MB+M Inner Circle Newsletter
July 2011

(Time to read this entire newsletter: 17 mins)

In this issue:

• ACCC warns businesses to beware of end-of-financial-year scams
  
  
• Fair Work system - 10 of the most notable cases
  
  
• Age pension seminar
  
  
• Flood levy


• Update on your family trust and the ATO
  
  
• Rebecca's baby news

ACCC warns businesses to beware of end-of-financial-year scams

(Time to read this article: 4 mins)

Small businesses have been warned by the corporate regulator to remain vigilant and double-check every invoice being paid in order to avoid being scammed for unnecessary charges after nearly $1 million was lost in 2010 to fraudulent billing.

The warning from the Australian Competition and Consumer Commission comes as government agencies and security departments warn businesses to avoid end-of-financial-year scams, which offer cheap tax returns and other services.

ACCC deputy chair Michael Schaper says businesses should keep an eye out for online scams to ensure they are not paying for bills they are not responsible for.

“A lot of scams are online, and this creates two problems: they reach small businesses really quickly, and there is constant pressure on businesses to communicate,” Schaper says.

“There is a psychology at play here, and that's where you have a busy SME, they see an email, and think “Oh, I'll just pay.” The other problem is that many of these scams are done electronically and are outside of our jurisdiction.”

The ACCC says the total reported loss for false billing in the 2010 calendar year was $966,844, with scams including sending out invoices for advertising, fake directory listings and domain names.

“Often what you'll find is that you'll get what looks like a legitimate email, saying that your trademark or domain name is up for renewal. And your first reaction is to say that you don't remember when you registered it, and then pay it anyway.

“We also see schemes charging for fake grants, and that happens in places like Canada as well. Of course no legitimate government charges a business to apply for a grant.”

Schaper says businesses need to remain watchful as new scams start regularly, and they often change to target relevant topics, such as scams sent out during the Queensland floods.

“They morph really quickly,” he warns.

The ACCC says businesses should also become familiar with suppliers, keep records of orders and purchases, contact any agency asking for money and in general keep up to date with the types of scams targeting SMEs.

“One piece of advice we give SMEs is to have a two-person system,” Schaper says. “Someone deals with the invoices, and then another person vets them.”

“While that is a common business tactic, it's especially useful when dealing with scams because you'll have another level of checks there.”

Schaper warns it is SMEs, particularly micro-businesses, that fall prey to such scams as they often don't have the time or money to properly vet them.

“Scams potentially affect every business, but for micros they may not have sophisticated account keeping systems. So you really do need to use that two-person system.”

This article first appeared on SmartCompany.com.au, Australia's premier site for business advice, news, features and resources for small to medium businesses.

Fair Work system - 10 of the most notable cases

(Time to read this article: 6 mins) Madeleine Heffernan & James Thomson

If you employ staff, get ready to blow out the candles. The Fair Work System is about to turn two!

The contentious issue of industrial relations is back on the political agenda, with Opposition leader Tony Abbott promising to take a “strong and effective” workplace relations policy to the next election.

Yesterday the Australian Industry Group marked the two-year anniversary of Fair Work Australia by calling for amendments to the Act, seemingly with a heavy heart.

“Ai Group has not called for amendments lightly, or as a first recourse, and we are not seeking large-scale reform of the system. However, we have identified areas where the Act is not working as intended and where amendments are essential,” it said.

In particular, the business body says the transfer of business and general protection laws and some aspects of the bargaining laws have proven problematic. It also says the laws need to be amended to outlaw union bargaining claims to restrict the engagement of contractors and labour hire.

With this in mind, SmartCompany has taken a look at 10 interesting cases we've covered under the Act in the past couple of years.

Back in June 2010, the issue of how Fair Work Australia would treat unfair dismissal cases was still very much up in the air. In this case, senior deputy president Ian Watson found a company that terminated a worker because of an economic downturn in the automotive sector had unfairly dismissed the staff member because it did not make reasonable efforts to redeploy her, as is required under the Fair Work Act. It's a big lesson for employers.

In late May, a retail employer was awarded almost $10,000 after being fired by a text message. Fair Work Australia ruled the sacking was harsh, unjust and unreasonable, saying if the dismissal is “implemented by any means other than face-to-face communication, both the legal and ethical basis for the decision to dismiss is likely to face strong and successful challenge”.

When a case arose last year of a worker taken off the roster after being found guilty of several sex-related offences, senior deputy president Drake said the convictions related to “conduct of a sexual nature of a particularly offensive kind towards females, and this workplace [Uncle Tobys] has a significant female base.” Citing the employee's poor character in this regard, plus the company's responsibility to provide a safe workplace for its employees as far as it is able to do so, it was ruled that the employee's convictions were a valid reason for termination. This surprised many experts, who felt the case set a new precedent and further blurred the lines of work and outside work.

A paper mill employee, who was sacked for repeatedly removing his safety glasses while cleaning a piece of machinery during a plant shutdown, was reinstated after his sacking was found to be harsh. FWA vice president Michael Lawler said his prospects of future employment were poor. Employer groups were outraged. "The principal concern so far is - here is a company that is quite clearly aware of its health and safety obligation and has taken actions in accordance with those obligations. But its decisions taken in the health and safety area are being second-guessed by the industrial trial," ACCI's workplace policy director David Gregory told SmartCompany in February 2010.

In February, a dismissed childcare worker was awarded more than $9,000 in compensation after a ruling the Victorian company's no “back-biting” policy could not constitute a valid reason for dismissal. “Gossiping might be frowned upon, but it's not cause for sacking.”

After almost two years, the issue of whether secondary school students can work just 90-minute shifts after school, rather than three hours, has not been resolved. While business groups welcomed a draft ruling earlier last month permitting retail workers to work 90-minute shifts, with the permission of the parents or guardians, there are suggestions the SDA might appeal.

Employer groups remain furious with a decision this month when Fair Work Australia found that the Transport Workers Union genuinely sought to negotiate with a waste-collection company, and therefore had the right to proceed to strikes, despite attempted talks falling in non-bargaining periods and the fact majority workplace support for industrial action had yet to be determined. While governments and unions welcomed the decision, the case will be the subject of further debate.

Twelve months ago, a full bench overturned a decision that would have given a New South Wales union almost unfettered access to a workplace. AIG chief Heather Ridout welcomed the decision, saying the right of entry provisions contained in the Fair Work Act were drawn up after extensive negotiations between employers, unions and the government.

In September last year, FWA made its first take-home pay order, ordering women's fashion retailer Fast Future Brands to provide a female staff member with nine months of back-pay.

In May 2010, the full bench overturned a ruling that found that individual flexibility arrangements could not be used to vary the terms of an enterprise agreement – even where the union and employer had agreed to do so. The case was seen as a victory for employers.

This article first appeared on SmartCompany.com.au, Australia's premier site for business advice, news, features and resources for small to medium businesses.

 

Age Pension seminar

All you need to know about the aged pension!

This is a FREE seminar and places will fill quickly so
book yourself in now with Silvia on 5821 9177 or email at silviap@mbmgroup.com.au

Friends and family are welcome to attend.

When: Tuesday 19 July
Time: 2:00pm - 3:30pm
Where: MB+M Business Solutions, Conference Room
23 Nixon Street, Shepparton

Afternoon tea provided.

Listen to the professionals:

Penny Hamilton
Centrelink expert, MB+M Business Solutions.

Nick Chamoun
Retirement income specialist, Challenger.

Hear about strategies to increase your pension ...

• Can I get a Health Care Card?
• Tackling Centrelink
• All your pension questions answered

REGISTER NOW

 

Flood levy

The Temporary Flood and Cyclone Reconstruction Levy (flood levy) comes into effect on 1 July 2011.

Taxpayers with a taxable income over $50,000 in the 2011-12 financial year will have to pay the levy. If you have a taxable income of less than $50,000, or have been affected by the recent natural disasters, you may be exempt from the levy.

If the Tax Office deem you exempt from payment of the levy you should have already received a letter in June from the ATO.

 

Update on your family trust and the ATO

Last September we sent you an email about the Bamford Case and the impact this High Court ruling may have on family trusts. To remind you, the Bamford Case sets new ground rules for interpreting your trust deed. It affects trust distributions of net income from 1 July 2010 and beyond.

The Government are currently in the process of drafting these new rules and it will most likely be passed as legislation in the near future. When the exact details are known we can put processes into place to ensure your trust complies. If your trust is affected we will be in contact with you. In the meantime, feel free to contact us if you have any concerns on 5821 9177.

 

Rebecca's baby news

Congratulations to Rebecca Woolstencroft and husband Dan on the arrival of a beautiful baby sister for Fraser. Maeve Marie was born on 28th May. Rebecca is enjoying some well earned family time.

As you can see, Fraser is taking the role of big brother very seriously.