Industry News

Professor Patrick Heaven, prominent psychology academic and expert, has been appointed Dean of Research at Australian Catholic University (ACU).

Professor Heaven comes to ACU from the University of Wollongong (UOW), where he was Associate Dean of Research for the Faculty of Health and Behavioural Sciences. Prior to that, he was Head of the School of Psychology at UOW from 2001 to 2010.

Patrick holds several qualifications including a Bachelor of Arts (Honours) from the University of Orange Free State; a Bachelor of Arts from the University of Stellenbosch; a Master of Arts (Research) from the University of the Orange Free State; and a Doctorate of Literature and Philosophy from the University of South Africa. His publication record includes more than 150 research articles, six books, and major research funding of approximately $1 million.

Patrick was instrumental in establishing the Wollongong Youth Study, a significant longitudinal study of the social and emotional development of youth. He is similarly involved in the Australian Character Study, another longitudinal study which documents changes over time.  Both projects have received funding from the Australian Research Council.

Professor Heaven is a former Editor of the Australian Journal of Psychology and serves on the Editorial Board of the Journal of Adolescence.

Vulnerable people would be left without a safety net and the longstanding Australian tradition of egalitarianism and a fair go would be ditched under a Coalition plan to help the wealthy at the expense of the poor.

ACTU President Ged Kearney said Shadow Treasurer Joe Hockey’s proposal to cut support programs for Australia’s most vulnerable people shows the Liberal Party is completely out of touch and clueless when it comes to social and economic justice.

“The Liberal Party’s Dickensian 19th century approach to social justice is in complete contrast to community sentiment,” Ms Kearney said.

“Unlike Tony Abbott’s Liberal Party, most Australians recognise that many in our community need greater support in order to overcome unemployment and be able to contribute to the nation’s economy. Many welfare payments in Australia, including the Newstart allowance, are barely enough to survive on.”

Ms Kearney said Mr Hockey was either wilfully misleading or ignorant about the true state of Australian public social spending.

“At 16% of GDP, Australian public social spending is lower than the vast majority of OECD countries, including the United States,” Ms Kearney said.

“The biggest component of our social spending is on health, so if Joe Hockey wants to significantly reduce Australian social spending, this would have to involve large cuts to Medicare and pensions.

“We know the Liberal Party is champing at the bit to take away workers’ rights and now we have evidence it is also gearing up to take away the rights of those who are not fortunate enough to even be in the workforce.

“Smart leaders know that there are real and complex reasons why people are on welfare and that cutting the support and telling them to ‘go it alone’ is no solution.

“All that will do is further grow the divide and entrench generational poverty among those who are capable of turning their lives around, as long as they have support to do so.”

The CEO Institute, a national organisation whose members are the CEOs and leaders of large private and public companies and professional firms, has released a list of the top 5 issues currently keeping CEOs awake at night.

The CEO Institute spokesman, Mr Evan Davies, said these issues included some specific post-GFC issues as well as some perennial leadership issues:

Top 5 CEO concerns

Sourcing and retaining skilled staff (keeping “millennial gen” employees interested)
This perennial issue was top of mind 12 months ago and still is now, Mr Davies said. Despite a reasonably high unemployment rate, CEOs are having a hard time getting young talent on board – and keeping them.

“Our members are indicating the millennial generation just don’t stay at companies too long. This is really problematic in developing leadership and talent pipelines.”

Achieving top-line growth
Top-line growth is all about customers and sales - the concern is about activities to acquire new customers, increase customer loyalty and increase retention, Mr Davies said.

“It’s tough right now for CEOs dealing with changing customer needs and expectations. They are trying to develop strong sales and marketing strategies to grow sales and to sustain and develop steady top line growth. Many of our members are talking about developing new processes and products to stay ahead of the competition – to build and maintain their competitive advantage,” he said. And if you can’t get top-line growth and can’t increase new lines, you really have to maintain costs.

Reducing costs
Mr Davies says this is very big on members’ radar. While the Australian dollar is at levels good for importing, it’s not great if you are trying to export. He said the cost aspect – in particular wage and salary increases and the potential impact of the Carbon Tax - are a big concern to members.

Improving operational efficiency
If you can’t increase sales, to reduce costs you need to run a very efficient business.

“Our CEO members are concerned about making sure their strategies are appropriate for the business and managing risks effectively. This is an important one given businesses in tough industries (retail, manufacturing) may consider a move out of their normal area to take advantage of boom industries (mining, resources) – there are risks involved with diversification or taking on big projects,” he said.

Managing increasing competition
Competition is fierce – CEOs are constantly asking “how are we managing our customer service?” as their competition puts them under the pump. Business leaders need to know they are positioned to seize opportunities in the right place at the right time.

“CEOs’ focus is on getting their business models right and many are recognizing that the sources of growth may well be very much local. Changing customer demand is the biggest driver of change to corporate strategy. Success involves truly understanding customer segmentation and the dynamics driving it,” he said.

“At our monthly syndicate meetings, and across each of the Australian states, CEOs are raising these 5 issues continuously,” Mr Davies said.

“A constant dilemma for CEOs is who they can talk to, candidly, about their problems and challenges - because there can be a real sense of being lonely at the top. The CEO Institute provides leadership guidance and peer support for our members on these and other issues.”

The CEO Institute organises syndicates of about 16 CEOs, who meet monthly to work through issues and share knowledge. The membership of each syndicate is matched to members’ business profiles and size, ensuring a dynamic and active environment in a confidential setting.

South Australian Opposition Leader Isobel Redmond will unveil the first of the reforms a Redmond Government will undertake to restore South Australia’s flagging education system.

“The education of our children is paramount,” Ms Redmond said.

“We need to ensure our education system can function in a way that maximises the learning potential of its students, and in doing so gives our children the best chance at life.

“Run by a cumbersome bureaucracy and a "one size fits all" mentality, our system, schools, and students have suffered at the hands of the Weatherill Labor Government.”

The ‘Quality Teaching, Local School Management’ policy gives principals greater autonomy in five key areas:

• Managing their budget
• Supporting staff excellence
• Employing staff
• Managing staff
• Allocating resources

Ms Redmond said a Liberal Government would pilot these new local management measures in thirty schools in the first year.

Are your remuneration levels on the money?

McArthur has recently released the 2011/2012 edition of their National Remuneration Survey for Local Government.

Over recent years, salary and remuneration surveys have become increasingly important benchmarking and workforce planning tools for the local government sector.  Colin Britten, Marketing & Communications Manager at McArthur, points out, “With local government now competing aggressively for commercial and private sector talent, the need to ensure competitive remuneration and benefits strategies are in place is more critical than ever.” 

The new McArthur survey again represents their most comprehensive overview to date.  With 160 participating councils from around Australia providing feedback, the survey represents a wide cross section and gives a truly national overview. Reported data covers nearly 6000 specific positions across 4 key levels and 4 comprehensive job family groupings, including an in-depth CEO salary category.

Britten goes on to point out, “The aim of the survey is to provide the key insights and business critical information that CEO’s, Directors, Management, Councillors and HR departments need to make informed decisions. We have always viewed the survey as a continuous work in progress, and we are confident of reaching 200+ participating councils next year, bringing even more depth and accuracy of insight.”

A copy of the survey is free to participating councils and $500.00 per copy for non-participants.

For Further Details on the National Remuneration Survey for Local Government Contact:
Mark O’Brien, National Manager – Client Relations
(03) 9828 6502; 0411 748 023
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For Further Media Information Contact :

Colin Britten, Marketing & Communications Manager
(03) 9828 6565; 0437 255 103
This email address is being protected from spambots. You need JavaScript enabled to view it.

With over 40 years' experience, McArthur are one of Australia's largest and most respected privately-owned recruitment specialists.  Employing over 110 highly experienced professionals across a national network of offices located in 4 capital cities, McArthur delivers Best People Fit solutions across a wide range of vertical markets including 35+ years' focus on government.

The Federal Government has released an exposure draft of amendments that will implement changes to income tax law affecting consolidated groups.

The amendments were announced by the then Assistant Treasurer on 25 November 2011. They relate to the operation of the consolidation tax cost setting rules and the operation of the taxation of financial arrangements (TOFA) rules for consolidated groups.

"These amendments will help protect a significant amount of revenue that would otherwise be at risk by limiting the scope of amendments to the consolidation regime made in 2010," Assistant Secretary David Bradbury said.

The proposed amendments will ensure that, for consolidated groups, the TOFA stages 3 & 4 provisions operate as intended and that the tax treatment of financial arrangements that are liabilities is appropriate.

These changes also address the technical issues raised by the industry as part of the post-enactment consultation on the TOFA stages 3 & 4 regime and ease the transition of consolidated groups into the regime. As previously announced, the changes will apply from the start of the TOFA 3 & 4 regime.

The draft Tax Laws Amendment (2012 Measures No. 2) Bill: Consolidation and explanatory material can be found on the Treasury website.

Submissions on the exposure draft legislation close on 2 May 2012.

The Federal Government has released the final report of the Council of Financial Regulators (CFR), outlining the proposed next steps towards fully implementing Australia's G20 commitment to improve risk management and reduce systemic risk in the 'over-the-counter' (OTC) markets for financial derivative products.

The Government has also published a consultation paper seeking  stakeholder input over the coming months on legislative amendments of the Corporations Act to build a framework for complying with G20 obligations in the area.

"The global financial crisis highlighted the massive build-up of systemic risk in some advanced countries through the rapid growth of highly complex, leveraged derivative products which were traded outside appropriately regulated and transparent markets. In September 2009 the G20 endorsed a global transition of derivatives products," Parliamentary Secretary to the Treasurer Bernie Ripoll said in a statement.

"The Council has engaged extensively with domestic market participants since 2009 to identify the most appropriate policy settings for Australia in meeting our G20 commitments, including the release of a discussion paper in June 2011."

A copy of the Council's recommendations, the consultation paper and details on consultation are available on the Treasury website.

The Federal Government has announced the release of the final Caring for our Country report into natural resource management.

The report found that Caring for our Country is on track to meet all of its major goals in supporting the broader community, including increasing the uptake of sustainable land management practices and environmental conservation.

Caring for our Country commenced on 1 July 2008 and is investing more than $2 billion over its first five years to achieve an environment that is healthier, better protected and supports sustainable production in a changing climate.

The Australian Government initiated the review in late 2010 to consult widely with the community on what was working well under Caring for our Country and what could be improved in the future.

The full report can be found here

Focus Minerals Ltd., a leading Australian gold producer and explorer, has announced the appointment of Paul Fromson as the Company’s new Chief Financial Officer and Company Secretary following the resignation of current CFO Jon Grygorcewicz.

Mr Fromson has more than 30 years industry experience, including 18 years with ASX listed resource companies. His most recent role was CFO and Company Secretary for Bauxite Resources Limited where he played a key role in two large joint ventures with Chinese partners.

“Paul brings a very strong skillset to the Focus Minerals team at an important time in our growth,” said Focus Minerals Chief Executive Officer Campbell Baird.

“In addition to his direct mining industry experience, Paul has also accumulated a wide range of finance, accounting, taxation and commercial experience which he will bring to bear as we consolidate the Laverton and Coolgardie operations,” said Mr Baird.

Mr Fromson has worked for a number of resource companies and was first involved in the gold industry in 1987 through Kobe Alumina, one of the then part owners of the Boddington Gold Mine. Since this time he has held senior finance positions in exploration and mining companies.

He has also been a director of the Makit Hardware Cooperative and ran his own successful tax practice for six years. Mr Fromson is a member of the Australian Institute of Company Directors, a Certified Practising Accountant and a Chartered Company Secretary.

Verve Energy have announced the appointment of Jason Waters as CEO of Verve Energy, WA’s leading electricity generator.

Mr Waters, currently Verve Energy’s General Manager of Trading & Fuel, succeeds Ms Shirley In’t Veld who leaves Verve Energy after five years as Managing Director.

Energy Minister Peter Collier said State Cabinet had endorsed the Verve Energy Board decision to appoint Mr Waters.

“Mr Waters has extensive experience in the electricity industry and is an excellent choice,” the Minister said.

Verve Energy Chairman David Eiszele said the Verve Energy Board was comfortable making an internal appointment to the position because of the quality of the candidates available from within the organisation.

“Jason is very well credentialed to continue the revitalisation of Verve Energy after the organisations difficult early years following the separation of the old Western Power,” he said.

“He will focus on ensuring Verve Energy has the right and reliable plant, secure fuel supplies and the right people to manage the challenges ahead.”

Mr Waters has been appointed for a two-year term.

Mr Eiszele complimented Ms In’t Veld on her achievements during her term as Managing Director, when Verve Energy overcame the initial challenges of disaggregation to consolidate its position as the leading supplier of reliable electricity in Western Australia.

The Stockland Board announced the key outcomes of a comprehensive review of the group’s executive remuneration policies.

The Board commenced a review last year to more closely align executive remuneration with the interests of securityholders and to ensure Stockland’s policies reflect best practice.

The key outcomes of the review, which are applicable to all Key Management Personnel (KMP), are:

• Maximum potential Short Term Incentive (STI) reduced from 200% to 125% of Target STI
• At least one-third of any STI awarded will be in Stockland securities with deferred vesting

– 100% of any STI awarded above Target performance will be deferred

– 50% of any deferred STI awarded will vest at the end of year two and 50% will vest at the end of year three

– to facilitate the introduction of STI deferral, the total reward mix for KMP (not the Managing Director) will be realigned by increasing Target STI by 10% of Fixed Pay and decreasing the Long Term Incentive (LTI) by 10% of Fixed Pay

• For new LTI awards, vesting of 50% of LTI awarded will be extended from three to four years (with hurdles based on a three year performance period)
• Three year EPS growth hurdle applicable for all employee LTIs will be set by the Board and communicated in advance in the Remuneration Report
• New and broadly-framed clawback provisions will apply to all future unvested deferred STI and LTI awards

The total STI pool available for all employees will not exceed 5% of Underlying Profit and will be set by the Board based on its assessment of Company performance against a corporate balanced scorecard which will be set out in the company’s Remuneration Report.

All STI changes for KMP, including STI deferral, will be effective in FY12 with other changes effective in FY13.

Furthermore, subject to securityholder approval at the AGM in October, the Board and Managing Director have agreed the following changes to the Managing Director’s employment arrangements

• No increase in Fixed Pay for FY13
• No change in total reward mix of 34.5% Fixed Pay and 65.5% variable pay (STI and LTI)
• Maximum possible STI reduced from 200% to 125% of Fixed Pay
• Payment in the event of company-initiated termination reduced to 12 months Fixed Pay plus STI for his six month notice period (currently 1.5 times fixed pay plus 1.5 times STI)
• Unvested deferred STI and LTI continue to original vesting dates post employment, subject to forfeiture in the event of clawback, compliance with new non-compete provisions and achieving applicable LTI performance hurdles

Stockland Chairman Graham Bradley said: “The changes we are announcing today represent a comprehensive restructure of our remuneration policies and practices. They demonstrate our commitment to ensuring Stockland’s executive pay is fair and competitive and properly reflects management’s achievements to create value for securityholders.”

The Federal Government has released draft legislation aimed at helping protect worker's superannuation entitlements.

Announced by Assistant Treasurer David Bradbury, the legislation will strengthen existing legal frameworks regarding director's obligations to ensure their companies meet  Pay As You Go (PAYG) withholding and superannuation obligations, the measure will also help counter phoenix behaviour.

"This legislation makes it clear that directors have an obligation to ensure that provision is made for the ongoing payment of workers' superannuation," Mr Bradbury said.

"It also ensures that fraudulent directors who use phoenix companies to try and avoid their debts will be held personally liable for their PAYG withholding and superannuation obligations."

The Government held further consultation with industry after withdrawing an earlier version of the legislation in November. Following this consultation, the Government has made amendments to the draft Bill, including to ensure that new directors have time to familiarise themselves with corporate accounts before being held personally liable for corporate debts and requiring the ATO to serve director penalty notices on directors in all cases before commencing action.

The draft legislation, explanatory memorandum, and a summary of the policy changes can be found on the Treasury website.

Public submissions close on 2 May 2012 to allow for the introduction and passage of the legislation in the Winter 2012 sittings of Parliament.

Professor S. Bruce Dowton has been appointed the next Vice-Chancellor and President of Macquarie University, the Chancellor, The Hon. Michael Egan, announced.

Professor Dowton is currently Clinical Professor in Pediatrics at Harvard Medical School and until recently was Vice President and Chief Operating Officer of Partners Harvard Medical International.

Professor Dowton is also an Emeritus Professor at the University of New South Wales where he was Dean of the School of Medicine between 1998 and 2005. During that time, he was a member of the Board of St. Vincent’s and Mater Health Sydney, Chair of the Deans of Australian Medical Schools, and Chair of the Medical Training and Education Council of New South Wales.

Mr Egan said Prof. Dowton had been chosen from an exceptionally strong field of applicants from Australia and overseas for his capacity to continue Macquarie’s rise. He will build upon a successful strategy of leveraging the University’s significant land holdings in order to invest heavily in research, learning and teaching, new facilities and in developing mutually beneficial relationships with industry.

“He will be taking over from Professor Steven Schwartz who, after more than six years at the helm, will be leaving Macquarie University in excellent shape, both academically and financially. It is now one of the world’s great universities.”

Mr Egan said Professor Dowton had a stellar international reputation.

“In the past few years he has led or overseen project teams in more than thirty countries advising on diverse aspects of healthcare and higher education.”

“His academic and professional appointments and work have spanned the globe, including Australia, USA, Norway, China, Scotland, Hong Kong, India, Malaysia, Singapore, UAE, Oman, Kazakhstan, Greece, Libya, Saudi Arabia, Dominican Republic, Brazil, Sweden, Switzerland, and United Kingdom.”

“He is a passionate and visionary leader, who is committed to ‘the pursuit of knowledge and learning as a key to improving the human condition’.”

Professor Dowton will take up his position later this year, becoming only the fifth Vice-Chancellor in Macquarie University’s 48-year history. 

The Local Government Association of Queensland (LGAQ) has a red tape reduction task force in the wake of the recent state election.

The taskforce, due to hold its first meeting in May, will publish a report in July into burdensome bureaucratic practices and other areas where savings should be made.

LGAQ Greg Hallam said the taskforce won't be pulling any punches when it publishes the report, saying that it will investigate both local and council matters.

The taskforce is made up of both local government professionals and planning, building, licensing and environmental health experts. 

The Bank of Queensland has released its official results for the first half of the financial year, with the company posting a $90.6 million loss.

The bank blames a sharp rise in bad loans after the company slipped from a net profit of $48 million in the same period last year. To offset the losses, the bank announced a $450 million share sale to boost its bottom line in late March.

The bank has struggled to return to form after the 2011 Queensland floods, which caused heavy falls in property valuations and resulted in a 30 per cent increase in non-performing loans.

However, the bank posted a normalised underlying profit before tax of $222 million, up from  3 per cent from the same time last year.

In announcing the result, BOQ Managing Director and CEO Stuart Grimshaw said the foundations had now been set for promising organic growth for BOQ.  

“Our prudent and robust approach to collective loan provisioning will enhance protection against any further deterioration in the Queensland economy; and the recent $450m capital raising is on track to position BOQ as one of the strongest Core Tier 1 banks in Australia today,” Mr Grimshaw said. 

“We’ve maintained discipline in expenditure, bucked the industry trend with improved NIM performance in a tough funding environment and taken a responsible and conservative approach to management of our loan book. 

“With a new executive team at the helm, we look forward to getting on with the job of delivering our strategy for growth,” he said  

Specialist rural products and services provider FarmWorks has announced that its CEO, Rick Moody, has resigned effective immediately.

The company offered no reason behind Mr Moody’s resignation in its brief statement, but announced that Malcolm Dann, the company’s COO, will take the role of acting CEO after Mr Moody departs. 

The Australian Local Government Association (ALGA) and the Department of Climate Change and Energy Efficiency will convene the inaugural Carbon Price and Landfill National Forum on the 23 – 24^th April, to help local government bodies better understand and meet their obligations under the Federal Government’s Carbon Price Mechanism.

Key note addresses will be provided by Parliamentary Secretary for Climate Change and Energy Efficiency Mark Dreyfus and Chloe Munro, Chief Executive Officer of the Australian Clean Energy Regulator.  The Clean Energy Regulator is part of the Climate Change portfolio and administers the carbon pricing mechanism; the National Greenhouse and Energy Reporting (NGER) scheme; the Carbon Farming Initiative; and the Renewable Energy Target.

Concurrent sessions will provide participants with the opportunity to talk to Ross Carter, First Assistance Secretary at the Department of Climate Change and Energy Efficiency, and staff of the Australian Clean Energy Regulator, about emissions measurement and the National Greenhouse Energy Reporting Scheme (NGERS).  Representatives from financial services organisation Ernst and Young and legal firm Norton Rose will also be available to discuss the management of carbon liabilities and legal issues.

More information can be found here

The Western Australian Government has introduced legislation that aims to allow local communities to have a greater say in neighbourhood development and long term strategic planning.

The integrated strategic planning framework, including community strategic plans, has been introduced as a legislative requirement with Local Governments.

Western Australian Local Government Association President Mayor Troy Pickard said Local Governments fully supported the planning framework, with its genesis in the sector’s own reform process through their Systemic Sustainability Study.

“Councils’ integrated strategic planning includes a thorough community engagement process to establish a community strategic plan for a 10 to 20 year horizon,” Mayor Pickard said.

“It lays out the needs and priorities of the community, from which shorter-term corporate business plans are constructed; articulating asset management, financial and workforce plans for the organisation including resourcing requirements.

“This process is constructed around a deep community engagement process that seeks genuine input from the community and the long range planning will assist Councils in their annual budgeting and day-to day operations.”

Mayor Pickard said many Local Governments were already advanced in introducing the process, and were using a number of methods to gather input from local communities.

“From conducting surveys and public meetings to communicating through social media, newsletters, local newspapers and direct with Elected Members, Local Governments are getting in touch with their communities and engaging with them in meaningful and purposeful way as they prepare their long term strategic plans,” Mayor Pickard said.

“This demonstrates how Local Governments are driving sector reform in a practical manner and engaging communities in local decision making. 

“I’m not aware of any other sphere of government or agency that is undertaking similar long term strategic planning or engaging with the Western Australian community to such an extent.”

The Western Australian Local Government Association (WALGA) has praised the rapid turnaround in the quality of the state’s planning approvals systems, saying it has gone from one of the country’s worst to one of the best in a matter of years.

WALGA President Mayor Troy Pickard said the turnaround was the result of councils assisting and implementing State Government reforms.

“Local Governments have been actively working with the State to deliver on key strategies such as the Directions 2031 framework, the preparation of new R-Codes for multiple dwellings and through engagement on the new waterfront development,” Mayor Pickard said.

“There are, however a number of areas in which they continue to be impacted by delays and inefficiencies from external agencies.”

Mayor Pickard said many Local Governments were already achieving greater efficiencies in planning and development processes, with these gains to be shared with the entire sector through the preparation of a Local Government Planning Improvement Program.

The New South Wales Government has announced the three members of the independent expert panel that will be responsible for examining the structural arrangements of councils in the context of improving the financial sustainability and future viability of the NSW local government sector.

State Local Government Minister Don Page announced that the panel will be chaired by Professor Graham Sansom, who will be joined by panel members Jude Munro and Glenn Inglis.

“I am pleased to announce that Professor Graham Sansom, whom I announced as the chair of the Panel last month, will be joined by fellow local government experts Jude Munro AO and Glenn Inglis,” Mr Page said.

“Both Jude and Glenn will offer invaluable experience and insight into the Panel process, which ultimately is seeking to improve the future prosperity of the NSW local government sector.

“It is a big job, but I am confident we have the right people for that job.”

Mr Page said the Panel is the first initiative to be announced out of the Destination 2036 Action Plan, which is nearing completion.

“The Panel was created after the presidents of the Local Government and Shires Associations, Keith Rhoades and Ray Donald, wrote to me requesting the NSW Government explore ways to review certain aspects of the local government sector,” Mr Page said.

“The Review Panel will take into consideration councils’ ability to support the needs of their communities, ability to deliver services and infrastructure efficiently, ability to provide local representation and decision making, the financial sustainability of each council area, and any barriers that inhibit, or incentives that could encourage, voluntary boundary changes.”