Highly wealthy, wealthy or just struggling —

beware the ATO

A PUBLICATION EXAMINING ISSUES FOR OUR CLIENTS

2 FEATURE GROWING SALES 4 FEATURE

DIRECTOR PENALTY — POTENTIAL RETROSPECTIVE LIABILITY FOR UNREPORTED AND UNPAID PAYG

5 FEATURE DO YOU ENGAGE CONTRACTORS? IF SO, BEWARE OF YOUR OBLIGATIONS!

6 FEATURE TRADING IN RMB 6 CLIENT PROFILE

WINNING THE WAR AGAINST CANCER 8 WHAT’S NEW

TAX DIARY

CONTACT 80 SPRING 2012

related party transactions, disposal of capital assets and international dealings.

The ATO will access a range of information from government agencies such as the State Titles and State Revenue Offices. In addition, they will undertake comprehensive financial ratio and risk analysis to identify tax performance or profitability which is outside of industry norms.

Through this process, the ATO allocates taxpayers into four categories ranging from high to low risk. This categorisation determines whether an individual or private group will be subject to close scrutiny, periodic review or periodic monitoring by the ATO.

The ATO definition of highly wealthy is someone who, together with their associates, controls $30M or more in net wealth. It is currently estimated there are 2,600 people within this category. It is expected there will be around 200 reviews and 50 audits of high wealth individuals.

The next level down the wealth tree is a category of individuals with net wealth between $5M and $30M. It is anticipated there are 70,000 people in this category and there will be 120 reviews and 50 audits.

The ATO has developed sophisticated data mining techniques to enable it to understand the inter-relationship between individuals and the entities which they own or control and is expanding its use of third party data to identify risks relating to matters such as

The ATO has released its Compliance Program for 2012/13 and followed up in late August with a document specifically directed towards SME enterprises and wealthy individuals. It is clear the ATO will have a strong focus over the next twelve months on what they describe as highly wealthy and wealthy individuals and their associated private groups.

(continued on page 2)

Ray Cummings Director, Tax Consulting Melbourne

Highly wealthy, wealthy or just struggling — beware the ATO(continued from page 1)

There is a long list of matters which will attract the ATO’s attention including, but not confined to:

Large, one off transactions

Unexplained losses

Lifestyle not supported by after tax income

Treating private assets as business assets

Accessing business assets for tax free private use

Undisclosed offshore dealings

Tax outcomes inconsistent with economic substance

Certain areas continue to be of key interest. High on the agenda is the treatment of private company profits. This includes loans made by private companies and also trusts which may have unpaid present entitlements with companies. There are to be 100 verifications to ensure the appropriate loan agreements are in place.

Another key area is the use of trusts. One thousand trustees and beneficiaries will be contacted about a range of issues including correct reporting of trust distributions and compliance with TFN withholding rules. In addition, there will be around 30 reviews and 15 audits of aggressive trust arrangements.

There appears to be a significant number of cases where capital gains on sale of assets is not disclosed and the ATO will undertake approximately 100 higher risk cases including incorrect claiming of capital losses.

The ATO will contact individuals where their growth in personal wealth seems to be inconsistent with their reported tax position.

A new initiative is a program focused on the largest self-managed superannuation funds and the ATO will be analysing the top 200 self-managed superfunds based on total assets and will select 25 for a comprehensive audit.

This year’s Federal Budget allocated additional funding to enable the ATO to monitor GST compliance. In the small to medium enterprise segment, there will be 1,500 reviews and 100 audits and also 1,000 reviews and audits in relation to GST on property transactions.

The activity will also include 25 reviews and 8 audits as well as contacting around 200 tax payers across a range of international issues including use of secrecy and low tax jurisdictions to obey the income tax obligation.

Whilst the key focus of the ATO will be on those individuals with more than the “$5M net wealth” the same issues will be applicable to those with net wealth below that threshold. Prudence would suggest that regardless of your wealth, you should be focusing on the risk areas being addressed and monitored by the ATO.

Growing SalesRetail storesRetail stores usually require a significant investment in fit out and operations. Whilst getting the most out of your retail stores is a science in itself, one basic fundamental is to ensure you are benchmarking each store’s performance. Performance must be evaluated using both quantitative factors – sales and gross margin per square metre, inventory turns, etc and qualitative factors including customer feedback and reviews. In addition to customer feedback, which is at best irregular, mystery shopping programs provide a great insight into the experience your customers are receiving.

Most retail stores cost anywhere from $200,000 upwards to establish. Yet it seems many businesses staff their stores with people who don’t care about the customers. How many times in the last week have you been disappointed by the in-store service you have received? Chances are someone is in one of your stores today having that same bad experience.

The structure and performance of your channels to market are integral to increasing sales. Maximising the value of each channel and channel partner is just as important as how the various channels are structured and their integration with one another. Growing sales does not have to mean more marketing spend, it can be done through improvements in your channels to market. In this article, we discuss a few of the issues to be considered when addressing the performance of direct sales, dealers, franchise and online channels.

Professional sales teamMuch is written about optimising the performance of a professional sales team. Whilst we should examine lead generation and sales close rates, how much time do we spend considering our team’s workload? In Issue 78 of Contact earlier this year, Don Rankin published an article entitled ‘Cut Costs – How Hard?’ Don discussed the philosophy of cost reduction and outlined categories of costs that included:

Necessary costs, eg. the cost of travelling to a client’s site – it is required, but does not of itself add value

Avoidable costs – the time incurred by sales people performing tasks that others could be doing

Essential costs – the time when a sales person is actually face to face with prospects and clients generating revenue.

How much of your sales team’s time is wasted on avoidable costs? Some past work conducted with a business equipment sales

Stuart Lindsay Director, Business Consulting Melbourne

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A

B

Poor performers and poor partners

Rate of partner’s business growth

Low High

High

Your share of partners’ sales

Strong performers and could be better partners

Strong performers and great partners

Good partners that could perform better

team of 140 people found that only 32% of their time each day was spent in face to face contact, or on the phone selling – 95 days were being wasted every year!

FranchisingAre you a franchisor or are you considering franchising your business? Having a well developed and structured franchise program combined with a proven and robust business are critical if your franchise network is to succeed. Too many businesses rush to franchise too soon: “I’ve got an idea that I would like to franchise”, or don’t give their franchise program the respect it deserves: “Let’s just put a basic program together and start selling franchises”.

Most prospective franchisors have spent a considerable amount of money over a number of years establishing their business. So why cut corners when you are developing a franchise program that will underpin the business for years to come, and potentially be more significant than your company owned operations?

For existing franchisors, ensuring you regularly review your franchise offer is critical. Just as the market and economy change, so too does the world in which your franchisees operate and the support they require. You refresh your brand every few years and you should review your franchise program to help ensure your business is achieving its full potential.

OnlineThe digital revolution has come and businesses can no longer avoid having an online strategy. Whether you ignore online or take an active role, your customers are looking for you online and speaking about whether they like your online brand.

An online strategy should be an integral part of your channel strategy. An online strategy outlines your:

Definition of success

Pathway to achieve success, and

Process for measuring results.

Your online strategy will address a number of crucial components:

Setting your online goals

Determining the return on investment and budgeting

Considering how your online channel integrates with traditional channels

The user experience

Search Engine Optimisation and Search Engine Marketing

Managing the performance of your online channel.

As a business owner you should be aware that not being online is a strategy decision within itself, and if you decide not to be online then you need to consider the consequences.

Dealers and other indirect channel partners Increasing your sales through wholesalers, distributors, dealers or any other form of third party (indirect) channel is challenging. However, changing the way you view the

performance of, and categorise, your partners may give you some ideas. A Channel Growth Model, like the one below, helps segment your partners and develop strategies to improve your business.

Channel Partner A presents a great opportunity. This is a partner for whom your products represent a high share of their sales. The opportunity for you is to invest your time and money in increasing the growth of their business. This will not only increase sales but serve to make the partner even more loyal. Some very highly regarded organisations frequently initiate strategic planning sessions – for their partners’ businesses.

Channel Partner B presents a challenge. They have a growing business but your sales are not as important to them. Now is the time to meet this partner to discuss how to make your product figure more prominently in their sales. This may require point of sale material, product education and training, better product or sales support, or any number of other channel partner support initiatives.

ConclusionYour channels to market – whether direct or indirect – are the lifeline of your business. The answer to growing your sales does not always lie in adding more channels and channel partners. So before you start throwing more money at the same old initiatives, consider how innovation might help you find your point of difference.

For more information, go to growth.pitcher.com.au

The size of the circle reflects the sales each partner is contributing.

3CONTACT

As we mentioned in Issue 79 of Contact, there have been new amendments to the tax laws that include provisions to strengthen the director penalty regime and protect employee superannuation entitlements.

This new legislation, which came into effect on 29 June 2012, has increased the regulatory burden on company directors and also increased the risk that directors will be exposed to a personal liability.

The previous director penalty regime made a director liable to a tax penalty where an amount withheld under the PAYG regime (such as tax withheld from employee wages) is not paid to the ATO. The penalty imposed is equal to the amount withheld but not paid. The debt previously could not be collected until a director penalty notice (DPN) had been issued and expired without the director taking up one of the three available options (payment of debt, liquidation or administration of the company) within the 21 day action period.

The Bills that have passed Parliament extend the current director penalties to:

Unpaid superannuation obligations

Remove the ability for a director to discharge a director penalty by placing the company into voluntary administration or liquidation when PAYG withholding or superannuation guarantee charge amounts remain unpaid and unreported three months after their due date

Deny directors, and in certain circumstances, associates of directors, the ability to claim personal tax credits if the company has failed to pay amounts withheld.

If the company entered an insolvency administration or liquidation prior to the commencement of the legislation, any director penalties (aside from those already subject to a DPN issued more than 21 days previously) would have been extinguished, and so they would not be affected by the three month ‘lockdown’ measure. These director penalties are effectively extinguished in those circumstances. It is important to appreciate that this ‘lockdown’ measure applies on a lodgement by lodgement basis. Lodging one BAS return more than three months late does not lead to automatic personal liability for directors for all outstanding PAYG.

The only real option that will remain is for either the company or its director (personally) to pay the amount due under the director penalty.

Do the new three month unpaid and unreported personal liability provisions apply to director penalties incurred as at 29 June 2012?I am a director of a company and have deducted, but not paid some PAYG tax. Some of those returns are more than three months outstanding and have not been lodged or paid.

QuestionUnder the new legislation, is the ATO able to issue a director’s penalty notice without the remission options of liquidation and voluntary administration with respect to the unreported and unpaid PAYG liability that was outstanding prior to the commencement of the legislation?

Answer Yes.

It would appear that the legislation should be viewed as being, effectively, retrospective. The ATO has confirmed they will be issuing DPN’s to directors for unreported PAYG withholding liabilities that remain unreported and unpaid and are more than three months past their due date, even where the liability accrued prior to 29 June 2012.

Andrew Yeo Partner, Business Recovery & Insolvency Melbourne

Potential retrospective liability for unreported and unpaid PAYG

Director Penalty —

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4

Under this new regime, it will become even more imperative that directors act promptly to deal with their company’s affairs once it may be insolvent, given that if their company is more than three months in arrears with its payment and lodgement obligations, the director penalty cannot be avoided by the appointment of a Voluntary Administrator or Liquidator.

However, it would appear that where a PAYG liability from, say, 2008 had not been reported within three months of its due date, and has never been paid (and where the company did not enter an insolvency administration prior to 30 June 2012), the associated director penalty will no longer be able to be remitted by the company’s director placing the company into voluntary administration or liquidation.

Personal liability for directors will be minimised by ensuring all lodgements are made within three months of their due date. Directors will retain their ability to avoid personal liability by acting to appoint a Voluntary Administrator or Liquidator within 21 days of the date of the director penalty notice, only if all lodgements had been made within three months of their due date.

Finally, the amendments that extend the director penalty provisions to superannuation will however only apply to any quarter for which there is an SGC shortfall following the 29 June 2012 commencement.

If so, beware of your obligations!

Do you engage contractors?By Kevin Lock Director, Tax Consulting Melbourne

The Australian Taxation Office is targeting businesses that do not meet their PAYG Withholding and Superannuation Guarantee obligations. One of the principal areas of non-compliance concerns payments made to ‘contractors’. The treatment of contractors also receives considerable attention from the State Revenue Office (in relation to Payroll Tax) and workers’ compensation authorities.

At particular risk are those businesses that engage contractors to provide primarily labour services, where only one person actually provides the services and the contractor is paid on a time basis rather than for a given result. Such workers may be held to be employees and not contractors.

Common Law Employee or Contractor?The first question to consider in relation to the engagement of an individual to provide services is whether that person is an employee at common law (i.e. an employee based on the view of the courts) or a contractor. This can be a complex question. Merely calling a worker a contractor or having them provide an ABN does not mean that the worker is a contractor. They may be a common law employee.

There is no single factor that determines if a worker is a contractor or an employee. The Courts have made it clear that the totality of the arrangement must be considered. Some of the key factors in deciding this include:

Does the employer control, or have the right to control, how the work is performed?

Is the worker required to perform the work personally and unable to delegate any of it?

Is the worker paid on a time basis rather than per job?

Does the employer provide all of the plant and equipment?

Is the employer rather than the worker responsible for any faulty workmanship or negligence?

If the worker is an employee, obligations will arise in respect to all employment taxes. However, even where the worker is found to be a contractor, employment tax obligations may still exist due to various deeming provisions.

PAYG Withholding (‘PAYGW’)Broadly, if a given worker is not a common law employee, a business will generally have no PAYGW obligation. The main exception is where the contractor does not provide the business with a valid ABN.

Superannuation Guarantee (‘SG’)SG is extended to contractors engaged under a contract wholly or principally for their labour. Broadly, a SG obligation will exist if the contractor is engaged as an individual, and:

1. Is remunerated wholly or principally for their personal labour and skills

2. Must perform the work personally (i.e. no valid right of delegation), and

(continued on page 6)

FEATURE

5CONTACT

Trading in RMB

Winning the war

3. Is paid on a periodic or time basis and not upon achievement of a result.

Payroll Tax (‘PRT’)Whilst there is not full consistency between all jurisdictions regarding contractors, there is a broad similarity in the effect of the provisions across all jurisdictions. WA notably has a fundamentally different contractor provision to all other jurisdictions. However, the type of contractor that it captures for PRT purposes is very similar to the type of contractor caught by the provisions in the other jurisdictions.

In the first instance, in all jurisdictions other than WA, the PRT provisions deem payments under most contracts for the performance of work to be subject to PRT. Various potential exemptions are then provided. Typically, payments to a contractor are subject to PRT if the contractor works more than ninety days in the financial year, is engaged primarily for labour, only one person performs the work under the contract and the contractor works primarily for the same principal during that financial year. There are further specific exemptions for payments made to contractors in certain industries. In WA, the contractor provisions effectively look through any arrangement and consider whether the contractor is working in an ‘employee like’ manner. This requires consideration of the factors in the Common Law Employee or Contractor section.

Importantly, the provisions in all jurisdictions can apply regardless of whether the contractor trades as an individual or under some other entity such as a company or trust.

Workers’ Compensation (‘WC’)Whilst there is broad harmonisation between the jurisdictions in terms of PRT and contractors, the same cannot be said for WC. There is very little consistency and each jurisdiction has its own approach to contractors. The important point is that all jurisdictions have provisions which can require a business to pay WC on payments to its contractors.

Victoria has the broadest provisions. As with PRT, the WC legislation contains contractor provisions which deem payments under contracts for the performance of work to be subject to WC. Again, these provisions apply

regardless of whether the contractor trades as an individual, company or trust. In Victoria, payments to a contractor will generally be subject to WC in a given financial year or 12 month period if all the following criteria are met:

1. The contract is mainly for labour, and

2. At least 80% of the work under the contract is performed by the same individual, and

3. At least 80% of the contractor’s gross income for the period (from the provision of similar services) is earned from the employer in question.

In the other jurisdictions the rules for determining which contractors to include for WC purposes are broadly as follows:

NSW, TAS and ACT – declare payments to natural persons who perform some of the work personally unless they have an ‘independent trade or business’. What constitutes an ‘independent trade or business’ is a question of fact. Generally, the test considers the extent to which the contractor works for the employer in question.

QLD – declare payments to natural persons unless they have an ‘independent trade or business’, or they have a Personal Services Income determination issued by the ATO or they are engaged to produce a result, provide all the required equipment and are personally liable to rectify faulty work.

WA – declare payments to natural persons remunerated substantially for their own labour.

SA – declare payments to natural persons engaged to perform certain classes of work, including building work, cleaning work, driving a motor vehicle for reward and some artistic performers.

NT – declare payments to natural persons unless an ABN is quoted.

Additionally, all jurisdictions have deeming provisions that apply to specific classes of contractor, and require payments to such classes of worker to be included for WC purposes. Some of these classes include owner drivers, taxi drivers, share farmers and tree fellers.

Due to the complexity associated with the differing WC obligations in respect of contractors, employers are strongly encouraged to seek professional assistance on this matter.

Do you engage contractors? If so, beware of your obligations!(continued from page 1)

FEATURE

CLIENT PROFILE

During the past decade, the fabric of the Australian economy has changed by the emergence of China as both a consumer of our raw materials, and more markedly, by its emergence as the world’s manufacturing centre. As China has grown, it is moving towards ‘westernising’ its capital system. Central to this is the movement away from the pegging of its currency to the USD to a floating currency.

Presently, most Australian importers settle their China-sourced purchases in USD. However with China’s desire to float its currency, it is encouraging its exporters to settle their exports in Reminbi (RMB) rather than USD. This change can potentially provide Australian businesses purchasing from China, the opportunity to reduce the cost of purchasing materials or equipment.

6

Trading in RMB Adrian Clerici Partner, Business Advisory & Assurance Melbourne

Winning the war

The Chinese central government has mandated the gradual floating of its currency through a staged and controlled trading of the RMB. The Central Government has mandated that its exporters settle their exports directly in RMB with the projected minimum for 2012 being that 20% of exports are settled this way. This is projected to increase to 100% within the next 3 to 5 years. The ANZ Bank is predicting it is likely to occur within 3 years.

The opportunity for Australian importers can be significant. The current system of settling in USD introduces layers of cost to Chinese exporters. Chinese banks enjoy a foreign currency conversion margin that is amongst the highest in the world. Secondly, Chinese exporters cannot hedge their currency risk. Therefore, foreign currency conversion risk is covered through product margins. The removal of these costs by settling directly in RMB provides the opportunity for savings. Australian exporters already settling their purchases directly in RMB are reportedly

achieving savings of between 4% and 12%, with some saving up to 20%.

While this aspect of trading with China is new to many businesses here, there is also a lack of understanding within China itself. A common misunderstanding amongst Chinese exporters is that the export incentives they receive are delayed where the settlement is not in USD. This issue can be relatively quickly overcome by ensuring your supplier advises the authorities and its bank in advance.

Similarly, there is concern that the payment in RMB will not be received through the banking system in the same timeframe as a payment in USD. However, again this is easily overcome through being organised and understanding the documentary requirements. Remember, your Chinese supplier is being mandated to commence settling their exports in RMB so these systems will need to be put in place regardless.

The real challenge is getting a better price from your supplier in RMB as compared to your current USD equivalent. This will take some negotiation as naturally, your supplier is unlikely to be inclined to pass all the benefit over to you. This can be even more difficult where your supply is predominantly

made of metal. The Chinese supplier is likely to be paying for their raw materials in USD, and therefore will be seeking a natural hedge in their business. Where this is the case, the scope for a reduction in purchase price will be much less.

Settling in RMB carries the same inherent risk of exposure to exchange rate movements. The RMB is a controlled currency at present which theoretically prevents major fluctuations in exchange rates. Despite this, a prudent hedging policy should be considered as change could occur without notice.

The longer term view of the value of the Chinese currency should be planned for. Economists are currently predicting that when China adopts a floating currency, it will appreciate by approximately 40% to 50%. Businesses that are unskilled or unprepared for sourcing supplies from alternate locations or negotiating better prices, will be at a disadvantage when this occurs.

As is the case with any business challenge, it is good policy to seek expert assistance. Pitcher Partners has specialist advisors to assist clients pursue cross border opportunities such as those outlined above.

For more information, consult your local Pitcher Partners’ contact.

In the last 20 years we have made enormous inroads in the fight against cancer and there are now many treatments available ranging from the very alternative to the more traditional.

Despite this progress it still causes more than a quarter of all deaths in Australia and as our population ages, the incidence of cancer will increase, putting further pressure on our State and Federal Governments and our public and private health systems. Earlier diagnosis and improved treatments have saved thousands of lives but have also created a greater need for support and assistance for survivors of cancer.

In the early 1980’s, health professionals around the world began to realise that comprehensive cancer centres, where research and treatment were integrated, improved patient outcomes and transformed the experience of the patient. Professor Chris O’Brien, an Australian Consultant head and neck surgeon at the Royal Prince Alfred

against CancerHospital, witnessed this for himself while working in the United States. In 2003, while Director of the Sydney Cancer Centre, he and his colleagues developed a proposal to transform the Centre into a $250 million world class comprehensive cancer centre to be named Lifehouse at RPA. In June 2008, the Cancer Centre delivered a business plan to the NSW Government and was allocated $50 million over three years in the 2008 Federal Government budget.

Tragically in November 2006, Prof Chris O’Brien was diagnosed with a malignant brain tumour, requiring him to step down from his clinical and administrative positions to focus on his own therapy and treatment. It was during his subsequent three year battle with cancer that Chris became a passionate crusader for the new model of care he had first proposed in 2003. Chris worked tirelessly throughout his illness to turn his proposal into a reality. He believed he had gained a unique insight into the way cancer patients are treated through his own experience and as a result recognised that medical care for cancer patients needed to be holistic, with the patient considered as a functional unit,

both mind and body. His new model of care, designed around the needs of the patient and their families, included treatment underpinned by research and with access to clinical trials.

Chris O’Brien died on 4 June 2009 surrounded by his family. Shortly before his death he was awarded the Order of Australia, and his vision for transforming care for cancer patients in Australia will be fully realised with the opening of the Chris O’Brien Lifehouse in mid 2013. The Centre will operate as a not for profit charitable organisation and will incorporate clinical care, research and education into a single organisation.

Chris O’Brien was truly a man of courage and vision and the new cancer centre is a testament to his determination to transform the lives of cancer patients in Australia. Pitcher Partners Sydney is proud to be associated with such an inspiring and courageous man and the new Chris O’Brien Lifehouse at RPA , which embodies his dream.

On 13 and 14 October, a team of Pitcher Partners’ riders will join the 200km Sunsuper Ride to Conquer Cancer. The purpose of the ride is to raise awareness and funds for cancer research and treatment at Lifehouse. A truly great cause.

Mark Godlewski, Partner, Business Advisory & Assurance Sydney

7CONTACT

For comments on this edition or if you wish to be removed from the Contact mailing list please email us at editor@pitcher.com.auWhat’s New

Tax Diary October, November & December 201221 October 2012 • Lodgement and payment of annual PAYG instalment notices.

• Lodgement and payment of the September monthly BAS/IAS.

• Lodgement and payment of first quarter 2012/2013 year PAYG instalment activity statement for head companies of tax consolidated groups.

28 October 2012 • Lodgement and payment of the first quarter 2012/2013 year quarterly BAS/IAS.

• Payment of superannuation guarantee contributions for the first quarter of the 2012/13 year.

• Lodgement and payment of Annual TFN withholding report for closely held trusts where amounts from payments to beneficiaries have been withheld during the 2011/12 year.

31 October 2012 • Lodgement of PAYG withholding annual reports (interest, dividend and royalty payments paid to non-residents).

• Quarterly TFN report for TFNs quoted to closely held trusts by beneficiaries in the first quarter of the 2012/2013 year.

21 November 2012 • Lodgement and payment of the October monthly BAS/IAS.

1 December 2012 • Payment of 2011/2012 income tax for taxable large/medium business companies (including head companies of tax consolidated groups with a member that is a large/medium business) and superannuation funds. Tax returns for large/medium business companies and superannuation funds are due for lodgement by 15 January 2013.

21 December 2012 • Lodgement and payment of the November monthly BAS/IAS.

Pitcher Partners finalist in AFR Capital CFO AwardsPitcher Partners was delighted to have been named as a finalist in the category “Accounting Firm of the Year” for the 2012 Australian Financial Review Capital CFO Awards. The awards recognise the achievement of the best in Australian finance over the last twelve months.

Pitcher Partners Honoured in Victoria Day AwardsPitcher Partners Melbourne has been awarded a Victoria Day Council award for Community and Public Service by a Good Corporate Citizen. The award is for ongoing commitment to Corporate Social Responsibility and recognises Pitcher Partners’ contribution to Victorian causes including fire and drought relief, the brotherhood of St Lawrence Breakfast Club, Fareshare, and numerous other initiatives over recent years.

Pitcher Partners wins at Hong Kong Australia Business Association AwardsPitcher Partners Adelaide was delighted to accept the award for their contribution to the Export of Goods and/or Services to Hong Kong SAR/China at the recent Hong Kong Australia Business Association Awards. Pitcher Partners has been actively involved in cross border transactions with Hong Kong and China since the inception of a China Business Advisory Unit in 2010 headed by Adelaide Principal, Andrew Faulkner. The team of seven Pitcher Partners’ staff, the majority of whom are fluent in Mandarin, work with companies wanting to list on the Australian Stock Exchange, as well as aiding companies with cross border expansion and the support to improve business performance, drive shareholder value and create a competitive and sustainable advantage.

CongratulationsPitcher Partners congratulates Melbourne client Boss Polymer Technologies for its induction into the Victorian Manufacturing Hall of Fame. The award is made to companies that have displayed a sustained contribution to manufacturing excellence over the past 5 years.Managing Director, Norman Mills, said “the world of manufacturing is not about glitz and glamour – we tend to analyse the business challenge and get down to work on a solution. It was a delight to learn that the work done by our 25 member team is recognised by our manufacturing peers as making a valuable contribution to both technology and our economy.”

Congratulations are also extended to Alla Wolf-Tasker AM owner of The Lake House in Daylesford, Victoria. The Age Good Food Guide awarded Alla with the “Legend” Award – 2013. “From a bare lakeside block Alla Wolf-Tasker built one of Australia’s most beautiful boutique hotels centred on a restaurant that remains its beating heart. Staff she’s mentored can be found around Australia. She’s a tireless advocate for local tourism, farmers and hospitality.”

MelbourneJohn Brazzale Managing Partner+61 3 8610 5000partners@pitcher.com.au

SydneyDavid Young Managing Partner+61 2 9221 2099partners@pitcher-nsw.com.au

PerthBryan Hughes Managing Partner+61 8 9322 2022 partners@pitcher-wa.com.au

AdelaideTom Verco Principal+61 8 8179 2800partners@pitcher-sa.com.au

BrisbaneNigel Fischer, Managing Partner +61 7 3222 8444partners@pitcher-qld.com.au

Pitcher Partners, including Johnston Rorke, is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation.

www.pitcher.com.au The material contained in this publication is general commentary only for distribution to clients of Pitcher Partners. None of the material is, or should be regarded as advice. Accordingly, no person should rely on any of the contents of this publication without first obtaining specific advice from one of the Partners of Pitcher Partners. Pitcher Partners, its Principals & agents accept no responsibility to any person who acts or relies in any way on any of the material without first obtaining such specific advice. © Pitcher Partners 2011 PrintPost Approved PP381827/0043

Contact is printed on paper Certified Carbon Neutral. With 55% recycled fibre it is FSC Mixed Source Certified, sourced from sustainable plantation wood, Elemental Chlorine Free and manufactured by an ISO 14001 certified mill. PP39

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