Managing Business

Life after LAFHA – living like the locals

Mon, 14 May 2012 07:04:00 GMT

Media Release
Friday 27th April 2012

Life after LAFHA – living like the locals

In November 2011, the Australian Government announced proposed reforms to the Living Away From Home Allowance (LAFHA). These reforms are planned to take affect at the beginning of the next financial year (1 July 2012) and will affect most of the 457 visa holders who are receiving the allowance. LAFHA has provided tax relief for those who have had to move away from another residence for work, including those who have moved to Australia for work. The proposed reforms to the living away from home allowance include:

- Access to the LAFHA tax exemption for temporary residents will be limited to those who maintain a residence for their own use in Australia, which they are living away from for work purposes, such as “fly-in, fly-out” workers;
- Individuals will be required to substantiate their actual expenditure on accommodation and food beyond a statutory amount;
- These changes will apply from 1 July 2012, and a consultation paper has been released.

This will affect the 457 visa holders in their net pay. From the beginning of July 2012 they will be paying tax on the total income they earn instead of just the income minus the LAFHA component. This will have a huge impact with them, receiving upwards of $1000 less net into their pocket per month.

But living locally means 457 visa holders who are no longer entitled to LAFHA can still be eligible for tax benefits under local conditions – via Salary Packaging/sacrifice.

Organisations should look at salary packaging/sacrifice as a way of rewarding their employees with nil or minimum cost to them. Organisations who are looking to give their employees the options of salary packaging/sacrifice should discuss this with their accountant or a company which specialises in salary packaging/sacrifice.

Individual employees should ask how they can look at salary packaging/sacrifice to help with their monthly cash flow. They should consider the salary packaging/sacrifice options available to them. They will need to speak with their employer to determine what they are able to offer them. They may also want to discuss their options with a company who specialise in salary packaging/sacrifice.

Pendragon has been involved in salary packaging/sacrifice for over 15 years and it still amazes them how little people know about salary packaging/sacrifice, which is unusual considering how at the end of each tax year employees race to submit their end of year lodgement claim.

“Very few realise that a large portion of this cash flow may be eligible to claim throughout the year with the correct salary structuring procedure” –Pendragon.

Pendragon is a people management company that acts with wisdom and integrity to provide ethical and innovative solutions, in order to gain the most of what individuals earn today in order to increase their net wealth for tomorrow.

For further information please contact Gemma Fowler on 02 9407 8700 or email info@pendragon.net.au

Employers look to part-time workers as unemployment rises to 5.1%

Mon, 15 Aug 2011 04:25:00 GMT

Australia’s unemployment rate rose 0.1% to 5.1% in July, as employers showed a preference for part-time workers rather than full-time.

Whilst employment remained largely unchanged at 11,450,500. A decrease in full-time employment of 22,200 to 8,055,100 was offset by an increase in part-time employment of 22,100 to 3,395,400.

The number of people looking for full-time work increased 10,800 to 428,000 and those looking for part-time work increased 7200 to 183,600. The participation rate remained unchanged at 65.6%.

The aggregate monthly hours people worked increased 3.6 million hours to 1,621.4 million hours.

On the trend estimates are:

Employment increased to 11,448,500.
Unemployment increased to 598,500.
Unemployment rate remained steady at 5.0%.
Participation rate decreased to 65.5%.
Aggregate monthly hours worked increased to 1,616.9 million hours.

Salary packaging makes cents

Thu, 10 Feb 2011 04:49:00 GMT

John Glover, managing director of Pendragon talks about salary packaging and how it can benefit both you as an employee or for your business.

Key Advantages of Salary Packaging for Businesses

Mon, 13 Dec 2010 23:08:00 GMT

All you need to know about salary packaging?

Pendragon assists people on a daily basis to gain the most of what they earn today in order to increase their net wealth for tomorrow; with the economy slowly recovering from the GFC (Global Financial Crisis) we should all look at ways to keep costs down but increase net wealth.

What is salary packaging?

Salary Packaging is a way of gaining more cash flow into your pocket by calculating tax deductions from your gross income each and every pay period. It enables you to buy a range of work related everyday items out of your pre-tax salary rather than your after-tax salary, leaving more money in your pocket each pay.

By salary packaging throughout the year you increase your net income every pay period.

Example A) An increase in your net income per month of just say $50 is like receiving an increase in your salary of an average $71 per month which equate to $857 per year.
If you earn $50,000 per annum you have just given yourself the equivalent of 1.71% rise for the year.

Example B) An increase in net per month of say $100 is equivalent to receiving an increase in your salary of $162 per month which equates to $1944 per year.
If you earn $80,000 per annum you have just given yourself the equivalent of an approximate 2.43% rise for the year. You can congratulate yourself!!!

What Items can be salary packaged?

Some work related items which can be considered for salary packaging are;

Superannuation, Laptops, Cars, Professional membership or subscriptions, newspapers magazines, self education, relocation expenses, Living Away From Home Allowance, home office expenses, car parking, transport and travel, mobile phone, computer software, income protection insurance, investment loans, and industry work clothing.

Who can benefit?

Everyone can look at salary packaging

Organisations should look at salary packaging as a way of rewarding their employees with nil or minimum cost to them.
Individual employees should ask how they can look at salary packaging to help with their monthly cash flow.
If you are running your own ABN or are an Independent Contractor that is tired with procedures such as BAS statements, invoicing and paperwork, but still want maximum cash flow, salary packaging is also available for you to.

What is next?

Organisations

“Salary packaging creates happy employees”...
If you are an organisation looking to give your employees the options of salary packaging then you should discuss this situation with your accountant or talk to us about salary packaging.

Individuals

“Give Yourself A Raise You Deserve It”…
If you are an individual and you would like to consider the salary packaging options available to you, you will need to talk with your employer to see what they are able to offer you. You may also want to discuss your options with us regarding salary packaging.

Own ABN – Independent Contractor

Pendragon is a specialised salary packaging company who can help you set up your own ABN an operate as an independent contractor.

Want to know more? Contact one of our team at Pendragon and we’d be happy to help. Call (02) 9407 8700 or email info@pendragon.net.au

Is the tide turning?

Thu, 30 Sep 2010 04:51:00 GMT

According to many sources and experts, the global economy has begun to show the signs of recovery, and in some sectors, we’re even seeing small but steady growth. Here in Australia, we’re starting to see increased activity in various industries, including the recruitment sector, traditionally a key indicator. Leaders within that industry are reporting that job vacancies are up, and companies are once again starting to search for new talent. Both large and small organisations are showing the first signs of re-examining their workforce planning strategies, and in many cases, the unpleasant consequences of the job cuts of the recent past are being felt.

So, the news is good! Looking to the future, the slide appears to have halted, and in some instances, baby steps are now being taken towards growth. Consumers are spending money with less fear, resulting in vastly improved job security across the retail board. Elsewhere, jobs are opening up again and business across Australia has started to pop its head above the parapet.

But unfortunately there is also bad news. The financial meltdown, and the resulting job losses, has left a bitter taste in the mouths of those unlucky people who were laid off. Although there may be more jobs becoming available now, battle-weary employees are cautious. No longer content to leave their fate in the hands of a nameless, faceless head of a corporation, more employees are looking for alternatives to the traditional employment model. Contracting is becoming a more popular option, with more people choosing to register an ABN or appoint a contract management firm to invoice for services rendered as opposed to receiving a salary. This has the added benefit of allowing the worker to be engaged by more than one company – spreading the risk, so to speak. Others are demanding more generous notice periods, or access to redundancy pay in the event that it is unavoidable. Savvy employers recognise the importance of securing the resources required to anchor their organisations on the path of recovery and growth, and we’re now seeing the traditional employer / employee model being challenged across all industries for the first time.

The emergence of these new employment models is more good news. Employers should take advantage of having a flexible workforce that they can expand and contract in line with their own requirements. The recently introduced Fair Work Australia Act with some of the more onerous obligations which came in January 2010, make keeping your permanent headcount down more attractive than ever. Other benefits of making use of non-permanent resources include lower employment insurance costs, reduced management overhead and the ability to focus training spend on a smaller, more select group.

Far from being a more expensive alternative, it’s entirely possible for resources via a contract management firm to cost exactly the same as a regular, fulltime employee. How? It’s important to note that we’re not talking about the traditional contractor here, who gets paid a premium hourly rate. We’re talking about an individual who works for a regular, fixed salary, and who gets the same benefits as any other staff member, like access to annual leave. The only difference is that they aren’t on the payroll, and instead get paid on invoice.

There is no doubt that the last 18+ months has left even the most resilient among us battle weary and cautious. But in every adversity lies opportunity and this one presents us with the chance to rebirth our businesses as leaner, sleeker, more modern versions of their previous selves. And that can’t be all bad!

An extra 400,000 jobs in Western Australia ?

Thu, 12 May 2011 02:06:00 GMT

From: Australia & New Zealand Magazine| March 16, 2010

The Western Australian government has announced that it will work with the Chamber of Commerce and Industry WA and the Chamber of Minerals and Energy to develop a Western Australia skilled migration strategy.

The partnership will develop the Western Australia Skilled Migration Strategy to ensure additional labour requirements would be met and the state did not experience a skills shortage.

“While the plan will focus on maximising opportunities for all West Australians, targeted overseas and interstate migration will also be vital in alleviating the predicted future skill and labour shortages,” said Peter Collier,Training and Workforce Development Minister of WA. Western Australia is entering a new era of economic growth driving by a strong resources sector, and the state-specific approach to Australian immigration will work in conjunction with the national system.

The Western Australian Skilled Migration Strategy, due for release in June, will address a number of key areas:

Assessing the role of the current migration approach in meeting Western Australia ’s workforce needs, including assessing the implications of existing policy and practices;
Specifying the role temporary and permanent skilled migration plays in meeting such skill needs
Identifying barriers to Western Australia being a destination of choice for skilled and business migrants;
Developing a policy framework that clearly outlines the role of migration, both interstate and international, to meet Western Australia’s future workforce needs
Considering international students, business migration, interstate migration, a regional perspective, and the impact on social and hard infrastructure.

Chamber of Commerce and Industry WA has reported that an additional 400,000 workers would be required in Western Australia over the next 10 years, while the Chamber of Minerals and Energy has identified that an extra 26,000 workers would be needed in the resources sector alone to 2013.

Recruiters press for visa flexibility as skills shortage looms

Thu, 12 May 2011 02:08:00 GMT

THE IT sector's slide into a skills shortage should be eased by overseas recruits despite concerns about Australia's population growth and its immigration intake, recruiters say.
Restrictions on the number of skilled technology workers coming from overseas should be reviewed as a skills shortage threatened to delay major projects such as the national broadband network, they said.

Only a few local IT recruiters have an on-hire labour agreement following changes to the immigration regulations in October 2007, which has limited the number of on-hire employers sponsoring temporary 457 business visas. Full Story

Top Companies to Hire in the UK

Thu, 12 May 2011 02:10:00 GMT

For those of you with friends and family in the UK, it may be of slight relief to hear that the GFC is finalling rising,

The latest figures from the Office for National Statistics (ONS) show an improving jobs market in Britain, after the economy pulled out of recession in the fourth quarter of 2009. Things are looking a bit better now with the unemployment rate slowly falling and also fewer people claiming Jobseeker's Allowance.

The number of vacancies in the three months to February 2010 was 480,000, up 39,000 over the quarter. There were increases in vacancies in most industrial sectors.

Also these leading companies from different industries are now extending their workforce. Your new job may be among these: Full Story

Anxiety at Migration Changes

Thu, 12 May 2011 02:11:00 GMT

CONFUSION reigns in the country's business schools and TAFEs following the Rudd government's dramatic downgrading of priority migration disciplines last month.

About half of all overseas student enrolments are in management and commerce, but there are signs they will be most affected by the changes.

Immigration agent Karl Konrad said key business occupations used by students for residency had been excluded from a draft list released this month. "The most generic occupations that business and commerce students use seem to be particularly excluded from the draft list, such as business and information professionals, marketing officers and management consultants," Mr Konrad told the HES. Full Story

Average Australian Salaries

Thu, 12 May 2011 02:11:00 GMT

The Australian Bureau of Statistics put the average full time adult earning in Australia at $1,109 per week in February 2008 - roughly £535. Minimum wage was listed as $26,572 per year - around £12,800. Workers in the Capital Territory (i.e. Canberra) are Australia’s highest paid workers, while Tasmania has the lowest average wages.
Recently regulation came in that meant all overseas workers now enjoy the same right as permanent Australian workers when it comes to minimum wage entitlement, sick pay and holidays. Full Story

How Well Do You Treat Your Customers?

Thu, 12 May 2011 02:13:00 GMT

Lets get straight to the point customer care is the foundation for any successful business; no matter the industry, size of business or skill set of the employees.

If customers are your business, then providing the best possible service to keep them coming back is a priority. In general, if we can retain 5 percent more of our customers, we could potentially increase profit by 100%. Great customer service is more than just the things you say and do for them; it is also about finding out what your customers really want and giving it to them

Here are Pendragon’s top eight customer care tips to help your business excel.

1. Address Customers by Their Name

Although this may seem obvious, you would be surprised by the number of times a business deals with a customer without ever addressing them by their name. Psychologists have found that names have a profound impact in any social setting as people simply love having their name called out.

2. Let Your Customers Know That You Are Only Human

As humans we are prone to human error and this is fine as long as the management of the error is handled with tact and diplomacy. To rectify an issue is as simple as admitting fault; admitting that you are sorry for the inconvenience and that you are taking responsibility to resolve the problem.

3. Ditch The Sales Pitch

Nothing angers a customer more than calling a customer care team for support to be thrown a sales line and asked if they require ‘add on’ products. Any upgrades or special offers should be offered during the sales process and not in your technical support voicemail.

4. Be As Visible As Possible

The hardest things for a customer when looking for customer service support is finding out how and who to get help from, especially when a business’ contact information is not made visible enough. It is a good idea to train customers to recognise you and know you by name, so they will know who is in charge. When they need that service they’re looking for, they immediately know and how and who to reach.

5. Seek Feedback From Your Customers

Your customers could be one of your better market research tools, so ask them questions that will lead you to new ways of improving your business and servicing your customers better. Remember, customers like to be appreciated, to be felt like VIPs and seeking their opinion is one of the simplest ways of making them feel important.

6. Keep Your Customers In The Loop

Besides updating your customers about new products or services you’re offering, inform them about any changes you have implemented based on previous feedback you had received from them and/or other customers. Give recognition to customers who have helped you improve certain aspects of your business.

7. Make Great Customer Service Your Company’s Culture

Customer service is highlighted in almost all company policies, but really it should be made part of every company’s culture. If you have employees, they should be entrusted with more decision-making capabilities to serve your customers in the best possible manner.

8. Thank Your Customer

When was the last time you mailed a thank-you note, letter of appreciation, or just made a call to thank a customer? A simple gesture it is, but one that can mean the difference between customers lost and a customer gained.

Business analysts believe that there is money to be made in retaining your present customers and not winning over new ones, so hopefully these top eight customer service tips will help you add to your bottom line.

Because we all understand how important customer care is to the continued support and well being of your organisation we have put together, a very simple training module to help any business train themselves and their staff in this most important area. To receive your FREE copy of the module, please do not hesitate to contact my office today.

The World's Most Extraordinary Fish Arrives at Ningaloo Reef

Thu, 12 May 2011 02:14:00 GMT

From: Australia & New Zealand Magazine | March 16, 2010

The largest fish in the ocean – the mighty whale sharks – have made an early appearance last week at Ningaloo Reef on Western Australia’s Coral Coast.

These extraordinary marine creatures, which can grow up to 18 metres long, usually visit the pristine waters of Ningaloo Reef between April and July each year following the mass spawning of coral in the area. With mouths stretching to 1.5 metres in diameter, swimming with whale sharks conjures images of a Jonah-and-the-Whale experience, but the ghostly behemoths are completely harmless.

Easily accessible from shore, Ningaloo Reef is the largest fringing reef in the world, stretching 260km along the coast, and one of the most the biodiverse. The reef is part of a marine ecosystem that ranks seventh on the world’s list of coral reef biodiversity ‘hotspots’ and is second in terms of the number of species to be found within a limited range. Its unique attributes have attracted national and world-wide attention including a recent nomination for World Heritage listing.

The Ningaloo coast is one of the few regions in the world where whale sharks congregate regularly and is widely considered to be one of the best places to swim with them – due to the clarity of the water and the experience of the whale shark tour operators.

Visitors can swim with these harmless gentle giants by joining one of the specialist whale shark tour boats that operate out of the small coastal towns of Exmouth and Coral Bay. Swimmers can also encounter graceful manta rays, dolphins, schools of brightly coloured fish or the new species of stingray recently discovered by scientists in the area.

Very little is still known about the mysterious whale shark, from how long they live to their breeding habits, or their migratory routes. However, tourists can now assist with crucial scientific research by sending their holiday snaps of the whale sharks they encounter at Ningaloo to www.whaleshark.org. The Ecocean Join the Dots campaign, uses software similar to fingerprint-matching technology, to compare the shark’s spot patterns to see if it has previously been photographed or is a new find.

Those that don’t want to get their feet wet can opt to take a ride in one of the glass bottom boat tours or explore the rugged Cape Range National Park by 4WD.

But it is not just the awesome whale shark which you can encounter at Ningaloo. Whales, dolphins, turtles and over 500 species of tropical fish all swim in these warm waters, but perhaps the most graceful of them all is the manta ray. Watching these other-worldly creatures perform synchronised somersaults as they feed is a magical experience you can see all year round.

Ningaloo Reef differs from other famous reefs as it is a fringing reef, meaning visitors can snorkel over corals and exotic sea life just metres from the shore.

For your chance to win your own special swim with the whale sharks at Ningaloo Reef, enter to become a passenger on The Extraordinary Taxi Ride – an epic nine week odyssey around Western Australia. For more details visit www.westernaustralia.com

The World's Most Extraordinary Fish Arrives at Ningaloo Reef

Thu, 12 May 2011 02:14:00 GMT

John Glover helps trainees become Managers at the Sydney Graduate School of Management

Thu, 12 May 2011 02:15:00 GMT

Having sponsored several trainees through the Sydney Graduate School of Management, here John Glover, MD of Pendragon clarifies the good cause and his reasons behind his support. Click Here

John Glover Joins Forces to Support Local Businesses

Thu, 12 May 2011 02:16:00 GMT

All businesses were thanked for being a part of last year’s Hills Excellence in Business Awards. The awards have been going since 1997 and recognise and help develop outstanding quality, innovation and professionalism within local businesses in the Hills.

Hills businesses are given a chance to shine through the awards which strive to recognise outstanding quality, innovation and professionalism in local business. Full Story