CAANF Meeting 3 Presentation 23 08-2011
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CAANF Meeting 3 Presentation 23 08-2011

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Automotive Accountants Forum discussion of Paid Parental Leave, PPSR, Fixed Price Servicing

Automotive Accountants Forum discussion of Paid Parental Leave, PPSR, Fixed Price Servicing

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  • 1. Automotive Accountants Network Forum Meeting 3 The Manningham 23rd August 2011 Founding member of
  • 2. This presentation has been prepared by Colledges for the general information of its clients and forum attendees. While the information herein has been prepared with all reasonable care and derived from sources believed to be accurate, no responsibility or liability is accepted by Colledges or any of its affiliations, for any errors or omissions, including liability to any person of negligence or otherwise. Recommendations may not be appropriate in all circumstances and clients must consider their own personal objectives and financial advice before acting on recommendations in this presentation. Colledges (ABN 52 439 950 641)For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
  • 3. House Rules  Feel free to ask questions  Show respect for presenters and colleagues  One discussion at a time  Please switch phones to “silent”  Enjoy the forum!For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of www.colledges.com.au
  • 4. Quote for the day...“The only thing to do with good advice is pass it on.It is never any use to oneself.” Oscar Wilde (1854 – 1900) Irish dramatist, novelist, & poet Founding member of
  • 5. Agenda Whiteboard Items - Review Time & Attendance Economic Update Vertical Integration Fixed Price Servicing Personal Property Securities Register (PPSR) Paid Parental Leave Founding member of
  • 6. Whiteboard Items Founding member of
  • 7. Whiteboard Items1. Processing of deals. - Is there an easier, quicker way of doing it effectively?2. What incentives are there for Service staff in regard to generating extra revenue for the dealership? Founding member of
  • 8. Whiteboard Items3. Pentana V8 Release loaded free of charge?4. AADA Conference Feedback5. Yearly Luxury Car Tax declarations - Quoting ABN Founding member of
  • 9. Luxury Car Tax – Quoting ABN Quote ABN to defer Luxury Car Tax for: - Trading Stock - Research and development - Export Registered for GST Founding member of
  • 10. Luxury Car Tax – Quoting ABN When to quote - At or before the vehicle is purchased How to quote - Approved format - The quote to be: * on the order for the vehicle * any other document to the supplier Founding member of
  • 11. Luxury Car Tax – Quoting ABN Founding member of
  • 12. Luxury Car Tax – Quoting ABN Quote to cover several purchases - Purchase several vehicles over a period of time - Provide the supplier a single quote to cover the period - Must be 12 months or less Founding member of
  • 13. Luxury Car Tax – Quoting ABN Founding member of
  • 14. Luxury Car Tax – Quoting ABN Non Quotable purchases - If a vehicle is purchased for non-quotable purposes - Must advise the supplier that the vehicle is to be used for non-quotable purposes - Must use the following format: Founding member of
  • 15. Luxury Car Tax – Quoting ABN Founding member of
  • 16. Review Payroll Time and Attendance - Providers - Pros/Cons Founding member of
  • 17. Economic Update Founding member of
  • 18. Economic Update Where are we headed? Who would really know? Founding member of
  • 19. Economic Update Interest rates 4.75% (RBA) ANZ Westpac Share market world melt down Aussie market $40B wiped off 21,000 jobs in manufacturing going Forecast to 100,000 March 2012 Founding member of
  • 20. Economic Update Inflation 2.8% GDP growth 2.7 Taste for champagne – Bollinger in Australia up 25% last year Unemployment up from 4.9% to 5.1% Housing market clearance rates below 60% Aussie dollar $103.91 to USD Founding member of
  • 21. Economic Update The good news: - The new car market forecasts to 1M in 2011 (currently rate $989,000) - Season of cheap stocks arrive – Housing – stock market - The Costello Future Fund may be our saviour - Australian economy dominated by the service sector – 68% of GDP Founding member of
  • 22. Economic Update The good news: - China the way of the future – then India - Both countries are investing heavily into Australia - Growth for China 9.5% year to year – now 9.4% - Chinese target 7% over next 5 years - India growth 7.4% - Aussie growth long term 3.1% Founding member of
  • 23. Economic Update The Automotive Industry - New car buyers taken for a ride – no real price changes since 2008 - Aussie dollar gained: 50% on Greenback 40% on Euro 30% on Yen - Industry comment: • reasons for not dropping prices • factories still recovering from the GFC Founding member of
  • 24. Economic Update The Automotive Industry - China, the way of the future: •Car domestic market over 15M (2010) •USA 12M • Australia 1M Founding member of
  • 25. Vertical Integration Founding member of
  • 26. Vertical Integration The Chinese business plan: OWN EVERYTHING Founding member of
  • 27. Vertical Integration Own, or plan to own: - The dirt - The mine - The iron ore - The train/train infrastructure - The wharf - The ships - The smelter - The product - The distribution - The end product Founding member of
  • 28. Vertical Integration A former Automotive CEO’s vision: - Design - Produce - Distribute - Finance - Service the vehicle - Own customer for life - Panel Shops West Farmers – Now selling insurance Founding member of
  • 29. Vertical Integration This vision also included: - Aftermarket parts - Tyres – batteries – fuel - Insurance - computers - phones - House insurance - Home finance Founding member of
  • 30. Vertical Integration What does this mean for you? - Franchised dealers service only 25% of the CarParc - 75% to the independents - Why not establish independent service centre in the PMA – non genuine parts - Why not expand with tyres, batteries, mobile servicing and fuel cards? - Why not expand into general insurance, computer and/or phone franchises, incorporated on the showroom floor or online? Founding member of
  • 31. Fixed Price Servicing Founding member of
  • 32. Fixed Price Servicing Other Franchises - Toyota - Mitsubishi - Ford Founding member of
  • 33. Fixed Price Servicing Typical Features - Fixed price: by model and by interval, log book only - Customer pays “fixed amount” at service - 3 year limit - Transferable across dealers in the network - Universal labour rate - Funded by dealer margin - Pooled funds: refunded to dealer at end of program Founding member of
  • 34. Fixed Price Servicing The Pro of Fixed Price Servicing - Service Retention - Increased intention to re-buy - Loyalty to dealer and brand - Whole of life costing - Retail growth – service and new cars - Service Value for money proposition - Customer Service Index Founding member of
  • 35. Fixed Price Servicing The Cons of Fixed Price Servicing - Fixed Price – universal labour rate - Limited opportunities for up-sell - Misunderstanding between service and repair - Dealer Margin - Transferable Customer Founding member of
  • 36. Afternoon Tea Founding member of
  • 37. Personal Property Securities Register (PPSR)The following information does not constitute legal advice. You should seek legal or other professional adviceto consider the application of the Personal Property Securities Act to your individual circumstances Founding member of
  • 38. PPSR National reform bringing various Commonwealth, State and Territory Acts under one system Introduces a single act Personal Property Securities Act Single National Online Register Founding member of
  • 39. PPSR What are Personal Property Securities? - Any form of property other than land, buildings and fixtures - Includes: * Motor vehicles and machinery * Crops and livestock * Intangibles such as intellectual property and contract rights * Company charges Founding member of
  • 40. PPSR A Personal Property Security is when a secured party takes an interest in personal property as security for a loan or other obligation Founding member of
  • 41. PPSR Personal Property Securities Register - Allows lenders and business to register their security interest - Secured parties can search the Personal Properties Register to find out if security is registered over personal property - Planned date for Personal Property Securities Register is 31st October 2011. (Attorney General is expected to make an application in late September 2011, to set the actual date of commencement) Founding member of
  • 42. PPSR Personal Property Securities Register - Existing security registers will close - Currently registered interests will generally be migrated to the national Personal Property Securities Register Founding member of
  • 43. PPSR Personal Property Securities Register - Below is list of (motor vehicle) registers to be migrated: * Register of Encumbered Vehicles (NSW) * Register of Encumbered Vehicles (QLD) * Register of Encumbered Vehicles (WA) * Register of Encumbered Vehicles (ACT) * Vehicles Securities Register (VIC) * Vehicles Securities Register (SA) * Register of Vehicles Security Interests (TAS) * Register of Interests in Motor Vehicles and Other Goods (NT) Founding member of
  • 44. PPSR Key Concepts - Personal Property is all forms of property other than real estate - A security interest is an interest in personal property, secured payment of a debt or other obligation - Includes mortgages over vehicles or charges in company property Founding member of
  • 45. PPSR Key Concepts - Covers forms of transactions currently not considered as a form of security. These include: * Retention of Title Clauses in sale agreements * Financing leases where personal property is leased for payment Founding member of
  • 46. PPSR Terminology - Personal Property Security Act introduces new terminology: * Secured Party TERM EQUIVALENT Secured Party Financier, mortgagee, chargee, lender, retention of title supplier, lessor etc Grantor Borrower, mortgagor, chargor Collateral Secured property Security Agreement Financing agreement, mortgage, charge etc Founding member of
  • 47. PPSR Attachment and Creation of Enforceable Rights - Security interest must have “attached” to collateral in order for security interest to be enforceable by the grantor Perfection - Perfection is a technical term particular to the Personal Property Act - Perfection is a form of protection for a secured party that is stronger than the mere attachment of their security interest Founding member of
  • 48. PPSR Default Priority Rules - Registration on the Personal Property Securities Register is a form of perfection - Perfection by registration has two main benefits: 1. Defines the priority status of security interest relative to other security interests 2. Ensures security interest survives bankruptcy or insolvency Founding member of
  • 49. PPSR Default Priority Rules - The effects of registration on priority security interests: * Perfected security interest takes priority over an unperfected security interest * Priority between two or more perfected interests is deemed in favour of the earlier interest * Priority between two or more unperfected interests is determined in favour of an earlier interest - The rules apply on a default basis Founding member of
  • 50. PPSR Making a Registration - On a approval form - Personal Property Securities Register registrar issues a verification statement to the secured party Searching Personal Property Securities Register - Can search a company or individuals - Privacy issues need to be complied with - Search certificate issued with details if parties, and class of collateral Founding member of
  • 51. PPSR Fees - Costs recovery basis Founding member of
  • 52. PPSR Issues for Dealers - Retention of Title Changes required to be registered to be effective - Dealers should check their Retention of Title clauses - Be prepared to register their security interest to be protected - Searching the Personal Property Securities Register with a VIN will also provide stolen and write-offs from NEVDIS Founding member of
  • 53. PPSR  Issues for Dealers - Dealers should search to ensure the vehicle is free of interest: * When purchasing * When selling - If sold, and there was an interest, the proceeds become the property of the interest holder For more information on Personal Property Securities Act and Personal Property Securities Register, please go to www.ppsr.gov.auSource: Dealer Solutions fact sheet Founding member of
  • 54. Paid Parental Leave Founding member of
  • 55. Paid Parental Leave What is it?  New entitlement for eligible working parents of children adopted or born from 1st January 2011 (Parental Leave Act 2010)  Government funded 18 weeks paid leave, at federal minimum wage Founding member of
  • 56. Paid Parental Leave Who is eligible?  Employees who have been with employers 12 months or more  Primary carer of the child  Australian Residents  Employees who meet the work test requirements  Employees with an adjusted income of $150,000 or less  Employees on leave or not working from time of primary carer role till end of Paid Parental Leave Founding member of
  • 57. Paid Parental Leave Paid Parental Leave Work Test  Determined by the Family Assistance Office  Employers are notified by Centrelink of their obligation to pay Parental Leave Pay  Employees must have worked: * at least 10 out of 13 months prior to birth/adoption * at least 330 hours in that 10 month period, with no more than an 8 week gap between two consecutive working days Founding member of
  • 58. Paid Parental Leave Employer’s responsibilities  Register with Centrelink Business Online Services  Provide Parental Leave Pay to eligible employees of children born or adopted from 1st July 2011 Founding member of
  • 59. http://www.centrelink.gov.au/internet/internet.nsf/filestores/fpr081_1107/$file/fpr081_1107en.pdf
  • 60. Questions Founding member of
  • 61. Next MeetingTuesday 25th October 2011 12 ~ 4:30pm The Manningham Founding member of
  • 62. End of Year Meeting Preferred date/venue Founding member of
  • 63. End of Year Meeting November Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 December Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Founding member of
  • 64. Surveys Please Founding member of
  • 65. Thank-you Founding member of