6 Tasmanian Business Repo

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6 Tasmanian Business Reporter - DECEMBER 2019THOUGHT LEADERSHIPNation leaderBusiness givesstate the edgewww.tcci.com.auBill to strengthensuper guaranteeWayneDavyCEO TasplanMichaelFergusonSmall BusinessMinisterTASMANIA’S economy is leadingthe nation on a number ofmeasures, and the Governmentsays “thank you” to the hardworking and innovative Tasmanianbusinesses.Australian Bureau of StatisticsGross State Product datashows that the Tasmanian economyis the fastest growing in thecountry.In 2018-19 the Tasmanianeconomy grew 3.6 per cent, thehighest growth rate of all of thestates and territories, and nearlydouble the national GDP growthof 1.9 per cent.This extraordinary result is thefastest economic growth recordedin Tasmania in 15 years andit is the first time since the seriesbegan in 1989 that Tasmania’seconomy grew the fastest in thenation.In another series first for Tasmania,all 19 industry sectorsgrew throughout the year, meaningthat our economic success isdiverse and broad-based.Further to this, more Tasmaniansare in work than everbefore.ABS labour force data showsthat under the Liberal Government,15,800 jobs have now beencreated, and 250,900 Tasmaniansare now employed in trend terms,which is a new jobs record.In October 2019, 800 jobs werecreated, representing the fastest... more Tasmaniansare in work than everbefore.growth rate in the country at 0.3per cent, and our unemploymentrate continued to fall to 6.1 percent.This growth and confidenceis reflected in the latest SensisBusiness Index results whichshow that Tasmania’s businessesare the most confident of allstates with a massive 61 per centof small to medium businessesreported as ‘confident’ or ‘veryconfident’ in the latest results.The Government is the greatestsupporter of Tasmanian businessesand we will continue to deliverour plan to create the right environmentfor job-creating investment,so that more Tasmaniansbenefit from a strong economy.THE Treasury Laws Amendment(2019 Tax Integrity and Other MeasuresNo 1) Bill 2019, which wasintroduced on July 24, has beenpassed by Parliament.The introduction of the Amendmentwill ensure an individual’s salarysacrificed contributions can’t beused to reduce their employer’s superguarantee obligations.What does this mean for employers?Super guarantee contributions arerequired to be paid by an employerbased on an employee’s ordinary timeearnings.Under current legislation, an employercan choose whether or not toinclude the amount an employee salarysacrifices to their super as ordinarytime earnings.For example, if Jason salary sacrifices10 per cent of his $100,000 annualincome to his super, his ordinarytime earnings reduce to $90,000.Based on his reduced salary, Jason’semployer is only required tomake super guarantee contributions of$8550 for the year. But under new reformscommencing January 1, 2020,Jason’s employer will have to makesuper guarantee payments based onJason’s pre-salary sacrificed earningsof $100,000 each year.This would increase the superguarantee contributions Jason receivesfrom his employer to $9500.Another measure included inthe Bill will make it illegal for theamounts an employee salary sacrificesto their super to reduce an employer’ssuper guarantee obligations.Currently if Jason is salary sacrificingtwo per cent of his ordinarytime earnings, his employer is onlyrequired to make additional superguarantee contributions of 7.5 percent.Any changes that are likely to improvethe financial security of Australiansin retirement is somethingthat we welcome.If you’re unsure whether you’remeeting your super obligations, contactthe ATO.Snug.Free for allSt.LukesHealthMembersAt St.LukesHealth, we want to be there for youand your family when you need us the most.This is why we are offering Snug – Australia’smost innovative and easy to use digital healthrecord – free to St.LukesHealth members.Download the app today on:Snug connects your medical history, family’shealth information, and fitness stats all in onesimple app.stlukes.com.au 1300 651 988Snug is intended for use solely as a health information management tool and is not intended for use in the diagnosis of disease or other conditions, or inthe cure, mitigation, treatment, or prevention of disease.
Tasmanian Business Reporter - DECEMBER 2019 7THOUGHT LEADERSHIPwww.tcci.com.auPeople makethe differenceSpotlight on SuccessRod Patterson is a loveable larrikin who hasbeen a staple in the Tasmanian retail landscapefor more than two decades. He now runs PMABusiness Coaching.What was your first job, how did youget into it and what did you learn as ayoung employee?Like most kids from the country (Deloraine)I had many jobs before and after school.From 14 I was a milkman starting at3am and finishing at 8am to get readyfor school. I also delivered the ExaminerExpress on a Saturday night after footy.My first full-time position was at Jessup’sElectrical as a storeman/salesman and basicallyhad to do what everyone else didn’twant to – from mowing the bosses lawns towashing the fleet of cars.It taught me not to expect to be the boss, assoon as you get the job.You were a firefighter in Launcestonfor some years - that must have beenan interesting career?I loved it. But fortunately, or unfortunately,there were not a lot of fires, so I becamebored. I am not good when I am bored.So, unbeknown to my superiors, while onholidays, I offered a Fire Education Programto my childrens’ school, teaching each classa 30-minute message about basic fire safetysuch as “Crawl Low in Smoke”, “Stop DropRock and Roll” and also discussed basic firstaid for burns and home fire plans.The principal was so impressed she wroteto the Education Minister, who shared theletter with the Emergency Services Minister,who contacted the chief of the Tas FireService to congratulate him on the initiative,which he had no idea about.I received a call to explain myself andthought it was the end of my career but theChief Officer promoted me to School Fire EdState Coordinator to roll it out across the state.The program became so successful, otherstates embraced it and as a result I was recognisedin the Queens’ Honours List in 1996,receiving the highest honour in the Fire Service,the Australian Fire Service Medal. Iwas the first non-ranked firefighter to receivesuch an honour.What made you decide to leave thefire service and move into businesswith Autobarn?Due to the success of School Fire Ed, whichinitiated other programs such as JFLIP (JuniorFire Lighters Intervention Program)and Bush Fire Safety, the Fire Service decidedit was time for an education arm tothe Service, and it would require a manager,which was offered to me.But the role was to be based in Hobartand I wasn’t prepared to move from Launcestonand it was suggested that if I wasn’tprepared to relocate, I should considergoing back on the trucks and so I left theservice.How hard are franchises to buy andsucceed with?Franchises are quite easy to buy, if you fitboth the financial and personal criteria.To succeed in them is totally up to the franchisee,but unfortunately so many franchisees,expect the success to be delivered bythe franchisor.Whether a franchised business or not, toomany people purchase businesses for totallythe wrong reasons. It may be to buy a job afterbeing retrenched etc. or purchasing a typeof business that you have a passion for suchas motor racing or even clothes or shoes.Owning a business is bloody hard work, itis not a 40-hour-a-week job, and too manypeople don’t understand this before purchase,thus putting instant pressure on themand the business.What would be your advice for thosewanting to go into those sorts of businessmodels?Franchising is a great starter for a new businessowner.It has systems and structures that you don’thave to create for yourself, it has alreadybeen done as part of the model you havepurchased.After some years, it is easy to becomefrustrated by your franchisor, as the need forwhat they offer is reduced, but you are stillpaying the same if not more for the franchise.What was the best government policychange that impacted retail businessesin a positive manner during yourcareer?Personally I embraced the over 50s wagessupplement, and we found some great maturepeople. Once employed they were the morestable and less sick than other employees.What’s been the biggest challengeover your career?People. Whether they be customers or staff -the energy, stress and time needed to ensureyou look after your people is enormous.Customers now have been educated tochallenge, whether it be price, or other things,such as return of goods etc, and their expectationsat times are unrealistic but if you givethem the recognition of your time and listento their concerns, things mostly work out ina positive way.The amount of red tape and regulationsbusiness has to be aware of when employingstaff, is now becoming much more difficult,especially for smaller businesses.Mental health issues are becoming moreprevalent, and I believe business owners willneed assistance through education to ensurethis is handled correctly for both parties.What needs to happen into the futureto ensure retail survives and thrives?Tasmanian retail at times truly disappointsme. We are so concerned with issues that wecannot control, we forget to ensure our ownbackyards are above reproach.Stop giving customers a reason to shopon-line.Most Tasmanians will support local, aslong as they get great service and competitivepricing. We fail on both of these too often.Most of our bricks and mortar retailersdon’t invest in their business enough.In my new business, PMA BusinessCoaching, I am distressed at times at thelack of businesses working on the businessas well as in the business.Cash flow is so important to manage in aretail business due to the amount of stockyou are required to carry to ensure your offeris strong enough to attract customers.I understand very well the impact of penaltyrates, as I couldn’t open the doors safelywithout six staff members being rosteredon.But owners need to understand that whenpurchasing the business, the major sacrificescome from the owner, especially until thebusiness gets to a level where you can affordto staff it without the owner.I encourage all retailers to not becomestore blind, look at the business as your customersdo, not as someone who enters it everyday and sees the same thing.We were all so concerned to hear youhad been involved in the MelbourneCBD terror incident in 2018 - how areyou coping mentally and physically ayear on from the tragedy?It’s been a bloody tough year. As a firefighterI saw a lot of stuff, but this was different,as it happened to me, not someone else, andwhen I tried to park this in the bucket with allthe other stuff I had experienced, the bucketexploded.The impact it has had on my family, trulysaddens me. We are working hard to get backto where we were, but this is now part of whowe are, and we are dealing with it the bestwe can. We were humbled with the outflowingof love and support from the Tasmaniancommunity. We will get better.You are always such a positive influence,tell us about your new businesscoaching venture and how you hopeto help others?My passion is to help people, and I believeI have and can through the experiences Igained with my nearly 21 years of business.I was smart enough to surround myselfwith the best players, the most positive people,and this will always give you the bestchance to be great.Anyone can be good but I believe we allshould strive to be great. Structure is the key- ensuring everyone knows what role theyplay, what the expectations of that role areand how they will be measured.Dependant on what has been requested,I can assist with team training, value statements,business plans, SWOT analysis etc.How did you feel when you were inductedinto the Launceston Chamberof Commerce Hall of Fame?Humbled and a little embarrassed.I had my family and some of my most preciousfriends attend, and it was truly a greathonour. It is humbling to be honoured byyour peers and community.One of the things that Bourke Street hasgiven me, is the overwhelming messages ofhow people feel about me – comments normallyreserved for your funeral.Let’s all ensure we tell people how we feelwhile they can embrace that love.
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