Self Managed Superannuation funds versus traditional lending

Everyone involved in the lending process should be aware also that the fastest growth area of lending is via clients self managed superannuation funds. In today’s age whereby Australians are now ranked number 2 behind the USA for suing when things go wrong, I would strongly advise that everyone considers Self Managed Super funds as an option area to fund the Commercial or Investment Retail Property through.

Traditional lending has been done via the stand alone commercial/Investment property structure in the past and you must now understand what will benefit the clients more and hence suggested you undertake the studies to understand the  “what, how’s and whys” of both structures and what is the best for the clients. Failure to effectively undertake this process may lead to issues for both parties that all could do without.

Please do not treat this as advice and consult a qualified professional in regards to your personal situations.

Are the Australian workforce and management ready to meet the new challenges that technology has presented us all.

Technology advancements are having a great effect on many Australian business’s and workers and there seems to be no solutions in place to assist with the restructure of the Australian workforce. This is very evident by the changes being experienced with the move to online shopping and reduced need for employment of people, that job roles can now be replaced by use of technology.

We are now also seeing schools introduce IPads and no text books or work books allowed, as all the text books and note taking can be completed within the IPad. What does the future look like for the Australian’s that have either resisted or struggled with the adoption to the use of technology?

Another area that is fast approaching is the massive re-engineering of the education system in many countries and hence adoption of the Australian VET training system in various forms by many, will enable a low cost workforce that produces a higher level of productivity.

Addressing the issues above will go a long way to help Australia redefine who we are as a country, as to rely totally on mining and gas is not a smart thing to do given the large advancements of technology being used and being introduced in these areas as well.

So what are the solutions, we now have moved into a new environment that 5 year business plans are a thing of the past, yearly plans now need to be broken down into three monthly plans as technology and global reengineering advancements are now a daily occurrence and past management practices may not suite where we need to be.

Moving to the cloud can save between 50% to 70% of costs but requires human change behaviours

One large bank with a workforce of 110,000 has moved its technology onto the google cloud platform which will see more and more make the move, to reduce costs and to meet the new worlds mobile workforce requirements.

To make it work effectively it will require The biggest challenge for firms switching to cloud computing could indeed be cultural issues.

However, it is wise  to encourage its employees to leave all their old email and data in those legacy systems. This must still be accessible if necessary, but,  it is wise for everyone to start from scratch and to ensure they leave all the old behaviours, behind.

If a move is to be made into the new world, everyone must leave behind  practices of yester year or the future may past them by.

Bullying in the work place- Australian Draft Code release

This new draft code recently released will need some work done on it to ensure that when an employer is merely trying to get a person to perform their required duties that it does not then give the employee concerned easy access to this proposed legislation.

I am totally agreeance that “Bullying” is not an acceptable practice and perhaps greater results would be achieved if a code was introduced into the schooling system which in turn would see fewer cases occurring in the work force and people would know at an early stage in their life that Bullying is not acceptable.

We hear of countless cases of school aged children becoming victim to a bully and this in turn has a very big effect on the person being bullied. There is no use building any structure from the top down otherwise it will collapse and so the way to stop these cases, is to build the code from the ground up.

See over view of the code attached.

http://www.acsea.org/media/A_model_code_of_practice_on_Workplace_bullying.pdf

New Skills required to be successful in 2012

Whilst it is important that everyone adapts to the every changing environment in which we now operate the main skills required to grow and prosper in 2012 have been identified as creative thinking, ability to cope with chaos and appreciation of diversity. One must admit that in the past employers looked for leadership, management, sales skills but the time has now forced more important focus on developing new skills in the areas listed above.

Employees need to be able to think more creatively so they can also benefit from the environment in which they operate and there is a requirement for employers to also think more creatively. Letting go of the stuff that keeps everyone busy is a must now and each and every business owner must now work closely with their employees to discover what can be done with technology to free up the employees to being able to think more outside the square.

No employer can afford to have people just doing the stuff within the fast moving technology age we are currently placed. Australia’s productivity levels could be raised considerably if every employer and employee did a full job analysis on what exactly is everyone doing and seeking agreement to rid the “stuff” to technology land.

Implementing systems and processes is a must for every business owner and in the process of doing this you will see what does not need to be done anymore. Everyone being busy just will not cut the requirements to make a successful business anymore, it’s more about what is being done by each individual and do they really need to undertake those procedures.

Accountability, creative thinking, ability to cope with chaos and appreciation of diversity has never been more important than it is now, as its part of the survival process.

Is it Ethical Behaviour for Australian Politicians to “Bank Bash”

Having worked in a Bank for 35 years in my past life I feel I have the experience and knowledge to speak on this subject matter both from being an ex banker and also having spent the past 10 years carving out a business in the competitive Australian  and International landscape.

The purposes of any business is to run at a profit, provide a good return to its shareholders and at the same time provide employment opportunity to people who wish to grow and develop in their chosen fields.  One would also agree that an important role of any business is to provide a high level of service to the many clients who make the choices when choosing to deal with the company concerned.

The continual “bashing” of Australian Institutions that provide a secure environment for investors along with providing funding to borrowers that meet the risk assessment polices of the banks, is not what I consider a very smart move by the “Bashers”.

Politicians are there to provide a professional level of service to the people who vote them in and also to make sure that our economy is secure and they do not place the country into debt levels we cannot afford to service, just like the Banks do when assessing clients. Cheap shots and that’s all they are by politicians, are designed to try to win votes which in turn may secure their job role for another term as there are some people who feel that a “Bank Bashing Pollie” is good for business.

Please also understand that within the many Banks and providers of credit within the Australian Financial System, there are many great and dedicated people who work tirelessly and yes the Bank bashing has an effect on them and their families as well, who bear the brunt of the “Bank Bashing” nonsense.

Australia is a much safer place due to the strengths and leadership shown within our many Banking Institutions.

Series of new laws roll out in Australia from 1st January 2012

For many of us getting over the hectic and event filled 2011, coupled  the christmas and new year break and are now starting to return to the workplace for the new and exciting journey of 2012 are also now faced with other matters that will need your attention along with the issues of sales for survival.

The federal and state government has now rolled out some new regulations that may affect us all in some shape or form as follows;

* Occupational health and safety national legislation to replace individual state based laws came into effect with Northern Territory,ACT,NSW and Queensland having implemented the new national laws with other states to follow this year. This should see a one country, one legislation rule happening, hopefully. What directors and business owners need to understand the stiffer penalties that exist now via way of heavy fines and even jail terms can be given for lack of adoption and implementation of the requirements.

* Early childhood education requirement will be mandatory to have one child care worker for every 4 babies which in turn will see a rise in fees but the regulators are stating it will produce better outcomes for the children under child care.

* Coal mining industry workers will now get long service leave after 8 years of service for those working in the black coal mining industry.

* Cats and dogs from the UK,Sweden,Malta and Ireland rabies tests prior to entry into Australia

* Retailers are now required to present in writing the business details, relevant claims periods and procedures on all products they sell or face fines up to $50,000 per offence for corporate bodies and $10,000 for individuals. Consumers will be entitles to replacements, refunds for major failures and compensation for any other reasonable forseeable loss or damage. Online retailers are exempt at this stage and hence the Retail association is stating that it’s another cost impost on retailers who are not selling on-line.

* Income test for the 30% private health rebate has now been implemented

* Queensland has implemented a recreational diving and technical diving and snorking practices

* NSW Biodiesel mandate will rise to 5% in NSW

Sadly we are seeing states run their own races with no thought given to one country, one set of rules which will reduce costs for all business running either state based or national business models. Will Australia ever be a one country with same rules applying no matter what state you operate in. We have such a small population compared to many of our neighbours to the north, yet we are so splintered state to state, how or why would multinationals choose to operate in this over regulated and complicated state based systems.

 

 

Incredible Things That Happen Every 60 Seconds On The Internet

Found this article to be one that really drives home the changes happening today and the speed at which they are happening.

Permalink:http://aamctraining.wordpress.com/2011/12/30/incredible-thi…the-internet-2/

 

ASIC update on issues since release of the National Consumer Credit Policy guidelines

Recent ASIC presentation to Finance Brokers Forum highlighted the following information and updates relevant to the released NCCP;

• The number of credit licences ‘handed back’ this year was 106 nationally. The reasons were either licence holder leaving the industry, or becoming an ACR, about 50/50 ratio
• Review of compliance/risk management systems with Licence Holders show that many are not implementing these plans

Current Priorities

• Unlicensed trading – ASIC has cross referenced 5000 ad’s and 1800 websites to identify credit providers who do not appear on ASIC’s register as holing either ACL or ACR status
• Mortgage Exit fees (RG220)
• Unfair credit terms (RG 220)
• Responsible lending in home loan and pay day lending markets
• Consumer Leases – such as rent to buy contracts like Radio Rentals etc

Low doc loans – Responsible Lending

The review of responsible lending guidelines for low doc loans, as per ASIC report 262, will firstly target the credit assistance providers. Approx 6 months after, ASIC will target Credit Providers.  ASIC representative spoke at length about this as many brokers are concerned as to what they will need to provide in making fair and reasonable inquiries into income for low doc lending and subsequently, assessing serviceability and making recommendations.

Some key points:

• Income verification. Self certification not acceptable. Accountant’s letter stating applicant can afford proposed repayment and/or proposed loan unacceptable
• Tax returns not completed? Then clear documentation regarding inquiries made by the broker in ascertaining current income. For instance, if previous it’s are available and current declared income is higher, and then the reasons for the difference needs to be clearly documented on file.

General tips regarding serviceability:

• Must verify fixed expenses
• Verification of inconsistent information and documentation of same
• Own serviceability assessment must be completed, with a hard copy kept on file
• In assessing serviceability, a buffer should be added to all variable rate ongoing liabilities, not just the proposed credit facility

Question rose re completing credit quote/proposal

In the instance where the interest rate is unknown until the application is submitted to lender (such as risk margin added) then it is OK to quote a range.

ASIC was concerned regarding the lack of consistency in record keeping. Many brokers relied on tick boxes approach in recording product features required by applicants. ASIC was very clear that, for instance, if offset account was chosen as a required feature and that this feature meant paying an additional monthly fee and/or higher interest rate, then this should be justified in writing e.g.: applicant will have minimum of 10K sitting in offset account which will save them more in interest than the monthly fee being charged.

MESSAGE TO ALL FROM ASIC – WRITE IT DOWN!- The old saying “what gets written gets believed” is so invaluable when a legal dispute arises.

• Annual credit licence renewals are due on anniversary of the licence date, with email sent on this day to licence holder, with electronic link to complete online. There are a number of questions, mostly yes/no.
• There is also a section for comments/notes which should definitely be used in situation where the licence holder has answered ‘no’ to trust account. Need to ensure that it is noted in comments field that licence holder does not operate a trust account and therefore does not need to comply with audit requirements
• Licence holders have 45 days to complete and will be given a reminder email 31days after and again 45 days after. If still not complete they will receive another email 30 days after.
• There is a 12 page how to guide that can be downloaded prior to licence renewal (from ASIC website)
• ASIC will not be auditing unless they are given reason to
• Over next 5-7 years, they will use some algorithm to randomly check on licence holders. This does not mean they will turn up on your doorstep but rather involve providing them requested documentation.

Blaming GST issues for Australia’s Retail Issues, is totally missing the point.

Sadly everyone is missing the point here in regards to retail and it would not matter if all imported shopping was slugged 10% tax as the price of the purchase would still be well below the cost of buying the same products in Australia. Even online shopping sites in Australia selling direct to consumers are far cheaper and more convenient than the drudgery of attending physical shopping premises.

In January 1993 I wrote a paper titled “Small Business Survival in the 1990’s” for completion of my studies and in that paper I identified in those days some key issues being;

*Education or the lack of the requirements for people to undertake a qualification to enable them to be able to at least know how to run a business and potential provide ongoing viable employment options

* Government Regulations, restrictive trading hours, chargers and tax collections etc and I addressed many areas here that needed to changed and addressed.

Upon reading this paper today I am amazed that many of the issues identified then still have not been addressed an nearly 19 years later the same issues still exist.

We can now add to the above such matters as high rents, high wages, time and a half, double time and yes sadly low productivity of the workforce.

Let’s be honest trying to prop up an industry when all the cards are stacked heavily against you will require some very innovative thinking to meet the daily global changes and advancements in technology. Basically I see the future as large warehouses/ bulk stores with online shopping capabilities to allow clients to choose how they wish to shop.