Let's Talk Business June 2015

Also inside this issue

Page 2 • Taking The Lead

Page 3• Client Spotlight: Welding Equipment

Hire and Alpine Fresh

Page 4 • The Fraudster Within

Page 5 • New ATO Phone Scam• Budget Watch

Page 6 • Migrant Farm Workers

Page 7 •The Importance Of Business Intellectual Property

Page 8• Let’s Talk Powers

JUNE 2015 Issue

“Outstanding leaders go out of their way to boost the self-

esteem of their personnel. If people believe in themselves, it’s

amazing what they can accomplish.” Sam Walton - Walmart Founder

S TA N D I N G O U T F R O M T H E C R O W D

LET’S TALK...BUSINESS Page 2

by Ian CongramManaging Director POWERS ACCOUNTANTS & ADVISORS

TAKING THELEAD

As a leader, you are not only responsible for the strategic direction of your business, but also for the success of your team. All too often we hear stories of poor leadership, which in most cases leads to loss of team members, low levels of innovation and overall unhappiness of team members. Regardless of your role, it is important to understand that how you treat and interact with your team can have a significant impact on business success.

When good leadership is in place in a company, it can be felt throughout the entire organisation. With good leadership, corporate culture isn’t forced, it is developed.

Communication is daily and open. Everyone understands the vision and goals of the organisation and everyone has input into how they can be improved. Employees feel valued in their role, that they are making meaningful contributions and that the work culture is of a positive nature. Employees are more likely to value their jobs higher and if they feel that they are valued, they are far less likely to look for other employment. Employees are encouraged to compete with their personal best to get ahead and they understand that helping their co-workers to succeed is the best way to get ahead themselves. If your business is one which thrives on customer service or client relationships, your employees will be the face of the business. If your team looks as if they love their jobs, are engaged and are happy, this will reflect well on your business reputation.

The result of good leadership is high morale, good employee retention and sustainable long-term success.

Bad leadership can also be felt throughout the entire organisation – only not in a good way. Corporate culture becomes a meaningless term where leaders claim it exists

while employees shake their heads in frustration. There is a lack of clear, consistent communication from leadership to the employees. As a result, the office is run by rumour mill, politics and gamesmanship. Employees are uncertain of the company’s goals and objectives for success and they have no idea how they fit into that picture, or what their level of importance is toward making it happen. Decisions for promotions are not based on integrity or talent, but rather are based on who can talk the biggest talk or who is deemed to be the least threatening to the current leadership team. The result of bad leadership is low morale, high turnover and a decreased ability to have any sustainable success.

Companies simply cannot afford to have poor leadership if they want to truly succeed – and not just in terms of financial success. Success for a company is having a good product or service that adds value to the lives of its customers, while providing a positive working environment that allows employees to grow and flourish in their talents and abilities as well as their personal value system, all while generating a profitable return for shareholders. If a company isn’t doing all three of the above, then it isn’t truly successful. Employees cannot flourish under poor leadership and when they are faced with having to follow poor leaders, companies risk losing their very best and most talented people.

Don’t risk allowing poor leaders to lead your organisation. For anyone who is ever granted the opportunity to take a leadership position, remember that being a true leader doesn’t come from a title; it is a designation you must earn from the people you lead.

Speak to your Powers Advisor today about how you can create better leaders in your business.

Good Leaders are invaluable to a Company. Bad Leaders will destroy it.

“True leadership is about helping people reach places they didn’t know they could go.”Call Warwick French on 07 3906 2888 to find out how Powers Wealth can help you reach those places.


Alpine Fresh is a 100% Australian owned refrigerated transport company carrying refrigerated goods from Brisbane to North Queensland, Sydney, Melbourne and Adelaide.

With a head office and depot in Brisbane as well as depots in Mackay, Townsville and Sydney and agents in Melbourne and Adelaide, Alpine Fresh are one of Australia’s most reliable refrigerated transport companies with 30 prime movers and 70 trailers in operation.

With clients varying from local produce growers to major meatworks and Coles supermarkets, Alpine Fresh’s secret to success is their make-it-happen attitude and the fact that they are large enough to handle their clients’ requirements. They are also small enough to care and make the immediate decisions required by growers and large corporations alike.

The Townsville depot operates as a hub, allowing Alpine Fresh to service Port Douglas, Cairns, Mareeba, Mt Isa, Mackay, Cannonvale and Moranbah on a daily basis.

A daily freezer/chiller service also operates in Rockhampton and Mackay, servicing growers from the Burdekin, Bowen, Mackay and Yeppoon areas on the return trips.

Since Mitch McAlpine started with one tip truck in 1987, the business has grown significantly and relationships with it. Alpine Fresh take pride in getting to know their clients’ business and offering them solutions to make the transport more efficient and reduce client costs whilst enabling the company to efficiently operate good equipment.

Alpine Fresh are always looking for some new opportunities to service new customers with their transport requirements and welcome any enquiries they receive.

To find out more about Alpine Fresh, call their Head Office today on 07 3722 6123.

Welding Equipment & Hire Pty Ltd is based in Brisbane’s West at Wacol.

Leroy Reid has been in the Welding industry for over 35 years and his business partner Lois Tranter, for almost 25 years.

Welding Equipment & Hire Pty Ltd supply a wide range of quality Welding Machines, Welding consumables, Power Tools, Hand Tools, all Safety Equipment, Abrasives and Engineering supplies.

If Welding Equipment & Hire do not have it in stock, they will do their best to source it.

Welding Equipment & Hire is a family owned and run business, with Lois’ son, Brent, being the Sales Manager

and his wife Lorraine, the Accounts Manager.

Welding Equipment & Hire have been in business since 1999 and based at Wacol since 2000.

Their base philosophy is to provide service and to that end, the team at Welding Equipment & Hire do their utmost to satisfy their customers’ requirements to the best of their ability.

The team at Welding Equipment & Hire are looking forward to servicing the Welding and Engineering Industry for many years to come.

To learn about Welding Equipment and Hire, give them a call on 07 3271 4991.

CLIENT SPOTLIGHTWELDING EQUIPMENT AND HIRE

CLIENT SPOTLIGHTALPINE FRESH


Fraud happens. It happens in any business that has money or assets, irrespective of profitability. Quite often, fraud is a cause of a business not being profitable.

Fraud is material. The typical business loses 5% of its annual revenue to fraud. Applied to the estimated recent gross world product, this figure translates to a potential total fraud loss of more than USD 3.7 trillion worldwide.

Occupational fraud or white-collar crime has a relatively high rate of incidence but a relatively low rate of detection, rendering it one of the significant crime challenges of the 21st century. Businesses can manage this fraud risk more effectively by integrating and using previous knowledge about individual fraudsters, the situational environment and the typical motivations of fraudsters.

We have to adopt the attitude that the fraudster is within our business, as 80–85% of fraud is committed by insiders. It is therefore prudent that we alter our mindset and expect that fraud will happen and adopt a preventative strategy. In order for a business to be ahead of the curve, that strategy has to include the relatively new dimension of fraud profiling.

Empirical research on fraud types and fraud offenders yields common characteristics. For example, statistically, the average fraudster is male, married and a graduate and has a professional relationship (usually as an employee) with the victim business. A fraudster is more likely to work in the accounting, finance or procurement department. Much of the research tells us that the fraudster is an opportunistic offender with no criminal record who, out of greed, abuses a position of financial trust to commit a fraud either on their own or with few accomplices.

So if we knew from which departments the fraudsters emanate or, possibly more importantly, which vulnerable departments they try to be recruited into, this could be a focus for proactive fraud risk management and reactive investigation.

We have to face the fact that fraud cannot be entirely eliminated. Internal controls and security systems reduce

the risk, but there are no guarantees and the track record of prevention and detection is not that great. People can be ingenious and their behaviour unpredictable. Some are desperate; many are merely risk takers. Most are both.

To identify anything, you have to know what it looks like. If you know what it looks like, you can identify or recognise it and catch it when it happens. If you catch it when it happens, it will make the next person think twice about committing fraud and will leave investigators with key indicators of the behavioural or situational patterns or footprints for the future.

Fraud profiling identifies the characteristics of the fraudster and their fraud. There are an infinite number of characteristics of fraud offenders and fraud types or scenarios and an infinite variety of industries, business structures, departments, accounting systems and so on.

There is no guarantee that a prevention strategy will always work, nor is there a guarantee that a detection strategy will work all the time. However, research indicates that most occupational fraud is neither sophisticated nor well concealed. All that is required is to identify what a fraud in the business would look like and it will, more than likely, be found. Profiling is not intended to provide an absolute guarantee of fraud detection, merely an incremental improvement in the odds against your business becoming a victim of fraud.

If we can profile the footprints that accompany the act of fraud, then we have a pretty good coverage of all likely characteristics, providing us with the greatest chance of recognising the fraudster and the fraud activity.

The process of profiling has to be made simple and understandable, yet it should be rigorous and comprehensive. Its objective is the development of a set of detection controls that will identify the characteristics of a fraudster or patterns that fraud would present if it were to occur in your business. Speak to your Powers Advisor today about how to start the fraud detection process.

THE FRAUDSTER WITHIN

While it is impossible to prevent all fraud, being able to profile the typical fraudster will help in the fight against it.

By Jeremiah ThumManager POWERS AUDIT SERVICES


By Paul ChalmersDirector POWERS ACCOUNTANTS & ADVISORS

ATO PHONE SCAM ALERT

By Geoff ArnoldDirector POWERS ACCOUNTANTS & ADVISORSBUDGET WATCH

Australian small businesses are the greatest winners in the Federal Budget 2015.

Costing the Government $5.5 billion, the initiatives introduced for small business are intended to have a greater impact on business growth, as the government hopes these generous tax breaks will stimulate the economy.

Acknowledging the needs of small businesses that face a variety of challenges in today’s economic climate, Treasurer Joe Hockey said, “We recognise that small business, in order to succeed, needs better cash flow and better tools for innovation”.

Measures introduced to help small business include:

• Ability to claim an unlimited number of tax deductions for buying cars and machinery valued at less than $20,000 each. Any item other than stock can be claimed. This applies from Budget Night (12 May 2015) will run until 30 June 2017

• Items worth more than $20,000 can also be claimed. However, they will go into a pool and get depreciated at 15% in the first income year and 30% each year after that

• As of 1 July 2015, small businesses with an annual turnover of less than $2M will have their tax lowered by 1.5% from 30% to 28.5%

• Sole traders will receive a 5% tax discount capped at $1,000

• A Fringe Benefits Tax (FBT) exemption will be introduced from 1 April 2016 allowing businesses with a turnover of less than $2M to give their employees more than one qualifying work-related portable electronic device, even if it performs the same function (such as a tablet and a laptop)

• Small businesses may be able to change their entitystructure (such as from a sole trader to a trust) without getting hit with Capital Gains Tax (CGT). This will allow small businesses to immediately deduct legal and tax advice associated with starting a new business

If you are unsure of how these changes will affect your small business, contact your Powers Advisor today.

We were informed by clients recently that yet another ATO scam is doing the rounds.

Police have warned that a number of people have received phone calls from people claiming to represent either the ATO or the Director of Public Prosecutions who claim:

“We have your house under surveillance and you are going to be before the court because you haven’t paid your tax bill”.

The ATO has confirmed that such phone calls are false and warn people against sharing personal details over the phone without confirming the identity of the caller.

Any SMS or email that requests additional information before a refund can be released is a hoax.

Some of the signs that an email is a scam include:

• Not addressing you by name• Poor wording and/or grammatical errors• Promising money• Ask for personal details such as date of birth, address,

credit card details or PIN• Attachments for you to lodge a form – these may carry

viruses or spyware that could later share personal details from your computer

If you feel compromised, contact your bank and credit card provider immediately.

Call your Powers’ Accountant to confirm if there is any reason the ATO might be contacting you directly.


Tell Us How We’re DoingYour feedback is very important to us. If you have any compliments, complaints, or suggestions about our service or team, please contact our Marketing Coordinator, Beccy Congram, on 07 3906 2888.

We’re always interested in improving our services and value what you have to say.

MIGRANT FARMWORKERS by Martin Pentecost

Agribusiness and Finance ConsultantPOWERS AGRIBUSINESS & FINANCE

In recent years, finding committed workers has become harder and harder for Australian farmers. The resource boom has taken a lot of skilled workers out of local communities as they follow the mining money trail. Younger generations show less interest in continuing the family tradition of farming and property ownership now more than any previous generation.

Fortunately, the challenge of finding committed employees is now easing for Australian farmers as more migrants and refugees move to rural and regional Australia. This shift has benefited not only farmers and migrants but local communities as a whole.

Employing migrant workers benefits farmers in a number of ways. Frequently, people are multi-skilled, having had to hold 4 or 5 different jobs to maintain an income to survive in other countries, thus have broader skillsets. For example, instead of employing someone whose skillset is limited to agriculture, farmers are now able to employ people who have experience in agriculture, construction and retail.

The challenges new migrants face when finding work often means that when they are employed, they demonstrate committed work ethics and enthusiastic attitudes.

This collaboration has a positive effect on local communities, as by finding employment, migrants and refugees are able to integrate with the community and learn about local cultures. In turn, social cohesion is strengthened, which has been linked to a decrease in crime in local communities.

However, it is important to be wary of the pitfalls when farmers or contractors employ migrant workers. Communication barriers and fear of deportation have, in some instances, led to exploitation of migrant workers.

Fortunately, the Fair Work Ombudsman is active in monitoring and intervening in situations of abuse and exploitation. A recent inquiry in South Australia has established that a farmer employed a contractor who was using and exploiting illegal immigrants for labour. Despite being unaware of the migration status of the workers, the farmer was held responsible for the exploitation.

If prosecuted, farmers and contractors can face penalties of $10,200 per breach for an individual and $51,000 for a company.

What this teaches farmers is that it is their responsibility to ensure that migrant workers have appropriate migration status and visas to be able to work and that employment conditions are fair.

Proposed changes to Australia’s skilled migration and temporary activity visa program may soon further benefit farmers. The changes are intended to reduce red tape and implement a new visa framework that is flexible, responsive and supportive of Australian business and farmers, who will be able to employ migrant and refugee workers on longer term bases.

For further information, contact Martin Pentecost on 07 4928 1555.

Collaboration between migrant workers and Australian farmers can be a win-win.


THE IMPORTANCE OF INTELLECTUAL PROPERTY

by Blake KnowlesPartnerCullens Patent and Trademark Attorneys

The purchase or sale of a business involves many considerations. A key issue for both buyers and sellers (and lenders!) is whether that business has adequate protection for intellectual property.

The following are four common issues that buyers and sellers should be aware of:

1. Every business has IP!

Every business has at least one intellectual property asset - its “brand” (or “trade mark”). The trade mark is a major component of business goodwill and value. It has often been described as ‘the title deed’ to the business. It should therefore be protected as diligently as any other asset.

2. “But I registered the business name..?”

A common misconception is that a business or company name protects the brand of a business. Registering a business name is a legal obligation. You can get punished if you don’t do it, but there are no ‘rights’ granted to you for doing it.

Only a trade mark gives enforceable rights in a brand name. A trade mark can stop someone else using a similar brand name, business name, company name, or domain name. A registered trade mark also provides a defence to infringement of other registered trade marks. It is therefore both a sword and a shield.

3. “Do I really need to register the trade mark..?”

A trade mark can be registered or unregistered. A registered trade mark is much more preferable because it gives stronger and more easily enforceable rights and is also published on an official government database.

An unregistered trade mark is much more difficult and expensive to enforce. It depends heavily on proving evidence of reputation. This means more lawyers doing more hours and more cost!

Sometimes, businesses will have one core trade mark and other secondary trade marks (e.g. for individual product lines). Each is a separate and potentially valuable asset and should be registered if possible.

4. “Once I sell, it won’t be my problem.”

This may be true, but without IP protection, you may be selling your business for less than its true value. It is important that intellectual property matters be discussed prior to the sale or purchase of a business. From a seller’s perspective, offering a business for sale that has secure protection of its intellectual property (particularly its key brands) is likely to be much more attractive to potential buyers and increase the sale price.

From the purchaser’s perspective, its rights to register or enforce a trade mark in future may depend on proving use of that trade mark in the past by the seller. Business records, advertising materials and old invoices may therefore be crucial evidence and should be obtained as part of the sale if possible. Importantly, a purchaser cannot always rely on the seller to provide assistance after the sale. The seller may be uncooperative, or they may have disposed of old records.

What should I do?

Prior to advertising the sale of a business, the seller should review:• current level of protection of the business’ intellectual

property assets;• possible obstacles to protection and registration of

intellectual property;• options for protecting unregistered intellectual property.

Similarly, a potential purchaser of a business should be mindful of these issues when considering the attractiveness of a business and its purchase price.

For more information on protecting Business Intellectual Property and Trademarks, contact Melissa Firns, Corporate Compliance Manager, Powers Accountants & Advisors, on 07 3906 2888.

BUYING OR SELLING A BUSINESS?

BILOELA 54 Callide StreetBiloela QLD 4715PO Box 98 Biloela QLD 4715Ph 07 4995 6677 Fax 07 4992 1787

BRISBANE10/8 Metroplex AvenueMurarrie QLD 4172PO Box 518 Cannon Hill QLD 4170Ph 07 3906 2888 Fax 07 3906 2889

ROCKHAMPTON75 High StreetNorth Rockhampton QLD 4701PO Box 5161Red Hill QLD 4701Ph 07 4928 1555Fax 07 4926 1184

MONTO3 Newton StreetMonto QLD 4630PO Box 69Monto QLD 4630Ph 07 4166 1366Fax 07 4166 1343

[email protected]

www.powers.net.au

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The information in this document is of a general nature and is provided for information purposes only. It does not take into account your particular objectives, financial situation or needs and should not be used as a substitute for independent advice from a qualified professional. Limited liability by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees. All financial advice is provided by Authorised Representatives of Professional Investment Services Pty Ltd AFSL 234951 ABN 11 074 608 558.

For further information on any of the articles in this issue, please contact your local office:

That’s a (Beef) WrapEven after years of anticipation, Beef Australia 2015 exceeded all expectations! Our Golden Jewels passed through close to 1,000 sets of hands and 180 people took value from Managing Director Ian Congram’s Succession Planning seminar. Thank you to our Discussion Panel and everyone who visited our stall for making Beef a wonderful event!

Rocky River Run Powers were proud to sponsor the Rocky River Run, an annual Rotary Club event that raises funds for the prevention of youth suicide. While Jayde Morris and Marc McMahon did Powers proud, congratulations go to Anna McMurtie who claimed 1st place!

Join the Team!Are you a graduate, intermediate or senior accountant? Come and join the Powers team! We are looking for people to work in every office, so if you know someone who wants to build their career, please get them to contact Estelle Schluter on 07 4995 6655.

New Team Members We have recently welcomed additions to the Powers team! Jeremiah Thum is our new Audit Manager, based in Brisbane. Jen Spring has joined the Rockhampton team as an Accountant. Bernadette Wereta has started in the Brisbane Team as an Office Assistant. After four years of being part-time with Powers, Beccy Congram has become the full-time Marketing Coordinator, based in Brisbane, while supporting all offices.

Fund RaisingAll of our offices recently participated in the Biggest Morning Tea fund raising event, where we raised $293 for the Cancer Council!

Social MediaIf you are looking to keep up to date with current news, interesting articles and the latest forms of entertainment, look no further than our Facebook page! Our Directors have also revamped their LinkedIn profile recently, so if you would like to connect, search for Powers Financial Group!

Let’s Talk Powers Pictures from our time at Beef Australia 2015

Top row (left to right) The Team from Lindana and Jenalan Bazadais, Nick Pollins (Powers) and Australian Cricket Legend Ian Healey, Pip Courtney (ABC TV) and Charles Page (Pow-ers), Paul Chalmers (Powers), Kerry Lonergan (ABC TV) Second Row (Left to Right) Beccy Congram (Powers), Katrina Engel (Powers), Amanda Salisbury (Bimbadeen Brangus) and Charles Page (Powers), Charles Page (Powers), Nick Pollins (Powers), Australian Cricket Legend Adam Gilchrist and Marc McMahon (Powers), Geoff Arnold (Powers), Craig James (CBA) and Marc McMahon (Powers).

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Let's Talk Business June 2015