Business Connect Issue 91

Editor Ashley Penny (02) 9458 7255 [email protected] Copy Editor Mitchell LewisdESiGNEr Rebecca SolbergphotoGraphEr Mitchell Lewis, Damian KellyadvErtiSiNG ENquiriES nswbusinesschamber.com.au/advertising

NSW Business Chamber Locked Bag 938, North Sydney, NSW 2059 t 13 26 96 f 1300 655 277 e [email protected] w nswbusinesschamber.com.au

Chief Executive Officer: Stephen Cartwright

Business Connect Magazine is published quarterly. Subscriptions: $44 per annum (incl GST). Registered by Australia Post publication number: pp255003/03891 ISSN: 1328-259x. The information published in Business Connect Magazine is subject to copyright and may not be reproduced in any form without written permission from NSW Business Chamber. The opinions expressed in Business Connect Magazine do not necessarily represent the opinions of NSW Business Chamber or its staff. The information published in Business Connect Magazine is intended as general information only and should not be relied on in place of specific legal or professional advice. No responsibility or liability is accepted by NSW Business Chamber or its staff for any claim which may arise from any person acting on the information published in Business Connect Magazine.

News 4

Event profile: Blue Bloods 5

COVER STORY

‘Small Business. Too Big to Ignore’ Campaign 6

FEATURES

Future of the West 14

Food for thought 16

Australian Business Congress 20

Local Government Referendum analysis 22

WORKPLACE

Get serious about mental health 24

SuperStream 26

Catering for a revival 28

A new landscape for apprentices 30

PERFORMANCE

Spaced out: easing your growing pains 32

Get financially fit 34

CHAMBER

World Chambers Congress 36

Gold in the colour city 38

New members 40

TradeLinks 42

WINTER 2013 | BusINEss CoNNECT 3

Business Connect

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24 38

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hunter businesses to flick the switch on energy costs

Rising energy prices are causing stress for many businesses, which are already struggling with increasing costs. Businesses need solutions, and a new project, launched in April by Minister for Climate Change, Industry and Innovation Greg Combet, aims to help Hunter businesses find the answers they need.

Analysing energy usage can be a difficult task, which is where the Energy Hunter project comes in. Funded by a Federal grant secured by the Hunter Business Chamber, the project will help approximately 500 businesses to identify, and therefore modify and improve energy consumption, using tangible facts. The program provides 14 steps businesses can follow to approach their energy use strategically.

"This is something in your business that you can see," said Hunter Business Chamber CEO Kristen Keegan. "It helps you monitor your consumption so you know what you are doing and when you are doing it. If you need to change your consumption behaviour, then you are doing it from an informed base."

Much more than a monitor, the Energy Hunter project includes a knowledge-sharing component, where businesses can share their experiences and solutions.

The Energy Hunter project is one of 28 projects funded under Round One of the government's $40 million Energy Efficiency Information Grants Program.

Pictured: Kristen Keegan (CEO Hunter Business Chamber), Greg Combet (Minister for Climate Change, Industry and Innovation), Richard Anicich (President Hunter Business Chamber). Photo courtesy of AJM Photography.

NSW State Budget – the Chamber’s verdict

NSW Business Chamber has received the 2013-14 NSW State Budget as a responsible and positive blueprint for the State's future prosperity, with a focus on infrastructure funding, regional growth and reducing the burden on employment costs.

"The NSW Government has set down a clear pathway to spend less than it earns, which every business operator knows is the only way to succeed and grow," said NSW Business Chamber CEO Stephen Cartwright.

"The Treasurer has taken a very business-like approach to managing the State’s finances, as evidenced by integrating the State Infrastructure Plan into the Budget, and reporting on performance against the State Plan which shows what we get for our money."

visit nswbc.com.au/StateBudget for NSW Business Chamber’s analysis.

payroll tax cut a winner for business

Two days after the NSW State Budget was handed down, Premier Barry O'Farrell, Treasurer Mike Baird and NSW Business Chamber President Terry Wetherall paid a visit to NSW Business Chamber member and NSW State of Origin team jersey manufacturer Classic Sportswear to address the media on the importance of the government's move to lift the payroll tax threshold from $689,000 to $750,000.

visit nswbc.com.au to watch our video.

terry hunt oaM Congratulations to Terry Hunt,

Director of longstanding NSW Business Chamber member Akubra. Mr Hunt was recently awarded the Medal of the Order of Australia (OAM) for his significant contribution to the community of Kempsey and to local government.

Mr Hunt served on Kempsey Shire Council from 1999 to 2008, and currently serves as Kempsey-Macleay RSL Sub-branch President. As well as his employment with Akubra and work with the RSL, he has also been involved with the Kempsey Advisory Training Enterprise, which gives scholarships to school children; and the Mooneba-Turners Flat Fire Brigade. He spent 18 years on the board of Coastline Credit Union, including three as chairman and currently serves on the Community Consultative Committee for the NSW Corrections Service. Mr Hunt is also a NSW Business Chamber Honorary Life Governor.

News

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4 nswbusinesschamber.com.au

Blue Bloods forges business bonds

all eyes were on aNZ Stadium in May for NSW Business Chamber’s annual Blue Bloods Luncheon, held in conjunction with the National rugby League (NrL).

Guests donned the scarf of their favourite club and mingled with former league greats such as Wayne Pearce, Paul Sironen, Bob McCarthy, Jason Stevens, Paul Dunn, Ben Ikin and Shaun Timmins, along with powerbrokers Dave Smith (NRL CEO), John Grant (Chairman of the ARL Commission) and Todd Greenberg (incoming NRL Head of Football).

NSW Premier Barry O'Farrell returned for a second year to join NRL leaders and former players from both sides of the border in celebration of the Origin spirit and to build business relationships.

Keynote speaker Corey Payne inspired the crowd with his story of life after football, including his selection as 2012 NSW Young Australian of the Year and his foundation of the Future Direction Network. In a day that was very much about teamwork, Blues legend Nathan Hindmarsh joined Queensland counterpart Darren

Lockyer to share stories of Origin and analyse Game 1 of this year’s series.

The Blue Bloods Luncheon has become an eagerly anticipated event on the sporting and business calendars.

Stephen Cartwright, CEO of NSW Business Chamber, said “Sporting clubs offer wonderful partnership opportunities, but getting a foot in the door is the hardest step”.

“We’re helping businesses, including the NRL, maximise their potential to create mutually beneficial relationships.”

visit nswbusinesschamber.com.au for photo highlights.

5Business Connect


Taking iT To

The nexT level

Small BuSineSS. Too Big To ignore.In April 2013, NSW Business Chamber, in collaboration with other State Chambers of Commerce and the Australian Chamber of Commerce and Industry, launched a grassroots campaign for the nation’s two million small businesses, and the seven million Australians that they employ.

This unprecedented campaign delivers a platform for business owners and operators to voice their concerns. The message to Canberra is loud and clear. ‘Small Business. Too Big to Ignore’.

Business Connect


Since launching the campaign in april, over 45,000 voices have registered through the website (toobigtoignore.com.au). While a voice may be small on its own – on the website you can see every voice counts. regardless of where they live or what they do, online supporters are joining a burgeoning community of like-minded australians who want a fair go from Canberra.I am also deeply encouraged by the way business groups from urban centres, country towns and business precincts are embracing the campaign. Look no further than Deniliquin in the Riverina, where posters and stickers are proudly displayed in shop windows. Thanks to the Deniliquin Business Chamber, and the hundreds of other Local Chambers of Commerce working closely with NSW Business Chamber, this campaign is introducing thousands of small businesses to the power and influence of a united chamber movement.

Every day brings us one step closer to the next Federal Election, and that means we are gearing up for the next phase of our fight to make sure that the small business community is no longer taken for granted.

Unlike government, we’ve listened to the small business community, and developed ‘The BIG 4 You Can’t Ignore’ – a list of reforms that the next government of Australia needs to embrace if it is serious about supporting small business, creating new jobs and growing the national economy.

the BiG 4 sets out a simple and straightforward to-do list for our political leaders:1. Cut down on the red tape;

2. Simplify the tax system;

3. Make it easier to employ people; and

4. Build better infrastructure.

These are four common sense principles to guide the next Australian Government and ensure that our

country remains the envy of the world. The BIG 4 are supported by examples of what small business needs from the next Australian government.

I encourage you to read the detailed overview of the BIG 4 in this edition of Business Connect. We will add more as the campaign goes on, and as small business continues to speak out about where and how these issues are affecting their livelihoods.

In the spirit of co-operation, we hope that all political parties and candidates will take these issues and run with them. In the time leading up to polling day – and beyond – we will be asking them to do just that.

If you haven’t joined the growing chorus of voices supporting the campaign, please visit toobigtoignore.org.au to add your voice and find out more about ‘The BIG 4 You Can’t Ignore’.

Stephen Cartwright Chief Executive officer NSW Business Chamber

StEphEN

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26 JUNE A fAirer go for smAller businesses Coffs Coast Advocate

26 JUNE We’re too big to ignore,WArns smAll business northern District times

25 JUNE govt. must eAse burDen on our smAll business oWners Deniliquin Pastoral times

25 JUNE smAll business set to mAke some big noise Western Advocate

21 JUNE smAll business hAs hAD enough, ACCi sAys herald sun

21 JUNE smAll business, big fight maitland mercury

19 JUNE big DemAnDs for little guys Central Coast express Advocate

18 JUNE Abbott heArs from too big to ignore ChAmber CAmPAign singleton Argus

5 JUNEbusiness oWners DemAnD neW DeAl newcastle herald

13 JUNE reD tAPe, tAx unDer fire from business sunshine Coast Daily fraser Coast Chronicle northern star grafton Daily examiner gladstone observer Daily mercury bundaberg news mail

13 JUNE business fightbACk burnie Advocate

13 JUNE nAtionAl CAmPAign Aiming to give smAll business bACk its voiCe Warrnambool standard

14 JUNE ignore no more shepparton neWs

14 JUNEbusiness stAnDs uP Deniliquin Pastoral times

12 JUNE ignore smAll firms if you DAre, mPs tolD the Australian

24 May smAll business flexes musCle Central Coast express Advocate Wyong

21 May smAll businesses voiCe big ConCerns macarthur Chronicle

15 May smAll business is the CentrAl nervous system northern star

10 May big ChAnge Will Come from smAll beginnings Daily telegraph

neWS heaDlineS aCroSS auSTralia


7Business Connect

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Cut down on the reD TaPe

Simplify the Tax SYSTem

make it easier to emPloY PeoPle

Build better inFraSTruCTure

Help small business get heard this election. Add your voice attoobigtoignore.org.au

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2221 1 1 Excessive regulation is suffocating small business. Let’s cut the red tape & give small business a break.

Our tax system is too complex & costly for the average small business. Let’s make it simpler for all of us.

Many workplace laws make it hard to hire & keep good staff. Let’s change them & create more jobs.

Our roads, ports & rail are congested & under strain. Let’s build new & better infrastructure for everyone.

Authorised by M. Love, Campaign for Small Business, Canberra.

1Cut DoWn on the reD tAPe

At every level of government, regulation is suffocating small business. The costs and time involved in complying with those regulations is bad enough, and the unnecessary duplication makes it even worse. Let’s cut the red tape and give small business a break. We need to:

Make government administer superannuation and paid parental leave paymentsSmall business people should not be forced to be the unpaid paymasters for government schemes. This responsibility should be funded and administered by government. Let small businesses focus on creating more jobs instead.

put in place sunset provisions for all business legislation and regulation, as well as a 1-in-1-out rule that actually worksGovernments often use Acts of Parliament as dumping grounds for bright and not-so-bright ideas. The problem is that over the years even the good ones become dated, and together, they add up to be a real burden. Let’s make sure every

rule has to justify its existence and that government must lose an old rule before it makes a new one.

Make the Small Business Commissioner a warrior to fight red tapeWe don’t need a new government agency to tackle red tape but we can give the Australian Small Business Commissioner broad powers and adequate funding to do the job. He or she must identify and fight red tape that is strangling small business, whether doing business at home or trying to break into markets overseas. Get more small business in government and less government in small business.

The great majority of politicians and government bureaucrats have never had any experience running a small business; they don’t appreciate the risks, the pressures involved and how they add to that burden. We need political parties to support more candidates with small business experience and government agencies to attract and recruit people with small business backgrounds.

9Business Connect


2Our tax and finance systems are impossible for the average small business person to understand and comply with. Many small businesses need to employ specialists and the whole process adds unnecessary cost and time while draining entrepreneurship. Let’s ease the tax burden and make it simpler for all of us. We need to:

reduce and phase-out payroll taxPayroll tax is a tax on jobs, and that doesn’t make any sense. It also acts as a handbrake for small businesses as they try to grow into larger ones that employ even more people. Let’s work together to stop taxing employment.

restore quarterly company and income tax collectionBusiness is drowning in a sea of paperwork. Forcing medium-sized businesses to collect and make monthly payments is unnecessary, unfair and adds pressure on their small business suppliers. Let business people focus on running their businesses; not paperwork for the taxman – who needs to be a lot more user friendly for small business.

Support a trial of a small business credit guaranteeMany deserving small businesses struggle to get credit from financial institutions. We need to improve small business access to finance and make it easier for them to grow, develop and employ more people.

Force governments to pay bills on time or pay interestWhen government doesn’t pay its bills on time it is essentially a tax on small business. Small business shouldn’t have to go cap in hand to ask for interest when there is a very real fear of reprisal. Government should pay on time or pay interest.

simPlify the tAx system

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32Australia has become a very costly place for small business to hire, keep and dismiss staff. And when times are tough, jobs and hours get cut. It’s also too hard to get workers with the right skills. Let’s make it easier to employ people and create more jobs. We need to:

Make sure penalty rates are realistic and don’t make businesses unviableIt just doesn’t make sense that many businesses can’t open their doors on weekends, evenings or public holidays. Or that small business owners and their families need to cover these times, often for no pay. Unrealistic penalty rates even harm employees who want to work but can’t due to closures. And when businesses close customers miss out and governments lose revenue.

Let employers and employees make agreements with the protection of a no disadvantage safety netWe don’t live in a one-size-fits-all world and neither does small business. People should be free to enter into mutually beneficial arrangements that fit their particular circumstances, while enjoying the protection of a global no disadvantage test.

Guarantee a person’s right to work as an independent contractorTrade unions often use workplace bargaining for reasons that have nothing to do with the direct relationship between employers and employees; such as limiting the use of independent contractors who are themselves small businesses. We need to limit unions’ bargaining demands to matters directly related to employment relationships.

Ensure that increases to superannuation costs for small business are offset with income tax cutsRecent changes to the superannuation levy make it more costly for small business to employ people. In many cases the increases come straight from the bottom line of small businesses that are struggling to stay open. We need to give small business a break and make sure they don’t get stuck footing the bill for their staff’s retirement at the expense of their own.

mAke it eAsier to emPloy

PeoPle

11Business Connect


4victoria: Build the Melbourne East-West Link The project will increase the capacity of Melbourne’s transport network and unlock productivity gains for business by making transport more efficient.

New South Wales: Commit to a Western Sydney airport at Badgerys Creek A supplementary airport at Badgerys Creek will provide massive employment and investment opportunities for Western Sydney and ensure that the growing demands for aviation services within the Sydney region are met.

queensland: deliver the Bruce highway upgrade The project will strengthen an integral part of Queensland's road network and have a significant impact on national productivity and the competitiveness of businesses.

aCt: Build the case for a high Speed rail network linking East Coast capitals High Speed Rail can improve cross border connections, deliver positive economic returns and provide opportunities for business in the ACT and region.

This is just the beginning. Government needs to listen to small business, with less talk and more action.

South australia: Build a 275 Kv electricity line for Eyre peninsula The much needed high voltage line is a missing piece of critical SA infrastructure. It will support greater resources, energy, tourism and agricultural projects.

Western australia: Ensure a fair share of Federal Government infrastructure investment for Wa Better long term planning and co-ordination is needed with stronger priority given to the independent findings and cost benefit analysis done by Infrastructure Australia.

tasmania: Build the Four Lane Midlands highway The project will increase the capacity of the main arterial route between north and south Tasmania. This vital connector will improve efficiency of transport for business.

Northern territory: Build a second port dedicated to bulk ore load out The second port will increase capacity, create efficiencies and produce downstream value for small businesses in the Northern Territory.

future Proof our infrAstruCture

our roads are congested, our ports bottlenecked and our rail networks groaning with overuse. Energy costs are skyrocketing and making us less competitive. this affects us all, but is particularly hard on small business. it’s time to actually do something about it.

12 Business Connect


4 You’re not alone. Join the social media community of ‘Small Business. Too Big to Ignore’ and voice your opinion. Visit toobigtoignore.org.au where you can log into Facebook and Twitter groups. Here’s what some people are saying…

Bede Cooper

Stand and be counted as one ! It's time to voice objections to these career politicians only worried about being voted back in.

michael Young We have too many OHS regulations that are designed to cover our bums and don't do anything to improve safety.

Chris maddern Remove FBT and reduce taxes for small business - why do we have to pay payroll tax?

Toni Bryant Working harder than ever, going in to work on weekends too because I can't afford extra wages on top of rent, electricity, phone etc.

elizabeth Flaherty Fair Work needs to be totally revamped along with all the tax system for small businesses. Get someone to sort it all out that has actually had a real job and lives in the real world.

get heArD!

toobigtoignore.org.au

13Business Connect


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By 2050, Western Sydney's population will sit at around four million, the equivalent today of Brisbane and perth combined. it's little wonder that australia's fastest growing region is a battleground for the upcoming Federal Election.

Yet so much remains in the balance for Australia's third largest economy. What will the future hold for business, government and the community? Sydney Business Chamber has kick-started the debate with the first in a series of Economic Forums, assembling

the most influential thinkers across industry and government. Held fittingly in Parramatta, the mid-April Forum featured Bernard Salt (Partner KPMG), Dr Rebecca Huntley (Executive Director, Ipsos) and the University of Western Sydney's Professor Peter Shergold, while the Hon. Anthony Albanese MP and The Hon. Mike Baird MP contributed political insights.

A lively airport panel of leaders in aviation, infrastructure and transport, including Avalon Airport CEO Justin Giddings, followed streams by Martin Butterworth (Managing Director, Space Syntax) and Dr Robert Lang (CEO, Parramatta City Council) on building Western Sydney's prosperity through effective urban planning and a Western Sydney light rail respectively.

a second forum will be held in Western Sydney in the latter half of 2013.

FUTURE OF THE WEST“The daily migration to the city of Sydney is draining our communities. This is simply unsustainable. We need to build strong, genuine urban centres where people can work, live and play.” David Borger, Western Sydney Director, Sydney Business Chamber

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"Stephen Cartwright's leadership has turned NSW Business Chamber into a true representation of businesses, not just here in NSW, but across the nation." Mike Baird, closing remarks

"We will see the evolution of mosaic cities. The logic of having workers commute by cars, buses and trains from the suburbs into the CBD is a nineteenth century idea. In the 21st century, we should acknowledge that if it is too difficult, and if we can't afford the infrastructure – then it is logical to move CBD jobs out to the workers." Bernard Salt, on decentralisation

"Western Sydney is a term used by media, but the people living in Western Sydney don't identify with those words. They name their suburb as their home, and can even perceive themselves as different to residents of other suburbs in Western Sydney." Dr Rebecca Huntley, on media myths

"The economic benefits of a second airport are significant. It's not just about the people working at the airport itself – we have seen businesses thrive and even relocate closer to the area." Justin Giddings, CEO Avalon Airport, Melbourne, speaking from experience

15Business Connect


Dr Rebecca Huntley

Mike Baird MPBernard Salt

David Borger


Food for thought

16 Business Connect

“… the key challenge is stemming the drain of young people leaving farming

regions in search of city-based careers.”

17Business Connect


Craig Milton, policy analyst NSW Business Chamber

the NSW food industry employs more than 160,000 people and contributes upwards of $33 billion in total annual sales and services income. however, despite the strong history of food production in NSW and australia as a whole, the future of the industry is under intense pressure. Take your pick: droughts, floods and other adverse weather impacts, government regulation and the continued concentration of market power. They all impact on food production.

For the first time in our history, Australia is trending towards becoming a net importer of food. Such a move will impact not only our economy but more broadly on Australia’s food security. Ensuring that Australia is sufficiently able to supply itself with food is vitally important and is becoming an increasing point of focus for producers and policy makers alike. As the outbreaks of mad cow disease in Europe in the 1990s and the

more recent challenges in Asia with Avian bird flu have demonstrated – a safe, secure and dependable food supply is absolutely critical to the health of Australia.

Much of the blame for the shift in domestic food production has been directed towards the major supermarket chains, placing pricing pressures on local food producers, who are already struggling with heavy competition and very small margins. This is leading to more farmers attempting to exit the industry, leaving retailers free to import a greater amount of inferior products to sell at cheaper prices than Australians can profitably and sustainably grow.

Despite NSW farmers being among the world’s most productive in terms of sustainable farming practices, access to water remains a critical issue for farming communities right across the state and throughout Australia.

The implementation of the Murray-Darling Basin Plan has been particularly concerning for food producing regions which are being forced to give up access to water despite having invested heavily in water saving technology. As inland NSW makes up the largest proportion of the Murray-Darling

Basin, most NSW river valleys will experience the largest reductions in water as a result of the plan’s implementation. Further work needs to be done in order to support these communities as they transition into an increasingly water-constrained future.

In May 2013, the Federal Government released the first ever National Food Plan to focus on all aspects of the sector by providing a ‘paddock to plate’ approach to food sector management.

The Plan reflects four priority areas, including growing exports; ensuring a thriving, competitive and profitable industry; sustainability; and continuing to provide safe and nutritious food for Australians.

Senator Joe Ludwig, former Minister for Agriculture, Forestry and Fishery stated in regard to the Plan:

"The first National Food Plan is a roadmap that will set the direction of the future of food by governments, businesses and individuals all working together. Developing food and beverage markets, especially in Asia, is a key priority identified in The National Food Plan, but also in the Plan for Australian Jobs and the Australia in the Asian Century white paper."

the five key aspects of the National Food plan most relevant to food producing businesses in NSW are:

Improving trade and export opportunities of Australian food in emerging markets;

Developing an Australian food brand;

More research funds for multiple studies into food trends, needs and preferences;

A Food Industry Advocate to encourage business to business links between food suppliers and customers;

A Productivity Commission review to cut red tape across the food supply chain to commence in 2014.

While these are important initiatives, the Plan has failed to announce any significant funding initiatives to address the critical infrastructure, industry development or skills challenges facing the sector. For NSW irrigation communities facing significant reductions in water

entitlements as a result of the Murray-Darling Basin Plan, the National Food Plan appears duplicitous at best.

There are many factors impacting on the future food security of Australia, but the key challenge is stemming the drain of young people leaving farming regions in search of city-based or non-agricultural careers, as well as attracting new interest from young metropolitan and coastal people seeking a different, rewarding career.

This requires a long term and multi-faceted approach and a key part of it is recognising the contribution the food sector provides to both the economy and health of the wider Australian population.

Food producers are sadly undervalued. They are the lifeblood of many communities across rural and regional NSW, and it is important that we all recognise the valuable role they play in not only the national economy, but also on a state, regional and local level.

National Food Plan – analysis

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18 Business Connect

Brian HalseChief Executive Officer, High Security Irrigators Murrumbidgee

Agriculture is a priority in Europe where the food shortages of war are still living memory. Likewise, America connects farming to its cultural tradition and sense of patriotism. Here in Australia, we take agriculture for granted because we traditionally export so much.

There is a squeeze on all sides of food production. Commodity prices aren’t moving, but input costs like electricity and water are going through the roof.

Consumers are attracted to the lower price of imported goods. We’re spoilt for choice, but it comes at a cost. Ultimately, the answer is not about propping up food industries with barriers and tariffs on imports. We have to find a way of making agriculture an attractive industry and lifestyle for future producers.

Tony ParleOwner, Frozen Foods Australia

We are the sole supplier of gherkins to McDonalds in Australia. While we are predominantly in the manufacturing and processing side of food, our business is vertically integrated – we grow the produce as well.

In terms of loyalty to suppliers, McDonalds is more Australian than Australian companies! McDonalds understands service and quality, and won’t make decisions on price alone. There are other major food retailers in Australia making decisions on the fluctuating dollar, which means they will change suppliers on a daily basis. As a result, we have a sweet corn plant waiting to be switched on!

It’s also costly to comply with the multiple Q&A audits demanded by retailers. Government should reduce the burden by legislating for one auditing system.

"We have to find a way of making agriculture an attractive industry"

Brian Halse (left) with Gavin Dal Broi, President of the Lachlan & Murrumbidgee Cotton Growers Association.

Business Connect


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Small retailers form the bulk of our customer base. We’re surviving because of our name and the quality of our fruit. Our produce is more than just a commodity line, unlike the fruit at the big supermarkets.

One threat to the industry is cheap imports, such as apple concentrate from China. Ultimately the customer suffers because they’re getting a low quality product. Australian producers have to meet high standards that aren’t applicable to importers. Imports also introduce the risk of bringing disease into the country, which can be catastrophic.

Small retailers can’t compete with the giants. Predatory pricing laws were a safeguard but these don’t exist anymore. We produce and ship our fruit to standards (such as maintaining optimum temperature) but the big supermarkets don’t follow the same standards – they simply display it at room temperature.

Some of the costs we bear don’t make sense. For instance, we pay high AQIS fees for every carton of fruit we export yet stone fruit producers aren’t subject to these fees. We have on farm water storage but we still get charged for water whether we use it or not.

We’re wrapped in red tape. If you supply to one of the big supermarkets, you are required to hold two audits a year, for which you pay roughly $3000 per audit. We maintain that standard as part of our membership with the FRESHCARE quality assurance so why do we need two audits on top of that?

The average age of a farmer is around 60, so we’re facing a shortfall in education. We need people who are skilled in land and labour management, and can switch between agricultural and environmental fields.

We put back into the community. We spend on transport, fertiliser, chemicals, and engineering firms for repairs. Our industry is labour-intensive so we provide jobs; extensively so in picking season. All this money gets pumped back into the community, and there’s tourism – busloads of people come to pick our fruit – plus our fruit keeps people healthy!

Producers have a future when they produce quality products, enlist good marketers and good retailers who look after their customers.

Tim Hall

Bonny Glen FruitsBonny Glen Fruits has been producing apples and cherries in the Orange region since 1973, when Sydney electrician Fred Hall and wife Pam purchased the land upon which the original orchard stands. Tim Hall discusses the challenges of a primary producer in an increasingly difficult market.

Brian Halse (left) with Gavin Dal Broi, President of the Lachlan & Murrumbidgee Cotton Growers Association.

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‘The ability to multitask effectively’ is a sought-after skill in our fast-paced corporate world – but is it a myth? Is multitasking actually increasing our workload?

One of the most common ways people are trying to cope with the realities of our dynamic, increasingly complex work environments is by doing more than one thing at a time. When we’re under pressure, our natural neurological tendency is to try to do more things at the same time. The human brain is a complex, ingenious organ but when we overload it with simultaneous activity, it simply can’t keep up – and that’s bad for business.

In the McKinsey Quarterly article ‘Recovering from Information Overload’, the authors state: ‘Multitasking is a terrible coping mechanism. A body of scientific evidence demonstrates fairly conclusively that multitasking makes human beings less productive, less creative, and less able to make good decisions. If we want to be effective, we need to stop.’

Yet the pace of our working lives quickens. Increasing workloads, higher expectations and longer hours are resulting in increased levels of stress, absenteeism and burn-out. The Potential Project’s Rasmus Hougaard believes he has the answer to this dilemma and that,

in fact, it’s been in front of us all along.

‘Mindfulness training is a rigorous, practical training in taking control of our thoughts and switching off the auto-pilot that makes us react habitually under pressure,’ says Hougaard.

‘Mindfulness training involves mental activities designed to rewire the neural networks of the brain to help strengthen mental capacity and capability. Just like you’d go to the gym to strengthen your body, mindfulness training strengthens your mind.’

It’s an approach that organisations like Apple, Google and Facebook are taking to enhance the focus and efficiency of their people, and deliver greater work/life balance.

‘Mindfulness training activities have been practised by various cultures for thousands of years,’ says Hougaard. ‘What’s new is that forward-thinking organisations are recognising the incredible power and impact of mindfulness programmes that are specifically designed to address the realities of today’s work environments.’

If you spend your day in a flurry of activity but never seem to accomplish what you need, mindfulness training might be your answer.

Rasmus Hougaard is CEO of the Potential Project. Come to the Australian Business Congress (1-2 August) to learn how corporate mindfulness training can boost your organisation’s performance.

Trainyourmind

Multitasking is a terrible coping mechanism… if we want to be effective, we need to stop.


Rasmus Hougaard

Register at BusinessCongress.com.au

TED (ted.com) is an immense source of online inspiration, boasting 'riveting talks by remarkable people, free to the world'. Business Connect selected five of the best.

Paul Bennett:

Finding design in the details (speaking at the 2013 Australian Chambers Business Congress!)

In this amusing, often moving talk, IDEO’s Chief Creative Officer shows how designers examine the human impact of a problem to answer seemingly small, universal and overlooked questions.

www.ted.com/talks/paul_bennett_finds_design_in_the_details.html

Sheryl Sandberg:

Why we have too few women leaders

Facebook Chief Operating Officer Sheryl Sandberg asks why a smaller percentage of women than men reach the top of their professions and offers three powerful pieces of advice to women aiming for leadership.

www.ted.com/talks/sheryl_sandberg_why_we_have_too_few_women_leaders.html

Nigel Marsh:

How to make work-life balance work

The author of Fat, Forty and Fired questions the traditional view of work-life balance, explaining why it’s the small things that make the biggest difference, and why the only time to change your life is now.

www.ted.com/talks/nigel_marsh_how_to_make_work_life_balance_work.html

Do you have a favourite TED talk, or source of inspiration? Email [email protected] and let us know!

TED’s Top 3Paul Bennett

business thought challengeThank you to our sponsors and speakers for your ongoing support!

John Lipsky

Jim Collins

Rahaf Harfoush

BusinessCongress.com.au

SAVE THE

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Paul Bennett

Platinum sponsor


By Luke aitken, policy Senior Manager, NSW Business Chamber

With changes of federal leadership dominating recent headlines, it’s been easy to forget that voters at the 2013 elections will likely be voting on more than just who should form the next Government.

Although speculation continues as to the exact date of the election, Prime Minister Rudd has intimated that a referendum on the Constitutional recognition of local government will likely proceed at the poll. The referendum will ask voters whether or not they agree to the financial recognition of local government

by amending section 96 of the Constitution, which deals with financial assistance to the states.

Although it has grown to be a critical partner in the framework of Australian government, the Constitution, enacted in 1900, makes no mention of local government. As a result, recent High Court cases have called into question the ability of the Commonwealth to provide financial support to councils through initiatives, such as the Roads to Recovery program, and the funding of local services such as childcare, sporting fields, swimming pools and libraries.

it’s all in the wordingThe relevant component of Section 96 currently reads:

Financial assistance to States

“Parliament may grant financial assistance to any State, on such terms and conditions as the Parliament thinks fit”.

The referendum proposes to change this section so that it reads:

Financial assistance to States and Local Government bodies

“Parliament may grant financial assistance to any State, or any local government body formed by a law of

a State, on such terms and conditions as the Parliament thinks fit”.

For and againstThere are concerns with the wording of the proposed change by a number of state governments, including NSW. Bipartisan support at the federal level has also started to slip with Opposition leader Tony Abbott raising concerns on the government’s handling of the proposal. Mr Abbott has said, “I have enormous reservations about the way the government has done this…and I say to the Australian people, if you don't understand it, don't vote for it”.

The focus for opponents to the referendum relates to the use of the words “on the terms and conditions as the Parliament thinks fit,” with opponents suggesting that such words could have wide ranging and uncertain implications for the Australian system of Federalism.

Opponents claim that as local councils are a creation of State Government, allowing the Federal Government to have direct funding power could potentially bring the states and the Commonwealth into conflict.

Any change to the Constitution can have unintended consequences. As former Prime Minister, John Howard, has stated, “…even a casual reference to local government in the Constitution would end up having legal implications far beyond what might be advocated by the proponents of such a change.”

The shift to oppose the referendum by the Federal Coalition does appear to spell disaster in terms of meeting the requirement of a double majority to pass (a majority of voters and a majority of states supporting the change).

Ultimately – and perhaps ironically – whether the referendum goes ahead or not, and whether it is supported or rejected, it is unlikely to change the operations of local government within NSW.

STORM The Local Government referendum in focus

?in a tea cup

…allowing the Federal Government to have direct funding power could potentially bring

the states and the Commonwealth into conflict.

22 Business Connect



To view the agenda please type goo.gl/WKxGr into your browser

NSW Business Chamber members receive the special rate of $999. To obtain this price you must call 02 4908 1966 and mention this ad.

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The high prevalence of people suffering mental health problems (20% of the population aged between 16 and 85) suggests that the majority of Australian workplaces are directly impacted in some way. In addition, people with mental illness are up to 50% less likely than people with no mental illness to participate in the workforce.

Research has also shown that every dollar spent on identifying, supporting and case-managing workers with mental health issues yields close to a 500% return in improved productivity (through increased work output and reduced sick and other leave).

Young people in particular face a high risk of exclusion from the labour market as a result of mental health issues. People with mental illness often experience their first episode of illness between the ages of 16 and 25 years, and the prevalence of mental illness is highest in this age group.

For young people, mental illness can significantly disrupt their education and transition to employment – this has serious ramifications for families and wider implications for the community, including business.

The majority of people suffering from mental illness do not receive any formal treatment. For example, anxiety and depression are the most common disorders but can be effectively treated, and the earlier the better. This represents an enormous opportunity for the business community and government.

In fact, evidence shows that employment plays a key role in recovery from mental illness. Employment reduces stigma by providing access to a socially-valued role, it can strengthen both self-efficacy and self-esteem, increase opportunities for social inclusion, provide structure and a reason to stay well.

As part of our Employ Outside the Box campaign, NSW Business Chamber is encouraging employers to give people with mental health issues an opportunity in the workforce.

In addition, the Australian Chamber of Commerce and Industry has partnered with beyondblue to find pathways to better deal with mental health issues in small businesses. beyondblue has developed a series of free online programs which include easy-to-follow activities, scenarios and filmed segments that build a solid understanding of depression and anxiety in the workplace. These resources can be accessed on the beyondblue website www.beyondblue.org.auFor more about the Employ outside the Box campaign, contact Nick Minto, NsW Business Chamber’s Policy Adviser, Workforce skills on 02 9458 7267 or [email protected]

Mental illness in the workplace - for years it's been seen as something we don't talk about; something that happens to other people; something to sweep under the rug. But, with research showing Australian businesses lose over $6.5 billion each year by failing to provide early intervention or treatment for employees with mental illness, it's time to act.

24 Business Connect

ABOUT MENTAL HEALTH

TIME TO GET

SERIOUS


24 Business Connect

25

EVERY DOLLAR SPENT ON IDENTIFYING, SUPPORTING AND CASE-MANAGING WORKERS WITH MENTAL HEALTH ISSUES YIELDS CLOSE TO A 500% RETURN IN IMPROVED PRODUCTIVITY.


25Business Connect

is comingSuperStream

in the autumn edition of Business Connect, we told you what the introduction of MySuper means for employees and employers. in part two of our Super series, we cover SuperStream.For many employers, superannuation is more trouble than it should be. Not all employees are in the same fund, different funds want different things and they want them their way. That’s all about to change with SuperStream. SuperStream was the second major set of recommendations made by the Cooper Committee which reviewed the superannuation system. It is one of the biggest changes to happen to superannuation since the late 1980s, when superannuation expanded to cover most of the workforce.

SuperStream will affect the way nearly every employer meets its superannuation contribution obligations. Currently a mix of paper and electronic transactions, superannuation is moving into the 21st century. The processes of enrolling new employees and making contributions will be electronic and paperless.

Choice contributions will also be easier too because the employee should already be set up with their chosen fund as a member and will just need to provide their employer with the contributions information. The SuperStream rules will apply to retirement savings accounts and self-managed superannuation funds

(except an employer’s own SMSF) as well as the multi-member funds which are administered by the Australian Prudential Regulatory Authority (APRA).

What is SuperStream?SuperStream is a standard transaction format using standard terms, messaging language and packaging rules for data and payments transactions. It is built around “Standard Business Reporting” (SBR) which is designed to integrate with accounting systems using standard terms. SBR is not just about superannuation - it is already used by various government agencies and is intended to spread much more widely.

The idea is that the necessary information to calculate and make contributions and transfer contributions data is tagged in the enterprise’s payroll and/or accounts system so that it can be calculated, checked and then transferred at the press of a button. An employer sends a message to its bank to transfer contributions money to the relevant fund or funds and a data message to the fund or funds with the details about the contributions. The bank transfer message and fund data message are linked with a unique 18 digit number so that they can be reconciled in the fund and allocated to the relevant member or members.

The SuperStream network is being built now. The network is intended to employ a small number of “gateways” to receive incoming messages from employers (or funds transferring accounts to another fund) and send them to the destination fund. Funds would sign

up with one of these gateways.

Most employers are “participating employers” with one fund, and sometimes more. Under this gateway scenario, the employer could send all contributions data to the gateway of the fund in which it is a participating employer. Contributions data would be sent by the gateway to that fund or any other funds which have signed up with it and to the relevant other gateway for funds which are signed up elsewhere. Confirmation and error messages would come back the other way. Some transactions, such as overpayments, will remain outside SuperStream and will continue to be processed manually.

The rules are laid down in the Superannuation Data and Payment Standards 2012. These prescribe contributions payments forms (BPay or direct entry), standard information requirements and the language and formats to be used. There are also some transitional arrangements where there is existing electronic commerce.

obligations on EmployersSuperStream compliant enrolments and contributions are being phased in. Employers with twenty or more employees will have to have their contributions and enrolments SuperStream compliant from 1 July 2014. Smaller employers must have their contributions and enrolments compliant from 1 July 2015. “Compliant” means that new employee information and contributions reach the fund in a complying form.

Business Connect


26

is coming

Just as with making contributions, the employer can currently choose to use a third party to actually communicate and transfer money and information to the funds, and as now, the employer is responsible for the outcome even if it uses a third party. There are penalties for breaches, although the ATO is likely to focus on educating and assisting as SuperStream comes on line.

Who benefits from SuperStream?The main benefit from SuperStream is to the fund member. It has been estimated that it costs funds between $5 and $10 to manually process transactions, and this is money is taken from contributions. Manual transactions are also slower. Contributions take longer to reach the member’s account and are invested later.

Employers will also benefit from SuperStream. Paper transactions are expensive for employers and different rules for different funds costs administrative time. These complications mean that many employers are dependent on a key person who understands what needs to be done for contributions or to enroll a new employee. Employees

with chosen funds do not always supply the necessary information, or supply wrong information, and, although it is not the employer’s obligation, the employer often spends time chasing up these details.

What do employers have to do to become SuperStream compliant?There is no one answer to this question. It depends on what systems are in place now and how a particular enterprise wants to address SuperStream. Enterprises using generic accounting and payroll systems will most likely look at the updates offered by their supplier, and perhaps other suppliers. Enterprises which are mainly paper-based may decide to move on line, and perhaps to use the Small Business Superannuation Clearing House, or to have their accountant or bookkeeper undertake their superannuation transactions.

Where do employers find out more about SuperStream?Default funds will start contacting their participating employers with information about what they should be doing to set up with the fund for SuperStream. During the rest

of this year, funds are transitioning into SuperStream using rollovers and inter fund transfers to come up to speed. This period will also enable testing the network, so it is likely that funds will not be talking to their participating employers in earnest until early next year.

The NSW Business Chamber is following the development of SuperStream closely and will also be providing information to members as there are developments.

Dick Grozier Director Industrial Relations NSW Business Chamber

The Australian Tax Office is overseeing the introduction of SuperStream. Information is available at ato.gov.au/Business. Information can be found by searching on “Superannuation data and payment standards”.

The Australian Tax Office is overseeing the introduction of SuperStream. Information is available at at ato.gov.au

SuperStream will affect the way virtually all employers meet their superannuation contribution obligations.

Business Connect


27

the restaurant and catering industry is a major boon to the australian economy, offering valuable opportunities for people entering the workforce for the first time. yet lean margins and an increasing failure rate for new entrants mean the industry is facing a moment of truth – and penalty rates are at the heart of the issue. opening doors on Sundays is proving unaffordable for many in the industry.

The argument for compensating employers for working weekend shifts is moot if the employer can no longer afford to open its doors on a sunday.

NsW Business Chamber has been working closely with Restaurant & Catering Australia (an association that represents 35,000 restaurants and catering businesses nationwide) to address this critical situation. on 8 March 2012, The Chamber (via our affiliated industrial organisation, Australian Business Industrial), R&CA and 16 individual restaurant operators applied to Fair Work Australia to have the terms of the restaurant Industry Award 2013 redressed.

Essentially, the Application seeks to vary weekend penalty rates with rates that only apply if the employee is required to work more than five consecutive days (see tables). The reasoning behind this is threefold:

1) The restaurant industry's core trading times predominately occur during weekends and weeknights. The Award penalises restaurants for trading in their core working hours by imposing penalty rates on weekends and weeknights.

2) saturdays and sundays are no longer the traditional ‘days of rest’ for many individuals, particularly those to whom this Award applies.

3) Weekend and night shift penalty rates have forced many restaurant and café owners to either close their businesses during peak trading times or, alternatively, work in their businesses themselves in order to avoid prohibitive and penalising labour costs.

Changes to minimum wage rates for small businesses

The Application also seeks to exclude small businesses from the minimum wage rates contained in the Award. Instead, the Application proposes that small businesses only be required to pay the Federal Minimum Wage to all staff. The benefits of this approach are:

1) The provision of additional flexibility in the rates offered by small business will allow small businesses to employ more people.

2) The lowering of minimum wages for small businesses will allow employment costs in rural and regional areas to be determined partly by market forces, rather than a generic rate which has been applied across metropolitan and rural/regional areas alike. This is of particular importance in recent years where large parts of rural and regional Australia have been drastically affected by natural disasters.

PricewaterhouseCoopers has forecast that, if adopted, the proposed changes would result in the creation of up to:

• 3,814 additional jobs in the industry in the first year, and 7,849 additional jobs in the industry by 2030;

• an additional 6,953 jobs across all industries in the first year;

• a fall in CPI; and greater economic activity and an increase in GDP.

The Fair Work Commission’s judgement is expected in the months ahead.

Luis IzzoSpecial CounselAustralian Business Lawyers & AdvisorsVisit ablawyers.com.au for more information

Cateringfor a revival

Table1: Presently, penalty rates are imposed on the following basis:

Shift Penalty

Saturday 25%

Sunday 50%

10:00PM – 12:00AM (weeknights) 10%

12:00AM – 7:00AM (weeknights) 15%

Table 2: The Application seeks to replace the above penalty rates with a penalty rate that only operates if an employee is required to work on more than 5 consecutive days. The new provisions would apply as follows:

Shift Penalty

First 5 days of work (regardless of the actual day work is performed)

N/A

6th consecutive day of work 25%

7th consecutive day of work (and subsequent consecutive days)

50%

28 Business Connect



The argument of compensating employees for working weekend shifts is moot if the employer can no longer afford to open its doors on a Sunday.

29Business Connect

The ACTU, along with member unions, is seeking a raft of changes including an increase to apprentice wages rates ranging from an approximate 30% increase for first-year apprentices and 65% for adult apprentices. A number of union parties are also seeking changes to modern awards to remove what they see as barriers to competency based wage progression.

The unions argue that low apprentice wages impact on the ability of apprentices to ‘make ends meet’. At the heart of this issue is whether apprentice wages are a ‘training wage’ or a ‘living wage’.

Put another way, apprentices are being paid to learn. For this reason the rates of pay are lower compared to other workers. Employer groups, including Australian Business Industrial, believe that the relationship between apprentice completion rates and their rate of pay is a complex issue. A change to wage rates will not necessarily solve the challenges that the apprentice system faces.

a sensitive situationAccording to Nick Minto, Policy Advisor with NSW Business Chamber: “Taking on apprentices is very price sensitive and any increases to the overall cost of apprenticeships in the first year will most likely result in fewer apprenticeship offerings."

rewarding skillThis case also seeks to challenge the practice of apprenticeship progression based on a fixed term of training. The ACTU is proposing that provision for competency-based progression be included in relevant Awards. Australian Business Industrial is supportive of the concept as a training objective, but believes it

should be facilitated by the relevant State/Territory training systems.

a question of authorityThis case raises the broader issue of responsibility for administering change. Other than wage rates, a significant number of changes sought by some of the union parties are currently covered in the apprentice training contract which operates under the relevant State/Territory Training Authority. Yet this case seeks to place the decision in the hands of the Fair Work Commission; effectively blurring the line between what is in the purview of the State and Territories, and that under Federal bodies.

taking actionNSW Business Chamber believes that substantial increases to apprentice wages would have a detrimental impact on new apprentice commencements and current apprentice members – exacerbating the skills shortage. The Chamber, through its industrial arm Australian Business Industrial, advocated against such increases by making submissions and participating in the hearing before the Fair Work Commission. With a decision anticipated by November 2013, the outcome of this case could have major implications for employers and apprentices alike. Members on industrial services will be informed of the outcome. To find out more about the Chamber’s available industrial services, please call the Business Hotline on 13 26 96.

Sarah haynes, Senior associate australian Business Lawyers & advisors

visit ablawyers.com.au for more information, including a review of the apprenticeships Wage Case in episode 4 of the video series, From the Couch.

the unions have placed apprentice reforms firmly on the table in a landmark case before the Fair Work Commission. if the unions’ case is successful there will be significant ramifications for employers.

A new landscape for apprentices

30 Business Connect


31Business Connect


The wine that changed my life was a bottle of 1970 Leo Buring DW110 Riesling. I’ve never wanted to be anything but a winemaker since!

From humble beginnings... we’ve evolved from a weekend venture for self-professed hobby winemakers into a market leader. When we picked our first vintage in 1972 (with the help of an old Bentley), we only produced reds but we have a nice regional blend now. Winemaking has been around for thousands of years and, though appreciation of a fine wine may not have changed, new technology

and philosophies are taking the industry in a new direction.

It's a tough business. The Hunter Valley is one of the smallest wine growing areas in the country by area but there’s a lot of quality here, with hundreds of wineries ranging from family boutiques to the major producers. With so much information on wine available these days, customers are becoming increasingly discerning. People are spoiled for choice so you have to do something special to stand out.

Going green. Last year we received a $262,747 grant from the Australian Government’s Clean Technology Food and Foundries Investment Program to support implementation of a number of energy saving technologies with an anticipated reduction of 60% in annual electricity costs. This included upgrading our old refrigeration plant which accounted for 66% of our overall energy use with a more efficient unit, replacing halogen lighting with more efficient induction units in our winery and warehouse and installing voltage optimisation.

CHIEF WINEMAKER/MANAGING DIRECTOR IAIN RIGGS TELLS THE STORY OF HOW HUNTER VALLEY-BASED BROKENWOOD WINES IS AT THE VANGUARD OF WINERIES CHANGING AN ANCIENT INDUSTRY.

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as the new financial year gets into full stride, growing businesses may be considering leasing new or additional premises. While this can be an exciting time, the first stage of the leasing cycle holds many potential pitfalls to negotiate.

If you have located a premises and negotiated commercial terms for a lease, the landlord’s agent will normally ask you to pay one month's rent and sign a “pre-lease agreement” (sometimes called “letters of intent”, “agreements to lease”, “heads of agreement” or even “Invitation to make an offer to lease”).

Whenever leasing premises, the agreement must be in writing, enforceable and registered against title if it is a lease for a term of three years or more (including options). You should register a lease of any term in any event.

Normally, landlords and/or their agents instruct their lawyers to issue a draft lease agreement (and disclosure statement if the lease falls under the Retail Leases Act, 1994) once a pre-

lease agreement is signed (and at time, monies paid in trust). Although the pre-lease agreements are essentially a summary of commercial terms (such as rent, incentives, outgoings, term, security and so on), they are not a comprehensive document setting out all rights and obligations between the parties to a lease and normally, they are not in themselves sufficient to bind either party to lease the premises.

take advice before signing! The pre-lease agreement may appear innocuous needs careful review. It holds legal and other ramifications for the proposed tenant.

oral or incomplete pre-lease agreements provide uncertain grounds when

binding relations exist despite expectations that may arise.Unlike sales and purchases of land, where procedures are in place to create binding relations, there is no standard procedure in leasing. Even delivery of

a signed pre-lease agreement must set down that procedure and consideration must be given by members on whether the procedure suits their needs and desires. An example is where signatories are unavailable or there is urgency to move into the premises or commence a fitout.

Often, the pre-lease agreement sets out the binding nature of the agreement and/or the manner in which the parties becomes bound to each other. This is often in small print! There are vast differences in how landlords or their agents express this information. One pre-lease agreement that I have seen stated that the landlord was not bound to proceed but the tenant was bound to proceed with the lease, despite not having received the lease terms. Naturally, this was removed before the client signed the pre-lease agreement.

The Courts start with the premise that parties who have signed a pre-lease agreement have not reached a concluded bargain unless and until a formal contract is signed. Of course, the words in the pre-lease agreement

1

Easing your growing painsS pa c e d o ut

32 Business Connect


will be important in the Court’s deliberations and there are exceptions.

We recommend avoiding costly disputes to ensure a realistic, lawful and clear procedure is set down in the pre-lease agreement to define obligations of both to each other.

holding expectations that you are entitled to lease the premises after simply

signing a pre-lease agreement may have undesired consequences especially if you budget, incur expenses, terminate leases and take other action relying upon a pre-lease agreement.There have been various cases before the Courts whereby plaintiffs (normally tenants) claim an enforceable arrangement with the landlord by simply relying on the agreement.

In one case, the plaintiff expended monies in undertaking a fitout of the premises and yet the Court ruled that no enforceable or binding arrangement was in place, and all monies spent was a “gamble” that a binding arrangement existed.

There have also been cases where the Courts have considered a pre-lease agreement as binding but normally, the parties have agreed to the terms of the lease by this stage and one party (normally the tenant) has signed and delivered the lease to the landlord together with other requirements.

You should avoid exposing business to losses. Do not make any irreversible plans for your business operations (such as incurring expenses, budgeting

or even terminating current leases) until binding relations are in place and confirmed by the landlord.

Beware of re-negotiating terms of a lease inconsistent with the pre-lease agreement.

We have noted that, on many occasions, parties sought legal advice after signing a pre-lease agreement only to realise that certain matters set out should have been clarified or changed. For instance, we often see in pre-lease agreements that a tenant must put forward a security for their obligations under the lease and this security is often an unconditional bank guarantee.

The words “without an expiry date” often follow and the ramifications of those words are not considered

at the pre-lease stage. At times, banks are reluctant to provide a bank guarantee without an expiry date.

Although the pre-lease agreement is not binding and parties are open to re-negotiate lease terms contrary to stated terms, re-negotiating often causes delays, strains relationships with the landlord, and gives the landlord an opportunity to demand “something else” in return.

It is easier to ensure the pre-lease agreement is fair, reasonable and

achievable in its requirements so that when the lease issues, you are not re-negotiating those matters and give the landlord the chance to demand more.

if during the term of a lease, parties come into dispute about interpretation of

lease provisions the pre-lease agreement may influence a Court’s determination. Interpretation of contracts by the Courts is a complex subject. When parties are disputing the interpretation of a provision in the lease, and if the provision can be interpreted in multiple ways, the Court will look at many other factors in determining the operation of the lease provision, including a pre-lease agreement.

Contact Warwick La Hood, Director of the Property Law practice at Australian Business Lawyers & Advisors on 02 9458 7375 or [email protected] if you would like to discuss any commercial leasing issues.

2

3 4

Take advice beforesigning

The pre-lease agreement may appear innocuous but it holds ramifications for the proposed tenant.

33Business Connect



New year's resolutions rarely make it into a second

week, but making it your business to know about available

Government concessions can help your business reduce tax, improve cash flow and lower compliance costs – now that's a resolution

worth keeping!

34 Business Connect

Get financially fit! any business with an aggregate

turnover (i.e. turnover of the entity and any connected entities) of less than $2 million, excluding GSt, may be eligible for a raft of government concessions. a good accountant can help you to take advantage of these opportunities.

What concessions are available?

dEprECiaBLE aSSEtSDepreciable assets, for example plant and equipment, (excluding motor vehicles), costing $6,500 or less can be written off as a tax deduction immediately. Other assets are pooled and are depreciated at a flat 15% in the first year of purchase regardless of the date of purchase. The remaining balance is then depreciated at 30% in following years. This means that assets purchased in the second half of the tax year benefit from a higher tax write off in the first year than is available to larger companies.

WritE-oFFS There is an immediate write-off for the first $5,000 of the cost of each motor vehicle costing more than $6,500 bought from 1 July 2012.

tradiNG StoCK In certain circumstances small businesses do not have to account for changes in trading stock or conduct a year end stock take. This concession is available where the reasonably estimated value of trading stock at year end is within $5,000 of the opening stock value at the start of the year.

prEpaid ExpENSES Small businesses can claim an immediate tax deduction for

prepaid expenses incurred up to 12 months in advance, such as interest, insurance and rent.

ato audit There is a potential reduction from the ATO on the timeframe it can audit and amend the tax assets of small businesses. The standard four years can change to just two years. Certain high risk categories of taxpayer are ineligible for this concession.

CapitaL GaiNS tax Small businesses do not have to keep their net assets within $6 million to be eligible for the Capital Gains Tax (CGT) concession. These concessions may reduce or eliminate any CGT liability on disposal of business assets and allow up to $1.255 million (2012/13) of the proceeds to be contributed to superannuation.

GSt tax CrEditS The small business can choose to apportion GST input tax credits for purchases that are only partly creditable (e.g. because of some private usage) on an annual basis. This can improve cash flow and reduce compliance costs as the full GST credit can be claimed on the monthly or quarterly BAS and then adjusted in a later BAS (and GST repaid) when the annual tax return is prepared.

iMprovE CaSh FLoW Small businesses can choose to account for GST on a cash basis, which may also improve cash flow if the business has a high level of debtors or defers collection of debts until the new financial year.

Small businesses can elect to pay GST by quarterly instalments, based on the previous year’s GST

liability. This may also improve cash flow for growing businesses.

Small businesses can elect to pay PAYG instalments based on an estimated tax liability calculated by the ATO. The calculation takes into account the prior year's tax and inflation. Small businesses with increasing profitability will obtain improved cash flow from this measure.

FriNGE BENEFit tax

There is no FBT on car parking provided to employees, provided the employee’s car is not parked at a commercial parking station.

David Hunt and Phillip HuntPartnersHunt Professional Group

Visit huntprofessionalgroup.com.au or contact David Hunt on 02 9221 6699. Otherwise please email [email protected] for further assistance.

aSK uS hoW is an online library of practical articles, resources and tools designed to help members better manage and operate their business. Ask Us How provides reliable, expert advice and information across a diverse range of subjects from important areas required by the relatively new or start-up business through to more complex issues that affect day-to-day organisational management and visionary strategic planning.

visit nswbusinesschamber com.au and follow the ask us how link on your member dashboard.

35Business Connect



AND THE WINNER IS...Why SydNEy ShouLd thE hoSt thE WorLd ChaMBErS CoNGrESS

Bidding is a competitive business – good is simply not good enough. That’s why the NSW Business Chamber went the extra yard, leading a national delegation to the arid climes of Qatar, where the 8th World Chambers Congress was hosted earlier this year.

Put simply, the Congress is the only international forum for Chamber leaders to share insights, discuss innovations, and address the latest business issues sweeping the world. With the Italian city of Torino set to host the 9th World Chambers Congress in 2015, Doha was the Chamber’s last chance to learn everything about a Congress before submitting Sydney’s bid for 2017.

“We’re not leaving any stone unturned,” said Stephen Cartwright, CEO of the NSW Business Chamber. “We spoke extensively with other delegates, watched international speakers on

centre stage, and manned a display promoting Sydney - alongside 80 competing exhibitors.”

“We were particularly impressed with how chambers in different countries are tackling a variety of issues, including skills shortages, youth employment, productivity, and technology solutions for business.”

Cartwright is adamant that the Congress is a clear opportunity for growing the influence of Australia within the international community. “As a G20 nation, there has never been a better time for the Australian chamber movement to unite and show confident leadership. The Congress is an opportunity to show the international community our prowess in business, and create opportunities through collaboration.”

Chambers of Commerce from every corner of the world converge on a prominent city every two years. The World Chambers Congress is a spectacle and more - focusing the chamber movement on global trends in business, world's best practice in the Chamber Movement and casting a spot-light on the host city. NsW Business Chamber believes it's sydney's turn…

2017 World Chambers Congress: what’s next?As the General Manager of strategic Initiatives at NsW Business Chamber, Bronwyn Dallow has been tasked with overseeing sydney’s bid for the tenth Congress – a campaign that has been strengthened through a strategic partnership with Business Events sydney (BEs).

“The bid will be lodged by october next year,” explains Bronwyn. “We will then send a representative to make a public presentation to the members of the WCF General Council – they vote, with the winner announced in November 2014.”

36 Business Connect

While in Doha, the NsW Business Chamber contingent accepted the 'Best small Business Project Award' from the World Chamber Federation. The Chamber’s web-based diagnostic tool, ‘Business Vitality’, enables subscribers to assess the health of their business. This is the second time in as many Congresses the NsW Business Chamber has taken out an award on the international stage.

Right: General Manager of Australian Business Consulting & solutions, Paula Martin (pictured centre) accepts the World Chamber Federation Award, joined by stephen Cartwright, CEo of NsW Business Chamber (right), and fellow delegate, Lars-Kare Legernes of oslo Chamber of Commerce.

BuSiNESS vitaLity

Are you a small business owner?

Do you need information to help you run your business?

Do you need to find assistance to resolve a dispute?

Do you have a dispute with a government service or another business?

Do you have an issue with regulation that impacts on your business?

The Australian Small Business Commissioner can help.

Contact us on 1300 650 460 or at [email protected].

For further information and updates, visit www.asbc.gov.au and sign up to the Commissioner’s newsletter.

37Business Connect


The next phase of NSW Business Chamber's Business Awards program commenced on Friday 21 June with the Central West Orana Business Awards.

The evening at Orange’s Highlands Heritage Estate brought together the best of business in this distinctive region that stretches from Lithgow to Bourke.

Winners included a young entrepreneur who grew his technology company into a thriving million-dollar business and the Local Chamber that doubled its membership through innovative offerings.

Enter now!Entries are now open across the state. Award winners will converge on Sydney in November for the State Business Awards, a celebration of the best of business in NSW.

visit businessannualawards.com.au for key dates for your diary.

“It’s a fantastic acknowledgement of the team and all the people who have helped us get to this point.”

Joel Bones, WHK Central West, Dubbo

Winner, Young Business Executive (18-35)

“This is recognition of the hard yards we’ve put in over the past three to four years. It’s also for our clients – without them we wouldn’t be where we are today.”

Daniel Gordon, Macquarie Regional Technology, Gilgandra

Winner, Young Entrepreneur (18-35)

“It’s about resilience, determination, knocking on doors and educating people in the process.”

Sharon Winsor, Indigiearth, Mudgee

Winner, Business Leader

“As any business owner knows, you don’t leave work at night, you take it with you. It’s great to be recognised among the amazing businesses in our region.”

Jenny and Todd Raffen, Almighty Industries, Orange

Winner, Excellence in Business Ethics and Employer of Choice

“Awards like this encourage us to keep going. We have a lot of competition so we’re always striving to stay ahead. ”

Elie Issa, Elie’s Café, Bathurst

Winner, Excellence in Small Business

“I think this is primarily about our future focus: we think about the solutions businesses are going to need. Our outlook is not just about the here and now.”

Ben Bardon, Skillset Limited, Bathurst

Winner, Excellence in Innovation

“We have a very hard-working committee who deliver positive things for small business now and for the future of Lithgow businesses. We help our members to stay in there and keep going because it’s very hard out there.”

Sally Taylor, Lithgow Business Association

Winner, Local Chamber of Commerce

photographer: robert Bruce

Gold in the Colour City

Central West Orana gets awards program underway

39Business Connect


memberswelcome newSvitzer Australasia

Footprints Child Care Pty Ltd

Wagga Wagga Early Years Learning Centre

Anne Sharkey and Associates

Write for Impact - Business Writing Essentials

Carroll & O'Dea Lawyers

Nationwide Freight Services

Blue Water Dental

NFP Connect

Ballina Beach Village

Ultra Lubricants

Sublime Point Cafe

DC Resourcing Pty Ltd

UNSW Canberra

Trend Corporate

Jobs In The Hunter

North Coast Party Hire

Energy Industries

Synergy Business Centres

W Clark Pty Ltd

Glenrock Country Practice

Bridges Financial Services

Nordarcon Pty Ltd

Odyssey Financial Management

SCU Village

Direct Wholesale Services

Smiths Office Solutions

Behre Dolbear Australia Pty Ltd

Clear Coaching Solutions

Coalface Magazine

Brickworks Limited

North Western Surveys

Soap Presentations

Assetlink

Undercover Canvas

Kongsberg Protech Systems Australia Pty Ltd

ACRS Pty Ltd

Westlink

Morgan Street Health Care

Emmy Etie Photography

SouthTech Systems

Accord Property Services Pty Ltd.

Why Documentaries

Bakers Delight Dural/Kellyville

Parramatta Eels RLC

Sovereign Inn Wollongong

Caresouth

Cashmere Baby

Integral Training Solutions

Tek2U

Set4life Financial Solutions

Ansarada

Sitesuite Australasia

Stellar Education Australia Pty Ltd

Audio Visual Events Pty Ltd

Clarence Valley Couriers

Sunsuper

Pfeiffer Property

PowerPlus Lighting & Electrical Suppliers

Sentia Australia Pty Ltd

PC Dictation

Hampden Bridge Child Care Centre

Herman Chow & Co

Hudson Global Resources

Ice Design Pty Ltd

Insurance Australia Group

Talent Code Pty Ltd

MBDA Australia

Finlease (Australia) Pty Limited

CollabIT

MyTaggles Pty Limited

Peter Davies Real Estate (The Professionals)

Bolin Accountants

The Speakers Practice

Umwelt (Australia) Pty Limited

GENESIS Fitness Clubs

Humanoeuvre

TransACT Capital Communication

Pirtek Australia Franchise Group

Magnetite (Australia) Pty Ltd

Lasertag Wagga

Mind Blank Inc

The Salvation Army Australian Eastern Territory

Visionary Accountants

McKinnon Direct

Legrand CRM Pty Limited

See Thru Cleaning Pty Ltd

Combined Business Chambers of Randwick City

Wilsons Holden, Mitsubishi and Proton

Limeworks

Qantas Link

All Financial Services (NSW) Pty Ltd

Beautiful Things By

Minino Management Pty Ltd

Altogether Beauty

Hunter Volunteer Centre Inc.

Australian Ultimate Suspension Pty Limited

McGrath Estate Agents


40 Business Connect

membersThe X-Ray Group Pty Ltd

Ness Consulting Pty Ltd

Sophie Mill

Indra Australia

New Zealand Trade & Enterprise

University Of Sydney

Grayking Interior Supplies

Axsys

ISCA

Concept Paints

Boval Engineering Pty Ltd

ACS Foundation Ltd

Allripe Pty Ltd

Rapsey Griffiths Insolvency & Advisory

GovReports

Golden Chain Motor Inn

Shangri-la Hotel Sydney

CGA Trading Pty Ltd

Warrigal Employment

M & D Bulk Haulage Pty Ltd

The Lido Group Pty Ltd

Nova Air and Electrical

Yass Valley Chamber Of Commerce Incorporated

Exectronics

Cardno (NSW/ACT) Pty Ltd

Go Get

MBM

Scallywaggs Gymnastics

Expr3ss! Pty Ltd

Royal Wolf Australia

Teleplan International

Australian Dental Association (NSW Branch)

Australian College of Commerce and Management

Illawarra Flame Tree Coaching & Development

Prioritised

Hypro (Aust) Pty Ltd

Tweed Growers

Axiom Custom Business Solutions

Southern Asset Services

Barup Bullbars Pty Ltd

CREAX Pty Limited

Australian + New Zealand Defence Directory

SMT

GA Hayward Pty Ltd

Narrabri & District Chamber of Commerce Inc

John Hunter Children's Hospital

Superior Scaffolds Illawarra Pty Ltd

Destination Port Stephens

Evolve Housing

Downer EDI Mining Pty Ltd

Southlake Business Chamber & Community Alliance

Karuah Chamber Of Commerce Incorporated

Ranger Industrial Supplies

Tweed Shire Council

Investec Bank (Australia) Limited

Ungooroo Aboriginal Corporation

Pass the Platter

Northcott

Environmental Property Services (Aust) Pty Ltd

Calvert Plastics

Avanser Pty Ltd

GPB Partners Pty Ltd

Deloitte Touche Tohmatsu

PricewaterhouseCoopers

Urban Rituelle T/A Kalish Trading Pty Ltd

LIFESPRINGS Mineral Products P/L

Sydney Insurance Brokers Illawarra P/L

Morgan Engineering

Savtech Systems Pty Ltd

Ausoil Pty Ltd

Australian Labour & Employment Relations Association of ACT

Communications Design & Management Pty Limited

Griffin Legal

Defence Reserves Suport ACT/SE NSW

Zhuchi

SoulFarmer

Real Estate Institute of the ACT

Spotless Services Australia Ltd

Capital Hotel Group

Moorebank Intermodal Company Limited

ACT Rugby Union Club Inc

Vitaman Global Pty Ltd

Kids of The Castle Occasional Care Centre Inc

Ultimate Security Services Pty Ltd

Newcastle City Holden & Great Wall

Bottrell Business Consultants Pty Ltd

Dawson and Partners

Elevating Work Platform Association of Australia

NSW Business Chamber welcomes the following new financial members during the first quarter of 2013. The Chamber has reached a new membership milestone, surpassing 14,000 members for the first time in its history. Every member strengthens a collective voice that is improving the business environment in NSW.


41Business Connect

Australian TradeLinks is an Australian Chamber of Commerce and Industry initiative with a tagline that says it all – ‘Making trade with Australia easy.’

Australian TradeLinks offers a business-to-business matching service and an extensive knowledge centre. You can find international suppliers or buyers for your products or services, learn how to navigate tricky local customs, and avoid legal traps. And the best part? Registration is free for Australian companies.

Until now, exporters and importers didn't have a central hub to find information from all the relevant government departments and not-for-profits (such as the Association of Freight Forwarders) – nor could they find each other and exchange information. By matching buyers to suppliers, Australian TradeLinks eliminates the middleman

and helps businesses to improve their export capability and enhance international trade relationships.

The ExportCheck diagnostic tool uses award winning software to evaluate Australian businesses export readiness and provides recommendations for future success. Australian TradeLinks was launched internationally by the International Chamber of Commerce at the 2013 World Chambers Congress in Doha. At the time of writing, 76 international companies have already signed up. The customers are there, Australian Trade Links will help you find them!

Simply visit australiantradelinks.com.au to start the journey.

Contact Ian Bennett, Senior Manager, International Trade for more information on 02 9458 7443 or [email protected].

international trade once involved taking to the high seas, risking pirates, scurvy and then - if you made it to land at all - negotiating the local customs so you weren't left throwing rotten cargo overboard! While those days are long gone, barriers to trade still remain. Who can exporters and importers contact when they need to know about new markets? and who can help them negotiate all that red tape? australian tradeLinks has the answers so you won't have to walk the plank.

By matching buyers to suppliers, Australian TradeLinks eliminates the middleman and helps businesses to improve their export capability and enhance international trade relationships.

“”

42 Business Connect


Business Connect Issue 91

Documents

Transcript of Business Connect Issue 91