As many would be aware, further to this year’s Federal Budget, from 1 July 2015 the Government is proposing to:

• reduce the company tax rate from 30% to 28.5%; and
  
• introduce the paid parental leave (PPL) levy on “large” companies.  
  

What may not have been considered to date are the potential impacts of these changes to shareholder value. From a shareholder perspective, a change in tax rate could result in franking credits getting trapped in the company and ultimately result in an increase in the overall taxation paid by shareholders on company profits. To maximize shareholder value it is important that dividend distribution policies and capital management policies be reviewed.

At this stage, there is limited detail available on these proposals, and the Government will need to navigate its way through the new Senate taking its place from 1 July 2014. Notwithstanding those uncertainties, there are a number of matters that should be considered.

Whilst the policy and legislative detail is not settled, if there are no transitional imputation measures, a portion of the franking credit balance as at 30 June 2015, which has been generated at a tax rate of 30%, may be “trapped” in the company’s franking account. As is demonstrated in the below example, from a shareholder’s point of view, this will result in a lower after tax cash dividend.

Based on the above, in respect of a dividend paid after 1 July 2015 from profits arising before that date:

• Approximately 7% of the franking credits (2.1/30) get trapped within the company. Whilst these could be distributed if the company has other “untaxed profits”, this will result in an additional cash cost to the company if paid as a cash dividend
  

• The effective tax rate on the underlying profits rises above the shareholder’s marginal rate, as a result of some of the tax paid credits remaining trapped within the company. The net cash amount in the hands of the shareholders is reduced.
  

In addition, after the commencement of the PPL on 1 July 2015, there may be further trapped franking credits on an annual basis for large companies.

In order to maximise returns to shareholders via dividend payments, companies should actively monitor government policy in this area. Companies should also actively plan ahead to forecast their future franking balances to determine the potential scale of trapped franking credits (as at 30 June 2015), and consider alternative dividend and capital management policies.

Kamlee Coorey Tax Partner Deloitte (02)9840 7030 kcoorey@deloitte.com.au

There is no doubt at all that there is a time and place for both competitive and exclusive recruitment. With costs becoming more and more of a concern though, perhaps it’s time to reconsider the competitive recruitment model in favour of engaging agencies exclusively.

Anyone looking at an online job board would be overjoyed at the number of job advertised; the reality though is that a lot of these jobs are the same job being advertised by multiple agencies.  Great for the job board, but incredibly frustrating for the applicant!

Going down the exclusive path will save the hiring company time and money. Competitive recruitment fees are higher because a lot of hours are spent working on roles that will be filled by other agencies or internally. Exclusive roles are generally charged at much lower fees as the recruiter know they will be getting paid for the work they do.

In light of this it can be argued that the competitive recruitment model is not only inefficient and expensive, but that it often results in a frustrating experience for all parties.

Pros of Exclusive assignments:

• Costs to the hiring firm are reduced as agencies will offer a far lower fee/rate for exclusive work.
• The consultant will have more time to dedicate to searching and working their networks to ensure a higher quality of candidates.
• It allows time to perform head hunts to passive job seekers and people in their network that are not actively looking for work but who are interested in “the right opportunity”.
• Exclusivity also allows the recruiter to better screen candidates and to fully brief them on the opportunity, meaning you the client will waste less time with inappropriate or unprepared candidates.
• The role also doesn’t become general knowledge to be “kicked around” the market by multiple agents desperate to find a speedy resolution. This often leads to miscommunication about the firm, salary and nature of the opportunity not to mention potentially damaging your brand.

Pros of competitive model:

• Competitive recruitment can lead to greater variety and choice in candidate selection, but it will also lead to duplicated resumes and often lots of lower quality candidates.
• Avoids putting all your faith in one recruiter (spreading your risk, especially if you are dealing with a non-specialist agency or a recruiter you don’t know).
• It gives you the chance to “try” agencies before committing to them.

As previously stated, there is definitely a place for competitive recruitment but if you have a relationship with your recruiter and you trust them to find you the right person, then it’s certainly worth your while to ask them for exclusivity.

To discuss any of your recruitment needs whether exclusive or competitive, please contact IPA on 02 9220 6900.

Recap

As with most new calendar or financial years, there is movement in the industrial relations landscape.

The purpose of the below is to provide you with the key dates for 2014 (some past and others upcoming) and to succinctly set out suggested action items to assist you with identifying what changes you may need to make in your workplace:

1 January 2014

(1)          new bullying laws commenced – action items include:

·                    be familiar with how the new bullying laws operate and who they apply to

·                    prepare/update existing bullying policies and complaints procedures to be consistent with the legislation

·                    refer to guides on bullying provided by Safe Work Australia

·                    as necessary update and amend references to bullying in other policies (such as WHS policies)

·                    train management staff on the new laws

·                    implement policies with staff and keep evidence of receipt of the policies/attendance at information sessions explaining these policies

(2)          other changes:

·                    altered union right of entry provisions

·                    new rules relating to consultation about changes to rosters and working hours

·                    consent arbitration for general protections (adverse action) and unlawful termination claims

action items include:

·                     be familiar with the new requirements including checking the consultation requirements in the relevant Modern Award

·                    considering the advantages and disadvantages of consent arbitration in the Fair Work Commission for general protection and unlawful termination claims

(3)          4 yearly review of Modern Awards commenced – action items include:

·                    make submissions as part of the review (if you wish)

·                    consistently check the Fair Work Commission website for information (the review is expected to be completed mid 2015)

12 March 2014

(4)          new privacy laws commenced – action items include:

·                    be familiar with how the new privacy laws operate and who they apply to

·                    prepare/update existing privacy policies to be consistent with the legislation

·                    check you know how "employee records" are dealt with

·                    update staff, customers and suppliers as necessary (including in respect of terms of trade and credit applications)

1 July 2014

(5)          the redundancy tax free component increases to $9,514 and $4,758 for each completed year of service – action items include:

·                     make sure all redundancies comply with Taxation Ruling 2009/2

·                     make sure all redundancies meet the requirements to satisfy the exception to a valid unfair dismissal claim (in addition to any other possible exception)

(6)          the compulsory superannuation rate increases to 9.5% - action items include:

·                    implement the change with payroll

·                    consider whether you factor this into salary review considerations

(7)       increase to the high income threshold to $133,000 – action items include:

·                    knowing employees not covered by a Modern Award or to whom an enterprise agreement does not apply must earn less than this amount to bring a valid unfair dismissal claim

·                    knowing the maximum compensation payable in an unfair dismissal claim is the lesser of 26 weeks' pay or half of the high income threshold

·                    ensuring the annual rate of the guarantee of annual earnings for those with a Guarantee of Annual Earnings continues to exceed this amount

·                    knowing not all aspects of an employee's remuneration counts towards working out if this amount is breached (both for unfair dismissal and Guarantee of Annual Earnings purposes)

(8)       remuneration changes:

·                    Modern Award wage increase by 3% (as and from the first full pay period after 1 July 2014) – this extends to junior employees, employees to whom training arrangements apply and employees with a disability and to the operation of piece rates through the operation of methods applying to same

·                    Modern Award allowances increase (by reference to the relevant CPI group mentioned in the relevant Modern Award)

·                    National Minimum Wage increases to $640.90 per week ($16.87 per hour) – applicable to those not covered by a Modern Award or to whom an enterprise agreement does not apply

·                    casual loading is increased to 25% - applicable to those not covered by a Modern Award or to whom an enterprise agreement does not apply

·                    end of transitional wage, loading and penalty rate adjustments under Modern Awards

action items include:

·                    check whether you can absorb increases under the terms of the Modern Award (absorption clause) or the terms of the employment agreement (set-off clause)

·                    ensure all payments meet the minimum wage requirements

31 December 2014

(9)       transitional redundancy provisions under Modern Awards end – action items include:

·                    making an employee redundant as and from 1 January 2015 may require a lesser amount of redundancy pay to be paid than doing so before that date

(10)     transitional accident pay provisions under Modern Awards end – action items include:

·                    work out if this applies to any injured employees and make necessary pay adjustments as and from 1 January 2015

Conclusion

That is a snapshot of the current landscape – as with all changes, the finer detail always needs to be considered including in conjunction with your particular workplace situation.

If you do have any questions, please feel free to speak with or email a member of our Workplace Solutions team headed up by:

Stewart Gough – Director stewartg@matthewsfolbigg.com.au

Fay Calderone – Director fayc@matthewsfolbigg.com.au

Chase away the cold with a variety of hot dishes from traditional pastas to curries. Enjoy 2 courses for $45.00 or 3 courses for $55.00 and a glass of our selected wine. 

To take up this special offer please call 02 9689 3333.

This great value offer is valid Monday to Fridays from 6:00pm – 9:00pm until 31^st August 2014.

Buy any new, demo or used car before 30 September 2014 from Lander Toyota and you’ll get a chance at winning a share of $30,000! $10,000 a month is up for grabs! Plus, if you purchase over 50% of the vehicle purchase price, you will receive 1 additional entry into the draw!

For more information, visit www.landertoyota.com.au or call us 02 8884 4888.

In 2009, we conducted a benchmark national workplace survey to gauge the matters that were of “most concern” to businesses in anticipation of the National Employment Standards in the (then new) Fair Work Act. It is now timely to revisit and consider whether the matters of “most concern” had the most substantial impact.

The past five years have seen other arguably more controversial changes, such as the recent introduction of workplace bullying laws and extension of the flexible work provisions to include, amongst others, employees with a disability or over 55 years of age. Further the Government has proposed further changes including its heavily debated 26 week paid parental leave scheme and broadening the powers of the Fair Work Commission to deal with disputes regarding union entry.

The 2014 survey will seek to understand employer concerns and perceptions of the current workplace relations landscape and establish a framework for us to assist employers to find practical and innovative solutions to compliance concerns.

Please complete the survey online before 31st July 2014 to be in the running to win an iPad mini: http://workplacesolutions2014.questionpro.com

BREED is calling for young people with an Higher Functioning Aspergers/Autism Spectrum Disorder between the ages of 10-20, with a passion for technology, to join an after school program that potentially could provide them with the skills needed to pursue a career in high technology. 

BREED is one of four organisations from across Australia selected to run a pilot program that aims to open up employment opportunities for Young People with Autism through pursuing their passion of high technology.

Digital Enterprise – Pathways to Education and Employment for Young People with Disabilities is a national program funded by the Australian Government. The program is a joint initiative led by the University of South Australia and involving four universities, two registered training organisations, State Government and not-for-profit community organisations in South Australia, the Northern Territory, Victoria and New South Wales.

BREED Managing Director, Stephen Frost, said, “The program will work with young people who have Autism Spectrum Disorders so they can develop their technical skills, improve their self-esteem, as well as reduce levels of isolation, which will help to get these young people focused on developing rewarding careers.

In addition, the 16-20 year old group will do an online course in entrepreneurship, social skills, and employability skills.”

The two hour sessions will be held out of school hours at Ropes Crossing Community Hub once a week. Group sessions are for young people aged 10 to 15 and 16 to 20 and will involve collaborative activities such as programming, game-making, technology competitions and digital design activities supported by online training, media creation and distribution. And there will be business training for the 16-20 years age group.

While their child attends sessions, parents or carers will be able to join a discussion and support group. An interactive on-line resource centre for parents is also planned.

Digital Enterprise builds on the success of “The Lab” technology clubs, which have been running in Melbourne and Blacktown Region in 2011, for young people with High Functioning Autism. Young people who have completed “The Lab” program have experienced enhanced technical skills, increased self-efficacy and confidence, improved motivation at school and the sense of new possibilities for the future. Parents have also benefited in terms of mutual support from other parents.

Interested parents/carers can go to www.breed.org.au/programs or Digital Enterprise website www.digital-enterprise-pathways.net/ for more information. Or call Elenor Jackson-Bowers Ph. (08) 8302 4623 or Chris Taylor at BREED, Ph. (02) 9853 3200.

BREED is a community organisation funded by the Australian and NSW Governments to build partnerships that support improved education and transition outcomes for all young people, and focus on building partnerships between schools, business and community to support young people to attain Year 12 or equivalent qualifications and reach their full educational, career and social potential.

I am delighted to join the Hills Shire Council in the new role of Manager, Community and Economic Development. 

My experience in the past 23 years has been in community and business in various areas right across NSW. Most recently I was the Marketing Trainer for the BEC Eastern Sydney New Enterprise Incentive Scheme and Manager of the NSW program under the Australian Tourism Awards. Previous to that I was running regional organisations that coordinated funding grants and programs for SME's to market their product and develop their potential.

This role uniquely combines all of my experience and expertise. I am passionate about the Hills area, as it is the area I have grown up in and wish to ensure its viability for business and community into the future.

I look forward to working with you all.

Lori Modde
Manager, Community and Economic Development

Council's commitment to delivering quality facilities and infrastructure that meet the present and future needs of the community involves much planning and consultation with the community. The information via the link below has been provided to help keep the community informed about the progress of Council's major infrastructure and transport projects in the Shire. View Infrastructure and Transport Projects

Novotel Sydney Parramatta would like to introduce our newest recruit and talent, Adam Jones, Assistant Food and Beverage Manager.

Adam’s passion and love for the food and beverage industry began at the age of 18 when he and a friend decided to purchase a café on Sydney’s northern beaches. Through his hard work and determination, they turned around the café’s dying reputation to be a shining star in its region and five years later sold it off for his next challenge. Adam went on to work as a manager for various restaurants including David Chan’s 3 hat restaurant, Momofuku at The Star and being part of the opening of fine dining establishments like Seed Cuisine and Burnt Orange in Mosman.

Striving to constantly develop and refine his skills and knowledge, Adam followed his heart and allowed himself to be charmed by the world of hotels and working for a company like Accor. Adam took on all the challenges and his talent was quickly noted and this saw him being placed in numerous Food and Beverage positions at various hotels in the Accor chain. Proving to be a valuable asset, and demonstrating his abilities, it was no surprise that Adam received a promotion as Assistant Food and Beverage Manager at Novotel Sydney Parramatta. 

Living by his value that ‘success is a journey, not a destination’ Adam began his role as Assistant Food & Beverage Manager at Novotel Sydney Parramatta supporting Food and Beverage Manager, Kristiana Terkes and Executive Chef, Pierre Wong. This ‘A Team’ strive to deliver the best Parramatta has to offer, most recently successfully hosting the Parramatta Lord Mayor’s ‘State of the city’ address.

Along this journey, the pristine and well presented Adam has another side that adds to his charm and appeal.  This is the competitive and artistic side of Adam as a professional in both dirt bike racing and as a graffiti artist. Adam has many state titles and championships under his belt since riding dirt bikes from the age of 8 years old. While in high school, the exploration of his creativity also began and he was soon commissioned for art pieces in cafes, children’s bedrooms, shopping centers and even on someone’s private boat. 

Adam describes his talents with the saying ‘True creativity is authentic and not eccentric’ in the approach that only once you have a general relationship with a subject can you be truly creative with it.  This approach is taken with him into the work place, where there is a constant focus on delivering true customer service.

To experience the charm of Adam and his team, come along to Two Forks Restaurant and Bar for dinner or after work drinks. Chef Pierre has also launched his amazing new menu! Visit www.novotelparramatta.com.au