionals and others who function at a heightened cognitive level, is brain reserve.

In a 2009 editorial in the American Jour-nal of Geriatric Psychiatry, Sachdev and Va-lenzuela reported that “people with high levels of Alzheimer’s-type pathology in their brains escaped dementia and that this was related to a high count of neurons in the cerebral cortices”.

They concluded from a meta-analysis of the literature relating brain reserve to incident dementia, including 22 studies comprising 29,000 individuals followed up over a median of 7.1 years, that higher brain reserve was associated with a lowered risk for incident dementia.

The theory of a cognitive buffer, built up through complex mental tasks such as those involved in a challenging career, is moving rapidly from basic biology and epi-demiology to clinical medicine, confirms Sachdev.

Today, while managing directors or even mid-level managers are busily trying to stay ahead of the competition, they may be building up a brain bank that keeps their faculties above baseline.

ARTICLE COURTESY OF KNOWLEDGE @

» » Managing other people at work triggers structural changes in the brain, protecting its memory and learning centre well into old age.”

Customer

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Page 33


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While price is important, value is even more so!

How to attract, convert and get paidA RECENT NAB survey showed online retail grew 29% compared

with a 2.5% growth in bricks and mortar retailers.*

By Camtu N Pham

Whether starting up a new business or running a well-established organisation, a professional and functional website is a firm finan-

cial asset. It will bring you advantages no other business tool can.

If you are selling products or selling services, smart businesses know that their website is one of the first places their po-tential clients will go to ‘check them out’.

Even consumers that aren’t there to buy will read about you and your business be-fore they make that phone call or drive all the way to your shop front.

In many cases, a prospect will check your site in her free-time – most often that is late evening. My suggestion? Have some-thing in place for them to do.

If your online business is automated, once your visitor sees what they want they

can immediately place an order, make an enquiry, sign up for a newsletter or download some free information. Either way, your site logs their details so you or your sales team can follow them up.

In the case of selling prod-ucts online, they can immediate-ly place an order and pay online at the exact moment they want that product the most

For many businesses; the volume of online orders is well in advance of the amount of people that are walking in to the shop.

With online sales, you re-ceive the order notification in-stantly. By the time you arrive at your business the next day, the money is already in your bank account and the client has re-ceived a confirmation as well as receipt of payment. All you have to do is process the order!

If you multiply this by even five orders, you have just saved yourself a few precious hours of creating invoices and replying to emails. Not to mention that you have five sales you would have missed had you not made your products available online.

These days, it’s not about whether your

business should have a Website or not, it is about how you get the most of it, such as selling and accepting payment online, cus-tomer database, business process automa-tion and more.

If you want o fast track your business online and want to know the right ingredi-ents for a successful online business, why not attend our course at North Parramatta on Wednesday, March 28 from 9:30am –

1:00pm. Go to www.cleverlinktraining.com.au/parramatta or call 1300 721 837 to secure your place.

Camtu Pham is the Managing Director at CleverLink.

The CleverLink team can be contacted on 1300 721

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* (According to NAB inaugural Online retail index

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Integrity and success

By Lindy McNocher

“What is personal integrity? Surely we all need to have good integrity to survive in business?

I will give you my understanding of this subject.“Personal Integrity is knowing what you know – what you know is what you know – and to have the courage to know and say what you have observed.”

Why is this concept so important to as-sist you in making your business a success? Well look at it from this angle; you make de-cisions every minute of the day in business.

You are given a lot of advice by people. But from my own experience, if you look at a situation thoroughly and observe prop-erly and listen to that inner wisdom that is in your gut and have the courage to listen to that inner wisdom, you will usually find that you are right and the only time you run into trouble is when you don’t listen to that inner wisdom.

It takes guts to do what you think is right and to not always listen to the advice. When someone you respect or someone you have hired who is apparently an expert, gives you advice, most often you feel inclined to listen and take that advice.

It is very wise to listen and very wise to

look at what they have said in relation to the situation you are trying to resolve.

But remember that the person giving the advice does not know every angle of the problem like you know it.

You are the only one that has all the in-formation and experience on the subject, and it would be nearly impossible for an-other person to have the same information you have.

So when a problem arises, definitely look and learn and get advice from people who have shown that they can get results in the area they are advising you, but only act on that advice if you feel it truly is the right thing to do to improve the situation.

And once you have taken action, take the time to really look and see if the situa-tion improved.

If it did not, then look some more and learn some more! Get more advice, look for more information to help you, but only by continually looking and learning and keeping your own integrity in, that is to say, knowing what you know, and what you know is what you know and to have the courage to know and say what you have observed will you succeed in improving things.

You are not in business to fail. You are in business to make your own life better. And remember that you are also making the lives of all the people that you work with better.

By keeping your own personal integrity in, and having the courage to say or act on what is true for you, you are a step closer to making your business success a reality.”

Lindy McNocher is the founder of Gallop Solutions.

Visit www.gallopsolutions.com.au

MAGAZINE - BUSINESS IMPROVEMENT

Dates:Dates:Dates:Dates: 13131313thththth & 14& 14& 14& 14thththth April 2012April 2012April 2012April 2012

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When and why should we prospect?IF you don’t know what you are looking for, how

will you know where and how to find it?

By George Mavros

There isn’t a business I know of that stays static or is guaranteed of continuing custom from their clients.

Even those that have contracts in place, only have that guarantee for the pe-riod of the contract and on the assumption that the client will still be in business and needing their ongoing services.

So the answer to why and when - Simple because nothing is ever static and the client you have today – you may lose tomorrow.

For me in any business I am involved with, I am either looking for extra business now or in the future but I am always look-ing for extra so I suggest prospecting is an ongoing process

The first thing we need to understand is that prospecting is not about a guaranteed sale or an immediate new client. While this can happen sometimes, it is not the norm. Prospecting is about exploring the most likely opportunities for future success.

Prospecting for me falls into two cat-egories, the first being for prospective new clients and the second for relationships that may lead to me being introduced to new clients.

Before we even start looking for new business, it would be very helpful if you ac-tually knew what you wanted to go looking for.

In the January edition of WSBA I intro-duced the MAVROS theory of Qualifying that is used in selling a product or service, it is related to the product or service that is being offered and it is answered from your client’s perspective. Below is the quick re-minder of that;

M = what product or service do they have at the moment?

A = what is it about their current situa-tion that annoys them?

V = what do that value about their ex-isting product or service?

R = rate what are the biggest annoy-ances and the most important aspects?

O = are their other considerations that will effect the sale going through?

S = Strategy or solution or saleIf you replace those questions with the

ones below and look at it from your per-spective, you will come up with what is the best strategy for you to seek out new pro-spective clients.

Things you need to consider when re-viewing your existing and thinking about your new clients are:

Cost of servicing a client current and new.

Profitability of the various clients you have or may obtain.

The risk to your business of having too many small average earnings or for that matter too few high average earning cli-ents. (Too many small ones may mean high cost of servicing- whilst just having a few large ones may risk you being in “too many eggs in one basket’ scenario, whereby if you lose the big one the whole business is in jeopardy.)

What is the gestation period, some-times referred to as the sales funnel time from first contact to acquisition of a new cli-ent by size / value?

For example how quick can you meet and secure a new $1,000 client for your business and the same question asked for a $5,000 client

Once you have answered the qualifying questions and have determined the sorts of clients from your existing mix that you val-ue most, you can then set about a strategy to increase those types.

Or maybe a twofold approach such as I increase the new ones that I value most, I will decrease the existing that I value least

George Mavros is a business educator and sales pro-

fessional. Visit www.leapoffaithtraining.com.au

MAGAZINE - SALES www.wsba.com.auwww.wsba.com.au


MAGAZINE - TECHNOLOGY

1300 797 838 [email protected]

YOUR TECHNOLOGY PARTNERlocal

CONTACT US NOW

WHAT’S POWERING YOUR

INFORMATIONTECHNOLOGYSYSTEMS?

HAMSTER POWERGENERATOR

Computer networking projects & upgrades

IT helpdesk, maintenance & support

Data backup & disaster recovery

Custom database & software applications

Are the IT folks slacking off?

A RECENT experience with a client got me thinking about metrics and benchmarking of IT projects.

By Dexter Duncan

Whether you want to install a new server, upgrade your Wide Area Network (WAN) or dive into some Business Improvements with CRM

or SharePoint (document management and intranet messaging) you need a refer-ence to plan your budget and schedule.

If you have not had experience with

similar projects, how do you know who to blame when the project is delayed or over budget?

Gartner releases key IT metrics each year drawing on thousands of IT perfor-mance benchmarks which enable clients to compare their spending and performance against best practice.

This article goes through a few of the broad averages so you can see how your project compares.

Only 57% of IT projects are completed on-time and only 67% are completed on budget? Why? Are the IT folks bludging?!

According to Gartners’ research the main reasons why projects are late or over budget are:

• Poor initial scope.• Resource availability.• Scope creep.Laziness is in the eye of the beholder. If

you are diligent on how you define project scope, ensure stakeholders and resources are available and identify scope creep, then you are covering the main risks involved in IT projects.

IT people do not usually sit on their hands, but if they are not focused in the right areas, then it is a form of laziness.

The first step, before a budget is finalised, is to define the project scope. A few para-graphs would be the minimum for a simple project upgrade. A few pages are needed if you are trying to do something custom.

If you are not sure what is possible, then you need to go through the idea with your IT provider. For software development, a busi-ness analyst documents the requirements by talking to those close to the business.

They usually capture what a user screens should look like and the actions that are needed. A good start is to document your existing processes.

As an example, let’s say you want to streamline how you manage leave and ex-penses. The first step is to capture the exist-ing paper based process.

Answering the following questions would help define the “scope”. Who needs to sign-off leave requests and how do you treat rejections? What level of expense re-quires manager only approval, etc.

Do you need to print a confirmation or is an e-mail sufficient? Should leave bal-

ance automatically update or will it manu-ally be entered in you HR system? The more automation, approval levels and complex details you build into your requirements, the more costly it will become.

The second step is to ensure stakehold-ers and key resources are available through-out the project. If they are not available, you project will most certainly be delayed. And if the key resource and stakeholders are not clear on scope for budget, they will add to the scope creep.

One of the best ways to avoid scope creep, or adding features in the middle of the project, is to leave all requests for ad-ditional features til the end of the project. Reworking estimates and getting approvals for more money always adds to budget and schedule.

If you and/or the people on your team do not have a clear idea of scope, are not available or are adding to the scope rather than working within initial boundaries, there is a good chance your project spend and schedule will blow-out.

If you have picked your IT folks well, they will be trustworthy and love to solve your business issues, but they are unable to approve scope or ensure your resources are available.

Call your local technology partner for more advice. See our websites for more: www.EmpowerIT.com.au or www.Empow-erCS.com.au

Dexter Duncan is a Division Manager at Empower IT

Solutions. Contact Dexter at [email protected]

Reference:

Gartner Group, Benchmark Analytics, “IT Key Metrics

Data 2011: Key Application Measures: Project Mea-

sures: Current Year”, by Jamie K Guevara, Linda Hall,

Eric Stegman.

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MAGAZINE - PROFESSIONAL DEV

Has the Internet killed customer service?THERE’S no doubt, the internet has brought about a revolution in retailing. Purchases at the click of a button, from anywhere

in the world, often at a discounted price. Service to your customers untouched by human hands; or is it?

By Michaela Cladingboel

It’s true that internet shopping is much more transactional compared to the re-lationship-based face-to-face shopping experience.

Don’t be fooled though – there are some simple customer service techniques that are absolutely vital if you want to service your internet clients in a way that makes them come back and buy again and again.

CommunicationThe first rule is to make sure you’re ac-

cessible. Internet shopping is based on trust – we don’t know whether you’re go-ing to keep our credit card details safe, and whether you’re really going to send what we’ve bought.

So it’s crucial that at least one commu-nication channel is clearly available to your customers, in case they need to contact you.

The key thing here is allow for a dialogue with your customers. Websites that make it hard for us to contact the seller make us nervous. What are they hiding?

And here’s another important thing – if you provide an email address, make sure someone is checking and responding to it

at least once a day. Don’t keep your custom-ers waiting and wondering.

Make sure your online purchasing sys-tem immediately sends a confirmation to your customer, acknowledging that you’ve received the order.

Another tip is to have a system that al-lows customers to check the status of their order online without having to contact you at all. Let your customer have control and autonomy.

If you have an online booking system, make sure there is a person on the other end of the system at all times.

Sounds so obvious, but companies fre-quently fail to do this, or do it inconsistently. The online system will only be as good as the people actioning what comes out of it at the other end.

You’re failing your customers and will lose business if email addresses or auto-mated enquiry systems go unattended.

Clear, easy to find product information is crucial for online selling. Amazingly, many online sellers don’t have product specifica-tions and photos of their products.

How can a customer know what they’re buying if you make it hard for them to be sure the product is right for them?

It’s akin to having no stock on show in your shop, an empty shop window, emp-

ty shelves and no catalogue to browse through.

There are no customer service staff wandering the virtual floor to help answer questions, so make sure all your product information is clear, easy to access and up-to-date.

Also make sure that it’s obvious if you’re out of stock. Don’t make the customer go through the full ordering process, only to discover when they hit the Submit Or-der button that you don’t have what they need.

Although we don’t have customer ser-vice staff wandering our virtual store, a helpful option is to allow real-time online customer support chat.

This allows a customer to chat back and forth in real time via text with a company

representative. This can make all the dif-ference when time is key and the delay in email responses unappealing.

FAQs – Frequently Answered Questions – are another great information tool. Put yourself in your customers’ shoes and make a list of questions you think they might need, such as your returns policy, delivery prices and policies, and so on.

So far so good. Doesn’t seem so dif-ficult to get it right, does it? In part 2 of this article, we’ll explore what happens when things go wrong – and they do – in internet retailing.

Michaela Cladingboel is a customer service expert

who conducts corporate training with PD Training, a

national corporate training firm. Visit www.pdtraining.

com.au




ALL-NEW 2012 SHOWWITH LIVE ORCHESTRAShenYun2012.com

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“So inspiring... I may have found some ideas for the

next Avatar movie.”— Robert Stromberg

Academy Award-winning production designer for Avatar

“A marvelous evening… I am completely

enchanted.”— Her Royal Highness

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*All individuals’ quotes originally published by The Epoch Times and New Tang Dynasty Television.

“I probably have reviewed over 3,000 to 4,000 shows

since 1942, ... That’s the top! The best word to use

was ‘mind blowing’!” — Richard Connema

Critic for Talkin’ Broadway


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What Does “Shen Yun”

Mean?CHINESE IS AN IMMENSELY rich language. Many characters contain deep inner mean-ings and nuances that are difficult to trans-late into English, such as those in our very name: Shen Yun.

The character Shen ( ) is a general term for “divine” or “divine being.” Chinese cos-mology, in fact, is replete with hundreds of deities, Buddhas, and Taoist immortals who play different roles and color the canon of Chinese history with thousands of rich sto-ries.

This feeling of the divine plays into the second character of our name: Yun ( ). Its meaning is far greater than what literal trans-lation can capture. “Yun” refers to the overall manner of a dancer, a dancer’s style, and the meaning behind his or her movements.

So, when we put “Shen” and “Yun” to-gether: it’s about the grace, compassion, and sublime beauty of heavenly realms that are shown through the subtlest expressions and gestures of our dancers. That is the essence of the name “Shen Yun.”

“A mesmerizing performance...” — Donna Karan, Creator of DKNY

SHEN YUN. For Chinese, the words evoke a sense of wonder, magic, and the divine. To audiences who have seen it, they recall the experience of a lifetime—

a moment so powerfully beautiful it touches the soul.

Discover the grandeur of a fantastically rich culture, that of classical China, brought to life through brilliantly choreographed dance and mesmerizing, all-original orchestral compositions. Magnificently costumed danc-ers—the world’s elite—move in poetic arrangements that evoke pastoral beauty, imperial drama, and the glory of an ancient civilization.

This season, discover what art was meant to be. Discover Shen Yun.

“A visually dazzling tour of 5,000 years of Chinese history and culture.” — San Francisco Chronicle

“Brilliant choreography… extravagantly beautiful.”

– Broadway World

“The ancient Chinese wisdom it conveyed will not only benefit the Chinese people, but also the whole world.” — Ted Kavanau, founding Senior Producer of CNN Headline News

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MAGAZINE - BUSINESS CULTURE

Conduct your own business cultureDEALING with SME’s on a day-to-day, I find similar issues pop up from all businesses.

By Jo Hanlon

The hot topic these days (hopefully once companies have their more fundamental HR related compliance pro-

cesses sorted) is: How do we get the company culture we want?

I set myself a challenge to come up with an anagram that may help define some of the key factors making up a company cul-ture. I hope it makes things a little easier to remember:

Your company culture shapes your company: Communication style, tone, look, feel, frequency and content, that is; what is talked about, how often its discussed and how it’s talked about. Just as much cultural insight can also be

garnered from what is NOT talked about as well as what is talked about.

Ideally your company culture will Underpin how key stakehold-ers behave whilst there, how they treat you and each other and how they interact with your company, remember these can be both in-ternal staff plus external client, supplier and partner stakehold-ers.

Company culture both creates and influences the Leading (fu-ture looking) goals and measures of success as much as it evolves from the Lagging (already past) goals and measures of success (or failure). Your goals and strategies tell much about what is important to the company and what issues staff need to focus on.

Company culture will show the Truths about your company values. It portrays the company’s picture of how it sees itself and what people can rely on it for, or not!

A great company culture can be a Unique emotional selling point for the company, making sure it stands out and appeals

to both staff and clients. Is this a company I want to work for or deal with or not?

Your company culture is gen-erally Real. It is hard to hide the real culture vs the desired culture for long if they are not aligned. This means it is important that what people hear they can ex-pect to see in reality. Congruence builds trust, this is a key factor in the success of a growing, happy and healthy company.

Lastly, wouldn’t you want your culture to be Engaging and ener-gising so as to keep staff interest-ed in contributing genuine effort

and contribution whilst at work; be proud to say they belong to your company and be attractive to talented staff as a prospective employer?

As you will have gathered by now, company culture is a matrix of feelings, thoughts, behaviours, traditions, experiences and mes-sages that are both consciously and unconsciously projected which all combine to determine how a staff member or client ex-perience their interactions with the company, right from the mo-ment they first hear of you.

Ideally it is supported by

your brand, the public bits that all stakeholders see first. Culture starts by accident rather than by design. It is normally in alignment with the values and skills of the company founder, then it comes under the spotlight as the com-pany grows.

So, back to the question I of-ten get asked by my clients: OK, so how do we get the company culture we want? How can we change what we have?

I’ve run out of space, so put on your thinking caps in the mean-time decide what attributes you’d like your culture to have.

Do you want to be innovative (Bankwest) or stick with the tried and true (ANZ). Do you want to be friendly and casual (Jetstar) or formal and more structured (Qa-ntas)?

Think about what is “normal and expected” for your industry. Do you want to fit or break that mold? Jot down 12 or so key words that you’d like people to use when describing your com-pany culture. Thanks for reading and we’ll talk soon.

Jo Hanlon is a HR Coach and business

consultant at Mind Your Ps. Visit www.

mindyourps,.com.au

one:one coaching and mentoring

strategic HR coaching staff profiling

Jo Hanlon MBA

m 0403 497 120

e [email protected]

w www.mindyourps.com.au

jo.hanlon

johanlon08

http://au.linkedin.com/in/johanlon

Subcribe for FREE on-line at

www.wsba.com.au



ACCESS HOW-TO event

ACCESS networking event a sell-out!THE Western Sydney Business Access HOW-TO Succeed

in Networking and Sales event held at Rydges Hotel, Parramatta on February 22 was a sell-out .

The audience was treated to almost three hours of cutting edge business education from Dr Jim Taggart and George Mavros – two leaders in their

respective fields.Dr Taggart told the audience that the

world had changed and with those chang-es the practice of networking had become more important and scientific.

He said in days past the mantra was about who you knew; today it’s about who

knows you. He said business people needed to be authentic when networking and not look for the best and biggest deal every time.

“When I go to a networking event I am looking to do business, not get business. There is a big difference,” Dr Taggart told participants.

George Mavros told participants that one of the biggest mistakes sales people could make was to push their customers into a purchase they do not want or need.

“You are better off from the relation-ship standpoint to recommend a competi-tor’s product. The integrity of the relation-ship is paramount,” he said.

Both agreed that business people needed to focus more on how customers feel rather than pushing their products on to customers in order to make a quick sale.

“We will often forget what someone says about us but we will never forget how they made us feel,” said Dr Taggart.

The audience included representatives from Deloitte Western Sydney, Suncorp Bank and many western Sydney based businesses.

WSBA publisher, Michael Walls said this event had proved that savvy business peo-ple are looking for up to date information presented by experts in a friendly environ-ment with the opportunity to network.

Mr Walls said he would be confirming the dates and subject matter of another three events for 2012 over the next few weeks.

“A special thanks should go to the spon-sors whose great support made this event possible. They include the team at My Life’s Good Book, Snap Printing George St Parra-matta and Rydges Hotel,” Mr Walls said.

Visit www.wsba.com.au for updates.



MAGAZINE - PEOPLE

A night to be remembered

WHAT a night! Our 85th celebrations will be long remembered by our members and guests as appropriate and prestigious.

More than 140 people attended the swish event.

By Jill Woods

Keynote speaker NSW Treasurer, Mike Baird was his usual articulate self and enthusiasti-cally praised the work and achievements of our chamber over so many years.

Stuart Ayres MP who introduced Treasurer Baird made it clear in his own direct though affable fashion that we

are serious about seeing this region prop-erly developed and supported by govern-ment and other key stakeholders.

Roger Hood on behalf of NSW Business Chamber and Mary Jo Capps, President of the Sydney Chamber also joined in our fes-tivities.

Mayor Cr Greg Davies was generous with his words of praise for members and their contributions to the local economy and wider community projects too. Other Councillors were also in attendance. Cake

L- R Steve Groves, David Reardon, God of

Wealth and Bradley Ross

L- R PV Chamber

Executive 2012 with

NSW Treasurer

L- R Debbie O’Connor, Jannine Merriman

and Denise Heath

L- R Kristie Pate, Kylie Wall, Rebecca

Tomlinson

L- R Kay Hyman and Lois Grassi

NSW Treasurer Mike Baird MP and Jill

WoodsL- R God OF Wealth, Barbara Magee and

Ann Wilmington


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MAGAZINE - LEGAL

Wikipedia diagram of Cloud Computing

Legalities of working in a cloud Wikipedia defines Cloud computing as: “The delivery of computer as a service rather than a product, where shared resources, software, and

information are provided to computers and other devises as a metered service over...the internet. End users access cloud based applications

through a web browser or a light weight desktop or mobile app while the business software and data are stored on servers at a remote location.

Cloud application providers strive to give the same or better service as if the software programs were installed locally on end-user computers.”

By Steven Brown

The idea behind cloud computing is that rather than buying a CD or DVD containing music, a movie or a game, the user accesses the music, the movie

and the game on a use and pay basis rather than having to purchase a license of the in-tellectual property in perpetuity.

The theory being that it should be cheaper to hire the use of the music, movie and or game than to buy the intellectual property outright.

In a business environment, you would

not need to purchase a license to use Lion or Micro-Soft 8 rather pay a fee when you use it on line in the cloud (that is over the internet).

Expectations from cloud computing contracts

Cloud computing is delivered like any service: under a contract. A contract can be described as the vehicle by which the risks inherent in the transaction are allocated be-tween the user and cloud computing ser-vice provider.

If things do not work out, the user and cloud computing service provider may have liabilities to each other.

Either or both may have liabilities to af-fected third parties. In simple terms the ex-pectations of the parties are quite straight-forward:

Recently we were asked to advise a cli-ent to review a proposed cloud computing service contract.

The contract from a legal perspective was fine. The issues we highlighted were

more commercial than legal but neverthe-less sufficiently real for the client not to pro-ceed with the proposed arrangement.

For example, User under a cloud com-puting services contract (like any acquiring of services under a services contract) must take the following commercial risks:

• The risk that the services paid for will be provided.

• The risk of not being sued.• The risk that the services will be

available when required.• The risk that the services will be

provided as promised.With Cloud Computing there are these

risks and more. Let us assume that you are contracting to have your database kept in the cloud. Your client list, accounting re-cords, intellectual property are all retained by a cloud service provider.

The commercial risks you run in enter-ing such a contract can all be classified as performance default risks being, as follows:

If the Cloud Service Provider is solvent:a. As the term of the service agreement

continues all of your information is on the servers in the cloud. If the price you are being charged becomes too costly, to change how you have to work you need to find another cloud service provider or you have to incur the capital cost of pur-chasing your own hardware and to buy the software licenses for the programs you are using.

b. The applications you can use will be those chosen by the service provider. You might be able to use more but will need to get the consent of the cloud service provider first. Consequently, hav-ing the ability to try a new process and achieve a competitive advantage over competitors could be delayed or lost by using cloud computing.

c. If you have to find another cloud service provider you have to get the information belonging to you out of one cloud into another. Whether this will be done in a timely manner for you to continue to run your business is a risk you need to bear. The outgoing cloud service provider may promise to look after you but if the price of the service becomes too great

they obviously aren’t looking after you and you have to run the risk that the sec-ondary promise will then be honoured in circumstances when a primary promise has already been breached.

d. There is the risk that the information will not be properly destroyed and it falls into competitors’ hands. Your security is at the mercy of the cloud service provid-er. It is not in your control.

e. There is the risk that the information is not in Australia. The information could be kept in the cloud offshore making ob-taining access difficult if not impossible should you need to get the information in a hurry and the cloud service provider is not assisting you.If the Cloud Service Provider becomes

insolvent:a. The issues above are further exacerbated

by you having to deal with an insolvency practitioner who will have no need to look after your interests as they will not have a need to have any ongoing rela-tionship with you.

a. The insolvency practitioner may not be able to get to the information as the in-formation may be on hardware owned by a third party that was leasing the stor-age space in the cloud to the cloud ser-vice provider.Having regard to the commercial issues

that we highlighted the client decided not to proceed with the entering the cloud for the moment.

The use of cloud computing for non-es-sential services, entertainment or games is worth considering but at this time the lack of security and the fact that you could ul-timately be held hostage by the cloud ser-vice provider are risks that we do not see as being ones that clients should take.

Unfortunately the world of cloud com-puting is too risky as it is not sufficiently real to run the risks of putting one’s entire busi-ness in an incorporeal world that is not ac-cessible to you if the need arises.

Steven Brown B.Ec, LL.B, (Sydney), M. App. Fin (Mac-

quarie), FAICD, Accredited Business Law Specialist,

AIMM, FPIAA is Chairman of Etienne Lawyers. Contact

him at 02 8845 2400.

Parties expectations

Cloud computing service provider’s Users The World’s

To get paidHave use of the software when required

Not to be interfered with.

To provide use of the software agreed to be used

Have use of the software as required

That the user will use the services provided in the Cloud

Receive a service as promised to be delivered

To provide the service as contracted for

To be left alone To be left alone



MAGAZINE - ACCOUNTANCY

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Bella Luca is a wonderful Clarendon home which backs onto Cumberland golf course with a separate park view from the front. A stylish offering, this home is loaded with great features and quality presentation which maximises space and light, reflecting the exceptional standards of a great home builder.

Accountants trending towards innovation

A HOT topic right now going around one of the world’s oldest professions is ‘can accountants be innovative’.

By James Solomons CA

It’s a tough question to answer given the traditional historical approach of the work that is completed by accountants in pub-lic practice roles.

But to have any chance of forming an opinion on the matter we really have to de-fine what innovative means when it comes to accountants.

The big innovation in the industry in the past 12 months has been the move to the cloud and the surge forward of web based accounting and book-keeping programs such as Xero who have taken on the indus-try giants MYOB and Quicken in a battle to win the cloud based market.

So, if your accountant moves you onto Xero or MYOB LiveAccounts or Quickbooks Hosted does that mean that they are themselves innovative or are they just responding to innovative changes in the in-dustry?

Another innovation is the increase in firms offering fixed price service agree-ments. Whilst a number of firms have been offering this option for many years, it is only recently that this is becoming mainstream and beginning to replace the old time cost basis for billing.

But again, if your accountant offers this pricing model to you tomorrow and bun-dles up their services in a nice neat pack-age and provides you with an option to pay monthly are they themselves being innova-tive or are they just responding to client de-mands for no end of year surprises.

As you can see from the two examples above it really is an open ended argument which can be viewed from either side. (Al-though, does this mean that really only few people in the world are truly innovators?)

Maybe to be innovative accountants need to find different ways to interact and advise their business clients? And I’m not referring to using Skype or FaceTime to hold meetings.

Using the latest technologies to de-sign their own products that deliver a more streamlined business advice model via smart phones and tablets as well as through the cloud could be one way?

But is this really something for an ac-countant to do or should they let the ex-perts develop these methods and then adopt them for use?

Or maybe, with compliance services put to the side, accountants need to change the

way they are paid for business advice ser-vices.

Typically business advice is provided ei-ther on an hourly basis or packaged fee ba-sis, but what if an accountant didn’t charge like this but took a profit share or equity share in the business they advising?

Is this an innovative approach? Maybe not amongst the business coaching indus-try where this has been a pricing model for many years, but in the accounting profes-sion this isn’t really mainstream.

Would it work in practice? Accountants are experts with numbers but would they be able to offer useful advice in other ar-eas like marketing and sales etc.? Would they need to though if their client has the expertise in these areas but lacks the finan-cial mind required to make their business work?

One thing is for sure though, under this type of model the advice provided would not be generic off the shelf advice often re-produced time and time again for multiple clients.

This approach really is making the ac-countant accountable for the advice they provide because if it is wrong they don’t get paid!

With changes to the industry through tax reform coupled with increasing eco-nomic pressures, accountants are facing a business clientele looking for better advice with greater expectations.

In light of this, accountants have to be innovative in their own right to survive these changes as we have done for over a hundred years. So maybe we can really be innovative as we have been around for so long.

Or are we still around because we have had the luxury of a compliance regime which gives us an almost endless supply of taxpayers with which to approach for work? Is it because of this that we don’t need to be innovative?

So the question can your accountant be innovative really can’t be answered in this piece but maybe next time you meet with your accountant ask them the question!

James Solomons is a Chartered Accountant, Xero Cer-

tified Adviser and Partner at Elite Financial Solutions

based in Epping. Contact him on 02 9868 3900 or at

[email protected]


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MAGAZINE - LIFE INSURANCE

Life cover in the super contextIN the last edition of WSBA we spoke about life insurance and eluded to the different covers available. In this article we will provide an overview

of having life insurance inside or outside of superannuation, and how the structure of your life insurance (and TPD) will affect the benefit payment

made. Within super you generally have term life, TPD and income protection cover. We will be discussing term life and TPD only in this article.

By Christina Matthews andDr Jim Taggart OAM

When insurance is held outside of super, the ownership of the policy can vary, depending on the need for the policy.

For example, more commonly if a policy is being used for family protection, the pol-icy will be owned by the life insured, or the spouse of the life insured, or maybe even jointly.

A beneficiary may be nominated under the policy, and if no beneficiary is nomi-nated then the benefit would generally be paid to the insured’s estate. Premiums for personal insurance policies outside of super are not generally tax deductible.

If the policy is being used for business purposes, then the policy could be owned by the life insured, a business partner, or even a business entity depending on the purpose of the policy (key man cover, buy sell cover etc).

Premiums for business insurance poli-cies may be tax deductible depending on the purpose of the policy.

When insurance is held within superan-nuation, the policy will be owned by the superannuation fund Trustee, and this in-cludes Self Managed Super Funds.

Premiums paid are deemed to be super contributions and will count towards contri-butions caps. The premiums paid may be tax deductible if you are paying them from after tax dollars.

Quite often premiums are paid from su-per contributions made on your behalf by

your employer which do not affect your per-sonal cash flow.

The most appropriate type of policy ownership will depend on your circum-stances, and the purpose of the policy.

Advantages of having insurance in superOne of the main advantages of having

insurance cover in super is tax efficiency. Premiums being paid from your super fund are deducted from contributions made, and therefore do not affect your cash flow.

If you are paying the premiums from af-ter tax dollars, you may be entitled to claim a tax deduction for those premium payments.

In addition to this you may also be en-titled to the Government Co-contribution for the premium payments (from after tax dollars) if you quality under the income threshold.

Insurance held within super is treated differently when paid to dependent and non dependent beneficiaries. This is a very important point to consider when you are looking at having your insurance held with-in super.

The definition of dependent is different under the Tax Act and the SIS Act1. The SIS Act dictates who can receive a benefit pay-ment from superannuation, but it is the Tax Act which dictates how the benefit is taxed in the hands of the beneficiary.

Disadvantages of having insurance in super

One of the main disadvantages of hav-ing insurance in super (as part of an accu-mulation fund) is that every dollar spent on insurance premiums being deducted from your super account balance, means less money to invest for retirement.

The contribution caps also have a bear-ing on how much you can put into your super each year as a concessional contribu-tion, and when you take into consideration that insurance premiums count towards this cap, it reduces to opportunity to contribute investment dollars.1 SIS Act – Superannuation Industry (Supervision) Act 1993

Another disadvantage is that holding insurance in super is more restrictive than holding the cover outside of super as a con-dition of release must be met for the benefit to be paid.

This is not generally an issue for term life cover, as the main event for this cover to be paid is the death of the life insured.

However, under TPD (and income pro-tection) the benefit payments are more re-strictive when the cover is held in super as whilst the claim may be approved by the insurer, the benefit may not be released by the Trustee to the insured person if condi-tion of release under the SIS Act is not met.

Estate planning considerationsAs noted earlier, beneficiary nomina-

tions are treated differently for cover held in and outside of super.

For cover outside of super, generally the benefit is paid to the life insured (for TPD cover), and to the insured’s estate or nomi-nated beneficiary for term life cover. There are not usually any tax consequences to the person receiving the benefit upon receipt of the benefit.

However, the beneficiary nomination for cover held in super can be made as non-binding or binding, or as determined by the super fund Trustee.

If the Trustee is a SMSF, then the Trust Deed should be reviewed to ensure that a benefit payment can be made to a nominat-ed beneficiary and not automatically paid to the insured’s estate.

Payment to a beneficiary under a super policy may have a tax consequence de-pending on whether the beneficiary is a fi-

nancial or non financial dependent.It is very important to discuss your estate

planning arrangements with a duly quali-fied adviser (legal and/or financial) so that you put into place the arrangements that you would like, and also make sure that any previous arrangements are ‘over ridden’ in the event that your personal circumstances change.

The consideration of having your in-surance cover within or outside of super is very important, and either course may have an impact on your cash flow, may have po-tential tax implications, and may affect the ultimate payment of a benefit to your ben-eficiaries/estate.

It may be an appropriate strategy for you to have cover both inside and outside of su-per to get the best result overall.

There are a number of other important matters to consider when you are looking at insurance cover inside or outside of super, and this brief article has only touched on some of those issues.

You should always seek the guidance and advice from qualified advisers in these areas to make sure you have the most ap-propriate strategies for your circumstances.

Christina Matthews and Dr Jim Taggart OAM are Rep-

resentatives of Taggart Nominees Pty Ltd. Taggart

Nominees Pty Ltd holds AFSL No: 234973, and is a Life

Insurance Broker. The information is this article is gen-

eral in nature and does not constitute financial advice.

References:

Superannuation Industry (Supervision) Act, 1993.

CCH Australian Master Financial Planning Guide, 14th

Edition, 2011/12.

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MAGAZINE - BUSINESS IMPROVEMENT

Hidden relationships can be dangerous

I’M sure we all remember the Hans Christian Andersen Tale about how the emperor who was convinced that nothing at all was the most spectacular suit

he could own; and that if he couldn’t see it, it was his failure rather than that the clothes did not exist. How embarrassing when he went down the road!

By Schon G Condon, RFD

Business can actually be very similar, and this was recently proven so, again. Especially for business owners who have more than one component to

their own business.“Not me,” did I hear you say “I’ve only got

one company, this is not for me.” Well that may possibly be so, but just as equally, pos-sibly not! Read on.

When setting up businesses the imme-diate rush of blood over, the new shelf com-pany in hand, and copies of a whole bundle of documents that have to be sent off to the Australian Taxation Office, Workers Comp, and a wide variety of other statutory au-thorities are complete. A job well done, well, lets hope it is; at least for that part.

Quite often there can be hidden rela-tionships that seem to escape the clear atten-tion of the best plan-ners.

Clearly these exist when two related companies exist and there is a business re-lationship between them, for example one imports and the other wholesales or one buys and the other stores, the list of alter-nates is almost endless.

However there can be many other fi-nancial relationships where there either should be, or in some instances must be, a documented relationship.

The need can arise for various reasons and certainly the most obvious to all be-ing in support of one’s taxation returns; but where either your business or possibly a business that has a significant involvement with yours runs into trouble then the lack of proper documentation can be more than just unsettling.

Recently we came across a situation where, the Family Superannuation Fund had acquired the business premises.

Alas, without a formal lease, the ar-rangement was at best ad-hock, with pay-ments varying each month, admittedly never less than the monthly repayment but often less than what could have been argued as a marketable rent.

Many issues arise: the fund is not receiv-ing its due entitlement, the survivability of the fund from a technical compliance point of view could be put at risk and the funds

ability to claim fully in an insolvency situa-tion is put significantly at risk.

That is one of the more significant situ-ations but others can be just as dangerous. For example, merely having a member of the family or friend who consults (i.e. works part time but doesn’t want to be an em-ployee) to the business.

Without an official document (contract or agreement) between the parties you are not just likely to end up with a failure of the relationship, but more importantly it can end up in a serious and costly employment law claim.

Issues like this come up all the time. Money borrowed from the family should be no different to a bank loan. That is interest is paid and yes, if it is significant enough then it should be secured against the business.

If there is no room for interest then ac-cept the fact that it is capital and plan on paying a dividend.

Business is business and what you should be doing for an arms-length trans-action is essentially no different to what

should be happening for the more proxi-mate ones.

Knowing and understanding the law will enable you to use it to work for you not against you. Knowing its relationships will enable you to use it to your advantage.

Two quick examples: family members are considered related employees under the Corporations Law and have restricted benefits (entitlements to unpaid wages and salaries) in insolvency situations.

Consequently if you are in a high-risk business category then rather than employ your own child, consider employing a col-league’s child, whilst they employ yours.

They can consider rejoining you and be-coming a partner when they have the expe-rience and business acumen to do so. Who knows they might even come in with some new ideas.

Likewise if you use equipment regu-larly that does not belong to the business ensure its title is properly recorded under the new Personal Property (PPS) Securities Register. It protects its ownership.

You wouldn’t walk down the road na-ked, so why do business that way. Knowl-edge well used is power.

Schon Condon is managing partner at Condon Associ-

ates. Visit www.condon.com.au


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