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Volume 23, No 4 July 2016 The Publication for Credit and Financial Professionals IN AUSTRALIA Global economy: Where is it heading? Tips, updates and changes: Human Resources Credit Management Legal Economy Training news DIRECTORS 46 Australian President – G.L. Morris MICM CCE NSW Division: Women in Credit Luncheon. Australian VP, Legal Affairs – J.A. Neate MICM Professional Development – S.D. Mitchinson LICM YCPA & CCE – G.C. Young MICM CCE Member Services – J.G. Hurst FICM CCE Finance – G. Odlum MICM CCE CHIEF EXECUTIVE OFFICER N. Pilavidis MICM CCE Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 PO Box 64, St Leonards NSW 1590 49 Tel: 1300 560 996, Fax: (02) 9906 5686 Email: [email protected] Qld Division: Linda Parry, Greg Young and Samantha Taylor. EDITOR/PUBLISHER Nick Pilavidis | Email: [email protected] CONTRIBUTING EDITORS Arthur Tchetchenian NSW Stacey Woodward Qld Gail Crowder SA Warren Meyers WA Donna Smith Vic/Tas ADVERTISING MANAGER 52 John Field FICM, CCE, ACPM, Ph: 1300 560 996 Mob: 0412 732 831, Email: [email protected] SA Division: Winter Warmer Night guests. EDITING and PRODUCTION Anthea Vandertouw | Ferncliff Productions Tel: 0408 290 440 | Email: [email protected] THE EDITOR reserves the right to alter or omit any article or advertisement submitted and requires idemnity from the advertisers and contributors against damages or liabilities that may arise from material published. CREDIT MANAGEMENT IN AUSTRALIA is published by the Australian Institute of Credit Management, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065. The views expressed in CREDIT MANAGEMENT IN AUSTRALIA are not necessarily those of Australian Institute of Credit Management, which does not expect or invite any person to act or rely 54 on any statement, opinion or advice contained herein (whether in the form of an advertisement or editorial) and neither the Institute or any Vic/Tas Division: YCP Information Night. of its employees, agents or contributors shall be liable for any opinion contained herein. © The Australian Institute of Credit Management, 2016. JOIN US ON LINKEDIN Click Here EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO: 56 The Editor, Level 3, Suite 303, 1-9 Chandos Street, St Leonards NSW 2065 or email: [email protected] WA/NT Division: Breakfast Club CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Volume 23, Number 5 – July 2016 Message From the President 4 Portfolio Update, By Gregg Odlum 6 In Memorium – Michael Murphy 6 Human Resources 18 20 32 Salary increases unlikely to excite this year 8 Symon Cook Roger Mendelson Barry Urquhart By David Crawley Credit Management Around the States National Conference testimonials 11 New South Wales 46 Queensland 49 ACCC to commence excessive surcharge 17 South Australia 52 compliance role Victoria/Tasmania 54 Reviewing your invoicing to best practice 18 Western Australia/Northern Territory 56 By Symon Cook New Members 58 Legal Mistakes not to make when suing a debtor 20 Promotions By Roger Mendelson Credit Team of the Year 5 Women in Credit 7 Unfair preferences and how to avoid them 22 – Part 1, By Nick Cooper 2016 National Conference 10 Conference Program 12 Authority to bind 25 Credit Qualifications By Peter Mills and Robert Gallagher 59 Don’t get your contract terms knocked out 28 John Fairgray, Luis Ormazabal and Balveen Saini For advertising Technology Australia on the cusp of ‘digital greatness’ 31 opportunities in Economy Credit A new world of commerce awaits 32 Management By Barry Urquhart In Australia Brexit from a Credit managers point of view 34 A U.S. Macro outlook 36 By Mark Zandi Contact: Queensland economy shifts gears and pitches 39 JOHN FIELD for a more balanced future FICM, CCE, ACPM Ph: (02) 9906 4563 AICM Training news Fast track your credit career through 40 Mob: 0412 732 831 Recognition of Prior Learning E: johnfi[email protected] Graduates 44 Calendar 45 From the President Grant Morris CCE Australian President aicm ast issue I started the report with “Well, For some politicians July hasn’t been a great well, well. Just 12 months ago who would month but it is an absolute corker on the AICM have thought we would have seen ……” calendar with most Divisions announcing their Young L and I can very nearly start the same way Credit Professional of the Year winner at a dinner in this month. each mainland capital city. The award is sponsored Who would have really thought Brexit would by Dun & Bradstreet (thanks guys) and is a fantastic happen? Who had made plans for just that opportunity to showcase the talent of younger credit eventuality? professionals and also recognise other achievers at the We have seen dramatic changes in share prices same time. It is a great opportunity to meet with your and currency exchange rates. We have seen major peers and discuss the credit environment. corporates react quickly to the changes like QANTAS Nominations for the Credit Team of the Year offering triple frequent flyer points on the “Kangaroo close this month (31st July). The award is a great Route” to London, which may be because of fears of a opportunity to showcase your teams talents and see decline in Brits travelling due to the reduced spending them achieve recognition for themselves within your power of the pound. own organisation and on the national stage like past Nothing has changed for us. We have been winners such as Caltex and Reece to name but two. aware of the possibility for a long time and should Thanks to Veda for their sponsorship of this award. have been making plans for just this eventuality. We The National Conference is being held from must continue to be more attentive, professional October 12 – 14 at the new Sea World Conference and inquisitive. Be close to our customer’s business, and Convention Facility adjacent to Sea World know who their customers are and understand the Resort on the Gold Coast. The programme is out and weighting and location of their revenue base, the provides you with the best information, education and industries in which they operate and the geographical networking experience that can be packed into 3 days. reach of their business. The cost of the conference is far less than what Basics are paramount. Policies, procedures and good organisations spend on the development of their processes are not just documents that look good in a employees so plan now to get yourself there and use it folder or on an Intranet page. They must be followed as motivation and reward for your staff ie offer to send and they must be routinely reviewed for currency and them along as well when they hit their targets. relevance I hope we see you at an AICM event soon as you As credit professionals we must stay on top of support the Institute which supports you. our game through continued professional growth including formal training, networking, exchanging Vale Mike Murphy CCE LICM ideas and sharing concerns with our peers. This I regret to advise Mike Murphy passed away on 26th cannot be done alone and it is essential we train and May whilst on a cruise in Europe. Mike was the Group develop our teams so there basic skills are honed and Credit Manager at BGC in Perth and a life member of their abilities used to the max. They must assist with the AICM. He joined the AICM in 1989, was elected to research and knowledge of our customer base as the Board in 2004 and served until 2010 including after all they are the ones in continual contact. Having 4 years as our National President. their ear to the ground can provide tremendous early Mike developed and delivered training to hundreds intelligence. of credit professionals and presented at the national Put simply, be aware of the area in which you conference and numerous WA events. The AICM, its operate, attend workshops, seminars and network members and the credit industry benefited greatly meetings and as I have said on many occasions look from Mike’s passion for helping others learn more forward. about the Credit Industry. RIP Mike. On the home front the Federal Election was a nail biter and it will be some little time before we know – Grant Morris how smoothly or otherwise parliament will function [email protected] over the next couple of years. Ph: 0407 405 198 4 CREDIT MANAGEMENT IN AUSTRALIA • July 2016 Become the National Credit Team of the Year All 4 National Finalists will Enter your team by 31 July 2016 for your each win a $1,000 Team chance to be awarded for credit excellence. Development Grant At the 2016 AICM National Conference on the Gold Coast, The national winner will receive: each nominee for the national winner will receive: • Professional development services worth $2,000, • Two conference registrations provided by AICM • Airfares and accommodation at the Seaworld Resort, • Recognition in the AICM magazine, plus the AICM, Gold Coast Veda and Credit Network websites • On-stage introduction prior to the announcement • The 2016 National Credit Team winner’s trophy of the National Credit Team of the Year winner All three runners up will receive $500 each in AICM services of their choice. Applications and information is available at aicm.com.au Proudly sponsored by Veda. aicm Portfolio Update From the Finance Director On behalf of the Board, I would like reducing overall expenditure on materials to be used in future years. to thank all of our members, partner, venues, Keep your eye out at conference sponsors and supporters, as well z Introduction of the webinar 2016, as some of the activities as the CEO, Nick Pilavidis, and the series, providing further training related to this will occur there.