2. Daniela Anastasopoulos Design Portfolio 20162
Thought Leadership
Creative portfolio | Daniela Anastasopoulos
Women in Real Estate
A4 portrait, 24 page brochure
The next big deal is on.
Property industry, where
are you on gender diversity?
1427232_Women in Real Estate_24_pg_v7.indd 1 19/02/2015 3:44:49 PM
2 | The next big deal is on. Property industry, where are you on gender diversity?
In 2014, EY conducted in-depth interviews with 12 male and 7 female c-suite and property
executives across 15 predominantly top 200 ASX listed organisations representing 100,000
employees. These included Real Estate Investment Trusts (REITs), large listed property groups
(owner/developers), engineering and construction companies and agents.
The depth of the interviews with key leaders — supported by their HR data that indicates the
gender spread across job roles as well as policies and practices — means we are able to draw
reasonably sound conclusions and themes.
EY thanks the Property Council of Australia who provided communication and encouragement to
the organisations and particularly c-suite executives asking them to participate in interviews and
supply data during a frenetic time of the year — reporting season. The interviews were conducted
over a short six week time frame. We commend the openness and availability of these key
executives to provide us their time and insight.
1427232_Women in Real Estate_24_pg_v7.indd 2 19/02/2015 3:44:52 PM
3The next big deal is on. Property industry, where are you on gender diversity? |
Foreword from Ken Morrison
Gender diversity in our workplaces makes
compelling business sense.
The war for talent has never been fiercer. Those companies which provide
men and women with equal opportunities to thrive and become leaders will
win time and time again. The deliverables are tangible and proven; companies
which can draw on a diverse mix of talent — including gender — deliver
enhanced profits, investor returns and productivity uplifts.
In the property industry we are at a critical juncture.
This landmark research by EY shines an uncomfortable spotlight
on the property industry’s divided and disjointed approach to achieving
gender parity.
Clearly we have to work together as an industry to accelerate the change
needed to increase the number of women in leadership roles and the pipeline
of future women leaders.
And we need to act fast to catch up on lost ground.
The Property Council is taking a leadership role through the outstanding work
of our Women and Diversity in Property Committees. Our New South Wales
Division formed the first of these committees in 2012 and it has provided an
exemplar model for the establishment of others across the country in 2015.
Furthermore the Property Council is leading the formation of a Property Male
Champions of Change group to tackle this issue and our leaders are
committing to this important initiative.
Together the Property Male Champions of Change will listen and learn from
each other, define their common commitment and agree to tangible initiatives
they will together take to advance women into leadership positions.
We know the property industry is good at embracing and embedding change
when it comes to safety, technology or sustainability. Now we need to expand
our focus to include gender equality.
I commend EY for undertaking this historic, baseline research and identifying
the scale of challenge we are facing.
Now we have to commit our energy and intelligence to tackle the issue of
women in leadership roles and seize the opportunity before us.
Ken Morrison
Chief Executive
Property Council of Australia
1427232_Women in Real Estate_24_pg_v7.indd 3 19/02/2015 3:44:55 PM
6 | The next big deal is on. Property industry, where are you on gender diversity?
Findings
Although one could assume that property CEOs and their
leadership teams would have the ‘media line’ on diversity, this
wasn’t the case. Our discussions indicated the industry has no
clear response or approach to diversity and c-suite level
executives from the same organisation could differ on their
opinion and approach to gender diversity.
This was supported by HR data provided by participating
organisations: although a few organisations have fairly
progressive policies in terms of flexibility, remuneration and
gender KPIs, the majority are just beginning to recognise the
need for developing relevant strategies, motivated by ASX
reporting requirements. Some said they were closer to the
beginning and learning as they go, while others were keen to be
the leaders in the area and had advanced their gender diversity
policies more aggressively.
In a particularly revealing set of HR data, the percentage of
participating organisations with a standalone policy or strategy
to support gender diversity in terms of recruitment is only
(55%), talent identification (40%), retention (10%), and
succession planning (30%).
Report card: where does property really
want to be on the ‘smart curve’?
The research shows the property industry is currently sitting
well down the gender diversity ‘smart curve’. This is a concept
EY developed to help businesses measure the maturity of their
diversity strategies and understand whether their approaches
and programs were truly providing business benefits. Most
participating property companies fell somewhere between
emerging awareness (2) and aware (3), while one or two fell
into unaware (1) and active engagement (4).
While a ‘smart curve’ rating between emerging awareness (2)
and aware (3) is not dissimilar to other industries, the fact that
property had a similar score — an industry that prides itself on
fast growth and an assertive sales culture, is perplexing. An
average score below level 3 indicates gender diversity programs
are mainly compliance focused rather than truly integrated to
maximise gender diversity’s financial benefits. In our
experience, it’s only when organisations move beyond level 3
that they get any real business value from diversity. At level 5,
gender diversity becomes a source of competitive advantage,
with improving gender metrics translating into measurable
financial results and business benefits1
.
1 Women in leadership: How smart are you? EY, 2010
Widely varying maturity levels
The ‘smart curve’
5
4
3
2
Unsupported Integrated
Structural maturity
Behaviouralmaturity
Diversity journey
Unaware
Non-existent
or incidental
Emerging awareness
Individual, independent
and anecdotal
Aware
Generic and ad hoc
Active engagement
Specific and targetted
Leadership
Strategic and holistic
1
1427232_Women in Real Estate_24_pg_v7.indd 6 19/02/2015 3:44:56 PM
7The next big deal is on. Property industry, where are you on gender diversity? |
Sporadic gender diversity programs
One ‘smart curve’ metric for maturity is the type of gender
diversity programs in place and the level where sponsorship in
an organisation is coming from. In our interviews, the majority
of participating organisations indicate they have diversity
activities, described as a designated week during the year
where diversity becomes an organisation-wide focus. Others
work with universities to support mentoring and apprenticeship
programs that target women. Others have activities and
programs to keep high achieving women who have left on
maternity leave to encourage and support them to come back
to the workplace. However, overall most of the programs occur
sporadically and are not centralised through an industry body
or association, nor are they integrated throughout the
organisation’s policies and procedures such as recruitment,
promotion, or KPIs, to gain long-term and progressive traction.
Local reporting requirements are the main drivers
of diversity programs
Another ‘smart curve’ metric for maturity is an organisation’s
understanding of reporting requirements. All of our
interviewees identified the ASX Reporting Requirements, and
recent changes to them, as critical compliance drivers. In 2014,
organisations were asked to report more detailed information
such as the gender split across a wider range of job roles (entry
level to CEO) and were also asked to supply more detailed
information on policies and strategies across a wide range of
metrics such as flexibility, remuneration, talent acquisition,
recruitment and retention, KPIs, and discrimination to name a
few. As this information becomes public in early 2015, our
interviewees are well aware of its potential to throw a positive
or negative light on their organisation in the eyes of
shareholders and prospective employees.
‘Smart curve’ maturity levels
Level 1
Unaware
Level 2
Emerging awareness
Level 3
Aware
Level 4
Active engagement
Level 5
Leadership
You don’t have any specific
gender diversity programs
You are beginning to
recognise that something
should be done to address
gender inequality
You have some diversity
programs however they are
generic and ad-hoc
Gender diversity has strong
executive sponsorship. Your
diversity programs and
initiatives have been
informed by data and
company insights about your
organisation needs and
levers
You have organised an
integrated approach to
diversity including: changing
tactics based on lessons
learned, refining your
metrics and continuously
improving
You collect only minimal
gender diversity metrics and
do so only for the purposes
of WGEA and ASX Corporate
Governance Council
recommendations
You respond to external
pressures such as the new
guidelines, not internal
recognition that there may
be some business value in
gender equity
A growing number of people
are ‘championing’ diversity
but this has not yet filtered
down to all levels
You have clearly defined
objectives and strategies for
addressing gender inequities
Diversity is seen as ‘business
as usual’
You are aware of some of
the arguments for
addressing gender inequality
but don’t think it applies to
your business
You think gender diversity
issues will resolve
themselves by focusing on
hiring the ‘best’ person for
the job
You have started to identify
key performance indicators
and collect relevant metrics
You have effective
governance and compliance
supported by integrated
reporting against all metrics
You are a role model for
others in the market,
recognised by customers as
being truly committed to
diversity
You lack access to robust
metrics around gender
diversity
Your metrics are starting to
improve slightly
Your metrics are starting to
consistently improve
Your strongly improving
gender equity metrics are
translating into measurable
financial results and
business benefits
1427232_Women in Real Estate_24_pg_v7.indd 7 19/02/2015 3:44:56 PM
4 | The next big deal is on. Property industry, where are you on gender diversity?
Executive summary
New research focusing on leading Australian property
companies suggests the industry is divided in its views on
gender diversity and consequently missing out on significant
financial opportunities.
Conducted by EY, with the support of the Property Council of
Australia (PCA), the research reveals an industry divided over
gender diversity and lacking a coordinated approach. In a
debate undermined by myths, false assumptions and
unconscious bias, two opposing camps emerge: gender sceptics
and gender believers. As a result, the majority of property
companies remain stuck at the ‘knowing’ or compliance end of
the diversity spectrum, offering isolated policies, rather than
tipping towards true ‘understanding’ or leadership.
We argue that if the industry were to pursue gender diversity
with the aggressive focus it devotes to closing deals, the
financial benefits could be substantial.
Reaching the tipping point — what
needs to change?
Based on our findings, we believe the property industry is at a
precipitous tipping point: it can linger in its current status as a
male-dominated industry, with a handful of women in executive
leadership positions and gender diversity policies or programs,
or it can ‘tip’ — opening the flood gates to greater profits and
better returns for investors.
In other words, property organisations need to move from
“we know gender diversity is important” to “we understand and
embody in our attitudes and behaviours the business imperative
of gender diversity for our industry”.
This report highlights the top line results demonstrating why
the industry is in its current state:
1. Doubt and narrow understanding of the business drivers for
gender diversity
2. Failure to grasp the weight of external pressures
3. Opposing perspectives on talent availability and the female
talent vacuum
4. The power of leadership
The research also outlines the business case for change and
offers next steps to harness the substantial bottom line benefits
and cost savings that come with more inclusive and integrated
gender diversity policies and behaviours.
We believe gender diversity is a major opportunity for
Australia’s property industry, but it must become an investment
concept: a driver of business success, economic growth and
investment returns. If the industry were to pursue gender
diversity with the aggression and focus it devotes to closing
deals — and absorb just a fraction of the risk or take more of a
‘leap of faith’ – the bottom line benefits could be substantial.
An industry divided and suspended at the tipping point
Knowing UnderstandingTipping point
Gender
sceptics
Gender
believers
1427232_Women in Real Estate_24_pg_v7.indd 4 19/02/2015 3:44:55 PM
8 | The next big deal is on. Property industry, where are you on gender diversity?
Business case drivers for gender diversity
There is a large body of evidence that companies with higher
percentages of women in their leadership perform better
financially on a wide range of business metrics — return on
equity, return on sales and return on invested capital.
For example, EY’s June 2014 Point of View2
summarises
recently released reports including a study published by
Thomson Reuters in 2013, which analysed levels of board
gender diversity at 4,100 public companies around the world as
well as their performance since 2008. The authors found a
strong correlation between mixed boards and better return3
.
A report from Credit Suisse4
from September 2014, based on
an analysis of 2,360 companies worldwide, found that between
2005 and 2011, companies with at least some female board
representation outperformed those with no women on the board
in terms of share price performance. The average return on
equity (ROE) for companies with at least one woman on the
board over the six year period was 16%, four percentage points
higher than that of companies with no women on their
boards (12%).
2
http://www.ey.com/Publication/vwLUAssets/ey-women-on-boards-pov-
july2014/$FILE/ey-women-on-boards-pov-july2014.pdf
3
Mining the metrics of board diversity, Thomas Reuters, June 2013,
Andre’ Chamavat and Katharine Ramsden
4
The CS Gender 3000: Women in Senior Management, Credit Suisse,
September 2014
Yet regularly through the interview process with key executives
in property, we heard requests for more research, more proof of
the business case, or more property specific data. We argue the
industry doesn’t need more data and that this is simply change
avoidance. The industry needs to harness its ambitious ‘can do’
attitude and take a small calculated risk based on the data at
hand to improve its ‘smart curve’ performance.
Our interviews revealed property executives doubt the case for gender diversity, despite
15 years of respected global research that clearly indicates companies with the most
gender diverse boards and leadership teams consistently outperform their industry
average.
Doubting the business case for gender diversity
You don’t need more proof, you need a small leap of faith
Gender
Diversity
External
drivers
Internal
drivers
Talent shortage
Regulatory pressures
Brand and reputation
Financial returns
Costs
Talent wastage
Leadership skills
Purchasing power
Innovation and creativity
A study of 160 REITs, found that those with at
least one woman on their board for more than
three years tended to produce annual total
shareholder return growth rates that were
2.6 percentage points higher than their peers
during the three-year period, 3.6 percentage
points higher over a five-year period and 3.4
percentage points higher in the course of
10 years.5
5
Ferguson Partners Limited, 2012 http://www.reit.com/news/
articles/survey-reveals-reits-shifting-mindset-governance
1427232_Women in Real Estate_24_pg_v7.indd 8 19/02/2015 3:44:59 PM
5The next big deal is on. Property industry, where are you on gender diversity? |
“The top performers I have identified in our pipeline
for executive roles are predominantly women.”
(Source: c-suite executive, REIT)
“I can name the number of qualified women for executive roles
on one hand.”
(Source: c-suite executive, REIT)
The property industry needs to accept what the research is saying — that all industries
will benefit from gender diversity — and proactively address this issue, before its
customers, shareholders and employees find the industry wanting.
Gender believers
• Attributes lack of women in industry to
lack of commitment by industry
• Requires the shortlisting of women
for roles
• Looks outside property to identify
new leaders
• Actively supports flexibility for both
genders
• Does not see flexibility arrangements
as a barrier to executive roles
• Provides examples of how customers
and clients are becoming more female
or influenced by female choices
• Can identify some of the business
drivers for improving the number of
women in property such as improved
culture, innovation and share prices
Gender sceptics
• Attributes lack of women in industry to
lack of qualified women to choose from
in property
• Is sceptical of hiring outside of property
• Offers flexibility policies for women
• Feels some roles not suitable to flexible
arrangements due to their
demanding nature
• Sees customers and clients as still
predominantly male; does not see this
changing any time soon
• Identifies need to attract best of entire
talent pool as main business driver
for diversity
• Wants to see more research on
property industry specifically and direct
link to profits before committing further
to gender diversity
Commonalities
• Culture changing
‘on a journey’
• Have flexibility policies
• Have a diversity panel
• Have diversity events
Common traits of gender believers versus gender sceptics
1427232_Women in Real Estate_24_pg_v7.indd 5 19/02/2015 3:44:55 PM
9The next big deal is on. Property industry, where are you on gender diversity? |
Knowing versus understanding
business drivers
Many property executives demonstrated a fairly narrow
understanding of the business case for gender diversity, seeing
it essentially as getting access to the other “50% of the talent
pool”. Very few could articulate the well-accepted financial
benefits being pursued by other industries.
More than half of the executives interviewed said they
understood the business case for gender diversity, but believed
‘it hasn’t affected our industry yet’. This is not the point. The
business case for gender diversity is not necessarily about
fixing a problem — it’s about ensuring business sustainability
and improving financial performance.
Other interviewees recognised the business opportunities, but
thought that what they were doing was enough. This was often
amplified by the argument that they had good intentions or are
’supporters of women’.
The business case for women in leadership gets better every
year: women bring improved decision making at the top, more
creativity and innovation, and better problem solving, stemming
from greater cognitive diversity. Women also improve the
ecosystem, because company leaders better match the profile
of customers and employees. And when three or more women
make it to the top team, a company’s organisational health
appears to improve on every one of the nine dimensions
McKinsey tracks.6
6
Can women fix capitalism?, McKinsey Quarterly, September 2014,
Joanna Barsh
1427232_Women in Real Estate_24_pg_v7.indd 9 19/02/2015 3:45:03 PM
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3. Daniela Anastasopoulos Design Portfolio 20163
Thought Leadership
Seizing the tax opportunity in
Oceania
A4 portrait, 32 page brochure
Seizing the
tax opportunity
in Oceania
Corporate tax function survey 2014
About this survey
In 2013/14, EY conducted a tax function
benchmarking study of 106 of our clients
across Australia and New Zealand, similar to
the study we conducted in 2004. Participants
come from more than 12 industries and
include a mix of public and private companies,
as well as Australian subsidiaries of global
corporations and Australian companies with
overseas subsidiaries. The vast majority have
turnovers of more than $100M.
EY thanks all the participants for their time
and their insightful responses to our
qualitative questions. We hope this report will
help you to understand the current state of
the tax function landscape — and your relative
position in it — as well as the likely future state
towards which most tax functions are headed.
| Seizing the tax opportunity in Oceania Corporate tax function survey 20142
Overview Tax functions under
pressure on all fronts
Expectations of cost reduction
yet to produce operating
model changes
Increasing focus
on risk management
More audits and reviews
How are tax functions
responding to these
challenges?
Changing responsibilities to meet
new performance demands
Will tax be next under the cost
reduction spotlight?
Re-assessing the tax
operating model
Improve governance
and risk management
Adjust the skills mix
Reduce time on low
value activities
Use streamlined processes
and data analytics
6 10 14
Contents
4
3Seizing the tax opportunity in Oceania Corporate tax function survey 2014 |
Not surprisingly, the business and tax
landscapes have changed
dramatically, and the pace and
complexity of change continue to
build. Tax functions report increasing
pressure to reduce costs, improve
risk management functions and to
respond to ATO demands. But not all
of these factors are driving change.
As expected, tax functions have
stepped up their risk management
activities, including more actively
managing risk ratings with the ATO.
However, what is surprising is that,
so far, operating models remain
largely unchanged, despite cost
pressures.
Tax functions are being assaulted by
forces on all fronts. Tough economic
conditions are increasing the internal
pressure to cut costs as well as making
governments and revenue authorities
move aggressively to boost revenues.
This results in greater scrutiny on tax and
more audits across all taxes. The tax task
is being further complicated by
globalisation, with companies seeking
efficiencies by setting up operations in
new geographies and having to deal with
the complexities of both local tax laws
and the activities of revenue authorities.
Governments, shareholders — and
increasingly the public — are well aware of
the potential for global companies to gain
tax advantages out of their complex
structures, leading to even greater
scrutiny and calls for transparency and
further disclosures.
Tax functions are being asked to deal
with more compliance and more audits.
At the same time, they are also being
challenged to be a more strategic advisor
to the business — often with fewer
resources. Not surprisingly, they are
feeling under pressure.
Tax functions under pressure on all fronts
OtherMaximisation
of franked
dividends
Management
of effective
tax rate
Cash flowIncreased
risk
management
Cost
reductions
69.8%
54.7%
52.8%
35.8%
27.4% 26.4%
What internal pressures are you being subject to? Expectations of cost
reduction yet to produce
operating model changes
Just under 70% of tax functions feel
under pressure to reduce costs, but this
has yet to translate into the full scale
transformation programs experienced by
many finance departments and by many
global tax functions. In fact, in stark
contrast to the outsourcing and shared
services trends in other parts of the
finance function, more than 75% of tax
functions use a centralised operating
model, with only 12% using an
outsourced model and 8% reporting that
they use a Shared Services Centre (SSC)
model.
6 | Seizing the tax opportunity in Oceania Corporate tax function survey 2014
Almost 90% of our participating tax
functions are outsourcing at least a few
elements of work to external consultants.
However, this is often to support
preparation or review activities — rather
than outsourcing an entire activity.
Income tax compliance is currently
attracting the highest level of adviser
support, with 44% of respondents using
consultants to prepare income tax
returns. Whereas, of those using
consultants to support indirect
compliance and tax accounting,
outsourcing falls to 12% and 11%
respectively.
How do you use external consultants?
Preparation or review activity Tax functions using external
consultants
Tax functions outsourcing
this activity to tax advisers
Corporate income tax
compliance
88.4% 44.3%
Indirect compliance 40.0% 12.3%
Tax accounting 29.5% 11.3%
With more than 80% of head office tax
teams comprising no more than ten
people, and 54% no more than five,
reliance on the shadow tax function
(staff who work on compliance matters,
but sit outside the tax function) is
growing — particularly for functions with
smaller in-house tax teams. Only 27% of
respondents have no shadow function,
and one in eight reports more than ten
people outside the tax function working
on tax compliance matters.
Increasing focus
on risk management
Despite multiple indicators that tax
functions have already increased their
focus on risk management, many
respondents still feel that they need to do
more in this area. Respondents estimated
they spend 7.2% of their time on risk
management, whereas they felt this
should be materially higher.
“We’re under pressure to
manage workloads
effectively, with ongoing
commercial transactions,
ATO reviews and
compliance processes.”
Monthly
Quarterly
Half-yearly
Yearly
No response
22.6%
39.6%
17.9%
13.2%
6.6%
Frequency of tax reporting to the board
What is the frequency of tax reporting to the Board?
7Seizing the tax opportunity in Oceania Corporate tax function survey 2014 |
Already under pressure, tax
functions will now have to respond to
growing cost reduction pressures,
increasing demand for strategic
advice and new performance metrics
— while also resourcing increasing
compliance demands. In the next
year, most local tax functions will
have to address at least one of the
following imperatives: improving
protocols, systems and processes,
including automating data collection;
introducing data analytics; and
considering different operating
models to drive performance.
Tax functions are continuing to spend
most of their time dealing with
compliance and audit activities —
demands that will only increase as global
compliance becomes more onerous and
tax audits more common. Yet tax leaders
know they need to put their resources to
a more balanced use: to address the
growing needs of governance and tax risk
and work with the business to deliver
more value.
To date, tax leaders have dealt with these
challenges by centralising the function
and bringing in more people. However,
the pressure to reduce costs and
Australia’s growing skills shortages
mean this is not a sustainable response.
Instead, tax leaders will need to focus
on getting efficiencies through:
outsourcing tax returns, tax accounting
and indirect taxes; improving processes;
and making better use of automation and
technology — particularly data analytics.
Those who have not already done so
should consider:
• Looking at more efficient and effective
tax operating models
• Introducing formal tax governance
procedures and frameworks
• Actively managing their tax risk
profile within the ATO’s Risk
Differentiation Framework
• Automating previous spreadsheet
calculations and moving towards
full data integration
• Using tax analytics products
and services
• Introducing performance measures
that go beyond compliance
Tax functions have clear opportunities
to reduce costs, eliminate exposures,
manage risk and deliver more value
to their organisations. Those who don’t
adapt to the current and growing
pressures are in real danger of being
left behind.
Overview
Margherita Antonelli
Oceania Leader
Global Compliance & Reporting
4 | Seizing the tax opportunity in Oceania Corporate tax function survey 2014
More than 70% of respondents have
established tax governance procedures
and frameworks, and surprisingly, almost
a quarter are reporting to the board
every month. This suggests Australian
boards and directors are taking a more
active role in the tax strategies of
corporate groups, in response to the local
focus on tax governance — consistent
with global trends. In 2004, only 40%
of organisations had board level
responsibility for tax risk, as opposed
to 94% today.
TOFAFBTFuel
Tax
Pre
compliance
lodgement
review
Stamp
Duty
R&DTransfer
Pricing
Payroll
Tax
GSTITR
58.1%
48.4%
37.6%
11.8%
8.6%
6.5% 8.5% 5.4% 4.3% 4.3%
“The 11.8% result for TP
audits is not so surprising
when you look at the
sample profile. That is,
40% of the companies
sampled are wholly
domestic companies and
Financial Services is an
industry the ATO is only
now planning a separate
compliance initiative.
When these factors are
taken into account, there
is about a 1 in 3 ratio of
companies that are under
TP audit/risk reviews.
Further, as the BEPs
initiative continues to
build momentum the risk
of a transfer pricing audit/
review will increase.”
Paul Balkus
Oceania Transfer Pricing Leader, EY
At the same time, with the ATO taking a
risk-based approach to audits, 64.2% are
actively managing their risk profile within
the ATO’s risk differentiation framework.
The vast majority also indicated they now
have formal processes to document
positions taken in relation to taxes —
many using multiple levels of sign offs,
including with external advisers.
This has significantly changed over the
last ten years, when 71% of respondents
said they would were not prepared for
a revenue authority audit. Increased
activity from the revenue authorities
requires tax functions to be more
transparent and “audit ready”.
More audits and reviews
Under pressure from the business
to reduce costs and increase risk
management, tax functions are also
being asked to do more by the ATO and
other revenue authorities. More than
85% of our respondents report the
revenue authority undertaking audits,
pre-compliance reviews and risk reviews
in the last three years. As expected, there
has been a significant focus on income
tax and GST. What is more surprising,
in light of increased ATO focus and
resourcing, is that less than 12% of
respondents had experienced transfer
pricing audits/reviews.
Type of reviews
8 | Seizing the tax opportunity in Oceania Corporate tax function survey 2014
68%
of tax function’s time
spent on compliance,
audits and disputes
23%
report to the board
every month
70%
are under pressure
to reduce costs
88%
have been audited
in the last 3 years
60%
could streamline the tax
accounting and tax return
processes
30%
don’t have formal
tax governence
procedures
and frameworks
<5%
have a
good relationship
with the revenue authority
“No one is surprised that,
since 2004, the business
and tax landscape has
changed significantly,
creating a tipping point for
tax leaders and their
functions. What is
surprising is the lack of
substantive change to tax
function operating
models.”
Margherita Antonelli
Oceania Leader —
Global Compliance
& Reporting, EY
Seizing the tax opportunity in Oceania Corporate tax function survey 2014 | 5
Many say these requirements are
time-invasive and resource-intensive,
with more and more questions in each
review. In response, many have devoted
more internal resources or created
dedicated internal personnel, to deal
with the audit activity. Respondents also
indicated that senior members of the tax
function are taking greater responsibility
for dealing with the ATO and where
necessary are using external advisors as
required. One respondent has learned to
control the resources required: “We
attempt to only provide targeted
information that is relevant, as opposed
to spending time pulling together
information which may not be relevant.”
The significant level of audit activity has
caused tax functions to pull audit
management back in house, creating an
additional burden for already overloaded
tax teams.
While some respondents see the constant
reviews as “an expected and understood
part of the role”, or don’t see them as a
problem, many are frustrated that it
takes resources away from more valuable
tax function activities. Notably, when
asked what was really working well in
their tax function, fewer than 5% thought
they had a good relationship with the
revenue authority.
“Wethrowresour
ces at it”
“We’re looking
a
topportunitiestolitigate”
“Itmean
s
we have less time for tax advice to the
business”
“Wewo
rk
at night” “It’s a const
antbattle”
“Were-prior
itise other tax function workloads at tim
e
ofenquiry”
“It’sfrustratin
g
and distracting”
“With
p
atience!”
“It’sadrainonres
ources” “It’s dif
ficultandpainful”
How do you
handle constant
ATO reviews?
“We’rec
onsideringoutsourcingitn
ext year”
“W
eincreaseourworkhours
”
“We use lawyers”
“Audits and risk reviews, particularly when it comes to
information extraction, are labour intensive and costly.
As a result, as our findings show, many organisations
are undertaking this work internally. However, the
initial exchanges of information are vitally important in
minimising the potential areas of dispute with the ATO.
This initial process is best provided by professionals
with expertise in this area and prior experience with
the ATO.”
Glenn Williams
Sydney Tax Leader, EY
9Seizing the tax opportunity in Oceania Corporate tax function survey 2014 |
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6. Daniela Anastasopoulos Design Portfolio 20166
Events and sponsorship
Exhibition invitation
DL Invitation developed for the New Zealand office for
sponsorship exhibition Beautiful hesitation. Small print run
high end digital with UV varnish on cover image.
Creative portfolio | Daniela AnastasopoulosHome Thought Leadership Events and Sponsorship Proposals Digital Infographics Advertising Community
8. Daniela Anastasopoulos Design Portfolio 20168
A better, smarter,
purpose built fee
A better, smarter, purpose built fee 14
Our fee is benchmarked with industry, fully costed and delivers
immediate efficiencies, certainty over the long term and sustainable
additional value.
Benchmarking you with industry
We have benchmarked your external assurance fee spend against
a range of relevant peer businesses. Our analysis shows your current
assurance fees as a percentage of revenue, to be at the higher end
of the comparative ASX listed market.
In particular over the last five years we have observed that your audit
fee growth has outstripped the growth of your business confirming our
view that your existing audit approach has grown organically by referral
from Australia, and can be better, streamlined and more efficient.
Immediate efficiencies
Our purpose built approach provides the foundation for a more
efficient audit enabling sustainable efficiencies to be passed back
to Computershare from day one.
We have detailed and costed the impact of each of these efficiencies
on the annual audit fee in the following table.
Audit
Savings
(US$000)
Third Party
Assurance
Savings
(US$000)
Immediate efficiencies
Purpose built team structure and audit approach
• ►Moving Australian resources to key regional
hubs to maximise regional connectivity and
drive efficiencies
• ►Including financial services experience
to reduce risk
• ►Applying IFRS requirements in the US
($350) ($230)
► Third party assurance co-ordination and reporting
• ►EY regional hubs taking responsibility for third
party reporting with global co-ordination by our
US team in Canton. This also provides direct
contact for global accountability in the US,
ensures a consistent global approach, better
leverage of controls testing and access
to best practice
($200)
Audit and tax synergies
• ►Removal of existing duplication of tax provision
audit effort. Pre-existing knowledge of global
risks and established global relationships will
simplify global tax provision reviews, provide
greater insights and reduce cost
($150)
Internal Audit, data analytics and lower cost labour
• ►Better leveraging Computershare’s Internal
Audit program to rely on routine transactional
testing activities
• ►Use of globally co-ordinated data analytics
to reduce the substantive audit procedures
whilst providing greater insight through
a more efficient process
• ►Similar to your Louisville strategy, including
within our teams, members from our Asian
centre of excellence to undertake transactional
procedures under the direct supervision and
guidance of our regional hubs
($220) ($150)
Total assurance fee savings ($720) ($580)
($1,300)
We are committed to not only delivering
fee certainty and sustainability, but
continuous improvement through
innovation and insight — bringing
further efficiencies in the short
and longer term.
Our fee for Computershare
is fully informed,
thorough and sustainable.
These efficiencies deliver an immediate US$1.3M
in savings each year to Computershare.
Computershare_concepts_DL_v15_FINAL.indd 24-25 5/05/2016 9:58:10 AM
Each time we work with a
market leader we start from
scratch to build an audit
right for the client. We did it
for your ASX100 peers NAB,
Vicinity and CSL — and now
we’ve done it for you.
What does better look like?
What
does
better
look like?
115 7 8 106 9 1142 31
Computershare has changed…
Your business and operating environment today is different to 15, 10
and even 5 years ago:
• You operate under ever increasing cost pressures, with low interest
rates impacting volumes and eroding margins, combined with increased
market competition
• Significant regulatory requirements and scrutiny is raising the cost
of compliance and the serious financial and reputational consequences
of non-compliance
• Over this period, you’ve continued to grow globally, and transform
through protecting scale in core markets such as registry and employee
plans, combined with targeted acquisitions in mortgage servicing
This growth strategy brings increased pressure to embed new businesses,
realise their potential and enhance returns for shareholders whilst
increasing productivity and optimising the cost model.
…but has your audit?
Your audit has not evolved to keep pace with your business
and operating environment.
While functional, the current structure is not optimal for
the Computershare of today or the future. Specifically it:
• Is not consistently or efficiently executed across your regions
• Does not leverage the best use of technology
• Does not enable the best insights and innovative thinking you desire
EY’s audit will deliver all of this. It is agile and will evolve year-on-year
as you change.
It is a better, smarter audit, purpose built for Computershare.We will deliver a better,
smarter audit — purpose
built for Computershare.
What does
better, smarter and purpose built look like?
iExecutive summary
Executive
summary
Better means...
A better structure
• ►We’ve aligned with your four key regions of activity to create regional
hub teams. This will drive accountability and resource certainty,
ensuring you get our best resources all year round including the
June and December reporting cycles in each region
• ►We have strategically relocated our best Australian talent to each hub
to coordinate local audit requirements, creating greater connectivity
between the regions, our global coordinating team and Computershare
management
• ►Each regional team includes deep financial services expertise to
focus on the unique business and financial risks in mortgage services
A more efficient audit
• ►Aligning your audit to consistent international auditing standards —
As an ASX listed company, your current audit, unnecessarily audits to
prescriptive SEC standards across all entities in the US. We will leverage
our relocated Australian resources to coordinate a high quality audit
conducted to consistent international audit standards, saving you time
and cost, while meeting all your statutory and regulatory requirements
• Leveraging audit and Third Party Assurance work — our service
model allows globally consistent controls to be tested once for multiple
attestation reports and leverages the same IT control testing used for
the External Audit thus removing duplicated procedures
Unique tax synergies
• ►With the majority of your operations now offshore, tax
is emerging as one of your greatest risk areas due to its complexity
• ►Having the same firm provide audit and tax advice has many benefits
including reducing overall risk, delivering significant insights and
reducing cost by eliminating duplicated effort
• ►These synergies are unique to EY (as your existing global tax provider)
and do not conflict with any SEC Independence requirements.
Importantly, this combination will not only make our audit service
better, but our tax service as well
Computershare_concepts_DL_v15_FINAL.indd 2-3 5/05/2016 9:57:41 AM
What makes our audit smarter?
What makes
our audit
smarter?
9
A smart audit is not only placing the right people, with the
right expertise in each region, it is providing the tools and
technology to connect our teams and provide your global
executives with greater transparency, ownership and insight
from the audit.
To deliver these benefits in a smarter, more efficient way,
we have custom built a portal, the CPU Xchange, to provide
you with line of sight over your global reporting obligations.
This enables us, and you, to be more responsive and agile
to changes in the market and your own business.
Custom built CPU Xchange
The CPU Xchange is the engine room of our audit. It is
enabled by our global team structure allowing us to
coordinate and report real-time on our global audit
execution, pool insights, data and create commercial
views for you.
It is scalable and will develop through reinvestment as we
build our audit history with your business. Importantly it
puts our assurance activities, statutory, regulatory and
third party activities, at your fingertips increasing audit
transparency, connectivity and efficiency.
Through the CPU Xchange you will benefit from:
• ►Transparency over global audit sign-offs and execution
• ►Early warnings and trend insights through custom
analytics and benchmarking
• ►Leading commercial insights
A smarter audit uses tools and technology
to analyse information and collaborate —
but does not solely rely on technology;
It combines it with the best people, who
bring external perspectives and industry
insights to interpret your data and create
commercial value.
Our smarter audit is enabled
by global technology,
the best thinking and a commercial approach
to working with you
Figure 5 — CPU Xchange homepage
Computershare_concepts_DL_v15_FINAL.indd 18-19 5/05/2016 9:58:04 AM
What does better look like?5
Understand CPU
testing on
non-complex areas
and agree reliance
approach
Review CPU’s IA work
to assess the quality,
objectiveness and
independence
of the work
Review and perform
minimal re-testing
to confirm the quality
of your testing
Assess the impact
of CPU’s IA control
findings on our audit
and TPA procedures
Figure 3 — How we will rely on Computershare Internal Audit (CPU’s IA)
Immediate potential benefits in HML
In preparing for this tender response our TPA experts have
already identified alternative reporting options for the Homeloan
Management Limited’s (HML) AAF report. If appointed our first
step would be to confirm our understanding with management
of the customer’s needs fulfilled by the report as we believe an
alternate and more effective scope could be applied to the
current report resulting in reduced time and cost.
FY16 Internal Audit Plan potential efficiencies
In your FY16 Internal Audit Plan, you list audits for routine financial
statement processes such as payroll in the US and accounts payable
in Canada. These routine areas can be leveraged in our External
Audit approach to reduce the amount of External Audit testing and
therefore create efficiencies. Further, greater comfort for both
Internal and External Audit can be gained across the data as we
apply our data analytics procedures to enhance the findings from
your Internal Audit testing.
We have also noted a significant number of days will be spent on
activities focusing on client monies. This is a key area that our future
suite of data analytic tools can consider to highlight issues and
exceptions, therefore giving greater comfort over a larger data pool.
This in turn could reduce the number of days spend by Internal Audit
on this area.
We know this works — Leveraging efficiencies between
External Audit and TPA activities for State Street
Corporation
EY is both the External and Service Auditor for State Street in the US.
This enables us to structure the nature, timing, and extent our testing
procedures to satisfy both our controls based financial audit approach,
as well as perform the required testing for the SOC reports.
This leverage brings efficiencies to the external audit process by
streamlining meetings, process documentation, information requests,
and most importantly the audit burden on State Street’s management.
Using a consistent coordinating team across external audit and SOC
reports also drives greater accountability.
Our global service team will be responsible for consistently managing the
entire delivery process across the North America, Oceania, and EMEA
regions, utilising our custom built technology portal — CPU Xchange.
Through CPU Xchange your management team will be able to centrally
communicate any changes in timing, or scope requirements.
CPU Xchange will additionally serve as a global repository for our
regional teams to leverage centralised procedures and provide updates
on status of local work. This information access point combined with
our coordinating regional approach and our virtual communication
capability will limit the costs associated with the process. Please refer
to “What makes our audit Smarter” Section for further information
on CPU Xchange.
Additionally we will:
• Partner with you to deliver fit for purpose reporting
• Employ a collaborative approach as our Service Organisation
Framework evolves
• Streamline and centralise controls testing
Partner with you to deliver fit for purpose reporting
Your internal controls are impacted by customer requirements and
expectations for each attestation report. Our global service team will
work through your evolving External Audit landscape and systems
matrices to:
• Identify controls that address customer requirements
• Identify the most efficient testing, walkthrough, and reporting
approach for TPA be it regionally or via global testing and leverage
• Communicate best practices identified during our regional and global
procedures and proposed changes to the existing framework
• Communicate, collaborate and vet report exceptions
• Agree timing of report delivery and ensure local teams remain on track
Using this approach, you can be assured that all reporting including at a
local level will be fit for purpose and will have met all industry
benchmarks without requiring excessive procedures.
Employ a collaborative approach as our Service
Organisation Framework evolves
As part of our research, we have reviewed in detail the external
attestation and assurance reports over your internal controls. We see
significant opportunities to drive efficiencies by harmonising the external
testing approach, controls and processes identified for testing and
reports issued.
Streamline and centralise controls testing
Our global service team will build a centralised controls testing model
that is flexible to changes in services, the operating environment and
emerging client requests. This will be carried out via two step approach.
Step One will be to perform a Third Party Assurance Health Check,
to understand how controls are captured centrally, the key control
attributes retained and tracked by management, such as control
objectives, associated risks and processes, operating system, frequency
and location.
Step Two will be to issue a series of recommendations and best practices,
to provide you with insights on how others capture and maintain a central
control database, and achieve cost efficiencies through a “test one and
report on many” approach.
Our recommendations will extend to streamlining your local and global
reporting process through collaboration and harmonisation of your
processes and controls across all regions.
Figure 2 — Benefits of our two step approach
Step 1 - Health check
assessment
Step 2 — Streamline
and centralise
Benefits Benefits
• Provides a view on the
Computershare Group IT risk
profile, as well as the IT and
control environment across
international locations
• Identification of opportunities
for implementing consistent
controls and better practices
across the group
• Pragmatic, proactive
recommendations to align
reporting with the latest
Service Organisation
regulation developments
• Annual control validation
workshop with management
to assess changes and
challenge existing
• An assurance model aligned
to industry best practice and
improved assurance reporting
• Reduced burden on control
owners and greater
accountability of EY
coordinating team members
• Efficiency and lower costs
• Providing pragmatic reporting
options based on industry
benchmarks
• Continued to challenge you
Service Organisation
Framework that allows
additional reporting required
to be efficiently incorporated
Increasing the reliance on Internal Audit
Our audit and TPA approach will be to rely on Internal Audit testing for
non-complex and lower risk transactional areas, and to reduce the overall
audit effort.
Each year we will request your global Internal Audit Plan to understand
the timing, extent and nature of your projects. We will then provide you
with our annual audit plan to identify where we can place reliance on your
Internal Audit and the risk areas our audit and analytic procedures will
cover in that financial period. This increases and improves your risk
coverage whilst minimising your overall assurance spend.
This approach is consistent with how we effectively collaborate with the
Internal Audit functions of other multinational clients such as Telstra,
Coca Cola Amatil, Wesfarmers and CSL. This process is outlined in the
diagram below.
What does better look like? 6
Computershare_concepts_DL_v15_FINAL.indd 14-15 5/05/2016 9:57:59 AM
Computershare proposal
Custom design for video booklet. Inhouse video editing,
with video screen created overseas using tmdigital and
inserted into hand made books by WhitesLaw Bindery.
“Daniela is a highly experienced designer and an asset to EY. I’ve worked with her for
many years, most recently on ANZ Global Internal Audit and on the Computershare
External Audit... to create what Assurance is now calling the best proposal they have
seen. It truly raised the bar.
Daniela’s attitude ensures the job gets done and to a high standard. I value her flex-
ibility to work extra hours if necessary, particularly with tight deadlines and multiple
stakeholder needs to be met.”
Lina Gyle
Pursuit Management Team Leader
“We have done some great video
booklets recently but this was
a standout, well done on such
a great design.”
Brendan Farrugia
Director | tmdigital
Proposals
Creative portfolio | Daniela AnastasopoulosHome Thought Leadership Events and Sponsorship Proposals Digital Infographics Advertising Community
9. Daniela Anastasopoulos Design Portfolio 20169
ProposalsProposals
Flight Centre
Travel Group
Limited
Connectivity and agility.
Transformation. Value.
Global Corporate Taxation
Services Proposal
May 2016
• Dedicated global
compliance
management
• Leading technology
and governance
tools
• Maximising synergy;
maintaining integrity
• A flexible and
scalable model
• Transforming
to a proactive
tax function
• FLT’s future tax
value model
• Tax data analytics
• Tax risk governance
• Transition process
Connectivity
and agility
Transformation
Value
1
2
3
Contents
Supporting Flight Centre’s tax strategy
Thank you for providing us with the opportunity to
respond to this strategically important engagement
for Flight Centre (FLT). We have listened carefully
to your requirements and have challenged ourselves
with how we can team with you to support you with
the transformation of your corporate tax function.
We have compiled a highly competitive and transparent commercial
proposition. This helps to maximise the value of the tax function to
FLT and its shareholders by managing risk, reducing your overall
costs of compliance and delivering information and insight that allows
tax opportunities to be maximised.
We consider the key differentiators of our proposal to be:
1.Connectivity and agility: Managing a multi-national‘s tax
compliance process requires more than a ‘tick the box’ approach.
We offer:
• a global tax compliance team that is integrated with your global
audit and transfer pricing teams, resulting in synergies and
efficiencies;
• leading technology, governance and reporting tools which are
proactively managed by a specialist engagement management
team. These tools, combined with our proven processes, provide
visibility and confidence over global tax compliance data and
obligations; and
• a variable scope that is agile to changes within FLT across the globe
and as a result of your evolving requirements.
2.Transformation: FLT’s internal systems and compliance processes
can evolve to maximise efficiency and opportunity. Our
complimentary global health check as part of our 90-day transition
plan is the first step towards your transformation to a best-in-class
corporate tax function. Our Tax Performance Advisory practice will
also invest in a workshop with FLT to co-develop a roadmap for
transformation to a best-in-class corporate tax function.
3.Value: We have designed our team, processes and approach to
ensure that we deliver value from the commencement of our
engagement. The visibility you derive from our compliance
approach can be leveraged by FLT and our transfer pricing and tax
advisory teams to actively identify opportunities to drive value
through risk reduction, opportunity identification and process
efficiency improvements.
We are committed: We are so confident that our team and approach
will significantly enhance the value of the FLT tax function, we are
backing ourselves… see page 8 for details.
FLT is an EY Oceania Priority Account and our teams have always
focused on building a long term partnership with you. Over the last
two years, we have demonstrated our commitment to challenging
you and bringing you planning opportunities.
We give our personal commitment to FLT that we will use this
engagement to build on the strong foundations already in place
to deliver an exceptional level of service over the life of the contract
and beyond.
Murray Graham Michael Chang Kevin Griffiths
QLD Global Compliance Leader |
FLT Compliance Engagement
Partner
Tax Advisory Partner |
FLT Tax Account Leader
QLD Tax Leader |
FLT Tax Relationship Partner
1Flight Centre Travel Group Limited Connectivity and agility. Transformation. Value. Global Corporate Taxation Services Proposal
Connectivity
and agility1
Transformation2
Dedic
ated compliance management
team
Dedic
ated compliance management
team
Leading technology tool
s
Knowledge
is power
(Key global
tax data)
Confidence
(Managing global
tax issues)
Driving value
for FLT’s
business
Transparency
(What’s happening
around the
globe)
Accurate global tax data
EY Global Compliance process
Output from Global Compliance process
A proactive value-added tax function
Tax risk
mitigation
More efficient
use of internal
resourcing
Tax
planning
EY
tax compliance professionals
FLT tax and finance professionals
EYc
entralised coordin
ation
Globall
y
connected com
pliance
Monito
ring deliverables/data an
alytics
Chris Dunne
Senior Manager
Global Compliance
Tax Professional
Melissa Tan
Director
Global Compliance
Coordinator
Driving value from your Tax Function
2Flight Centre Travel Group Limited Connectivity and agility. Transformation. Value. Global Corporate Taxation Services Proposal
Murray Graham
Global Compliance Leader
Kevin Griffiths
Transfer Pricing
Patrick Lavery
Indirect Tax
Michael Chang
FLT Tax Account Leader |
Tax Advisory
Mike Roberts
Tax Performance Advisory
Sue Williamson
Tax Controversy
Michael Chang
FLT Tax Account Leader | Tax Advisory Partner
“We have designed our FLT team
structure with one fundamental
objective — to effectively and
efficiently manage your
compliance process while
generating the information,
data and ideas that will help the
FLT tax team to deliver value.”
Alison de Groot
QLD Assurance Leader |
FLT Global Client Service Partner
“I truly believe EY will give
you true confidence in tax
compliance and your ETR
across the globe. The real
synergies you gain from
a combined audit and tax
compliance firm will allow you
to transform FLT’s tax team
to look for real tax insights
to proactively take to the
business and Board.”
Dedicated global compliance management
We understand the existing tax
compliance burden for FLT’s tax
function is significant. As FLT
continues to grow, the compliance
obligations will increase and
internal resources will be further
stretched. EY can alleviate FLT’s
compliance burden and provide
the opportunity for FLT’s tax
function to focus on value add
to the business.
We offer a well-coordinated and agile
approach which allows us to work well with
all levels of tax skill sets across different
jurisdictions. In our experience, simple
reliance on software tools, without adequate
process management and communication
between global teams, quickly becomes
ineffective, particularly where personnel
charged with managing the process and
communication have competing priorities.
Accordingly, our proposal incorporates
a dedicated global compliance manager
for FLT who coordinates and tracks agreed
compliance deliverables. This provides
visibility, reduces risk and enables the FLT
team and EY tax professionals to focus
on value added activities.
Our team will also implement and manage
a 90-day transition plan for a seamless
transition.
PersonnelMailroom
Client HQ
Centrally governed GCR function
FLT Head Office
EY local
offices
FLT local
offices
EY Global Compliance service management
Current state Future state
Service
provider
Service
provider
Service
provider
Service
provider
Service
provider
Service
provider
Service
provider
Service
provider
Service
provider
Australia
New Zealand
UK
Ireland
UAE
South Africa
China
and HK
The
Americas
Singapore, India
Malaysia, Phillipines
Connectivity and agility1
“Organisations are looking
to new tax operating
models that include
technology, infrastructure
and process, to develop
agile solutions that will
redirect compliance laden
resources to concentrate
on dealing strategically
with the business, tax
governance and planning.
At EY we have invested
significantly to transform
the way compliance is
delivered to meet the
market demand and I am
excited about bringing
our leading practices
to Flight Centre.”
Margherita Antonelli,
Oceania Global Compliance Leader
3Flight Centre Travel Group Limited Connectivity and agility. Transformation. Value. Global Corporate Taxation Services Proposal
Transformation2
Transforming to a proactive tax function
Current
state
• Compliance function includes manual, time
heavy, processes
• Limited time for in-house tax function to
develop proactive opportunities for the
business
• A global tax function that is stretched as
FLT expands into new markets and
undertakes new acquisitions
• Limited visibility over detailed global tax
information
• No streamlined central management
of compliance
• No central document management
repository for tax
• Relatively high effective tax rate
• Duplication of questions between your
auditors and tax advisors
How will you
get there
• As part of our investment with you, our Tax
Performance Advisory team, led by Mike
Roberts, will conduct a complimentary
workshop with you to critically analyse
your internal tax processes to identify
opportunities for time and cost
efficiencies. The deliverable from that
workshop will be a road map to guide you
on the ongoing transformation process.
In transitioning to be your corporate tax
advisor, we offer a number of processes to
assist with your transformation, including:
• A complimentary global health check on
transition, identifying tax risks and
opportunities
• Implementation of tools and technologies
facilitating visibility and control over global
tax reporting and compliance obligations
Future
state
• Reducing the time you spend on
compliance processes so you can be
proactive with stakeholders
• A well connected and centrally coordinated
global team
• Integrated processes and technologies to
reduce the risk of errors, minimise time
spent on compliance activities and
maximise tax planning opportunities
• Reduced risk of additional tax penalties
and interest charges by being prepared for
tax revenue audits
• Visibility and proactive management of
your global effective tax rate
• A global tax risk management framework
that:
• Is integrated and aligned with your
business strategy and objectives
• Provides the Board/Audit Committee
with comfort that the tax numbers and
obligations are ‘right’
1 2 3
7Flight Centre Travel Group Limited Connectivity and agility. Transformation. Value. Global Corporate Taxation Services Proposal
“As Brisbane’s Global
Compliance Leader, I am
excited by the prospect
of being integral to the
creation of an efficient
global tax function that
generates value for
Flight Centre.”
Murray Graham,
Global Compliance Leader
“We have been working
with EY for many years
and they have supported
us at all levels which
enabled us to transform
from a compliance driven
tax function to a value
driven tax function with
improved effectiveness
in planning and risk
management.”
Arjan Dobber,
Global VP of Tax, Lenovo
Flight Centre Proposal
A4 landscape
Designed to be submitted as a
digital proposal to be viewed
online as well as be printed.
“Daniela did a fantastic job on the flight centre proposal.
She was very easy to work with and understanding when we would continually comeback with up-
dates/changes. She offered excellent suggestions and with minimal ‘creative’ direction from us was
able to present an end product of high standard.
I understand Daniela had competing priorities at the time, but she always made herself available
and communicated well with us on her capacity.”
Chris Dunne
Tax Senior Manager, Grant Thornton Australia
Former Tax Senior Manager, EY
Creative portfolio | Daniela AnastasopoulosHome Thought Leadership Events and Sponsorship Proposals Digital Infographics Advertising Community
10. Daniela Anastasopoulos Design Portfolio 201610
From left: Steve Davies — WorleyParsons, Ian McIntyre — Evans & Peck, Mark Nixon — Ernst & Young,
Tony Smith — Ernst & Young, Darrin Grimsey — Ernst & Young 4 Ernst & Young
Proven, multi-disciplinary,
multi-industry team
Leading partner organisations of our
SBA Team are:
• Ernst & Young;
• BMT Design and Technology1
;
• Devonport Royal Dockyard Limited,
a wholly-owned subsidiary of Babcock
International Group (DRDL Babcock);
• General Dynamics Electric Boat2
; and
• WorleyParsons including its subsidiary
advisory arm Evans & Peck
(referenced as WorleyParsons
in the rest of this document).
We have also built productive
relationships with other specialist
consultants we believe may play an
important role in supporting the FSP:
• Mr Ric Smith AO — former Secretary
of Defence, with extensive public policy
and Commonwealth Government
insight and experience;
• Professor Fred Hilmer AO and
Professor Graham Davies —
respectively, Vice Chancellor and
Dean of Engineering of the University
of New South Wales and Chairmen of
the Group of 8 Universities (G8) and
its Engineering sub-committee3
;
• ►Dr John Coles — author of Study
Into The Business of Sustaining
Australia’s Strategic Collins Class
Submarine Capability;
• Mr Les Guthrie — former Vice President
of Projects for BHP Billiton and
principal architect of BHPB’s “Hub”
Infrastructure and Capital acquisition
evaluation model;
• Commodore Rick Longbottom (retired)
— former head of RAN engineering has
extensive operational acquisition and
sustainment experience across all
maritime military platforms, and in
particular CCSM; and
• Mr Brett Freebody and Freebody
Cogent — including access to its
detailed knowledge of remediating the
Collins Class contractual arrangements
within a Goverment Business
Enterprise construct.
This team, led by Ernst & Young’s Federal
Government Leader, Mark Nixon, has
demonstrable and unrivalled
understanding and experience in
establishing, planning and executing
“Like most people I was a little overawed when
I grasped the enormity of the SEA1000 Program,
it’s risks and challenges to success and the
opportunities it presents.
Having worked with our global, multi-disciplinary
SBA team over the past 6 months I am
absolutely convinced it has the breadth and
depth of skills, expertise and experience to
assist the FSP make the best possible
recommendations and decisions, first time.”
Mark Nixon, Partner
SBA Leader
1 BMT Design and Technology is a non-exclusive member
of the Ernst & Young team.
2 Ernst & Young and General Dynamics Electric Boat (GDEB)
have been in discussions for some time in regards to the
SBA role and GDEB has provided an ‘in principle’ agreement
to participate in the team, subject to both US Navy and
Defence approval. Discussions with the US Navy commenced
in November 2012.
3 The G8 has provided ‘in principle’ support for its
participation as an integral part of our proposed SBA Team.
This support is subject to the G8 being able to establish with
clarity the required areas of focus and the deliverables
expected from the SBA.
large scale programs, complex
acquisitions and capability development
within Defence and Federal government
and across industry.
Case studies demonstrating the value
this holistic approach and multi-
disciplinary team will deliver to FSP
are attached as Appendices A and C,
and include:
• strategic planning and capability
management as Lead Adviser to
Rizzo Projects 2, 3 and 5 (Naval
Capability Management, Re-building
Naval Engineering and Technical
Seaworthiness);
• developing and supporting the Health
Reform Transition Office, providing
planning and capability for the
National Health and Hospitals Network
Reform — Department of Health and
Ageing; and
• acting as Commercial and Financial
Adviser to Transport NSW for the
North West Rail Link’s complex
procurement process.
2 Ernst & Young
The SEA1000 Future Submarine Program (FSP) is critical to Australia’s strategic and defence interests.
This Program will be the largest and most complex ever delivered by Defence or the private sector, in an
environment that presents heightened challenges and expectations.
Defence is seeking a new type of Strategic Business Adviser (SBA) for the Program — a trusted team with
the broad experience, skills, expertise and global credibility to assist the FSP make the best possible
recommendations and decisions — first time, every time.
The operating environment for the
Australian Defence Force (Defence)
is enormously challenging. Issues
impacting Australian sovereign security,
its military alliances, the contribution it
makes to global peacekeeping and the
support it provides for national and
regional disaster relief are extraordinarily
complex. Additionally, economic
conditions and related fiscal constraint
programs have created an expectation
that Defence will do more with less.
An enhanced submarine capability
will play an important role in delivering
outcomes for both Defence and
for Australia.
This strategic importance should be
viewed through two interrelated, but
separate, frames of reference:
• building strategic military capability;
and
• creating national public value.
In exploring these frames of reference,
the lessons learned from previous
maritime programs are crucial. Collins
(CCSM), ANZAC (FFH), Mine Hunter
Coastal (MHC), Air Warfare Destroyer
(AWD) and Landing Helicopter Dock
(LHD) among others provide critically
important insights for success, as well
as identifying opportunities for
substantive improvement.
Lessons and learnings, such as the
holistic and concurrent consideration
of design, procurement and sustainment
(whole of life cycle management), the
importance of interoperability, and the
effect of the Australian environment
and operational context, must be
considered upfront.
To succeed, international experience
with submarine programs such as the
transition from Trafalgar to Astute (UK)
and Los Angeles to Virginia (USA) and
several conventional submarine
programs must be leveraged, together
with Australia’s own lessons learned.
These insights and experiences
highlight the need to challenge
historical approaches to programs
of this magnitude.
The FSP requires advice that balances
innovative and creative thinking with
leading practice and process, delivered
within an environment acutely focused
on risk identification, mitigation
and management.
Executive summary
Based on our experience with large-
scale capital infrastructure programs,
we anticipate the following potential
risks will require early intervention,
well developed mitigation plans,
and ongoing vigilance:
1. Preconceived notions as to the
optimum procurement and
commercial models restrict the
consideration and evaluation of the
full range of options; additionally,
premature or immature commercial
contracts compromise accountability
and performance management while
creating long-term exposures.
2. Lack of benefits focus, definition
and measurement challenges the
Program’s ability to deliver against
its business case and meet
Government, Defence, the Program
and delivery partner expectations.
3. Complexities where a procuring
Government may also choose to
act as a solution provider and the
prospect of sole source procurement
diminishes and threatens
commercial and performance
accountabilities normally associated
with competitive tension.
4. Skills development and industry
readiness programs and
partnerships not identified and
actively progressed upfront to
address potential skills gaps
and shortages.
5. Decision making is delayed and
inefficient due to a lack of single-
point accountabilities, delegated
authorities, change control discipline,
exception-based decision making
forums and insightful reporting
inputs that would provide effective
visibility of Program status.
6. Workforce churn compromises
organisational memory and
key-person dependencies cause
shortfalls in critical capabilities.
Key risks facing the FSP — now and in the future
10 Ernst & Young
Your decision
As you evaluate the responses to the
RFQTS, you will be seeking to answer the
question: “Is this the team to assist the
FSP make the best possible commercial
decisions – first time, every time?”
We believe the answer is clear. The best
team will be led by Ernst & Young.
√
Proven, multi-disciplinary
skills, capabilities and
credentials.
√
Seamless integration and
collaboration, within
Ernst & Young’s SBA Team,
with the broader FSP Team,
and across a wide and diverse
range of stakeholders.
√
Courageous advice
delivered with an enduring
commitment.
From left to right:
Samantha Tait — BMT
Brett Freebody — Freebody Cogent
Absent:
Dennis Gilbert — DRDL Babcock 5SEA1000 Future Submarine Program From thought to finish
Seamless integration
and collaboration
Our partner organisations and specialist
consultants have pre-committed to a
collaborative teaming environment with
the goal of delivering integrated, world
class strategic business advice.
Ernst & Young will lead the SBA Team,
providing a single point of contact,
responsible and accountable for all
SBA deliverables.
This will deliver significant efficiencies
for the FSP, avoiding lost time developing
working relationships and legal
agreements or managing conflicts
of interest between discretely
engaged organisations.
Our undertaking of seamless, integrated
collaborative advice is enabled by a
series of pre-established contractually
binding agreements, governance
arrangements and protocols, detailed
in the body of this proposal and attached
as Appendix D.
Specifically, the legal obligation for
the partner organisations to participate
is contained in a Memorandum of
Understanding between all the parties,
supported by a Subcontractor
Agreement detailing their willingness
to provide services as part of a multi-
disciplinary SBA Team.
Case studies demonstrating this teaming
proposition in action are attached as
Appendices A and C, and include
Ernst & Young working with:
• DRDL Babcock on the Rizzo Reform
Program to Rebuild Navy Engineering
and to redevelop the Navy’s Capability
Management and Technical
Seaworthiness systems;
• BMT on the Icebreaker Vessel
Procurement Options Assessment
for the Australian Antarctic Division;
• WorleyParsons and Evans & Peck on
Federal and State Guidelines for capital
project procurement and Alliance
contracting framework; and
• the BHP Billiton team and Les Guthrie
to mobilise BHP Billiton’s Project
Delivery Hub model globally.
“Programs require skills and resources beyond
those that are generally required in the project
management space. Programs are usually larger
scale, and have a much wider impact than most
projects. Thus the outcome of a program can
have a significant impact upon viability of the
acquisition, credibility and reputation. It can and
does consume significant resources — and often
requires hard choices.”
Les Guthrie
Former Vice President of Projects, BHP Billiton
“I was impressed by the way in which
Ernst & Young incorporated and teamed with Navy
personnel on this project and generally fostered
teamwork and inclusiveness across
the broad Rizzo 3 Project Team.”
Rear Admiral Michael Uzell
Head of Navy Engineering
Appendix
Initial Task
• Curricula vitae
• Case studies
• Detailed approach
• Market sounding approach
Appendix
SBA curricula
vitae according
to function areas
• SBA Executive Team
• Program management
• Procurement
• Public policy
• Governance and risk
• ICT
• People
• Industry development
• Technical
• Commercial
• Performance management
3SEA1000 Future Submarine Program From thought to finish
Effective delivery of this advice will fully
inform the FSP Team, enabling the best
possible recommendations and decisions.
To achieve this, you seek to engage
world class:
• expertise, skills and experiences
to complement and build on those
already existing within Defence; and
• impartial and independent strategic
business and commercial inputs
and advice.
Crucially, you recognise that the breadth
and depth of strategic advice you seek
is likely to require business acumen far
greater than can be sourced from any
single organisation, or provided in a
traditional advisory context.
The best SBA Team
In developing this proposal, we explored
best practice in global defence
enterprises, and combined this with our
knowledge and experience from other
related and relevant industries, such
as the resources and industrial sectors.
We believe the best SBA Team must
integrate a unique blend of: business
experience, extending from design to
execution, from concept to commission;
financial and commercial advice,
incorporating the insights and
perspectives of the world’s leading
submarine designers, builders and
maintainers, and marine and maritime
engineers; and global business advisory
experience. We are convinced this
experience simply cannot exist within
any single organisation. We have
assembled the best team for you based
on this belief.
Importantly, the FSP has already
experienced the value of this teaming
approach in the work and interaction
Ernst & Young and many of our partner
organisations have had with you over
recent years.
We believe our proposed SBA Team
is unique in offering you:
• Proven, multi-disciplinary,
multi-industry talent
Capabilities and credentials, borne
of submarine and complex systems
experience, channelled through
a framework of risk mitigation
and management
• Seamless integration
and collaboration
Collaboration and teaming, within
the SBA Team and, with the
broader FSP Team, across a wide
and diverse range of stakeholders
• Courageous advice and
enduring commitment
Underpinned by:
• Collective organisational
reputations
• Independent and
diverse mindsets
• The personal integrity of
individual team members
all delivered by people with a
passion to work as an integral part
of your team.
Crucial to success ... is our
team’s belief in, and passion
for, the FSP.
“The opportunity to make a positive and
meaningful contribution to a program of
immense importance, one that will not only
underpin our nation’s security but also
significantly contribute to its growth and
prosperity, will be a career defining moment
for all of our people.
Our team wants to be a part of this Program.”
Tony Smith, Partner
SBA Governance, Relationship and Quality Assurance Leader
“Ernst & Young provided very considerable support to the
ADF in their Reserve workforce analysis and design. Over the
three years I was engaged in the project they demonstrated
a commitment to excellence and to understanding the clients
needs. They demonstrated commitment and passion and most
importantly a willingness to establish an integrated project team
with Defence and to work collaboratively with us. The partnered
delivery approach was, in my view, a unique feature of this
project and in no small measure contributed to the success
of the initiative. They were nothing short of excellent...”
Brigadier William (Bill) Sowry
Head of Australian Defence Staff
Australian High Commission, London
Response to RFQTS Number 9084
SEA1000 Future Submarine Program
Strategic Business Adviser (SBA)
for the Defence Materiel Organisation
Department of Defence
Executive summary
26 February 2013
SEA1000 proposal
A4 portrait
Cover, internal spreads and divider
pages with a customised photography
shoot with key team members.
Proposals
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Proposals
Working toge
Communicat
Coordination
Consultation
Mercer
Proposal to provide
audit and tax services
20 April 2011
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tionships, growth, value, teaming, communica
munication, trust, experience, relationships, g
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munication, trust, experience, relationships, g
rience, relationships, growth, value, teaming,
ionships, growth, value, teaming, communica
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e, experience, communication, value, trust, co
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rience, relationships, growth, value, teaming,
tionships, growth, value, teaming, communica
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ionships, growth, value, teaming, communica
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tionships, growth, value, teaming, communica
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6 Mercer Proposal to provide audit and tax services Mercer Proposal to provide audit and tax services
Working together.
Communication.
Coordination.
Consultation.
10 Mercer Proposal to provide audit and tax services
A team that recognises the complexity
of managing your stakeholders
Through our work with you we recognise the complexity
of your business. Our understanding means that on day
one we already have an appreciation of the relationships
between MAPL, MINL and MINL NZ and their respective
obligations. We will apply our understanding when
communicating with you in managing your director
and fiduciary duties.
MINL
AFSL and RSE holder
MST, MSIT, MMF
and MIF
MST NZ, MSIT NZ,
MIT NZ
MINL NZ and
Trustee Executor
KiwiSaver Funds
Communication
and insight aligned
to your internal
stakeholder needs
Communication
and insight aligned
to the relevant
Boards and
governance
functions
Global Support Functions
Finance
Risk and Compliance
Legal
Human Resources
Australia and New Zealand
Support Functions
Outsourcing (Member Administration)
MAPL
Global Outsourcing
MINL NZ
“Through our work with you I understand the relationship
between MINL, MINL NZ, MAPL and the regulators. We
recognise the importance of making the complex clear and
providing pragmatic solutions.”
Stuart Turner, Unit Pricing
Mercer Proposal to provide audit and tax services 11Mercer Proposal to provide audit and tax services
A team who will make Mercer
their number one priority
We have assembled an integrated
client service team who will have
Mercer as their number one priority,
both at an individual and firm level.
Graeme McKenzie, Senior
Relationship Partner; Luke Slater,
Engagement Lead; and Nicholas
Parker, Program Director are the hub
of your Mercer Ernst & Young team.
We have structured our team in this
way to provide you with assurance
of continuity. The value of our
integrated team is greater than the
sum of its parts. We will not rely on
solo performances.
Graeme McKenzie will have overall
responsibility for the Mercer account
ensuring delivery over and above
your expectations through access
to best resources and leveraging
our industry insights and experience.
Our engagement team will be led by
Luke Slater who will have
responsibility for the day-to-day
execution on an effective and
efficient relationship. He will work
in close partnership with Nicholas
Parker who will project manage the
overall engagement. Each of these
individuals will have Mercer as the
core element of their personal goals
and career plan at Ernst & Young.
Ian McNeill will work closely with
Graeme and Luke to ensure that you
benefit from appropriate tax subject
matter experts across a number of
areas including: taxation of
superannuation funds; taxation of
trusts; goods and services tax; tax
accounting services; tax risk advisory
services; International tax; and tax
controversy.
Our client service team will be
supported by service leads that will
be accountable for specific areas of
the engagement and provide access
to deep subject matter experience
and ensure complete coordination
across the engagement.
Graeme Bennett will be the lead
for our New Zealand team. We will
ensure a strong trans-Tasman linkage
through program management
working with your teams in
Melbourne and Wellington. Our
New Zealand team will spend time
in Melbourne to ensure seamless
connection and knowledge transfer
across your teams.
Luke Slater
Engagement Lead
Graeme McKenzie
Senior Relationship
Partner
Nicholas Parker
Program Director
Ian McNeill
Tax Lead
Paul McLean
Superannuation Tax
Antoinette Elias
Trust Tax
Matthew Hanley
New Zealand Tax
Martin Walsh
Systems, Processes
and Controls Lead
Stuart Turner
Unit Pricing
Nicholas Parker
GS007
Maree Pallisco
Compliance
Faith Page
Information Technology
Luke Slater
Audit Lead
Tax Audit Systems, processes and controls
Mercer client service team
Service leads
Graeme Bennett
New Zealand Audit
Mercer Proposal to provide audit and tax services 7Mercer Proposal to provide audit and tax services
A team that’s on
your wavelength
Mercer proposal
Portrait A4, Canadian bind finish with
triangle diecut on cover.
Design of cover and internal pages
with a customised photography shoot
with key team members.
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