Tasmanian Business Reporter August 2018

AUGUST 2018
T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
Call for council cull
AXE THEM
O\
TCCI floats
radical reform
29 to 3
How
TCCI
JOIN TODAY!
MEMBERSHIP
benefits your business
By TOM O’MEARA
THREE local authorities would
replace the state’s 29 councils in a
bold new plan floated by the Tasmanian
Chamber of Commerce
and Industry.
With the Tasmanian economy
at its strongest in recent history,
the state’s peak business organisation
has called on the State Government
and Labor Opposition to
reform local government once and
for all.
TCCI CEO Michael Bailey
said the chamber’s vision would
improve efficiency and provide
greater transparency.
The TCCI has been a strong advocate
to restore State Parliament
to 35 seats, and now it wants to review
what it says is an antiquated
and inefficient local government
sector.
Mr Bailey said the system was
not based on modern best practice.
“The days have gone when every
town in Tasmania needed a local
council and it is time to ensure
there is more transparency in the
sector,” he said.
“In Victoria rate capping is now
a way of life, with consumers and
business able to compare their
council performance with others
through the “Know Your Council”
website.
“Not only are consumers and
business able to compare rates in
their municipality with those paid
in neighbouring council areas,
but they are also able to compare
the services offered and make informed
decisions about what their
local government area delivers.
“There is no way to do that in
Tasmania.”
Tasmania has 29 councils, and
263 councillors, for a population
of just over 500,000 people, ranging
in size from under 1000 people
on Flinders Island to more
than 67,000 people in Launceston.
“We have 4000 local government
employees, 23,000 State
Government employees and
just under 3500 Commonwealth
Government employees, which
equates to one employee for every
Continued page 2
The Tasmanian Chamber of Commerce
and Industry is an independent
membership organisation that
positively leads and supports the
Tasmanian business community.
TCCI provides valuable support to its members
through advocacy and a range of programs
and services including:
> Customised membership to achieve
your business objectives
> Workplace relations advice
> Workplace health and safety
> Networking and promotion
> Training and workforce development
> Events
Tasmanian Chamber
of Commerce and Industry
Hobart | Launceston
Ph: 1300 559 122 www.tcci.com.au

2 Tasmanian Business Reporter - AUGUST 2018
NEWS
Solar project shows the way
ONE of the largest
commercial solar PV
installations in Tasmania
has been launched.
SRT Logistics, a Tasmanian-owned
transport
company, partnered
with Aurora Energy and
Beon Energy Solutions
to deliver the system
across its two distribution
centres in Launceston
and Devonport.
The state-of-the-art
2,546 panel, 831kW
solar system, will generate
over 1 million
kWhs per year, or the
equivalent of powering
143 homes.
The solution was custom-designed
to meet
the specific electricity
requirements of SRT
Logistics, and will reduce
their energy costs
by up to 50 per cent.
SRT Logistics CEO
Robert Miller said
the two-month long
installation was a great
example of a project
delivering both strong
commercial outcomes
and broader benefits to
the local economy.
“For SRT Logistics it
was sound business decision
to install a solar
PV system and to do so
we needed experts in
the field that we could
rely on and trust,” Mr
Miller said.
“That’s why we
teamed up with Aurora
Energy, Beon Energy
Solutions, and local
electrical contractors to
achieve this.”
Aurora Energy CEO
Rebecca Kardos said
the business would
SRT Logistics’ solar PV installation.
continue to explore the
role it could play in the
delivery of renewable
energy solutions for its
commercial customers.
“We know our customers
are looking to
technology to help reduce
and manage their
energy costs. Rather
than sit back and watch,
we want to harness our
specialist knowledge
and expertise to become
e dition
T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 1 2 , 0 0 0 M O N T H LY
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Tasmania’s business newspaper is published monthly by the
Tasmanian Chamber of Commerce and Industry. It is distributed
to businesses in Tasmania as well as key decision-makers.
Circulation: 12,000
Managing Editor: Tom O’Meara
0418 135 822
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Publisher:
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309 Liverpool St, Hobart, TAS 7000
Ph: 6236 3600 Fax: 6231 1278 admin@tcci.com.au
TFGA House, 194-196 Cimitiere St, Launceston TAS 7250
Ph: 6331 1144 laun@tcci.com.au
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Level 1, 2 Salamanca Square, Hobart, 7000
a part of the solution
for these customers,”
Mrs Kardos said.
“For Aurora Energy,
solar projects like this
are about working with
the very best in the
field to develop fully
customised, state-ofthe-art
solutions which
give our customers the
choice, control and
convenience they are
looking for.”
Poll rout casts
cloud over
tax cut plans
THE Federal Coalition’s
company tax cut policy
is in the spotlight after
the July 28 Super Saturday
by-elections.
While by-elections are
notoriously challenging
for sitting government’s
to win, Liberal and LNP
candidates lost in all
three seats they contested
and Prime Minister
Malcolm Turnbull has
promised a comprehensive
review.
Braddon was won by
Labor’s Justine Keay,
who returns to Parliament
after causing the
by-election in the marginal
seat after being
caught up in the dual citizenship
debacle.
On a two-party preferred
basis she claimed
victory with 52.5 per
cent of the vote over
Liberal candidate Brett
Justine Keay
Whiteley with 47.5. Mr
Whiteley recorded 39 per
cent of first preferences,
a swing of nearly 2.5 per
cent against, while Ms
Keay polled 37 per cent,
a swing of nearly 3 per
cent against.
However, Ms Keay
benefited from preferences
from popular
fisherman, independent
Craig Garland, who
polled more than 10 per
cent of the primary vote
and has suggested he will
stand again at the next
Federal Election, due in
early 2019.
Mr Whiteley has not
confirmed if he will
stand again.
Ms Keay has credited
Labor’s policy of health
and education spending
over tax cuts for big
business as a catalyst for
victory.
The Coalition has already
legislated a tax rate
cut for businesses with a
turnover of less than $50
million and wants to extend
that to all businesses
- a move Labor and the
Greens oppose, arguing
it is a hand out to the big
banks.
There are internal rumblings
from within the
Coalition about the need
to scrap the plan or risk
losing power next year.
Call to axe 26 local councils
From page 1
16 people or one employee
for every small business
in the entire state.”
Mr Bailey said it was
a ridiculous system of
over government - with
duplication of services
costing the community
and business tens, if not
hundreds, of millions of
dollars each year.
“We regularly see rate
increases frequently well
in excess of the consumer
price index, compared
with no increases in tax
and charges at the State
and Commonwealth
level of government,”
Mr Bailey said. “Earlier
this year residents of
Glenorchy were stunned
that rates could increase
by nearly 20 per cent in
one year, only to be told
the final rate of a 12.5 per
cent increase was a win
– this is more than five
times the consumer price
index for Tasmania.
“Consumers and business
are being gouged
and it is time to hold
local government to account,”
Mr Bailey said.
“We are concerned
that the clumsy micro
management of our state
is preventing strategic,
whole of region/state
planning for infrastructure
and service provision.
“This has been exemplified
by the TasWater
imbroglio, which highlighted
the constructed
conflict of interest, where
a statewide service provider
is governed by 29
separate local government
authorities.”
Mr Bailey said despite
the State Government
giving local government
the opportunity to reform
in 2015, little, if anything,
has happened.
“Three years on, local
government has blown its
chances and despite being
given the opportunity
to do it for themselves,
has demonstrated it is
too self-interested to act
on behalf of the people it
represents.
“Tasmania is being
done a great disservice by
its local government sector,
instead of ensuring
we make the best of the
economic conditions we
have, it is mired in self
interest and unwilling to
step up and put its shoulder
to the wheel to ensure
meaningful economic reform,”
Mr Bailey said.

T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
Tasmanian Business Reporter - AUGUST 2018 3
NEWS
Infrastructure pipeline filling
A 10-YEAR Infrastructure
Pipeline worth nearly
$14 billion has been
outlined as the state prepares
for growing population
and visitor numbers.
The Tasmanian Infrastructure
Pipeline includes
247 projects, each
valued at $5 million or
more and totalling $13.9
billion over the decade.
In addition, $4.1 billion
in private construction
projects and $8.1
billion in horizon projects
have been identified.
Infrastructure Minister
Jeremy Rockliff said infrastructure
expenditure
in Tasmania was expected
to top $1.5 billion this
financial year alone and
it was important to take
a long-term co-ordinated
approach.
“The pipeline recognises
that the State
Government can only
achieve its infrastructure
goals by working hand
in hand with the private
sector,” Mr Rockliff
said.
“It provides developers,
investors, contractors
and consultants with
access to the flow of key
infrastructure projects
The $100 million Chambroad Kangaroo Bay
Hotel and Hospitality Training Centre is at
design stage.
coming online in the
coming years which will
allow them to make decisions
on growing and
investing in their own
people and businesses.”
Between TasNetworks
and Hydro Tasmania, the
pipeline includes around
$2 billion in project level
spending in the sector
over the next 10 years
- excluding a potential
second Basslink or any
Battery of the Nation initiatives.
The $576 million Bridgewater
Bridge is scheduled
to start design and approvals
in the next financial
year, with completion expected
in 2024.
More than $200 million
will be spent in the Midland
Highway over four years
from 2019 and $400 million
is scheduled for roads
of strategic importance,
with prioritisation being
given to the Bass Highway.
Private projects that
are in different stages
from business case to
construction have been
outlined.
For example, the $120
million Calvary private
hospital in Launceston is
at business case stage.
Bellerive’s $100 million
Chambroad Kangaroo
Bay Hotel and Hospitality
Training Centre
is at design stage, as is a
$40 million Fairbrother
Devonport Hotel.
Argyle Central Hotel
and Suites in Hobart,
costing $46 million, is
under construction.
A full list of projects
on the Infrastructure
Pipeline is available via
Infrastructure Tasmania’s
website.
It will be updated annually.
“By the end of the
year Infrastructure Tasmania
will also release
a 30-year Tasmanian
Infrastructure Strategy
based on emerging demographic,
social and
technological trends, to
help deliver infrastructure
at the right time,
in the right place and
on the right scale,” Mr
Rockliff said.
New essence of the North
LAUNCESTON Distillery has
taken flight with the official
launch of the first traditional
whisky produced in the North
since distillation was outlawed
more than 170 years ago.
The distillery, based at Hangar
17 at Launceston Airport, was
formed in 2011 by head distiller
Chris Condon.
Mr Condon, a former pharmaceutical
industry quality analyst
and brewing team leader at Boags
Brewery, was also the first distiller
at Nant Distillery - laying the
foundations for that company’s
early success between 2008 and
2011.
He joined forces with Rob
Carroll, Chris Byrne, Ilya
Brucksch-Domanski, and Peta
Dolan in 2011 to establish
Launceston Distillery - the first
distillery in Northern Tasmania to
be granted a production licence
since the Distillation Prohibition
Act of 1839.
“The official launch is a proud
moment for the directors who
have shown a lot of faith in me to
design a distillery that will create
consistent batches of whisky that
epitomise quality,” he said.
“We have been passionate
about creating a whisky that pays
homage to the best traditional
whisky from Scotland but also
captures the essence of Tasmania.”
Mr Condon said Launceston
Distillery was proud to have laid
the foundation for returning whisky
making to the north.
“I could see there was a gap in
the Tasmanian Whisky Trail with
really exciting things happening
in Hobart and on the North
West so it made sense to create a
distillery in the heart of Tasmania
to build the state’s reputation as a
respected producer,” he said.
Launceston Distillery produces
a number of varieties matured in
bourbon, port and apera (sherry)
casks and will soon be launching
a number of releases that will
raise money for local charities
and organisations.
In the process of creating the
distillery they have given new life
to the disused Hangar 17
Mr Condon is accompanied on
his whisky-making journey by
the distillery’s mascot, Angus the
Westie Wonder Dog, who ensures
the final product is perfect.
Distiller Chris Condon and quality
controller Angus the Westie wonder
Dog.
Picture: Hilary Burden,
Tasmanian Country Hour
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4 Tasmanian Business Reporter - AUGUST 2018
THOUGHT LEADERSHIP
www.tcci.com.au
State in a positive state
Michael
Bailey
TCCI Chief Executive
THE results of the TC-
CI’s Survey of Business
Expectations for Q2 of
2018 are extremely positive
for Tasmania.
Overall, our members
reported 59 per cent
positive expectation for
the Tasmanian economy
over the next 12 months
… with only 14 per cent
negative (the other 27 per
cent being neutral).
But in North Tasmania,
there is 72 per cent confidence,
59 per cent in the
North West and 69 per
cent in the South.
We are less positive
about the national economy
– 35 per cent positive
versus 11 per cent negative
– but that it still very
much in the “up” column.
What has been extremely
positive was the
response from chamber
members in the North
and North West about
their own regions.
In my six years as
TCCI CEO, I have never
seen the results we
are now posting for the
northern half of the state.
And the reasons why
are multifarious … and
positive.
As many of you know,
I grew up on the North
West Coast and now live
in Launceston with a
base in Hobart, so I am
reasonably well placed
to review the Tasmanian
economic landscape over
the past 40 years.
I still see the North
West Coast as an enormously
resilient place,
which is caused by both
the employers and employees
in the region.
Yes, the coast suffered
through the downturn
and some disappointing
decisions in the dairy industry
and the move of
significant industry leaders
like Caterpillar offshore.
But the North West
remains strongly positive
about the Tasmanian
economy moving forward.
I heard Latrobe Mayor
Peter Freshney talking
Launceston’s Brisbane St Mall upgrade is nearing completion as business
confidence is booming in the North and North West.
about the 120 new buildings
in that community
… in Latrobe.
That is definitely a
sign of confidence and
growth.
Importantly, what we
are seeing is the economy
growing in the North
and North West.
We are seeing – and
the TCCI is talking to
members every day who
give us honest feedback
– businesses doing better
than ever before.
Construction is growing,
tourism is growing
and jobs are growing.
Importantly, for both
the North and especially
the North East, we are
seeing the return of forestry,
which is such an
important industry to the
regional towns of Tasmania.
Agricultural exports
remain strong as we
look long-term to both
Construction
is growing,
tourism is
growing and
jobs are
growing
Melbourne and Sydney
growing their population
bases by two million
each in coming years, we
need to ensure that our
export pathways remain
free.
We know what we
need to guard against,
which is our increasing
ageing population.
But in coming years,
the overall infrastructure
spend of both State and
Federal Governments
will be key, continuing to
drive jobs and positivity
about the Tasmanian and
Australian economies.
Supporting
those making
a better
community.
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T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
Tasmanian Business Reporter - AUGUST 2018 5
THOUGHT LEADERSHIP
www.tcci.com.au
Whatever the weather
E-health is revolutionising
the way the medical
sector is doing business.
Elise
Archer
Environment Minister
THE Hodgman Liberal
Government is committed
to working with businesses,
the community
and all levels of government
to create a resilient
community that is prepared
for extreme weather
events.
On May 10 and 11
this year Tasmania experienced
a significant
weather event, which
caused considerable
damage across Southern
Tasmania.
A number of households
and businesses in
Hobart, Kingston, Huonville
and the Derwent
Valley reported extensive
damage.
We know that extreme
weather events will become
more frequent and
intense under a changing
climate, and this will
have the potential to significantly
disrupt business
activities.
That is why the Tasmanian
Government
has developed a suite of
free resources to help
businesses prepare for,
respond to, and recover
from extreme events.
Developing a plan in
advance can help businesses
to reduce risks,
minimise losses and get
back on their feet more
easily following a disaster.
The content was informed
by consultation
with the business community
and emergency
management experts,
and comes under Climate
Action 21: Tasmania’s
Climate Change
Action Plan 2017-2021.
The online and printable
resources are avail-
Paul
Lupo
able at the Business
Tasmania website and
include a Business Continuity
Plan template,
fact sheets on insurance
and assessing risk, and
preparation checklists
for specific types of disasters.
For information and
to access online
resources, visit
Business Tasmania
at www.business.tas.
gov.au
Traditionally, healthcare
providers have
worked in clinical silos
meaning that when a patient
CEO, StLukesHealth
visits their GP, med-
ical specialist or other
providers, their treatment convenient for you. consider your approach
notes are only shared Today, we see our children
and examine the benefits
within the place they’ve
move away for uni-
of this initiative and how
received treatment and versity study and families
it could assist you and
are often documented on
divided as family your loved ones before
paper.
members travel interstate simply declaring “I’m
These documents are for work. And despite the opting out”.
often faxed or mailed between
advancement in our tech-
The My Health Re-
clinics taking time nology, your healthcare cord has been operating
and leaving the health and associated records for the past six years and
system
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The Hobart Rivulet in full flood in May, above,
and, inset, flood damage near the Royal Hobart
Hospital.
Pictures: Louise Hedger
E-health puts records in your hands
care in Australia.
Your circle of care,
including medical specialist
and allied health
providers, will be able
to tailor better treatment
options for you as they
know the overall picture
of your health.
They will know what
medication you are taking
and it will assist clinicians
from doubling up
on costly or duplicated
pathology tests.
We know that people
are worried about keeping
their personal data
private, noting there is
already risk in current
paper-based systems.
To have a My Health
Record, users must be
registered with My Gov,
which is already extensively
used by individuals
to do their annual tax
returns.
The Australian Government
has ensured
there are sufficient safeguards
in place so that all
the information stored is
safe, including amendments
to legislation, firewalls
and monitoring by
the Cyber Security Centre.
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Workplace Relations
WINTER is here and no doubt employers will
see an increase in staff being unfit for work.
It’s always a tricky area for employers to balance
up the need for privacy on the part of the
employee and the business’ needs.
The Fair Work Act at section 107 specified
what evidence is required when employees are
taking paid personal leave – that is, evidence
that would satisfy a reasonable person. Employers
may already have a policy on what evidence
is required (and if not we strongly recommend
that you get one).
A common form of evidence is a medical certificate
from a registered medical practitioner
and states the employee will be/was unfit for
work. Medical certificates may also be from a
registered health practitioner (chiropractor, dentist,
osteopath, pharmacist, physiotherapist, or
psychologist) but the certificate should relate to
their area of expertise.
Employers have also seen an increase in the
production of pharmacist certificates. The Pharmacy
Guild of Australia states that a pharmacist
can provide a certificate as evidence that would
satisfy a reasonable person of an employee’s
illness or injury. However, the guild strongly
recommends that pharmacists limit the provision
of certificates for absence from work to
their area of practice and expertise.
So, while medical certificates are generally
regarded as irrefutable proof that the employee
was legitimately absent from work there are
some instances where they can be challenged
by an employer. Such examples include where
the employer has:
• a second medical opinion contradicting the
original medical opinion; or
• Objective evidence that contradicts the
medical certificate – i.e. photos from social media
that show the employee is not incapacitated
or where medical certificates have been created
or altered by the employee to name a few.
In a nutshell if you are unsure about whether
you can ask for evidence of illness or injury, or
if you are unsure about the evidence you have
been provided with, ask.
You can contact TCCI on the Helpline on
1300 765 123 or the TCCI on 1300 59 122
or workplacerelations@tcci.com.au

6 Tasmanian Business Reporter - AUGUST 2018
THOUGHT LEADERSHIP
www.tcci.com.au
Refunds for
export costs
Sally
Chandler
Tradestart Adviser
APPLICATIONS are open to claim under the
2017-2018 Export Market Development Grant
scheme.
The scheme for exporters has been around
in various formats for more than 40 years.
To be eligible businesses must have received
less than $50 million income in the
grant year and have spent more than $15,000
on eligible export expenses in the grant year.
First time applicants can combine two
consecutive years expenditure to reach the
minimum expenditure threshold.
For the 2017-2018 grant year, which mirrors
a financial year, the following export
promotion expenses can be claimed:
• an overseas representative acting on your
behalf on a long-term basis to market your
product or service but it does not include the
cost of commission and non-promotional
activities;
• the cost of engaging an arms-length marketing
consultant for export market research
or marketing activities;
• the cost of air travel during a marketing
visit and an allowance of $350 per day;
• the cost of providing free samples;
• IP registration and related insurance;
• costs directly related to participating in
trade fairs, seminars and in-store promotions;
• promotional literature and advertising; and
• the cost of bringing potential buyers who
are non-residents to Australia for an eligible
export promotion purpose.
Some categories have maximum expenditure
limits. The maximum grant is $150,000
and is subject to available funds because the
grant scheme is capped.
Up to 50 per cent of eligible export promotion
expenses are reimbursed above $5,000
provided the $15,000 minimum expenditure
threshold is reached.
Each eligible applicant is able to receive
eight grants and they do not have to be in consecutive
years.
The 2017-2018 grant year application is online
through the Austrade website and grants
must be received by Austrade on or before
November 30, 2018. If an EMDG consultant
lodges the claim on the applicant’s behalf, the
deadline is extended to the February 28, 2019.
Austrade is conducting free webinars
throughout August, September and October.
Registration is on the Austrade website at
www.austrade.gov.au/Australian/Export/Export-Grants/Assistance/information-sessions.
Coaching videos are also on the website.
For international trade and investment assistance
contact the TCCI’s TradeStart Adviser, Sally Chandler,
at sally.chandler@tcci.com.au or 1300 559 122.
www.flairofficefurniture.com.au
WITH encouragement
from industry, Labor will
forge ahead with its popular
election commitment
to set up industry advisory
councils (IACs) across
key economic sectors of
the Tasmanian community
and work with industry
and unions to develop the
policies it would implement
in government.
The most common
complaint my colleagues
and I hear from business-
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Shippers warned our
service level unviable
THE Tasmanian Freight
& Logistics Forum,
co-hosted by The Tasmanian
Logistics Committee,
The Freight and
Trade Alliance and the
Australian Peak Shippers
Association was
held at UTAS/Australian
Maritime College at the
beginning of July.
Last year there was a
take away quote from
industry stalwart Tom
Holyman (ANL) that
read something like
“Tasmania has the perfect
environment for
shipping with three expanding
coastal carriers,
three international
carriers calling direct,
most other shipping lines
serviced via the coastal
carriers and the freight
equalization scheme extended
to cover export
cargoes – enjoy it now,
as it won’t last – Tasmania
cannot sustain so
many services”.
The prophecy was fulfilled
with Maersk announcing
just before the
forum that they were
withdrawing their direct
calling vessels from Bell
Bay.
Keeping with the
prophecy theme - the
next 12 months should
be viewed with some
caution.
Forum attendees were
advised to watch for fur-
Labor to work with industry on policy
Phone 6234 1127
260 Argyle Street,
North Hobart
Brett
Charlton
Agility Logistics
Anita
Dow
Shadow Minister for Economic
and Regional Development
es is that our education
and training system is
not linked to the skills
needs of industry.
Major employers on
the North West Coast
and around Tasmania are
telling us they would put
on highly skilled workers
immediately if they
could find the right people
with the skills they
require in their business.
At the same time youth
and regional unemployment
in Tasmania remain
unacceptably high with
many people keen to find
work but unclear about
their pathway to meaningful
employment.
Clearly there is a disconnect.
During the election
Labor proposed the establishment
of eight industry
advisory councils
across key sectors of the
economy:
• Minerals, Energy and
Advanced Manufacturing;
• Innovation and Information
and Communication
Technologies;
• Primary Industries
and Forestry;
ther consolidation in the
shipping world, larger
ships being the trend
(with infrastructure challenges
to accommodate
them in Australia), low
sulphur fuel implementation
at a cost, slow
steaming to reduce costs,
attempts to increase
freight costs – the international
shipping lines
are maintaining a ship
building (and large ones)
regime, but the freight
volumes are not equaling
the capacity.
The forum received
briefings on the coastal
services from Toll and
Searoad as well as Tas
Ports. Interesting discussion
and information was
received on trade trends
and security (particularly
air security – if you
are an airfreight exporter,
you would be wise to be
investigating the “known
consignor scheme right
now as there are significant
changes to handling
of export freight from
Australian airports from
the end of the first quarter
2019).
We were extremely
lucky to be advised that
Tasrail received the National
Freight Excellence
award during the day.
Discussion on safety for
truck drivers as well as
• Education, Science,
Research and the Antarctic;
• Tourism, Hospitality,
Festivals, Heritage (built
and natural environment)
and the Arts;
• Building, Construction
and Infrastructure;
• Wellbeing, Care and
Community Development;
• Employment, Regional
Development and
Trade.
Because of the overwhelmingly
positive
feedback from business
leaders, the workforce
and industry, Labor will
work constructively from
opposition, charging
each IAC with providing
direct input into the development
of policy and
funding decisions, particularly
when it comes
to skills and training.
Labor will not wait until
we are in government
Attendees at
the recent
Tasmanian
Freight and
Logistics
Forum who
were advised
to watch for
further
consolidation
in the shipping
world.
the technology. Automated
vehicles are not here
yet, but when they do
come, you want an experienced
driver watching
the robots closely.
Minister Jeremy Rockcliff
provided an excellent
overview of the state’s
perspective on the freight
task and Senator Zed Seselja
opened the forum
with a federal overview.
The day ended with
a showcase of Tasmanian
produce as a way of
providing our interstate
guests with an overview
of what is amazing in our
State and what we ship
north.
Labor will not wait until
we are in government to
set up this invaluable
consultative mechanism
to set up this invaluable
consultative mechanism.
Labor is committed
to building trust, respect
and engagement with industry,
particularly in the
North and North West of
Tasmania. The IACs will
be a key part of that strategy.
The IACs will be
tasked to help further
develop Labor policy,
as well as provide an
avenue for industries
to share their ideas and
feedback.
The IACs will provide
proactive engagement
between industry sectors,
unions and the Labor
Party.
What will emerge from
this collaborative process
are an industry and education
aligned set of policies
and objectives that
Labor will articulate in
its regional and economic
development policy.

Tasmanian Business Reporter - AUGUST 2018 7
THOUGHT LEADERSHIP
www.tcci.com.au
Lock up your data
By ELIZABETH
JAMESON FAICD
DURING the 2016–17
financial year, 114 data
breaches were voluntarily
reported to the Office
of the Australian Information
Commissioner.
After mandatory notification
came into force
in February 2018, 63 incidents
were flagged in
just six weeks.
Digitally dependent
large enterprises claim
to understand the magnitude
of the cybersecurity
challenge.
The ASX’s voluntary
cyber health check offered
to the top 100 listed
companies last year
revealed 92 per cent of
respondents had a degree
of confidence about
their cybersecurity, but
only 29 per cent believed
management could detect,
respond to and
manage an incident with
minimal impact on the
business.
Among SMEs, the
situation is worse, says
Terry Roberts, a former
deputy head of US Naval
Intelligence and now
Chair/CEO of ASX-listed
WhiteHawk, the security
marketplace she
established to help businesses
find affordable
and effective cybersecurity
solutions.
“SMEs do not think
they are a target and
don’t invest in cybersecurity,
even the basics.
They don’t believe there
is an affordable approach
and won’t make that leap
unless they have a contract
at stake or have had
[a breach],” says Roberts,
speaking at an Australian
Institute of Company
Directors event in
Australia recently.
Many local companies
selling online to EU citizens
or holding their personal
data are now also
subject to the General
Data Protection Regulation.
Organisations suffering
a serious breach
have 72 hours to notify
authorities. Non-compliance
can incur fines of up
to four per cent of global
revenues.
“It’s only been in the
past five years that cybercrime
and fraud has
moved against all business
sectors.
“Directors don’t have
the tech experience, they
don’t think of it as a business
risk and they tend
to turn to their technical
people to solve it. It’s not
a technical issue, it’s a
business issue analogous
to physical security.”
Roberts says companies
must take a fresh
look at their data and
digital assets to identify
what needs most protection.
“Lock your windows
and doors. Let’s put your
jewels in a safe so at least
if you have an event it
won’t bring you to your
knees and ... you will be
able to operate through
it.Regular backup is critical,
particularly to withstand
a ransomware attack.”
However, truly sensitive
data needs additional
protection, using encryption
to ensure data
cannot be read or used.
Roberts also recommends
companies seek
a risk rating from an independent
cybersecurity
agency.
“If you deal with
your customers via your
website, you need to
protect your website; if
you communicate via
email, it’s email security;
if you have proprietary
data like manufacturing
data, there are
simple data lockers that
cost $5000 to encrypt
that data.
“With midsize and
small companies, it’s
never about doing everything
— that’s not affordable
or practical.
“It’s about figuring
out those dependencies
you have on the internet
that have a huge impact
on your revenue.”
Off-shelf systems not ideal
THE WHS Legislation
indicates that there needs
to be in place a system to
manage workplace health
and safety. Commonly
these are call workplace
health and management
systems.
The purpose of a
WHSMS is to ensure
that there is a consistent
methodology of how
workplace safety is implemented
in the business.
In many workplaces
the solution to this issue
is to buy an “off the
shelf” system to address
this issue.
While it may bring
businesses some comfort,
the thinking is flawed because
off the shelf systems
are broad in nature
and not specific to the
business’ needs.
Some of the problems
with these systems are:
• it can act as a smokescreen
for doing nothing;
• the system can also
Craig
Hortle
Workplace Health & Safety
AICD is holding a number of Cyber for Directors short courses that
enable participants to effectively engage in the process of identifying
the evolving threats and risks to their organisation as well as maximising
innovation opportunities using the lifeblood of the organisation: information.
Courses are being held in Hobart and Launceston. To find our
more contact AICD (03) 6242 2200, tas@aicd.com.au or visit the website
http://aicd.companydirectors.com.au
A system does not need
to be complicated or
overly technical
then be a mechanism for
undermining more traditional
employee involvement
in WHS decisions;
• when the reason for
introducing a WHSMS
is primarily commercial
(such as winning a contract
or tender) and WHS
outcomes themselves are
unimportant, the question
is raised as to whether
or not the safety of
employees is the prime
objective; and
• it does not fit the specific
activities that are
carried out by the business.
The fundamental idea
of WHSMS is to provide
a framework to handle
safety issues through the
policies and procedures
that it contains.
If you have a system
that is not implemented
you are leaving the business,
business owner and
the employees open for
prosecution under WHS
legislation.
Even if your business
is part of a national franchise
with nationally
available WHS information
– it still needs to be
applicable to your business,
implemented and
understood by all in the
business.
If you have a system
that is off the shelf it
would be a good decision
to take advantage
of the free WHS advisory
service provide by the
TCCI that will be able to
explain:
• hazards and risks in
your workplace;
• applying controls for
those hazards and risks;
• reviewing policy and
procedure;
• requirements for consultation;
and
• duties of the business,
the officers, and
workers.
A system does not
need to be complicated
or overly technical. With
some assistance from the
For information on how to achieve this please contact Craig Hortle or Janelle Whitehouse at the
TCCI on 1300 559 122 or safety@TCCI.com.au
free WHS specialist advisory
service at the TCCI
this can be achieved easily
and reflect the needs of
your business or organisation.
Franchise
guide to
success
Dean
Demeyer
Business Broker
INDUSTRY research organisation IBISWorld
has recently examined the franchising industry
and found there are some franchises set to fly
as growth in household disposable incomes
fuels consumer demand for some franchised
goods and services.
Service-based franchises offering time
saving for wealthier consumers are in high
demand.
These time-poor consumers will pay for
domestic services like house cleaning, gardening,
nutrition and various well-being services.
IBISWorld also identifies the key success
factors for the franchise industry:
• the ability to build repeat buyers from a
loyal customer base;
• use the franchisor’s clear market position
and build consistency of operations;
• access to franchisor mentoring and guidance
to grow the business;
• manage stock on hand to only meet customer
demand and therefore reduce inventory
costs;
• exploit the brand name from the national
marketing exposure; and
• train your workforce to provide sound advice
and exceptional customer service.
Interestingly, independent business owners
should also adopt these business traits to be
successful.
One of my university lecturers once told me
“if a business owner isn’t able to be innovative,
then they should copy someone who is
innovative in the same industry”.
Many Asian businesses through the 1970s,
1980s and into the 90s were exceptional at this
principle.
Franchises are an attractive proposition for
people new to business. In essence, franchises
come with an operations manual which, if followed,
increase the likelihood of success.
I’m aware of a sandwich shop franchisee
that operated in six locations who was asked
to give a speech at his annual awards presentation
on how he was so successful? His speech
lasted for five seconds as he promptly pointed
to the operations manual in his hand and declared
“follow this to the best of your ability”
and promptly sat down.
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8 Tasmanian Business Reporter - AUGUST 2018
NEWS
AMC in sonar trials
THE Australian Maritime
College has partnered
with international
defence giant Thales
to investigate establishing
a trials and test
facility for naval sonar
systems in Tasmania.
Thales Australia,
AMC and AMOG Consulting
has signed an
agreement to co-develop
a facility which can
utilise northern Tasmania’s
deepwater lakes
to test the next generation
of Australian submarine
and surface ship
sonar systems.
Thales Australia
CEO Chris Jenkins
said the initiative was
part of the organisation’s
commitment to
work collaboratively
with leading Australian
SMEs and universities
to deliver high technology,
leading-edge solutions
for Defence.
“Historically, Thales
has worked with AMC
and AMOG Consulting
on a number of sonar
trials activities, and with the
Australian Government’s historic
recapitalisation of the
Royal Australian Navy, now
is the time to investigate establishing
a permanent facility,”
he said.
“From 1990 to 2000 Thales
and AMC tested and calibrated
the in-service array for
Australia’s Collins Class submarines
in Tasmania’s deep
mountain lakes as they provide
an ideal environment for
sonar systems.”
ARC Research Training
Ben Clark from AMOG Consulting, left, Gary Dawson of Thales Australia, Liberal Senator
Richard Colbeck, Federal MP Christopher Pyne, Brett Whiteley, Liberal candidate for Braddon,
University of Tasmania Deputy Vice-Chancellor (Research) Prof Brigid Heywood.
Centre for Naval Design and
Manufacturing Director Jonathan
Binns welcomed the opportunity
to further AMC and
the University of Tasmania’s
strategic alliance with Thales
Australia.
“Thales is a founding
member of the research
training centre and this new
agreement will build upon
our work in understanding
the hydroacoustics and hydrodynamics
of sonar systems
– how noise travels
through water and how water
moves around an object
such as a submarine hull or
ship’s propeller,” Associate
Professor Binns said.
“This collaboration with
Thales will allow us to undertake
cutting-edge research
that will ultimately
feed into the design, manufacturing
and sustainment
of Australia’s next generation
of naval vessels. Co-investment
in infrastructure
such as this project connects
to University plans
to grow its contribution to
defence through focused
investment in capabilities
and scale across its network
with a Defence Innovation
and Design Precinct as its
cornerstone.”
“Bringing both of these
together presents a unique
opportunity to develop a
new and novel experimental
testing capability, with the
potential to attract further
investment and industry
collaborations to build Australia’s
naval research and
development capabilities.”
Uni internship
program set
for launch
THE I-PREP program
will soon be formally
launched in a bid to
improve the relationship
between business and
learning institutions in the
state.
As part of the program,
the University of Tasmania
is calling for businesses
to open their doors to
talented and enthusiastic
international students.
The initiative, to be
launched by Minister
for State Growth, Peter
Gutwein, on August 14,
aims to give international
students, at both the University
and TasTAFE, an
opportunity to engage in
and make a valuable contribution
to a Tasmanian
workplace.
The program educates
international students in
Australian workplace culture,
communication skills
and how to apply for a job.
Students are then eligible
to apply for an internship
in a Tasmanian organisation
to put their skills into
practice.
UTas Industry Engagement
Coordinator Penny
Stringer is excited about
the potential.
“There are many benefits
to hosting an intern
including enriching and
diversifying your organisational
culture with someone
who has a youthful
perspective, energy and
global knowledge,” Mrs
Stringer said.
“For the student they
get hands-on work experience
in a real workplace,
as well as developing
transferable skills and
experience for their resume.
For employers, it’s
an opportunity to develop
and mentor the future
employees and leaders of
Tasmania.”
The I-PREP program is a
key element of the University’s
new Career Connect
initiative, which aims to
build closer ties and networks
between the University
and local employers.
Career Connect will give
employers the opportunity
to source talent and
engage with students in
a range of creative ways
from offering mentoring,
advertising jobs, hosting
interns and work experiences
and holding
on-campus expos.
“We want to start a
conversation between the
business community and
the University of Tasmania
about how we can work
together to develop a productive
workforce,” Mrs
Stringer said.
Employers interested in
hosting an I-PREP intern
or learning more about
Career Connect should
contact Leap.Connect@
utas.edu.au.
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SPIRITS and Cocktails
Australia put a call out to
candidates in the recent
Braddon by-election to
support a freeze on Australia’s
six-monthly tax
increase on spirits, calling
it discriminatory.
CEO Alec Wagstaff
said the continual tax increase
was unfair to both
spirit drinkers and the
burgeoning distilling industry
in Tasmania.
“The issue is particularly
severe in Braddon,
where residents tend to
choose pre-mixed drinks
over beer at a higher rate
than those in other parts
of Australia,” Mr Wagstaff
said.
“The current system is
complex and unfair and
there is no clear reason
why those who choose a
rum and coke over a can
of beer should be hit with
double the tax.
“The ever increasing
spirits tax also runs the
risk of hampering the development
of a growing,
world class industry in
Tasmania.
“Businesses like
Hellyer’s Road Distillery
and Southern Wild
Distillery are leading
the way for industry
growth in the region,
but with distillers paying
almost twice as
Spirits and Cocktails Australia CEO Alec Wagstaff.
much tax as beer brewers
it puts our market
leaders on the back
foot.”
A person drinking a
standard can of beer
will pay $0.67 in excise,
while those who choose
a pre-mixed can of rum
and cola will have to
fork out $1.48 in tax.
The second excise increase
for the year came
into effect on August 1.

Tasmanian Business Reporter - AUGUST 2018 9
NEWS
Deal builds
shipbuilding
capabilities
TAFE SA Executive Director, Education, Brian Rungie, left, and
University of Tasmania Vice-Chancellor Professor Rufus Black.
THE Australian Maritime
College and TAFE
SA have strengthened
their joint capability to
supply skilled workers
for Australian continuous
naval shipbuilding program
after an agreement
to collaborate on education
and skills development.
AMC and TAFE SA
have signed a memorandum
of understanding to
work together long term
to build a pipeline of
skilled workers for the
major naval shipbuilding
projects in Australia,
particularly in the areas
of maritime engineering,
design, project management,
logistics and supply
chain management.
The benefits from the
partnership are set to include
direct pathways
from TAFE SA Diploma
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and Associate Degree
programs into AMC’s
Bachelor of Engineering,
Bachelor of Global
Logistics and Maritime
Management, and Bachelor
of Applied Science
(Marine Engineering).
Other benefits will include
the enrichment of
existing programs and
new joint programs in
response to industry requirements.
The partnership will
also strengthen both institutions’
existing collaboration
with the Naval
Shipbuilding College
and participation on the
NSC’s Delivery Advisory
Council.
University of Tasmania
Vice-Chancellor Professor
Rufus Black said the
agreement was a prime
example of educational
institutions working together
to meet the evolving
needs of industry.
“As a national institute,
AMC is very much
looking forward to collaborating
with TAFE SA
to bring nation-leading
maritime education to
help create more opportunities
for more South
Australians to participate
in the growth of the shipbuilding
industry,” he
said.
“By working collaboratively
with TAFE SA,
we will be able to create
the integrated educational
offering to enable
people to advance their
careers as the industry
grows.”
The Department of Defence
has outlined a national
program to build
around $90 billion in new
naval ships and submarines
for the country.
Science puts bugs in the system
Moreton Bay bugs have huge commercial
potential.
REASEARCHERS who
developed a worldfirst
method to breed
rock lobsters commercially
have now paved
the way for a Moreton
Bay bug aquaculture
industry in Tasmania.
A commercial operation
is now possible
and breeding of other
high-value species is
likely thanks to efforts
at the Institute for
Marine and Antarctic
Studies.
Research began into
hatchery techniques
for the bay lobster,
Thenus oriental, better
known as the Moreton
Bay bug, in September
2017.
The Research Hub’s
Director, Associate
Professor Greg Smith,
said thousands of
juvenile bay lobsters
had been reared using
the same technique as
IMAS developed for
tropical rock lobsters.
Tank design, water
quality and appropriate
feed were vital for
lobster survival and
growth.
“Some of these
animals have been
Navigate your maritime
career in Sydney with AMC
selected as breeding
stock, and their offspring
will be grown in
the hatchery later this
year,” Associate Professor
Smith said.
“Bay lobsters have
shown strong potential
for development as
a commercial aquaculture
species, and
some species-specific
modifications to our
approach are expected
to improve commercial
viability.”
Dr Smith said the
Research Hub’s industry
partner, PFG
Group, was enthusiastic
about growing
both species in their
commercial scale
hatchery, which is
currently in the early
stages of planning.
“The success we
have had in culturing
rock lobsters, and
now Bay lobsters is
the result of 17 years
of intensive research.
“We are now keen to
test the technology’s
potential on other
high-value crustacean
species,” Associate
Professor Smith
said.
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10 Tasmanian Business Reporter - AUGUST 2018
NEWS APPOINTMENTS and ANNOUNCEMENTS
High-value volunteers
VOLUNTEERS are
worth almost $5 billion
to Tasmania and one corporation,
Hydro Tasmania,
has been highlighted
for its employee program
encouraging staff to give
back to the community.
The 2018 Southern
Cross Television Tasmanian
Volunteering
Awards involved 27 finalists
across a range of
categories with winners
announced at a ceremony
at Government House,
hosted by Patron of Volunteering
Tasmania,
Govenor Professor Kate
Warner.
Volunteering Tasmania
CEO Alison Lai
thanked those who gave
their time and energy,
saying that from a financial
perspective, the contribution
from volunteers
was conservatively estimated
to be worth at least
$4.9 billion each year to
the island.
“Every single volunteer
is contributing to
this extraordinary figure,
including those who are
able to help every day,
once a week, every few
months or once a year,
Business puts right hoof forward
Kate Hickey from Hydro Tasmania, left, and Governor Kate Warner.
this figure also includes
the contribution of corporate
volunteers who
are supported by their
companies to make a difference.”
Corporate Award finalists
included MyState
Bank, Tenants’ Union of
Tasmania.
Hydro Tasmania Community
Coordinator Kate
Hickey said almost half
INNOVATIVE hoof boot
maker, Scoot Boots, is the
2018 Telstra Tasmanian Business
of the Year.
Creator and co-founder,
Dave MacDonald, had been
working with horses as a
trainer and farrier for 30 years
when he designed and created
the Scoot Boot, a unique onepiece
hoof boot that is simple,
lightweight and easy to fit.
“We want to inspire, educate
and advocate for a
barefoot natural approach
for horses around the globe,
changing 1,500 years of tradition.
Our Scoot Boots allow
horses to virtually go barefoot,
an option that is much
suitable to their overall
health,” he said.
Scoot Boots also took
home the 2018 Telstra Tasmanian
Emerging & Energised
Award.
Acting Group Executive,
Head of Telstra Wholesale,
Jules Scarlett, said the winners
of the 2018 Telstra Tasmanian
Business Awards
were shining examples of
businesses doing great things
in new and effective ways for
their customers.
The other category winners
were:
• Find Your Feet Australia:
2018 Telstra Tasmanian
of Hydro’s employees
took part in the organisation’s
volunteer program,
which recognises
the value of volunteering
for professional and personal
growth.
Employees at Hydro
can work with any community
organisation of
their choice.
“Our people are encouraged
to do all forms
Small & Succeeding Award
winner.
Founded by former elite
athlete, Hanny Allston, the
brand combines a multi-channel
approach with a four- level
store in Hobart
• Cancer Council Tasmania:
2018 Telstra Tasmanian
Social Change Maker Award
winner
Each year CCT provides
5,000 occasions of support
and transports more than 250
individuals to about 3,600
treatment appointments.
The Telstra Australian
Business Awards will be held
in Melbourne on Thursday,
20 September.
of volunteering – oneoff
or ongoing, projects,
or skilled volunteering,”
Ms Hickey said.
“The Hydro is made
up of people whose
families live and work
around Tasmania in big
and small communities.
By offering a corporate
volunteering program
our people have the flexibility
and encouragement
to get involved and
volunteer for activities
of their choice.
“Research shows that
people who volunteer
are healthier and happier
but volunteering
can also improve professional
skills, such as,
teamwork, leadership,
problem-solving and
creative thinking.
“We also know that
diversity is good for
business.
“Through volunteering
our people get to
work in a completely
different environment.
“They can then apply
these new ideas and
different ways of approaching
issues to their
work.
“Over 40 per cent of
our people volunteer.
It is amazing to think
that these small acts can
change someone’s life.
“Our corporate volunteering
program is a way
for our people to share
their expertise and be
part of their community,
improve their health,
boost their skills and
bring new ideas to their
work.”
Award winner Dave MacDonald
from Scoot Boots.
IN BRIEF
Website refresh
THE Government’s Digital Ready for Business website
has been updated to provide businesses with a
comprehensive toolkit of fact sheets, video content
and other useful information.
The free program provides small businesses with
access to targeted knowledge, advice and assistance
to improve their online presence and skills so they can
seize the opportunities presented by the changing digital
technology.
University design
JOHN Wardle Architects has been appointed as the
principal consultant and will partner with three Tasmanian
practices to design the $300 million UTAS
Northern Transformation project.
Room11, 1+2 Architecture and Philp Lighton Architects
were the successful Tasmanian partners.
A development application is expected to be submitted
in the fourth quarter of 2018.
Irrigation appointment
CHRIS Thompson has been appointed as a new Tasmanian
Irrigation Director.
Mr Thompson was formerly managing director and
director of firms Macquarie Franklin and Agricultural
Resources Management and has extensive consulting
experience in agribusiness developments, rural water
resources management, irrigation systems and dam
construction and operations.
Welding skills centre
A NEW $750,000 advanced welding training centre
has been announced by the Federal Government
for Burnie. The funding will allow for purchase of
five state-of-the-art welding simulators and advanced
technical training to help upskill TasTAFE trainers
and will train and skill local welding apprentices and
workers from Tasmanian businesses.
Mining Technology
LAUNCESTON based ICT Company Definium
Technologies has landed a major new $1.5 million
contract to supply hi-tech electronic components to a
large-scale mining project.
Definium will locally develop and manufacture 31
cutting-edge multi-channel LoRa gateways and about
6500 sensors for the Australian mining sector.
Up to six jobs will flow as a result of the contract.
Turnkey contract
TAYLOR Bros has signed a new deal to supply a total
turnkey contract for accommodation outfitting of the
Royal Australia Navy’s new offshore patrol vessel.
Part of the Navy’s $3.6 billion SEA 1180 Offshore
Patrol Vessels program, Taylor Bros will supply internal
fitouts to 12 new offshore vessels being delivered
through to 2030.
Looking
for new
talent?
For more information email:
Leap.Connect@utas.edu.au
Register at:
utas.edu.au/careerconnect/employer
You can find and directly
connect with students
through the University of
Tasmania’s new employment
portal, Career Connect.
If you are looking to:
> advertise a job
> run a recruitment and
selection process
> mentor students
> offer work experiences
and I-PREP internships
> interact with students
virtually and on campus
Career Connect can help you
do all this and more.
CRICOS Provider Code 00586B
UTAD21356
WANTED
Business
movers and
shakers
• Promotions
• Appointments
• Awards
• Celebrating
success
Share the news
with the
Tasmanian
business
community
Send your news
snippets, with a
high quality photo,
to TBReditorial@
fontpr.com.au
Tender
test
THE Government has
expanded its Local Benefits
Test, designed to
grow jobs by making
sure Tasmanian businesses
have every chance
of winning Government
tenders - while still ensuring
value-for-money
for taxpayers.
It will it double the
test, to a minimum of 20
per cent of the evaluation
criteria, for Government
agency procurements.
Figures for 2017-18
show 244 government
contracts were awarded
to Tasmanian businesses
with total value of
government contracts of
$409.5 million.

Tasmanian Business Reporter - AUGUST 2018 11
EVENTS NEWS
Rob Atkinson, University of Tasmania, left, and
Ollie Shugg of AusTrade.
Wayne Davy, Tasplan Super, left, Prof Rufus
Black, University of Tasmania Vice-Chancellor
and Tommy Wong, TCCI Board Director.
Lee Whitely, University College Chief Executive,
left, Susan Parr, TCCI Board Chair and Mercury
GM Damon Wise.
What: Tasmanian Chamber of
Commerce and Industry University
College Luncheon
Where: Royal Yacht Club of
Tasmania, Sandy Bay
When: Wednesday, July 4, 2018
Scott Adams, TasTafe, left, Tim Johns, Aon Risk
Solutions and Rick Sassin, Housing
Industry Association.
Kellie Watson, ECA Tas, left,and Annette Barwick
and Trevor Brown, Lady Gowrie Tasmania.
Bruce
Williams
City of
Launceston,
left, Donna
Bain, Self-
Help Workplace
and
Lyndal
Kimpton of
Ruddicks.
LEFT: Susie Bower, University College/RDA,
left, Tom Black, RDA and Moya Fyfe from the
University of Tasmania.
ABOVE: Joel Brewer, left, and Teresa Darcie
of Scotch Oakburn College.
What: Launceston Chamber of
Commerce University College
Breakfast
Where: Tramsheds, Inveresk
When: Tuesday July 3, 2018
• Master Keying
• Electronic Security
• Lock Hardware
• Alarm Monitoring
www.jacksonssecurity.com.au
ph: 1800 555 700

PROPERTY MATTERS
Tasmanian Business Reporter - AUGUST 2018 12
Hobart: Where to from here?
Scott Newton
Property Matters with
Knight Frank
This month’s article is a valuer’s
perspective of the Tasmanian
property market, from Matthew Page,
Knight Frank Tasmania’s Director –
Valuations.
IN the article I contributed 12
months ago there was mention
the US Federal Reserve
may start increasing rates
over the next 12 months and
that further interest rate rises
could not be discounted.
The US Federal Reserve
did increase rates but Australian
monetary policy settings
remain much the same. Interest
rates are static.
Access to debt funding is
a primary contributor to ongoing
investment in property
markets.
It is becoming apparent the
bank approved loan to value
ratio is a key issue in addition
to the cost of funds.
The level of funds available
to buyers influences
asset prices. This in turn influences
property values by
the extent of funds available.
The outcomes of the Royal
Commission into Banking,
Superannuation and Financial
Services Industry will be
particularly relevant to the
property sector as measures
to restrain lending practices
are likely to be implemented.
The property sector in Tasmania
has attracted investors
that have a lower requirement
for bank funding.
So, despite the potential
for changes to lending, the
market will continue to move
along by the contribution of
market participants with lower
borrowing requirements.
Property with the appropriate
investment fundamentals
should remain suitable in
The new Icon Centre has helped Hobart CBD consolidate as a retail hub.
the market place.The Hobart
retail sector has consolidated
its position with the opening
of Icon Centre Shopping Arcade
and completion of Myer
in May. The opening of H&M
in the Cat and Fiddle Arcade
complex has assisted the ongoing
position of the CBD as
the primary retail precinct in
greater Hobart.
These developments have
firmed up the position of other
retailers as more customers
shop in Hobart with the greater
offering available. From a
property valuation perspective,
this helps to underpin
value.
The strength of the residential
and visitor accommodation
real estate sectors
have positively influenced
the state of the commercial
property sector with a number
of disused commercial
sites, for instance, all of a
sudden finding opportunities
for alternative development
to either hotel or residential.
The strength of the residential
development sector in
the inner areas of Hobart has
fairly quickly created value
for sites that were previously
languishing without a use.
Developers have become
more interested in realising
development opportunities
on such sites in the light of
housing supply shortages.
The Greater Hobart residential
market has not been
able to keep pace with demand.
In a short time, land
values have increased rapidly
as a consequence of limited
new or potential land supply.
There are challenges for
developers and home builders
as they await delays in the
provision of infrastructure
and service provider ability
to resource the burgeoning
circumstances.
Without additions to land
supply, values are likely to
keep increasing as buyers
pay a premium to build a
home.
PROPERTY VIEW
AUGUST 2018
Outline indicative only
Outline indicative only
For sale by expressions of interest
PREMIER CBD DEVELOPMENT SITE
179 Macquarie Street, Hobart
Knight Frank has the privilege of presenting this
significant Development Approved site to the
market. Take advantage of the existing DA while
Hobart’s tourism sector is the envy of the country.
• Iconic site, rare opportunity
• DA for 30m, 202 room hotel
• Macquarie Street frontage of over 41m, land
area 2,162 sqm (approx.)
• Surrounded by significant hotel and commercial assets
• Zoned: ‘Central Business’, CBD gateway location
• Potential for residential/serviced apartment
conversion (STCA)
Scott Newton 0409 186 261
Hayden Peck 0412 766 395
View at KnightFrank.com.au/4342530
For sale
TROPHY CBD OPPORTUNITY
53-57 Collins Street, Hobart
• Landmark CBD building on a significant corner site
• Site area of 943 sqm (approx.) with three
extensive street frontages
• Gross building area of 2,275 sqm (approx.) plus
seven car parks (approx.)
• Zoning of ‘Central Business’ provides
significant flexibility of uses
• Being sold with the whole of 53 Collins Street
vacant and part of 57 Collins Street vacant with
a good holding income
• Exceptionally appealing property with a diverse
range of developent options (STCA)
Richard Steedman 0408 559 046
Scott Newton 0409 186 261
View at KnightFrank.com.au/4300612
Outline indicative only
2018
EMPLOYER OF
CHOICE AWARDS.
For sale by expressions of interest
OWNER-OCCUPY OR DEVELOP
263 Elizabeth Street, Hobart
• Land area of 1,213 sqm*; ‘Urban Mixed Use’ zoning
• Gross building area of 460 sqm* comprising
showroom, storerooms, workshop, offices
and amenities, and first floor rooms
• Plenty of off street parking
• High profile site to Elizabeth Street, the main
arterial road linking Hobart CBD to North Hobart
• The property presents in excellent condition
and is offered with vacant possession for owner
occupancy or as a development site (STCA)
• Rare to market opportunity
(*approx)
Hayden Peck 0412 766 395
Ian Reed 0419 670 501
View at KnightFrank.com.au/4344318
Knight Frank Tasmania has officially been
recognised as an Employer of Choice at the
Employer of Choice Award ceremony held recently.
An Employer of Choice is a workplace with a
reputation as a great place to work and recognises
that we successfully attract and retain the best
property professionals in the industry.
5 Victoria Street, Hobart 41 York Street, Launceston Shop 8, 48-54 Oldaker Street, Devonport
P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568