In accordance with the requirements of the Workplace Gender Equality Act 2012 (Act), NSW Business Chamber (on behalf of NSW Business Chamber, Australian Business Lawyers & Advisors, Illawarra Business Chamber and Hunter Business Chamber) has lodged its annual public report with the Workplace Gender Equality Agency.

This report is available via www.nswbusinesschamber.com.au

Annual Report productionProduction: Corporate Marketing & Communications, NSW Business ChamberDesign: Rebecca Solberg, Tracey Orehov and Adelle Jurgens, Australian Business Consulting & SolutionsPhotography: Ashley Penny, Tom Lane, Melissa Hird, Dan Gosse, Robert Gregorio and Marie Raccanello.

Kingspan Insulated Panels, St Marys Member since 2012–

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Contents

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04

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48

49

Chamber Profile

Reports from the President & CEO

Policy and Advocacy

Case Study: Western Sydney Airport

Member Services

Case Study: Member Support Centre

Case Study: World Chambers Congress

Commercial Services of NSW Business Chamber

Case Study: Youth Unemployment

Case Study: Export Growth China

NSW Business Chamber Councillors

Financial Report

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NSW Business Chamber How we help

State-wide business support • Metro and regional offices

across NSW

Increase productivity and profitability through expert advice and business solutions• Recruit the right people

• Manage apprentices and trainees

• Raise the profile of business through marketing

• Trade overseas

• Reduce the cost of insurance, energy, office supplies and sustainability

• Education and training

Create better business-to-business connections • Connect with others

through events

• Gain recognition for excellence through Business Awards

Make it simple to avoid fines and reduce risk• Access legal advice

• Gain HR support

• Stay up to date with Workplace Health & Safety obligations

• Manage the relationship with employees

Advocate for business • Improve the business

environment

• Represent the concerns of business to government

NSW Business Chamber is the state’s peak business support organisation, dedicated to helping member businesses of all sizes grow and prosper.

The Chamber connects businesses to their peers, industry leaders and government to create opportunities and influence change.

Through expert advice and customised solutions, the Chamber can help businesses become more productive, competitive and profitable.

The Tourism Industry, Manufacturing Industry and Defence Industry divisions offer specialist solutions, advice and advocacy to business members of all sizes in these sectors.

Business-to-Business connections

Avoid fines and reduce risk

Local, regional and state-wide

business support

Increase productivity and

profitability

Advocate for business

The Chamber footprintNSW Business Chamber traces its heritage back to 1826. It is NSW’s peak business organisation and Australia’s largest membership-based Chamber. During the 2014-2015 financial year, the Chamber achieved the following:

Ballina

Gold Coast (Bundall)

Coffs Harbour

Port Macquarie

NewcastleTuggerah

East Perth

SydneyWagga Wagga

Albury

WollongongNowra

BegaBatemans Bay

BankstownCity

Liverpool/CasulaMirandaNorth SydneyParramattaPenrith

Broken HillDubbo

TamworthArmidale

Moree

BathurstOrange

City (CBD)North Lakes Spring Hill

Leeton Braddon

Phillip

MoorabinBlackburn

Melbourne

Adelaide CityMawson LakesMarionUnley

Moorabbin

Melbourne

Blackburn CanberraWagga Wagga

Broken Hill

Grif

Longreach

Cairns

Mount Isa

Toowoomba

MaroochydoreNoosa

West Mackay

Bundaberg

Warana

Rockhampton

Mackay

Townsville

CairnsShanghai

CHINA

Mount Isa

Brisbane

Moorooka

18,948 Members of NSW Business Chamber

650 staff Across 55 offices servicing members and customers

25,208 Business Hotline callsResolving all types of member enquiries

21,542 Workplace Advice Line calls Resolving enquiries about industrial awards, employment conditions and other workplace issues

40,000 HR Advance downloads Allowing businesses to create legally compliant documents

44,957 Attendees to 397 events Encompassing networking, educational, political engagement and business awards

132,500 Certified trade documents Enabling Australian businesses to export to new markets overseas

11,968 Webinar attendees Educating business managers and their teams

2,015 Award entries state wide for the 2014 Business Awards and Tourism Industry Awards

Office locations NSW Business Chamber and its commercial division, Australian Business Solutions Group, have a nationwide presence through a number of direct and virtual offices.

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Tony Dormer

President

NSW Business Chamber

This was a year where NSW Business Chamber grew in stature. More was asked from the Chamber, and more was delivered. From bold and far-reaching initiatives to hard-earned wins, the Chamber focused its diverse capabilities across the broad landscape of business.

Akin to the cogs in a machine, these capabilities have come together to deliver better support and representation to membership and Australian business as a whole.

Expanding the reach of advocacy

More than ever, all levels of government are responding to Chamber-led calls for reform. This year saw the Chamber’s sustained efforts to put small business issues at the top of the political agenda pay off in the 2015-16 Federal Budget.

With a raft of small business measures in excess of $5 billion, the Budget can be traced back to the national chamber movement’s hugely successful 2013 campaign, Small Business: Too Big to Ignore.

During the March 2015 State Election, the Chamber cemented its reputation as the State’s leading advocate for business. On the back of five key reforms identified by the Chamber in the Unfinished Business: Towards 2015 and beyond campaign, the State Government committed to public asset swaps to fund much-needed infrastructure. The campaign also saw the Chamber host the first official leaders’ debate of the election campaign – televised live – from ANZ Stadium.

Through the Thinking Business program, the Chamber is squarely directing research at intergenerational issues. In the last year, there has been a focus on reforming the secondary school system to better prepare school leavers for the workforce; promoting industry-research collaboration as a driver of productivity and global competitiveness; and leading the planning stages of landmark infrastructure – such as the Western Sydney Airport – to maximise job creation and economic development.

Creating a fair workplace for all

Australian Business Lawyers & Advisors (ABLA) has continued to play a vital role in advocacy on behalf of the Australian Chamber of Commerce and Industry (ACCI) – the peak employer body in Australia. In 2014-15, the law firm represented ACCI in the four-yearly review of modern awards.

The efficacy of ABLA’s representation has led to the Fair Work Commission passing legislation to enable employers to direct employees to take paid annual leave in circumstances where the employee holds excessive accrued annual leave balances.

Realising export opportunities

In 2015, small and medium-sized enterprises (SMEs) commenced their export journey to the world’s largest market through the Chamber’s Export Growth China program.

After two years of work, it is deeply humbling to see our program help Australian SMEs seize export opportunities afforded by the China-Australia Free Trade Agreement.

It is clear that Australia is ideally located and qualified to do business in emerging markets where our national brand is synonymous with being green, clean and trustworthy. Creating over 132,500 certified trade documents in the past year, our International Trade Division is actively connecting local business to new markets.

Pinnacle of business networking

In November 2014, The Chamber cemented its place as a leader in the international chamber movement, winning the rights for Sydney to host the World Chambers Congress in 2017.

This landmark event is a coup for Sydney and represents the pinnacle of business networking through the global chamber movement. I whole-heartedly believe it will create a lasting legacy for Australian business.

Breaking new ground for Australian

business

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Strengthening support to members

Always striving to improve support to membership, the Chamber is reaching out to local chambers with the Member Support Centre. Recognising that volunteers and executives of these chambers give so much of their time to their community, this free service helps thousands of members to utilise their membership benefits.

The Chamber also entered into a partnership with NRMA Business Motoring to offer reciprocal membership between both organisations at no additional cost. Expert advice can now span the workplace and open road, minimising risk and cost across environments.

Performance underpins the mission

The increasing influence of NSW Business Chamber, throughout NSW, nationally and internationally, has been underpinned by our expanding commercial businesses, with revenues growing by more than 15% or $20 million year-on-year.

The Chamber is proud that all of its commercial offerings are business support solutions. They are focussed on the core competencies of workplace relations and human resources advice and assistance; international trade and commerce; education, training and skills, and employment services.

Every year we are increasingly providing vital assistance to employing and exporting businesses across the nation, and also to those Australians looking to improve their education, skills and employment opportunities.

Through our active support of the Australian chamber movement, our collaboration with other state chambers, and in particular our increasing direct support of regional and local chambers of commerce throughout NSW, we continue to advocate on behalf of all businesses, as well as providing them with essential business solutions to help them thrive in the competitive global economy that we are now clearly a part of.

I would like to sincerely thank my colleagues on the NSW Business Chamber Board and Council, and our management team for their innovation, hard work and excellent outcomes for members. This activity truly reflects the Chamber’s stated purpose of “creating a better Australia by maximising the outcomes and potential of Australian businesses”.

“Every year we are increasingly providing vital assistance to employing and exporting businesses across the nation, and also to those Australians looking to improve their education, skills and employment opportunities.”

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The Board of NSW Business Chamber. From left, Lyall Gorman, Greg McNamara, Nola Watson, Trevor Cairney OAM, Terry Wetherall, Tony Dormer, Ellie Brown, Brett Manwaring and Ian Penfold.

I have often said that working for the NSW Business Chamber is a calling. It’s unlike any job I’ve had, but then that’s what you’d expect from an organisation that strives to make a difference to the lives of millions of Australians.

Our mission is straight forward – we seek to create a better nation by helping businesses of all sizes maximise their potential to grow, prosper and employ more Australians. Every day, our 650 employees work incredibly hard to make this a reality because they understand what’s at stake.

Our way of life would not be possible without the men and women who get up each morning and flip the door sign to ‘Open’. These people create the millions of jobs that are sometimes taken for granted, but are absolutely vital to the economic and social wellbeing of this country.

But it can be a tough ask for businesses to perform in an increasingly competitive global environment. That’s why the NSW Business Chamber has stepped up its game on all fronts.

Seizing our future in the Asian Century

In 2012 I led a trade delegation of small and medium-sized enterprises (SMEs) to Shanghai. I was struck by how well other countries marketed themselves and their products, and yet Australian SMEs were thin on the ground. There was a gap in the market and something had to be done.

With support from the Board, I tasked the Chamber’s commercial services division, Australian Business Solutions Group, with creating an end-to-end export solution specifically for SMEs.

After two years of work in complex trade and regulatory environments, Export Growth China was launched on the very same day that the historic China-Australia Free Trade Agreement was signed.

As the first program of its kind, Export Growth China offers a low-cost, low-risk entry point to export. Participants can step out with confidence, knowing that we’ve got their back at any stage of the journey – from identification of an opportunity to the ultimate export sale.

There are now more than 200 Australian products on display in our new Shanghai showroom – but most importantly, deals are already being made. The journey for Australian businesses has just begun, and we are ready to support them every step of the way.

Advocating for real change

During the 2008 Global Financial Crisis, the Chamber consulted extensively with members to identify a better way of supporting their livelihoods. This marked a turning point for the Chamber’s policy and advocacy agenda.

Putting our reputation on the line, we reached out to members and business communities to deliver a wake-up call to the NSW Government ahead of the 2011 State Election. The result was the 10 Big Ideas to Grow NSW campaign, a policy blueprint and state-wide tour to help NSW reclaim its economic mojo. Overwhelming support for the public campaign saw the incoming O’Farrell Government implement 7 of our 10 Big Ideas.

In the lead up to the 2015 State Election, we carried forward the work of 10 Big Ideas in the Unfinished Business: Towards 2015 and Beyond campaign. More wins followed, including the State Government’s commitment to funding vital infrastructure through public asset swaps.

We’ve been heard in Canberra too. On 12 May, the 2015 -16 Federal Budget delivered the biggest small business support package in Australian history.

Opening global doors to

prosperity

Stephen Cartwright

Chief Executive Officer

NSW Business Chamber

Stephen Cartwright

Chief Executive Officer

NSW Business Chamber

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It was a direct response to our Small Business: Too Big to Ignore campaign run in 2013, which saw 110,000 voices united by the national chamber movement. Once again, NSW Business Chamber led from the front, embarking on a state-wide tour ahead of the Federal Election. Businesses stepped up by speaking to local media or drumming up attendance – just to meet our roadshow when it came to town.

These wins belong to the business people and local chambers across NSW that supported these campaigns to the maximum. In the years ahead, business can count on us to get the job done. We won’t back down on reform, even though our efforts may span years and terms of government.

Bringing the world to our shores

Late last year we won the right to host the 10th World Chambers Congress - a unique global forum uniting a powerful network of 12,000 chambers, and representing over 6 million businesses.

Come September 2017, Sydney Business Chamber (a division of NSW Business Chamber) will host more than 1,500 business chamber representatives, business leaders and entrepreneurs from over 130 countries.

For local business, the Congress will offer a unique opportunity to rub shoulders with international entrepreneurs who will be here to do business. For Sydney, the Congress is a message to the world. We are a truly global city, a hub for international business, and the gateway to the Asia-Pacific Region.

Behind the scenes, the win was six years in the making. The real test came when we appointed a team to prepare the formal bid, presenting a vision of Sydney in 2017. This journey led us to Tokyo in late 2014, where I had the privilege to present our bid to voting members of the governing body, the International Chamber of Commerce World Chambers Federation.

We were up against incredibly tough competition from China, India and The Philippines. I still remember the excitement of sharing the announcement of the win with over 1,000 members at our Annual Business Awards dinner in November 2014.

Now it’s full steam ahead, focusing all efforts on planning and delivering the best Congress ever.

Chamber movement delivers on higher purpose

NSW Business Chamber derives its strength and purpose from membership. In the past year, we have continued to extend our influence through a strategy of membership growth. It’s immensely pleasing to report that the Chamber closed the 2014-15 financial year with a milestone membership of 18,948 members.

In growing its membership, the Chamber is contributing to the reach and influence of the Australian chamber movement. I firmly believe that when businesses unite for a common good, they create positive change across the whole community.

This movement has empowered NSW Business Chamber to play a bigger role in addressing youth unemployment, an ageing population, and declining productivity – issues that challenge our future prosperity.

Much of this work is led by our commercial services division, Australian Business Solutions Group, which responds directly to the needs of businesses and employers. In the last year, we have continued to grow our capabilities and footprint.

Closer collaboration with the national chamber movement is also taking this support to the next level. In 2015, Apprenticeship Support Australia (ASA) was launched as a nation-wide response to the alarming decline in apprenticeship completion rates.

Contracted by the Federal Government, ASA is delivered by state-based Chambers with over 60 years of collective experience in delivering apprenticeship services at a community level. This is what the chamber movement does best – using our business support capability to achieve a higher purpose.

Thank you

In closing, it is my great privilege to lead an incredible team at the Chamber, and I thank all of our members for their continued support. I would also like to express my gratitude to the many business people who support the chamber movement by sitting on our Boards, Councils and Committees.

“The journey for Australian businesses [into China] has just begun, and we are ready to support them every step of the way.”

Australian SMEs are now seizing their export opportunities through the Export Growth China Program.

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As an independent and non-partisan business community representative, NSW Business Chamber advocates for economic, business and jobs growth to underpin healthy communities. When business is going well, the benefits ripple across the economy, the natural environment, communities, families and reach into the future.

Engagement with political decision makers at the federal, state and local levels delivers tangible outcomes which collectively help business and industry power the economy and create jobs. As the foundation of community and individual well-being, jobs can be created by successful and growing businesses. To achieve this, NSW Business Chamber:

• works with governments and their agencies on behalf of members. Responding to problems and opportunities identified by business, the Chamber’s policy expertise and access to government can yield a business win, such as a reduction in workers compensation premiums, or improved tax concessions.

• delivers landmark advocacy campaigns. To improve the business environment, the Chamber grows and unites the business voice through campaigns that mobilise members and build the chamber movement.

• creates thought leadership projects with practical solutions. The Chamber tackles broader economic and social issues that are typically put in the ‘too hard basket’. Uniting key stakeholders from government, industry, research and academia, and the wider community, the Chamber uses a collaborative framework to create practical solutions and real change, not just noise.

Reform impacts the bottom line

Over the past year, NSW Business Chamber’s sustained advocacy efforts have achieved a number of significant policy changes for members that will have a genuine impact on their bottom line and help grow our State’s economy.

In addition to the key measures announced in the 2015-16 Federal Budget to encourage entrepreneurship and reduce red tape, the Chamber achieved significant progress on secondary schooling reform, and saw its Small Business Friendly Councils initiative with the NSW Small Business Commissioner rolled out to more than 60 councils across the State.

The future economy starts today

Through the Thinking Business thought leadership program, the Chamber continues to lead valuable research insights on the intergenerational challenges underpinning Australia’s long-term prosperity. There has been a focus on reforming the secondary school system to better prepare school leavers for the workforce; promoting industry-research collaboration as a driver of Australian innovation and competitiveness in the global economy; and the planning of landmark infrastructure to maximise economic development and job creation across the State.

Leveraging the insights and expertise of our diverse membership, this year the Chamber released three Thinking Business reports which generated considerable public debate, including Industry-Research Collaboration, Paving the Pathway, and A Western Sydney Aerotropolis.

Working in partnership with some of Australia’s top research firms, the Thinking Business series takes a long-term view on how we can build a better environment for business to operate.

Policy & Advocacy

Healthy business means healthy communities

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Paving the Pathway

A Western Sydney Aerotropolis

Research

Industry-Research Collaboration

Sharon Leicht, Leicht’s Tyre and Auto Member since 2008–

“We couldn’t have asked for better representation and faster resolution,” says Sharon Leicht over the din of the workshop.

As small business owners in Port Macquarie, Sharon and Peter Leicht suspected overcharging on their workers compensation premiums. The Chamber member placed a call to Mid North Coast Regional Manager, Kellon Beard, who elevated the matter to the Policy Team in the North Sydney office.

Policy Analyst, Craig Milton, sought a timely review through the relevant scheme agent and WorkCover. Wheels turned and the automotive repairs business received a reprocessed statement at the end of the premium period, with a significant reduction in premium instalments for the next two quarters – a saving of $4,000.

“Craig was on the ball,” says Sharon. “To a small business, $4,000 is the equivalent of several hundred thousand dollars to a large corporate. We can put that money back into the business – bolster local marketing, improve the website, and more.”

As for the regional presence of the Chamber: “Kellon and the team are very strong and proactive – not reactive. And that’s what you need in business representation.”

ADVOCACY

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IssueTax Reform Workplace Relations Employment Local Government Local Government Superannuation Infrastructure Education Tourism Small Business Reducing tax

Chamber called on the

government to...

Remove unfair taxes on business transactions.

Reduce tax and compliance costs for entrepreneurs and start-ups.

Increase flexibility of annual leave provisions in modern awards system.

Reverse requirements for job seekers to apply for 40 jobs a month.

Work with local business and local government leaders to encourage local councils to better support small business.

Give business a real voice in local government elections.

Reduce red tape by allowing more small businesses to access the Small Business Superannuation Clearing House.

Fund and deliver more infrastructure across NSW through public asset swaps.

Provide greater opportunities for students to learn in the workplace.

Provide additional assistance for disengaged young people in regional areas to find education, training and employment opportunities.

Support tourism and business opportunities in Western Sydney by investing in cultural assets.

Support small business by increasing the instant asset write off threshold.

Reducing the tax burden on small business.

Business Win

The NSW Government has committed to remove taxes on a number of business transactions by 2016.

Saving businesses $400 million per year

Federal Government has now reinstated the ability for entrepreneurs to offer equity-based remuneration to employees without penalty –

putting Australian businesses, especially start-ups, on an equal footing with their international competitors.

The Full Bench of the Fair Work Commission granted numerous claims filed by NSW Business Chamber and the Australian Chamber of Commerce and Industry which will

provide for greater flexibility for employers and employees in managing annual leave.

The Federal Government backed down on the measure which would have created unnecessary paperwork on businesses bombarded by job applications.

Saving business $700 million in processing costs each year.

NSW Business Chamber, in partnership with the NSW Small Business Commissioner, has now rolled out the Small Business Friendly Council Initiative to more than 60 councils across the state. The initiative, the first of its kind in Australia, requires councils

to engage more effectively with local small businesses.

The City of Sydney Amendment (Elections) Bill 2014 has now passed the NSW Parliament, simplifying the enrolment process for all businesses eligible to vote in the City of Sydney Council elections to participate in the 2016 local government election.

The Government has indicated that it is actively looking at expanding this initiative across the state.

Businesses with an annual turnover below $2 million can now access the Superannuation Clearing House. The Clearing House is a free service that allows employers to pay employee superannuation contributions in one transaction to one location. The Clearing House had previously only been accessible to businesses with less than 20 employees.

A reduction of $20 million in equivalent red tape for employers.

The NSW Government has committed to leasing 49% of the state’s electricity network which will

release a projected $20 billion in funds to be invested in new infrastructure projects.

Each year in NSW, approximately 30,000 employers provide work placements for 60,000 school students as part of the Structured Workplace Learning program.

The NSW Government has committed

$27 million to keep the program running and help ensure that students who enrol in a vocational education and training course as part of their HSC get an opportunity to apply their skills in the workplace.

$8 million has now been committed to provide young people in regional areas viable pathways into education, training and employment.

The NSW Government has committed to

relocating the Powerhouse Museum from Ultimo to Parramatta.

As part of the 2015 -16 Budget, the Federal Government announced that for the next two years, small businesses will be able to immediately deduct the cost of individual assets under $20,000. This will allow business owners to spend much needed capital on their businesses, driving innovation and injecting funds into the economy.

Saving $1.8 billion for small business.

In the 2013 Budget, the NSW Government announced that the payroll tax threshold would rise from $689,000 to $750,000.

Saving $33 million for business in 2014-15.

In the 2014-15 Budget, the Federal Government announced it would deliver a 1.5 percentage point tax cut for small companies and a five per cent tax discount on income from unincorporated small business activity.

Saving $250 million for small business in 2015-16 and $950 million in 2016-17.

Policy & Advocacy

Business wins

Saving businesses

$400 million per year

Saving business

$700 million in processing costs each year.

IssueTax Reform Workplace Relations Employment Local Government Local Government Superannuation Infrastructure Education Tourism Small Business Reducing tax

Chamber called on the

government to...

Remove unfair taxes on business transactions.

Reduce tax and compliance costs for entrepreneurs and start-ups.

Increase flexibility of annual leave provisions in modern awards system.

Reverse requirements for job seekers to apply for 40 jobs a month.

Work with local business and local government leaders to encourage local councils to better support small business.

Give business a real voice in local government elections.

Reduce red tape by allowing more small businesses to access the Small Business Superannuation Clearing House.

Fund and deliver more infrastructure across NSW through public asset swaps.

Provide greater opportunities for students to learn in the workplace.

Provide additional assistance for disengaged young people in regional areas to find education, training and employment opportunities.

Support tourism and business opportunities in Western Sydney by investing in cultural assets.

Support small business by increasing the instant asset write off threshold.

Reducing the tax burden on small business.

Business Win

The NSW Government has committed to remove taxes on a number of business transactions by 2016.

Saving businesses $400 million per year

Federal Government has now reinstated the ability for entrepreneurs to offer equity-based remuneration to employees without penalty –

putting Australian businesses, especially start-ups, on an equal footing with their international competitors.

The Full Bench of the Fair Work Commission granted numerous claims filed by NSW Business Chamber and the Australian Chamber of Commerce and Industry which will

provide for greater flexibility for employers and employees in managing annual leave.

The Federal Government backed down on the measure which would have created unnecessary paperwork on businesses bombarded by job applications.

Saving business $700 million in processing costs each year.

NSW Business Chamber, in partnership with the NSW Small Business Commissioner, has now rolled out the Small Business Friendly Council Initiative to more than 60 councils across the state. The initiative, the first of its kind in Australia, requires councils

to engage more effectively with local small businesses.

The City of Sydney Amendment (Elections) Bill 2014 has now passed the NSW Parliament, simplifying the enrolment process for all businesses eligible to vote in the City of Sydney Council elections to participate in the 2016 local government election.

The Government has indicated that it is actively looking at expanding this initiative across the state.

Businesses with an annual turnover below $2 million can now access the Superannuation Clearing House. The Clearing House is a free service that allows employers to pay employee superannuation contributions in one transaction to one location. The Clearing House had previously only been accessible to businesses with less than 20 employees.

A reduction of $20 million in equivalent red tape for employers.

The NSW Government has committed to leasing 49% of the state’s electricity network which will

release a projected $20 billion in funds to be invested in new infrastructure projects.

Each year in NSW, approximately 30,000 employers provide work placements for 60,000 school students as part of the Structured Workplace Learning program.

The NSW Government has committed

$27 million to keep the program running and help ensure that students who enrol in a vocational education and training course as part of their HSC get an opportunity to apply their skills in the workplace.

$8 million has now been committed to provide young people in regional areas viable pathways into education, training and employment.

The NSW Government has committed to

relocating the Powerhouse Museum from Ultimo to Parramatta.

As part of the 2015 -16 Budget, the Federal Government announced that for the next two years, small businesses will be able to immediately deduct the cost of individual assets under $20,000. This will allow business owners to spend much needed capital on their businesses, driving innovation and injecting funds into the economy.

Saving $1.8 billion for small business.

In the 2013 Budget, the NSW Government announced that the payroll tax threshold would rise from $689,000 to $750,000.

Saving $33 million for business in 2014-15.

In the 2014-15 Budget, the Federal Government announced it would deliver a 1.5 percentage point tax cut for small companies and a five per cent tax discount on income from unincorporated small business activity.

Saving $250 million for small business in 2015-16 and $950 million in 2016-17.

A reduction of

$20 million in equivalent red tape for employers.

A victory for small businessOn the night of 12 May 2015, the then Federal Treasurer, Hon. Joe Hockey MP, delivered a federal budget that spoke directly to the nation’s two million small businesses. It wasn’t by chance. The government had responded to the sustained advocacy of the national chamber movement.

In 2013, chambers across the country came together through the Small Business: Too Big to Ignore campaign. Over 110,000 voices joined the campaign, with NSW Business Chamber embarking on a state-wide roadshow to engage voters in the lead-up to the federal election – culminating in 50 stops on a 7,000 km journey. This win belongs to small business men and women.

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Policy & Advocacy

State Election 2015Setting the agenda

During the March 2015 NSW State Election, the Chamber cemented its reputation as the State’s leading advocate for business, setting the agenda for how government can better support business.

Through close consultation with members via policy committees, Regional President’s Forums and the State Council, five key reform priorities were identified as Unfinished Business for NSW:

• fund and deliver more infrastructure across NSW through public asset swaps

• revitalise and reform local government

• deliver senior schooling more effectively to improve outcomes for young people

• improve NSW’s energy security and address pricing challenges; and

• put NSW on the front foot by creating a more competitive tax system.

Releasing funds for state-building infrastructure

The Chamber has long argued that the state’s electricity network should be privatised to release funds to invest in new and productive infrastructure. With clear evidence that private operators are more efficient at running the electricity networks than public operators, the Chamber used advertising and social media channels to help voters understand how leasing the State’s electricity assets would deliver more affordable electricity for NSW businesses and households.

The Chamber worked through its regional and local chamber network, Regional Development Australia and local councils to develop lists of priority projects that should be funded by the proceeds of the long-term lease of the State’s electricity assets. This has since been passed in NSW Parliament following the re-election of the Baird Government.

Televised debate

“We were also incredibly proud to host the first official leaders’ debate of the election campaign at ANZ Stadium,” says Director of Policy & Advocacy, Paul Orton.

Premier Mike Baird and Opposition Leader Luke Foley debated key election issues such as electricity privatisation, local government reform and energy security in front of an audience of more than 400 business leaders.

Televised live by Sky News and streamed online by the Sydney Morning Herald, it was the first time a State leaders’ debate had been hosted by a business organisation and ensured business issues were front and centre of the election campaign.

Committed to leadership

NSW Business Chamber is actively helping members and businesses adopt energy productivity. Internal measures have been implemented to reduce the organisation’s impact on the environment and limit operating costs. This enables more funds to be directed towards servicing members and advocating on behalf of business.

The Chamber also aims to be the primary business voice on sustainability issues.

Chamber walks the walk

Since 2008, the Chamber has been a proud participant in the Sustainability Advantage program, managed by the NSW Office of Environment & Heritage (OEH).

After successfully reducing energy, paper and fuel usage as a direct result of its participation in the program, the Chamber developed a Sustainability Strategic Plan in 2011 with the aim of reducing greenhouse gas emissions at its North Sydney head office by 20% per full time equivalent employee on 2011/12 levels by 2016.

In the past year, the Chamber has implemented a new ICT system and reduced its number of data servers. As a result of this initiative, the Chamber reduced greenhouse gas emissions by 27% on 2011/12 levels per full time equivalent employee. This puts the Chamber on the way to achieving Silver level status in the Sustainability Advantage program.

Partnering to power the message

The Chamber is recognised as the primary business partner of OEH, and is the only business organisation on the NSW Government’s Climate Change Council.

In addition to being an early signatory in 2014 to the Australian Alliance to Save Energy’s 2xEP plan to double energy productivity by 2030, the Chamber partnered with the NSW Government for the inaugural Energy Productivity in Action event on 18 June 2015. This event celebrated the improvements of 10 outstanding businesses.

Cost savings for members

Developed by energy management specialists, Energetics, the Better Energy Manager Program offers discounted energy rates for Chamber members using less than 160,000 kilowatt hours annually.

There is also access to tools, information and advice to help businesses use less energy.

In May 2015, the Chamber also signed a Memorandum of Understanding with OEH to promote its Energy Efficient Services program, which provides up to $8,000 in technical support and training for manufacturing firms looking to reduce their energy consumption.

Shining a green light on excellence

The Chamber also promotes sustainability values to members through the annual Business Awards program, which includes an award for Excellence in Sustainability, delivered in partnership with OEH.

Sustainability and the bottom lineIt’s time to debunk the myth that environmental sustainability and business don’t mix. In these tough economic times where every dollar counts, more businesses are turning to energy productivity as a driver for cost savings and business improvement.

James Reid, Doc’s Mega Save Chemist, Newcastle Member since 2001–

On an average day, James Reid of Doc’s Mega Save Chemist has his doors open to serve the people of Newcastle for 16 hours. This service brings overheads – such as energy – that need to be carefully budgeted.

“When we reviewed the figures for the Better Energy Manager Program, they looked great, so we jumped aboard”, says James.

“In our previous quarter, we actually saved 28% – from just under $3,000 for our normal power bill, down to just over $2,000. That’s a massive saving for us.

“In a small business like ours, every saving counts. We’re now getting an extra saving on power, which means that we can employ more people. In turn, we’re offering better service and a better standard of work, which is great for us.”

BETTER ENERGY MANAGER–

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“The dialogue with government, the research publications, the access to thought leaders and other

corporate executives – Chamber membership is

tremendous connectivity.”

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Ian Irving, Chief Executive, Northrop Grumman Australia Sydney First and Australian Business Defence Industry– member since 2010–

“There’s a lot going on in the economy, and we need to shift up a gear to attract investment,” says Ian Irving, CEO of Northrop Grumman in Australia.

The North American-based company had been a supplier to the defence and security markets in Australia for over 20 years, until a decision was made in 2013 to establish a more permanent footing and to become a true partner in Australia. Northrop Grumman Australia was launched by the then Minister for Defence at a ceremony in Canberra.

“We intend to become a benchmark country that can sell solutions back into North America and around the world.”

Ian believes the efficacy of Sydney Business Chamber is reinforced by the network of representation branching outwards through NSW Business Chamber, culminating in a national voice with the Australian Chamber of Commerce and Industry.

“The dialogue with government, the research publications, the access to thought leaders and other corporate executives – Chamber membership is tremendous connectivity.

“I am able to contribute to a dialogue with government about how to make our business environments more attractive to investors. That’s exciting.”

SYDNEY FIRST–

SYDNEY FIRST–

Sydney Business Chamber (SBC), a division of NSW Business Chamber, is committed to the growth of Sydney as a major global city within a competitive Greater Sydney economic region.

With a hundred of Australia’s leading corporations as members, and offices in the CBD and Parramatta, SBC gives voice to corporate Sydney. Emphasis is placed on building key partnerships across government, industry and the not-for-profit sector, to raise Sydney’s status as a global destination to invest, live, study and visit.

2015 was a year of achievement, with SBC hosting a major conference on Sydney’s Second Airport, currently in planning for Badgerys Creek. Featuring global experts, together with the Deputy Prime Minister and NSW Minister for Transport, the conference drew representatives of business from across Australia – all eager to investigate the opportunities posed by this landmark infrastructure.

Powering the growth of Western Sydney

The interest in the economy of Western Sydney from business and government has granted SBC the opportunity to lead advocacy on a number of key projects. These initiatives include the liveability of the region with investments in the arts, transport projects and the knowledge economy.

Liveability has also been at the heart of projects in the CBD, notably around managing the CBD during major construction projects, including the CBD light rail and the renewal of key rail stations.

Michael Dwyer AM, Chief Executive Officer, First State Super Sydney First member since 2013–

“The focus of Sydney Business Chamber in promoting economic activity and growth is one that aligns with the needs of many businesses, and in particular with the interests of First State Super,” says Michael Dwyer.

First State Super is one of Australia’s largest superannuation funds with more than $52 billion in funds under management, and over 750,000 members.

“A large proportion of First State Super members live in NSW, and our investments in landmark projects, such as Barangaroo, Sydney Light Rail and the Sydney Convention Centre, will contribute to both the financial future of our members and the sustained growth of our city and the wider community.“

Through business events with senior leaders in government and business, SBC provides access to “valuable networks which offer important forums for dialogue on a diverse range of issues relating to NSW.”

“We look forward to building our partnership with SBC and supporting a stronger economy for the benefit of all Australians.”

Sydney Business Chamber

Sydney First

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Planning is in full swing for the hard-won Western Sydney airport, with NSW Business Chamber leading the conversation.

Jobs, growth and hope – that’s what a second Sydney airport means for Australia. More and more people have taken up the Badgerys Creek cause in recent times, but the Chamber is not one of them. We’ve been championing the proposal since it was first floated decades ago.

Off the ground at last

When then Prime Minister Tony Abbott green-lighted the airport in 2015, he personally thanked NSW Business Chamber in his speech. Without the staunch support of our members, often in the face of strong resistance, the proposal may have gathered dust for another 50 years.

The Chamber could clearly see the vast untapped potential of Western Sydney, which is fast emerging as a business powerhouse (the third-largest regional economy in Australia). For the first time, with Chamber backing, the region has a business voice.

In 2013, David Borger, Western Sydney Director of Sydney Business Chamber (and native of Western Sydney), came on board to build critical support and influence those in a position to finally get the airport approved.

Planning for prosperity

The airport is a nation-building infrastructure project, and careful planning is crucial to make the most of opportunities for business and economic growth.

In 2015, Sydney and NSW Business Chambers hosted the ‘Preparing for Take-off’ conference. This landmark event brought together global planning experts and key stakeholders to discuss the vision for the new ‘aerotropolis’ – including John Kasarda, who coined the term, and the Deputy Prime Minister Warren Truss.

The unique thing about airports is that it takes more people to run them than to build them. Once the airport is standing, the jobs are there to stay.

During construction, Badgerys Creek is expected to generate around 4,000 jobs. Once the airport opens and grows, it is forecast to create 35,000 jobs by 2035. Over time, this will jump to 60,000 jobs.

By 2060, the new airport has the potential to drive an increase in Australian gross domestic product (GDP) of almost $24 billion.

Although the Western Sydney airport will not be fully operational for a decade, construction should start in 2016.

The unique thing about airports is that it takes more people to run them than to build them. Once the airport is standing, the jobs are there to stay.

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Western Sydney Airport

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“Our advocacy campaign for a second airport in Western Sydney was a textbook example of a grassroots campaign involving the broader community – we couldn’t have done it without the strong voices of our members – many of whom took risks to stand up for a position that was unpopular because they knew it was the right thing to do for the region.” David Borger

Member Services

Strength in membership

Where businesses come together

Life in business is seldom easy – risk, complexity and change are ever-present. Faced with competing demands in a fast-moving landscape, how can a business cover all the bases?

Almost 19,000 businesses have found an answer through membership of NSW Business Chamber. Members can tap into people and expertise to solve problems, explore opportunities, contribute to Chamber-led advocacy campaigns, and connect with like-minded people.

Increase productivity and profitability through expert advice and business solutions

Saving money in the workplace and on the road

On 25 May 2015, a landmark partnership between NRMA Business Motoring and NSW Business Chamber – the two largest and oldest membership organisations in NSW – was formalised. Reciprocal membership between both organisations now allows Chamber members to opt into a range of extra advice, products and services from NRMA Business Motoring at no additional cost.

With expert advice covering vehicle purchases, ownership and maintenance, small businesses have the means to save time and money in the workplace and out on the road. Likewise, NRMA Business Motoring members opt into Chamber membership, accessing advice on all workplace-related issues.

Local, regional and state-wide business support

Growing the grassroots

NSW Business Chamber is reaching out to grassroots business communities through the Local Chamber Alliance Program. The members of participating chambers are also afforded dual membership with NSW Business Chamber, offering access to award-winning resources and expertise.

Launched in 2011 to engage with the 270-plus local chambers and their members, the program now supports 195 local chambers as Alliance Partners, representing 12,900 local chamber members. Achieving new milestones in the last financial year, the program is actively growing the chamber movement.

Advocate for business

Promoting Australian industry

NSW Business Chamber once operated as the Chamber of Manufactures NSW, supporting the early growth of manufacturing in the late 1800s. The years have passed, but the Chamber remains steadfastly committed to the growth of Australian industry, and its contribution to a robust economy.

Adopting a collaborative approach, the Chamber works with a large number of industry associations and special interest groups throughout the State. This is reinforced by dedicated industry specialist divisions, which provide leadership on advocacy, and focus on industry-specific solutions for members.

Continued on page 21.

Milestones

21,542Workplace Advice Line calls, resolving issues in the workplace.

25,208 Business Hotline calls, resolving all types of member enquiries.

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Total Members - Last 10 Years

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FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

5,000

10,000

15,000

19,000

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FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

5,000

10,000

15,000

19,000

02005 2007

Financial Year

2009 2011 2013 2015

5,000

10,000

15,000

19,000

Sustaining a pattern of growth in recent years, NSW Business Chamber achieved a new record of 18,948 members by 30 June, 2015.

Tim Phillips, Kennovations, Artarmon Member since 2012–

“It was a matter of trust with the Chamber, that’s why I said yes,” says Tim Phillips.

The industrial designer is speaking about the complementary membership with NRMA Business Motoring offered to all Chamber members.

“It’s about future-proofing my business. I’m always looking for risk management and cost saving opportunities. NRMA’s association with the Chamber sold it to me.”

Tim is the owner of Kennovations, designing and delivering ‘wow’ projects in the built environment. It’s innovation with James Bond flair – huge mirrors which remedy over-shading in urban landscapes.

All delivered by a small business can you believe? “I am a fleet of one, but I’m a growing business. There are other companies out there offering services, but I am more inclined to engage with the Chamber because I feel they focus on growing my business and not on their own.”

DUAL MEMBER

“There are other companies out there offering services, but I am more inclined to engage

with the Chamber because I feel they focus on growing my business and not on their own.”

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David Boundy, Superair, Armidale Member since 2014–

“It sure helps with opening doors,” says David Boundy.

The General Manager of Superair is describing the Chamber’s Business Awards program. In 2014, the Armidale-based company scooped ‘Business of the Year’ and has been flying high ever since.

As big players in crop dusting – the aerial application of fertiliser – Superair has serviced farming communities for over 50 years. Much like the planes, the award is put to work.

“We just applied for a government tender and I unashamedly cited our award success in that tender document. We’re waiting to hear back. It has given us a lot more credibility, no doubt about that.”

BUSINESS AWARDS

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Defence Industry

Based in Canberra, Australian Business Defence Industry (ABDI) promotes a sustainable defence industry in Australia by helping members identify business opportunities in the defence market.

ABDI has continued to represent the needs of members in this sector at the highest levels of government and within the Federal Department of Defence. The profile and relevance of the work undertaken by the team has seen membership increase by over 22% in 2015.

ABDI has also published research and analysis papers on topics such as Defence Materiel Organisation Spend Analysis and the Defence Industry Sentiment Index.

This bedrock of industry respect has led to a wide range of key figures, including the Defence Minister, prioritising meetings with members during the year. This two-way exchange with members lends insight into defence thinking, with a focus on emerging business opportunities.

Tourism Industry

With tourism ranking among Australia’s largest export industries, the Chamber has invested significantly in supporting and representing the industry in NSW. In the past year, the Tourism Industry division has implemented an ambitious program of transformation, working closely with members and industry to launch a new model of membership that incorporates tools for business improvement.

The Australian Tourism Accreditation Program (ATAP) guides the member through a 360-degree evaluation of the business, identifying areas of risk and cost, and opportunities for market growth.

In November 2014, the NSW Tourism Awards celebrated its 25th anniversary at Darling Harbour with a Gala Event that attracted over 600 guests, and showcased 184 entrants across 32 categories.

Joanne McLaughlin, Multitask, Lismore Member since 1992–

“Watching people progress – I love that. It’s a big part of me”, says Joanne McLaughlin, Human Resources Coordinator at Multitask.

Among a range of care-related services, the organisation creates jobs through disability employment services, helping people with disabilities lead active lives.

“If there’s anything different or new that we’re dealing with, I go to HR Advance first to see if there’s anything that will cover the issue.

HR Advance offers subscribers a comprehensive library of fully customisable HR, IR and safety documents.

“It’s a time saver, because otherwise I would be searching the internet, and finding something that may not be up to date. At least I’m sure that what I’m getting from the Chamber is accurate and legally compliant. I trust in the product.”

HR ADVANCE–

HR TEAM–

In 2015, NSW Business Chamber was named an Employer of Choice by influential industry magazine, HRD. “Our strong work culture also means we can provide the best level of support to members and customers every day,” says Alex Diab, HR General Manager at the Chamber.

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Manufacturing Industry

The changing face of manufacturing is eroding a rich tradition in Australian ingenuity and capability. Drawing on its own manufacturing heritage, the Chamber is committed to the growth of sustainable industry, including the development of advanced manufacturing capabilities.

The Chamber introduced the Manufacturing division in September 2014, appointing John Cooke as the division head. A former metallurgist with over 30 years of industry experience, John oversees change management programs with some of Australia’s largest companies.

The division is sourcing ideas from a broad network of members, special interest groups, business leaders and researchers. Discussions include strategies for change management, productive frameworks for industry-research relationships, energy-efficient practices, and effective government policy.

Business-to-business connections

Networking

For many businesses, the events program is the big drawcard of membership. Advocacy-based events encourage members to meet, educate and influence political leaders on the issues that matter to business.

Members also connect in a variety of forums, from small and exclusive roundtables, to large networking events and customer-rich environments. Educational events, from essential legislation updates to business improvement and emerging trends, feature presenters who are leaders in their field.

Business Awards

NSW Business Chamber’s Business Awards program casts a light on business excellence across the State. In recent years, the introduction of a grassroots engagement strategy has seen the program substantially grow the number of entrants and opportunities for recognition. In 2014, more than a thousand guests celebrated the State’s highest achievers at the State Gala in November.

Affiliated Chambers

The Energy Hunter project, a partnership between the Hunter Business Chamber, Newcastle City Council, and Hunter TAFE, has made a remarkable contribution to energy efficiency in the Hunter.

Under the partnership, Energy Hunter delivered a mix of energy consumption advice, real time monitoring, mass learning programs and business mentoring to local businesses. There were 350 participants, with a cumulative saving of $400,000.

In November 2014, the program won the ‘Climate Change Leadership’ category at the Green Globe Awards, hosted by the NSW Office of Environment & Heritage.

Illawarra Business Chamber continued a rich tradition for business recognition, hosting the 2014 Momentum Energy Illawarra Business Awards to great acclaim. The program featured 100 entries, 45 finalists and hosted a popular gala with almost 500 local business leaders.

Jeff Hurdis, WestpacWestpac and NSW Business Chamber have both been around the block a few times. Australia’s oldest bank kicked off in 1817 and is nine years senior to the Chamber.

“It’s not often that two organisations have such a lengthy shared history,” says Jeff Hurdis, Westpac’s State General Manager of Small Business in NSW and ACT. “I think that’s why this partnership is important – we’ve grown together as NSW has grown.”

A major attraction of sponsorship is the Chamber’s state-wide events program, including the Business Awards Program.

“The local economy relies on the success of small business and at Westpac we want to recognise that contribution. Sponsorship of these events empower the sector to share their achievements and ultimately help our people, communities and businesses to prosper.”

CHAMBER SPONSOR–

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Peter Roberts, TAFE SWSi Corporate Connections Member since 2006–

Starting out as an apprentice in mechanical engineering, Peter Roberts has experienced vocational education from both sides of the fence.

Peter is the Director of TAFE NSW South Western Sydney Institute (TAFE SWSi), one of Australia’s largest training organisations with close to 50,000 students enrolled across nine colleges. “Over the next 15 years, the region will experience unprecedented investment and growth, and will be a major hub for industry growth and employment,” says Peter.

“The workforce we need for this exciting future will be significantly different to that of today, meaning the skills we need to embrace rapidly changing technology and solve complex problems with creativity and innovation will also be different.

“TAFE SWSi is well placed to respond and support business and industry through this change as we prepare students for the world they will face in the future.”

Corporate membership with the Chamber opens doors to industry.

“It is extremely important for TAFE SWSi to be connected with business, industry and the community so that we can ensure that our training programs meet their needs and that we are able to deliver where they want us to deliver – online, in the workplace or at the college. Our membership with the Chamber helps facilitate these connections and enables us to build strong relationships with our business partners.”

CORPORATE NETWORKING

“It is extremely important for TAFE SWSi to be connected with business, industry and the community … Our membership with the Chamber helps facilitate these connections and enables us to build strong relationships with our business partners.” Peter Roberts

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Grassroots support for local chambersA year on, the free administrative support service for NSW local chambers of commerce is busy connecting local chamber members to a powerful network that goes all the way to Canberra.

The phones run hot at the Member Support Centre in Tuggerah on the Central Coast, where a friendly team of six supports 195 local chambers across the State.

Since its inception, the team has made 27,218 calls across the State. They have also completed 18 Chamber activity requests, assisting local chamber alliance partners with calls to raise awareness of local events or business awards.

These are not sales calls. Quite the opposite. These calls are to help local chamber members get the most out of their entitlements, whether accessing expert advice, finding ways to reduce bills, or meeting prospective customers at an upcoming networking event.

Demonstrating its commitment to growing the chamber movement at a grassroots level, NSW Business Chamber established the free service in late 2014 to help the

Chamber’s allied local chambers effectively support and advocate on behalf of business. It’s a timely hand for local chambers, many of which are run by hardworking volunteers in their spare time.

Penny Dorsett, who manages the Member Support Centre, says “We call our members to make sure they’re aware of the resources they have access to as part of their membership.”

“If a business has an issue with HR or marketing, we can direct them to the right advice line. Some don’t realise it’s a perk of their membership! Similarly, if a business is struggling with their energy bill, it’s a pleasant surprise for them to hear they get a discount on electricity.”

From the Tweed to Sydney and beyond

Advice on compliance, member entitlements and HR matters is dispensed to thousands of regional businesses across the State.

“Each team member is allocated a specific region, so they have specialised local knowledge. Every region is very different in terms of their interests and industries. You’ve got agriculture and mining to the west and tourism to the north. We also have local chamber members as far as Broken Hill, which was just named Australia’s only heritage city,” says Penny.

No matter where you are in NSW, chamber volunteers and staff have access to the same membership benefits and invaluable networking events. The Chamber’s Member Support Service is there to make sure that members of our allied local chambers can make the most of these opportunities.

Member Support Centre

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LOCAL CHAMBER ALLIANCE PARTNER–

“At no other time in our 188 year history have we had more members, and that’s why we offer tangible support to the very people who are the heart and soul of the chamber movement.” NSW Business Chamber CEO Stephen Cartwright

Mary Lynne Pidcock, South Sydney Business ChamberThe South Sydney Business Chamber (SSBC) represents businesses on the CBD fringe, including Redfern, Waterloo and Green Square – the largest urban renewal areas in Australia. Opportunities for business growth are abundant, but so too are the challenges – transport, infrastructure, red tape, and more.

Being heard by government is a constant priority for local business, says SSBC President, Mary Lynne Pidcock. That’s why the Local Chamber Alliance Program, offered by NSW Business Chamber, makes good sense.

“The partnership gives a coordinated voice to business advocacy,” says Mary Lynne.

“It’s hard when you’re a small business, and you’re really busy running the business, to actually get your voice heard.”

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Bringing the world to Australian business A unique networking opportunity will come to town in 2017 when Sydney hosts the 10th Annual World Chambers Congress (WCC).

In a huge coup for the Chamber and Australian business, local business identities will have the chance to rub shoulders with global entrepreneurs. Event organisers in the Chamber are gearing up to leave a lasting legacy – in the words of NSW Business Chamber CEO Stephen Cartwright: “It’s going to be one hell of a congress!”

A long road to victory

The win is six years in the making. At the Mexico WCC in 2011, Sydney Business Chamber (a division of NSW Business Chamber) first put the wheels in motion, making its presence felt and learning as much as possible about how to host a truly great congress.

Two years ago a dedicated bidding team was assembled to lay out a ‘vision’ for the Sydney congress: a clear picture of where it would be held and what it would look like. Extensive stakeholder collaboration was required and support was called in left, right and centre.

None other than the then Prime Minister, Tony Abbott, threw his weight behind the campaign in a dedicated video message, where he declared: “Australia is open for business! I do so hope we can welcome you to Sydney in 2017”.

The Chamber realised the best way of promoting Australian business globally was to lead by example and show the world what we could do – not just tell them how great we were. To prove that our business innovations were second to none, the team began promoting Chamber products and services through the International Chamber of Commerce (ICC) competition program. This was a big success, with the Chamber winning the ‘Best Small Business’ category at the 2011 Mexico and 2013 Doha congresses. In Torino this year, the Chamber went a step further and sold business diagnostics to the Jeddah and Calgary Chambers.

A testament to hard work

Victory was in the Chamber’s sights when Stephen Cartwright delivered the bid presentation to the selection committee in Tokyo in late 2014. Not long after, the CEO delivered the verdict at the Chamber’s 2014 Business Awards back in Sydney. ‘We won!’

To attract as many delegates as possible and to ensure Sydney stayed top of mind, a trade stand offered a 3D ‘virtual tour’ of the fair city at the WCC 2015 in Torino, Italy. Impressed delegates donned 3D goggles and said they couldn’t wait to make the journey in 2017.

The Chamber realised the best way of promoting Australian business globally was to lead by example and show the world what we can do – not just tell them how great we are.

World Chambers Congress

Opposite page:

1: A delegate experiences the 3D ‘virtual’ tour of Sydney at the Torino Congress. 2, 3 and 4: The hand-over ceremony at Torino Congress, looking ahead to Sydney in 2017.

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In a huge coup for the Chamber and Australian business, local business identities will have the chance to rub shoulders with global entrepreneurs.

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Ross Elliot, Danny’s Store, Griffith Member since 2006–

“Staff are the business”, according to Ross Elliot, who has owned Danny’s Store in Griffith for 18 years.

Five or six members of his 15-stong team have been with the business for over a decade, which is testament to the value Ross places on his staff.

“I want to make sure that I’m doing the right thing by the staff – that I’m paying them the correct amount, and that I’m doing everything else right. That’s just the way I work”, says Ross.

“When I call the Workplace Advice Line, I get immediate replies. If the team doesn’t know something they find out and call me back – I’ve had no dramas at all.

“And the team is always fairly personal when I get on the phone, which is the way it’s got to be.”

For Ross, the advice is indispensable.

“Well far out … without the Workplace Advice Line, I suppose I’d be a member of an industry association then, wouldn’t I?”

WORKPLACE ADVICE LINE–

“When I call the Workplace Advice Line, I get immediate replies. If the team doesn’t know something they find out and call me back – I’ve had no dramas at all.”

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MarketingInternational TradeWork Health & SafetyHuman ResourcesBusiness Growth

Employment LawWorkplace RelationsWorkplace Health & Safety LawCorporate & CommercialProperty Law

Vocational Education and TrainingDegreesMastersMBAsCustomised deliveries

ApprenticeshipsTraineeshipsMentoringCareer adviceTraining

Executive & Business SupportIndustrialHealthIndigenousApprentices & Trainees

Australian Business Solutions GroupEverything Australian Business Solutions Group (ABSG) does is designed to help businesses become more productive, competitive and profitable.

As the commercial division of NSW Business Chamber, ABSG is guided by a principle of social enterprise. Surplus from commercial activity goes back into substantially funding the business chamber movement in key areas of innovation, research and advocacy to government. The sum of this activity contributes to sustainable economic growth, which is viewed as intrinsic to national prosperity.

And because ABSG is not driven by shareholder gain, the highest levels of service are offered with exceptional value.

The table below shows the businesses contained within ABSG, and their areas of expertise.

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A growing national workforce is widely acknowledged as critical to the productivity of the economy, yet in a NSW Business Chamber survey of employers in March 2015, more than 22% of businesses indicated that they did not have access to suitably qualified staff.

This is a major concern to the Australian Business Solutions Group (ABSG), which provides workforce solutions for businesses through its recruitment solutions division. In response to the ongoing skills deficit, ABSG has actively expanded its recruitment offering to address these shortages.

A particular emphasis has been placed on the burgeoning demand for skills in health care and other industries which impact the health and wellbeing of the communities we live in. In response to these industries, the ABSG portfolio of recruitment brands grew from five to eight.

The ageing population presents similar challenges to that of the childcare sector. With a skills shortage in aged care, more working Australians are likely to take on the personal responsibility and financial cost of caring for their elderly relatives. In turn, businesses are impacted through absenteeism and skills. For this reason, ABSG is expanding its services nationally.

Supporting affordable health care

In the last financial year, ABSG has strengthened its footprint in the health care sector across eastern Australia.

In July 2014, Julie Warner Community Care was acquired and relaunched as Belmore Community Care, a specialist provider of professional home care and domestic assistance for the elderly and people with disabilities.

Belmore Community Care is an experienced provider of support services to the aged and people with disabilities in NSW and ACT. Its focus is on ensuring that we strengthen people’s capacity to live in their own homes with individualised services that encompass their needs, wants, abilities and aspirations. Belmore Community Care is registered with the NDIS (National Disability Insurance Scheme) and is a preferred supplier to the NSW Government Lifetime Attendant Care Scheme.

The November 2014 acquisition of RNS Nursing, which provides staffing for hospital and aged care providers throughout Queensland and northern NSW, complements existing services offered by Belmore Nurses Bureau, ACT Nursing and Belmore Community Care brands. This means ABSG now has a strengthened presence in the provision of healthcare services to Queenslanders, supporting members with their national skills needs.

Labour demand in skills needs industries

As the economy moved into 2015, demand grew for labour in technical areas such as IT, construction and engineering. With employers competing to attract and retain the best employees, greater emphasis is placed on trusted and reliable sources of quality candidates.

In line with labour demands, ABSG acquired Queensland-based Kaytone as a specialist provider of labour hire solutions for the manufacturing, construction, engineering and hospitality industries.

Every day, ABSG is responding to employer needs across white and blue collar permanent and temporary recruitment. These brands include Talent Options, Extrastaff and Extrastaff Apprenticeships.

Australian Business Recruitment Solutions

Performing through peopleMilestones

3,500on-hire staff placed.

95,000 shifts filled through Belmore Nurses.

80,000 hours community and disability support for 1,600 individual clients, provided by Belmore Community Care in NSW and ACT.

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Natasha Stevens, Kingspan Insulated Panels, St Marys Member since 2012–

“We need a recruitment business that understands where we are going and what each role means to us.”

Natasha Stevens is discussing the business journey of Kingspan Insulated Panels – a market-leading manufacturer of high performance insulation panels and building envelope solutions.

Australasian operations commenced in 2006 and have grown rapidly ever since. “In less than 10 years our staff levels have more than doubled with a combination of full time and non-permanent staff.“

Under a preferred supplier agreement, Talent Options has supplied temporary and permanent staff across a broad range of roles in sales, administration, and ICT. The Finance Manager believes the task of sourcing the ideal candidate is made much easier when the recruiter understands the business.

“We have that relationship with Talent Options. It creates a more streamlined process, meaning that we can fill roles more quickly with people that are both a perfect fit for our culture and highly skilled in their discipline.”

CUSTOMER–

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Australian Business Apprenticeships Centre

Skilling the future workforceMilestones

Australian Business Apprenticeships Centre (ABAC) is the only continuous provider of apprenticeship and traineeship services to NSW employers, since the Australian Government outsourced apprenticeship services in 1998. ABAC operates from 28 offices across NSW and the ACT, working closely with industry to raise the profile of these vital career pathways.

A new era of nationwide support

Apprenticeship commencement and completion rates have been negatively impacted over successive years by a number of compounding factors, including National Wage Cases, TAFE fee increases, and reductions in government-funded incentives for employers.

The national chamber movement has responded to this decline with a landmark initiative – Apprenticeship Support Australia (ASA). ASA has been contracted to deliver services under the Australian Government’s new streamlined support-services model, the Australian Apprenticeship Support Network (AASN).

With 74 offices and over 400 staff around the country, ASA has set a goal of lifting apprenticeship commencement and completion rates by servicing every stage of the employment cycle. In this model, new emphasis has been placed on assistance prior to sign-up. Better information and guidance at a decision-making stage can steer the match-up with an employer, leading to a stronger career pathway for the job seeker. The right fit is also more likely to present the employer with a prospective employee who is ideally suited to the business for the long run.

ASA will help all stakeholders navigate the system more effectively through greater use of technology, signalling the long awaited transition to a paperless apprenticeship system.

Expanding through the chamber movement

ABAC spent much of the year working with the Australian Government to provide input on the new AASN program. In what was a great outcome, ASA was awarded a contract to deliver the new streamlined services in all mainland states and the ACT from 1 July 2015 through to 30 June 2018. ABAC’s contract was also expanded to include NSW, ACT and Queensland.

ASA is testament to the vital role played by the national chamber movement, with NSW Business Chamber in partnership with the state chambers in Victoria, Western Australia, and South Australia. As peak business organisations in their respective states, ASA shareholders operate within communities, combining local knowledge with subject expertise in workplace relations, human resources, workplace health and safety and industrial relations.

Skillsroad grows pathways for job seekers

ABAC established skillsroad.com.au as a career portal to support students and job seekers on their career journey. Offering advice, training information and employment opportunities, the site has been operating since 2008 and in 2013 underwent a significant upgrade, part of which was to prepare for the new support program, ASA.

Leveraging much of the capability and resources gained from the previous five years’ involvement in Australian Government Career Adviser and Mentoring programs, Skillsroad has grown an extensive suite of resources. Many of these resources are dedicated to parents and employers, empowering them as primary supporters of career development.

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5,000+ employers participated in coaching workshops.

12,000+NSW and ACT employers assisted with employing apprentices and trainees.

3000+apprentices and trainees personally mentored.

180,000 unique website visits to Skillsroad.

The proven value of mentoring

As part of the transition to the new support program, ABAC’s mentoring program ended on 30 June 2015, with all mentors and apprentices continuing their good work under the AASN banner. Funded by Australian Government, this program was in operation for three years and its learnings underpinned much of the policy input to the new model.

ABAC’s mentors across NSW, ACT and Queensland did an outstanding job, with over 3,000 apprentices supported throughout the program at a retention rate of over 90%. It is now well established that those who progress through the first year of training have a high probability of completion. These results show that ABAC is well on the way to lifting the completion rates of apprentices.

The program’s event series was also immensely successful in assisting employers to recruit, induct, train, and communicate with their apprentices – common factors in apprentice disengagement. Throughout the program, the mentoring team conducted over 70 such events from Cairns through to many regional centres in NSW, with more than 5,000 attendees in total. Given their popularity, these events will continue as part of the new AASN program, which promises an exciting year ahead.

Michael Warren, Landscape Solutions“I began my career as a trainee and worked through the ranks as a tradesman, foreman and project manager,” says Michael Warren of Landscape Solutions. “Now I hold this position where I oversee national safety and the training of over 60 apprentices.”

Michael is the Workplace Health and Safety Training Manager for a company that has grown to become Australia’s number one ‘full-service’ landscape company.

“I think that people who start out as apprentices make better managers as they already understand how the business works.”

Australian Business Apprenticeships Centre (ABAC) consultants work with the business to determine their skills needs, provide advice on training packages, ensure they correctly access any government incentives, source job-ready candidates, and even offer ongoing mentoring services throughout the training process.

APPRENTICESHIP SUPPORT–

Australian Apprenticeship Support Network

State based Chambers

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‘School-leavers don’t have the basic skills they need for the working world!’ and ‘Why aren’t we doing more to help our young people transition from school to training and work environments?’ These are the catchcries NSW Business Chamber hears daily from employers.

Australia has a youth unemployment problem. We also have a skills shortage problem. The reasons are manifold (slow jobs growth, a transitioning economy and university bias in schools to name a few) and the two issues are closely linked.

NSW Business Chamber is tackling both sides of the coin head-on through government advocacy, social partnerships and commercial solutions. Real, tangible measures that close the skills gaps for employers, bolster the economy and ensure our young people have the bright futures they deserve – with special attention given to those from disadvantaged backgrounds. The end goal? A better Australia.

What are we doing about it?

The way NSW Business Chamber sees it, small businesses employ 60% of the workforce in Australia. This puts business in a unique position to drive solutions to youth unemployment.

In this year’s Thinking Business Report, NSW Business Chamber took an in-depth look at how the secondary school system can be improved to deliver better outcomes for young people who do not follow a university pathway. The report found that secondary schooling is currently biased towards a transition to university education, although positive outcomes from Vocational Education and Training (VET)

programs are restoring some of that balance. It warns that more needs to be done due to the changing global demands of business.

Government advocacy

Following recommendations from the Chamber, the NSW Government has committed $27 million for workplace learning for over 40,000 government school students each year who enrol in a vocational education and training course as part of their HSC. This forms part of the Government’s Reskilling NSW package, which includes a number of vocational education and apprenticeship measures to make it easier for at least 240,000 job seekers to gain employment.

Youth unemployment

Disadvantaged young people are particularly at risk of falling into the ‘long-term unemployed’ basket, and NSW Business Chamber’s partnership with the Beacon Foundation is committed to addressing this.

Opposite page:

1. In 2015, NSW Business Chamber hosted a Youth Employment Roundtable, featuring a select group of experts to identify tangible measures to bolster employment. From left, Chamber Deputy President, Professor Trevor Cairney OAM; Chamber Chair of the Workforce Skills Policy Committee, Judith Field; Chamber CEO, Stephen Cartwright; and the Governor of NSW, His Excellency General The Honourable David Hurley.

In line with the Chamber’s recommendation, the NSW Opposition has re-affirmed its commitment to implement a full review of the NSW HSC if elected – the first in nearly 20 years.

Affirmative action

Disadvantaged young people are particularly at risk of falling into the ‘long-term unemployed’ basket, and the Chamber’s partnership with the Beacon Foundation is committed to addressing this.

The Beacon Foundation works with the most disadvantaged schools in NSW to bring industry into the classroom through mentoring, mock interviews and business visits for students. In late 2014, the Chamber

hosted the Beacon Bus Tour – an opportunity for members to visit participating schools in South West Sydney, chat to students and learn about Beacon Foundation activities.

Dedicated programs

The Chamber developed Skillsroad as a unique careers hub for employers, educators, job-seekers, and parents looking for resources and practical tools.

To better prepare youth for the workplace, Skillsroad has developed a Job Fit Test that allows the job seeker to assess their suitability for over 300 potential careers.

Our Australian Business Apprenticeships Centre has expanded nationally to become

Apprenticeship Support Australia. Part recruitment service, part support centre, it matches employers with apprentices and ensures job-seekers, school students and apprentices receive the ongoing support they need every step of the way, including career planning advice, job matching and ongoing mentoring.

The Chamber also created the Australian Business Learning Institute (ABLI) to offer unique VET, business qualifications and postgraduate programs that allow students to finish faster and save money.

240,000 young people will be armed with practical skills they can bring to businesses across NSW, thanks to the Reskilling NSW package.

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Australian Business Consulting & Solutions

The pace of prosperityMilestones

The digital age is about speed. In fast-moving markets where customer loyalty can be won and lost in a touch screen transaction, businesses are staying relevant by actively ‘disrupting’ what they do. But getting on the front foot is increasingly difficult when time, resources and know-how are limited.

With an eye on the horizon, Australian Business Consulting & Solutions (ABCS) focuses on the journey of a business – understanding where it wants to go, and how to get there in the best possible way.

People who know the road

Empathy has made all the difference when delivering key business improvement programs on behalf of the Federal Government, including the Digital Enterprise Program (DEP) and the Entrepreneurs’ Program (EP). Through the DEP, small business operators found the confidence to follow their customers online and position the business for long-term viability. Since commencing in 2013, ABCS has completed 608 one-on-one coaching sessions and delivered 246 group workshops.

No one size fits all. As subject-matter experts in marketing, international trade, HR/WHS compliance and business improvement, ABCS consultants take on problems where the outcomes reflect the bespoke needs of the client. This may involve weeding out risk, improving market share locally or globally, streamlining operational efficiencies, or optimising productivity through people.

Guided by the ideals of the chamber movement, ABCS explores new markets on behalf of business. Backed by the resources of NSW Business Chamber, world-class solutions are delivered back to members and clients in an affordable, customer-centric format.

Removing the export barriers to China

ABCS played a pivotal role in the development and delivery of Export Growth China. As the first program of its kind, Export Growth China offers SMEs a low-cost, low-risk entry point to export that consists of comprehensive end-to-end assistance – from identification of an opportunity to the ultimate export sale.

A prominent feature of the program includes a new purpose-built showroom located within the largest permanent trade centre in Asia. This facility allows Chamber members to showcase their products and services to Chinese buyers.

The program was launched in November 2014 on the same day that the historic China–Australia Free Trade Agreement was signed. Two years in the making, the International Trade Division within ABCS led development in a complex business, stakeholder and regulatory environment.

Guided by the ideals of the chamber movement, ABCS explores new markets on behalf of business.

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608one-on-one coaching sessions.

246group workshops helping business get online through the Digital Enterprise Program.

40,000HR Advance downloads, allowing businesses to create legally compliant documents.

Nick Holden, Modular Wall Systems, Caringbah“If you can dig a hole you can build a wall,” says Nick Holden.

The founder of Modular Wall Systems first showcased composite materials on the ABC television show New Inventors, and while he didn’t win on the night, the phone rang hot the next morning.

“You can build in one day what a bricklayer takes seven days to do,” says Nick. “And it looks the same as a rendered brick wall.”

Weekend warriors and DIY tragics are lapping it up. Much like IKEA, customers receive a flat pack with the necessary components ready to assemble. But Nick is not one for resting on laurels – he wants to take the business to the next level.

He sought guidance from NSW Business Chamber in its capacity as a registered provider of the Federal Government’s Entrepreneurs’ Program. He was quickly put in touch with consultants Terry O’Riordan and Mark Stewart, who went about developing a growth plan for market entry.

“Terry provided a structure and method to where we have to go,” says Nick. “Mark brought experience and grand design, really uncovering the right markets, the right messages, the right products.”

The program also connected the business to a range of support initiatives and a $20,000 Business Growth Grant in matched funds.

“We are now working to an action plan with milestones. This kind of accountability puts credibility to the program. Talk is fine, but you need support to drive it through.”

ENTREPRENEURS’ PROGRAM

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Sharing Australian innovation for global benefit

Reaching out to business communities throughout the advanced and developing world, the international chamber movement pursues a mission that transcends borders. Business cooperation at this level is about guiding responsible economic development in response to the big questions. How can we support business communities and improve society as a whole?

Acting through NSW Business Chamber, ABCS contributes expertise to the chamber movement. The journey began at the World Chambers Congress, which is hosted by the ICC International Chamber of Commerce World Chambers Federation and boasts an international awards program. ABCS claimed the ‘Best Small Business Project’ category at the 2011 Congress in Mexico, repeating the feat in Doha in 2013.

Building on that break-through recognition, ABCS has gone on to secure contracts for the white labelling of diagnostic tools for the Calgary Chamber of Commerce in Canada, and Jeddah Chamber of Commerce in Saudi Arabia.

Not only do the diagnostics help SMEs improve their productivity and profitability, they enable international chambers to benchmark outputs in their regions and grow membership.

Marketing made simple for small business

Marketing is the lifeblood of any business, but is often overlooked or simply can’t be justified in many small businesses. However limited the budget, the Chamber realised that most small businesses within membership were in need of advice – a sounding board for ideas and problem solving.

The Marketing Advice Line was created, drawing on the ABCS marketing consulting unit to offer practical solutions on a shoestring budget. Chamber members can now call the team on any issue relating to their marketing strategy, brand, product and distribution channels and digital marketing.

200products on display in the Shanghai Showroom, connecting 65 business to Chinese buyers.

132,500certified trade documents, enabling businesses to export overseas.

Milestones

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Candori Australia Member since 2014

Across 350 supermarkets in mainland China, consumers are being introduced to a new range of dairy products – and they’re Australian.

Candori Australia, an exporter of powdered milk products sourced from free range dairy farms in Gippsland, Victoria, has established a trade agreement through the Chamber’s Export Growth China program.

“The Export Growth China team in Shanghai had an excellent understanding of our business model, target market and operational capability,” says the company’s Purchasing Officer, Shuang Wang.

“They were able to match us with the right distributor to maximise our exposure in the Chinese market. We’re on the path to achieving export success.”

EXPORT

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Giving businesses an ‘in’ to the world’s biggest marketA new trade agreement with China has removed old barriers and now the Export Growth China program removes the risk and cost for Australian businesses wishing to conquer the world’s biggest consumer market.

November 2014. Australia signs a landmark free trade agreement with China and the export game changes forever. A new frontier – a big one – is now open for Australian SMEs, who can realistically set their sights on the world’s largest consumer market.

Old fears laid to rest

While on a trade delegation to China in 2012, NSW Business Chamber CEO Stephen Cartwright was struck by how well other countries marketed themselves and their products, and yet Australian SMEs were thin on the ground.

Thousands of small and medium-sized enterprises (SMEs) were balking at the prospect of exporting to the world’s largest market. The difficulties associated with the opportunity – whether cultural, regulatory, language-based, or the sheer vastness of the market – were too daunting.

Cartwright had faith in our ability to bridge the gap. He knew we had the contacts, experience and on-the-ground knowledge to walk businesses through the maze and get their products on the shelf.

On his return, our commercial division – Australian Business Solutions Group – was given the brief. The envisaged program would

need to offer a low risk, low cost entry point to export. End-to-end assistance would range from identification of an opportunity to the ultimate export sale.

Export Growth China was launched on the very same day that the China-Australia Free Trade Agreement was signed in November 2014.

Paving the way

The first trade assistance service of its kind, Export Growth China removes the cost and risk of attempting to break into China by matching businesses to the right partners and taking care of compliance concerns (for example, labelling requirements and minimum safety standards). A small financial commitment is all it takes to get products on shelves.

In August 2015, Australian soccer legend Tim Cahill, who lives in Shanghai and is the part-owner of men’s skincare business VitaMan, launched Export Growth China in Shanghai with NSW Minister for Trade, Stuart Ayres MP.

Australian businesses can showcase their products in the dedicated Export Growth China showroom, which operates in a trade district that attracts thousands of potential buyers and distributors each month.

Program participants can receive support at any stage in their export journey. In addition to showcasing products and services, support can include identifying the export readiness of the business, receiving market analysis, and matching with prospective business partners on the ground in China.

Export Growth China

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1: Australian soccer legend and business part-owner, Tim Cahill, attended the launch of Export Growth China in Shanghai. 2: Deputy President of NSW Business Chamber, Trevor Cairney, signs a Memorandum of Understanding with the Shanghai President of the China Council for the Promotion of International Trade, Mr Yu Ping. 3: The Chamber’s Country Manager, Xiaoya Wei with program participant and Managing Director of Akubra Hats, Stephen Keir IV.

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Brand Australia is boomingIn the eyes of Chinese consumers, Australia already has a solid-gold reputation – a friendly neighbour whose products and services are seen as clean, green and trustworthy.

In a video message, Brand Australia’s most enthusiastic ambassador, then Prime Minister Tony Abbott, said: “Now you have a trusted team on the ground in China to promote some of Australia’s best goods and services to potential buyers. This showroom of Australian goods is a first of its kind and will help to increase the sales of our goods and services into China.”

“The Export Growth China showroom provides a wonderful opportunity for Australian businesses like VitaMan to crack the Chinese market. Once they do, they won’t look back,” Tim Cahill.

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Every day, there are employers struggling to find and retain skilled employees. Talent shortages and the churn of staff impact the bottom line of business, whether as visible costs of recruitment, or through lost productivity.

At the same time, many working Australians are seeking opportunities for career progression, but struggle to find the time or funds.

How do these issues fit into the bigger picture? With the downturn in resources, it’s clear that Australia’s place on the world stage depends on growing a knowledge-based economy. Agile, forward-thinking leaders and managers are enablers of productivity in all kinds of workplace – from hungry start-ups and third-generation family businesses, to large factories and corporate offices.

NSW Business Chamber has established the Australian Business Learning Institute (ABLI) in response to these challenges. ABLI offers quality education in affordable and accessible formats – including nationally recognised Vocational Education and Training (VET) qualifications, business degrees and postgraduate programs.

Flexible studies are fit for life

The frantic pace of modern life can deter the would-be student, especially when juggling work, family and everything in between. ABLI has responded by partnering with world-renowned distance education specialists who put the distance online learning student at their core. Flexibility through online delivery enables the student to fit study around lifestyle without compromising the quality of education.

Shaping the next generation of leaders

The next generation of leaders are also targeted by a specialist MBA stream in innovation, enterprise and the circular economy. Subjects include regenerative product design, new business models, reverse logistics and enabling communication technologies.

Local and global partners

ABLI has sourced high quality education providers who are regarded as leaders in their respective disciplines both in Australia and internationally.

Australian Business Learning Institute

Investing in knowledge

“The affordability of ABLI’s programs also makes it more feasible for me, as an employer, to offer professional development to my staff. I wouldn’t think twice about creating this opportunity again – it will happen for sure.”

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Peter Papanikitas, Stonefish International Member since 2015–

“I don’t want bigger firms poaching my employees,” says Peter Papanikitas, the owner of Stonefish International. The wine producer started out in 2000 with a single boutique label and has since grown a family of premium brands. With an eye to expansion in Asian export markets, Papanikitas is determined to go there with the right people alongside him.

“Niko has outstanding potential for the business, and I didn’t want to lose him,” says Papanikitas of his Warehouse and Logistics Manager, Niko Tsattalios. The owner seized the opportunity to enrol his young charge into the Diploma of Business through the Australian Business Learning Institute.

“Education can make him better at his job, but it also shows that the business cares about his future. It’s a way of saying, ‘Well done, mate. We want you to reach even higher now.’”

Investing in people is paying off, with the employer reporting efficiency gains.

“I’ve seen more structure in Niko’s work, better delegation of tasks and monitoring of outcomes. A well-structured warehouse is essential to our business as we expand into China and Thailand.

“The affordability of ABLI’s programs also makes it more feasible for me, as an employer, to offer professional development to my staff. I wouldn’t think twice about creating this opportunity again – it will happen for sure.”

CUSTOMER –

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Australian Business Lawyers & Advisors (ABLA) is an award-winning legal and advisory practice committed to providing practical and trusted advice in workplace relations, corporate, commercial and property law.

ABLA manages and delivers many of the advisory services offered exclusively to NSW Business Chamber members, including the Workplace Advice Line (WAL) and Legal Advice Line. Perennially rated among the most popular entitlements in the Chamber’s annual member survey, the WAL receives over 21,000 employer enquiries every year. Often faced with an escalating situation or potential risk in the workplace, employers breathe much easier once clearly advised on legal compliance. This advice can relate to human resources, industrial relations, or workplace health and safety.

With a daily goal of delivering cost-savings and value to Chamber members, ABLA returned in excess of $300,000 in member discounts on legal fees in the last year alone. The law firm also ran three critical ‘appeals’ in the Federal Court for the Australian Chamber of Commerce and Industry (ACCI) on key employer issues – pro bono (free of charge) at a value of around $100,000.

Prosperity begins in the workplace

The quality of life in Australia originates from the output of workplaces around the country. But in coming years, prosperity will require improved productivity and workforce participation, as highlighted by the Federal Government’s 2015 Intergenerational Report.

To better reflect modern living, more flexible workplace arrangements are required to create the right environment where sustainable economic output is led by a healthy and engaged workforce. For employers to act in the best interests of their employees, without jeopardising the growth of the business – a fair and balanced system is required to safeguard the interests of all parties.

In the pursuit of this outcome, the national chamber movement has identified areas of reform in the current workplace system, as founded by the 2009 Fair Work Act. The Act introduced national harmonisation of workplace legislation, with the Fair Work Commission compressing thousands of previously state-based awards into just 122 modern awards.

ABLA performs a vital role in advocacy on behalf of ACCI – the peak employer body in Australia. In 2014-15, the law firm represented ACCI in the four-yearly review of modern awards.

Annual leave

An increasing number of Australians are stockpiling their annual leave – more than 350,000 years accumulated as a nation. The effects are three-fold: employers struggle with the financial liability, employees are impacted by fatigue and mental health conditions, and overall productivity declines.

ABLA was involved in test case proceedings relating to annual leave provisions in all 122 modern awards. The law firm spearheaded the employer claim, making oral and written submissions and coordinating survey, expert and academic evidence. This exhaustive effort entailed over 3,800 hours of work in 123 hearings, covering over 140 industries and occupations.

The outcome was an extraordinary success, with a Full Bench of the Fair Work Commission granting the employer claim and inserting provisions in modern awards, permitting:

Continued on page 46.

Australian Business Lawyers & Advisors

Clear solutions put business in controlMilestones

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Highly recommendedLawyers’ Weekly Employer of Choice.

Finalist Employment Law Specialist Firm of the Year in the Australasian Law Awards.

3,800 hours of work in 123 hearings covering over 140 industries and occupations.Test case proceedings in four-yearly review of modern awards.

ABLA returned in excess of $300,000 in member discounts on legal fees in the last year alone.

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“A satisfied client is one that is given options and control from the outset.”

Hayden Fox, Head of Litigation & Dispute Resolution, ABLA

Milestones

• employers to direct employees to take paid annual leave in circumstances where employees hold ‘excessive’ annual leave balances

• employees to cash out a portion of annual leave (subject to relevant safeguards)

• employees to be paid annual leave in accordance with their usual pay cycle (as opposed to leave being paid up front) where the employees are paid by Electronic Funds Transfer

• employers to grant employees leave in advance, subject to protections being in place so that the employers are not left short-changed if employees leave employment with negative leave balances.

Reducing red tape for retailers

Unlike buying and selling land in NSW, there is no commonality when it comes to the leasing process. As a consequence, retailers often find themselves dogged by red tape and complexity in the leasing process.

The Office of the Small Business Commissioner (OSBC) set about creating a new form of retail lease, entitled the New Approved Retail Lease (NARL), together with a retail lease guidance sheet for parties to follow when entering a standalone retail lease – that is, not in a shopping centre.

ABLA’s leasing expert, Warwick LaHood, was canvassed by the OSBC to work as part of the OSBC committee in developing the NARL. This role involved providing the first draft to kick off the process, and in bringing the various interests on the committee together, both landlords and tenants.

“The lease breaks new ground in complying across the board and creating a smooth end-to-end experience,” says Warwick.

“Rather than being distracted by the legal drafting process, the retail tenant can focus on what’s best for the business, such as the duration of lease, fit out considerations and other commercial considerations.”

Currently, the NARL is near completion.

A better way to handle disputes and commercial litigation

Disputes can impact every aspect of professional life and often prove costly to all concerned. A contract dispute between two parties can take many shapes – the disgruntled customer disputing the service provided by a business; the business partner disputing the terms of a joint-venture; the landlord and tenant disputing provisions of a lease.

Having recently joined ABLA as Head of Litigation and Dispute Resolution, Hayden Fox brings almost 19 years’ experience in the field.

“A satisfied client is one that is given options and control from the outset,” says Hayden. Before any course of action, the expert provides a clear legal analysis of the dispute, mapping out the available options, and weighing the cost and risk of each course of action. For instance, the client can weigh the merit of reaching a settlement with the other party, against court proceedings.

“In essence, I provide the legal tools for the client to make a decision that makes most sense to their business.”

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Recommended status Leading Employment Law Firm – Sydney in the Doyle’s Guide.

Recommended statusin Best Employment Lawyer – Sydney in the Doyle’s Guide, for Joe Murphy, Director – Workplace.

LEGAL ADVICE LINE–

Samantha Hain, Regional Integrated Marketing, Orange Member since 2010–

“Well I can’t, basically!”

Samantha Hain articulates the impossibility of a small business owner becoming a legal expert while juggling day-to-day operations. It was an issue in relation to digital intellectual property that prompted her to call the legal team at NSW Business Chamber.

“When I called the Legal Advice Line, I was put straight through to a specialist.

“The fact that someone like me – a little sole operator – could have access to that level of specialty in a single phone call was outstanding. It enabled me to take control of the situation as soon as it arose, and at next-to-nothing cost”, says Samantha, who operates from Central West NSW.

“The fact that someone like me – a little sole operator – could have access to that level of specialty in a single phone call was outstanding.”

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NSW Business Chamber Councillors as at 30 June 2015

Honorary Life Governors as at 30 June 2015

Tony Dormer

Trevor Cairney, OAM

Sue Baker-Finch

Tom Bowers

Ellie Brown

Janine Cullen, OAM

Rod Dever

Les Dion

Judith Field

Sally Fielke

Gary Fox

Alvan Freeman

Paul Goonan

Lyall Gorman

Stephen Grabowski

Kate Gunn

Samantha Hain

Simon Harrop

Dirk Hertford

Stephen Joyce

Lyn Lewis-Smith

Bruce Mackenzie

Brett Manwaring

Michelle Melbourne

Warwick McLean

Greg McNamara

Graham Morgan

Ian Pedersen

Ian Penfold

Greg Price

Daniel Rowan

Ross Taggart

Marjolyn Thomas

Dianne Tipping

Nola Watson

Terry Wetherall

Kerry Wilson

David Willcocks

Mr Warren D Adcock OBE appointed February 1986

Mr John T Cameron appointed November 1999

Mr Neville Sawyer AM appointed November 2005

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Financial report

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NSW Business Chamber Limited Directors’ report

30 June 2015

The directors present their report, together with the financial

statements, on the consolidated entity (referred to hereafter

as the ‘consolidated entity’) consisting of NSW Business

Chamber Limited (referred to hereafter as the ‘company’ or

‘parent entity’) and the entities it controlled at the end of, or

during, the year ended 30 June 2015.

Directors

The following persons were directors of NSW Business

Chamber Limited during the whole of the financial year and

up to the date of this report, unless otherwise stated:

A F Dormer (President)

T H Cairney (Vice President)

E T Brown

B A Manwaring

G J McNamara

I B Penfold

N Watson

T C Wetherall

L N Gorman (appointed on 28 November 2014)

K A Howard (resigned on 28 August 2014)

Objectives

The consolidated entity’s core mission is to create a

better Australia by maximising the potential of Australian

businesses.

The consolidated entity’s vision encompasses being NSW’s

premier business organisation for SME, mid-sized and large

businesses; the recognised strong and respected voice

for business in NSW; the pre-eminent Thought Leader

and advocate for business; and to invigorate business

through the delivery of a wide range of relevant, quality and

innovative advice, services and solutions.

Strategy for achieving the objectives

The consolidated entity’s strategy to deliver on the vision

includes:

• Attracting, developing and retaining the best and the

brightest talent in the market;

• Investing in enabling technology to support stability,

member/client engagement and product/service delivery

and innovation;

• Focusing on research and business engagement to

develop thought leadership reports that address issues

impacting on business;

• Profitable growth through a concentration on core activities

and competencies and through targeted acquisitions;

• Considered, effective and relevant governance to maximise

the value provided to members, clients and the business

community;

• Maximising returns from a diversified investment portfolio

to support its activities and to fund strategic projects as

well as capability development to anticipate and

pro-actively deliver on members/clients’ needs; and

• Championing a collaborative chamber network to exert

impactful influence on government at all levels, local, state

and federal, to benefit business and wider Australian

community.

Principal activities

During the financial year, the principal activity of the

consolidated entity continued to be an employer association,

to promote, encourage, maintain and assist manufacturing

industry, trade and commerce in Australia through the

provision of business services, support and advocacy.

Performance measures

The consolidated entity’s performance is constantly

measured against the following key performance indicators:

• Financial performance to budget, forecast and benchmark;

• Member and client satisfaction;

• Policy and advocacy outcomes;

• Media exposure; and

• Various operational metrics appropriate to specific

business activities.

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NSW Business Chamber Limited Directors’ report

30 June 2015

Information on directors

Name: Anthony F Dormer

Title: President

Qualifications: FCA, CTA, MAICD

Experience and expertise: Tony was elected President

in February 2014. He is the Managing Director of a multi-

discipline business advisory firm that he established 37 years

ago. Kreston Dormers has developed over that period to

a point where there are now divisions in business advisory

and development, taxation and compliance, IT and financial

planning. Kreston Dormers is also a member of one of

the largest accounting networks in the world, Kreston

International. Tony’s personal specialist skills comprise

mergers and acquisitions, taxation as well as business

development issues generally for small and medium sized

businesses. He is the current Chairman of Kreston Australia

and New Zealand, and was on the International Board of

Kreston for eight years. He has been a Board Member

and Councillor with the NSW Business Chamber since

2007. He was former Chairman of one of the largest event

management companies in Australia. He is also a Director of

a number of other client companies.

Special responsibilities: Ex officio of all Committees

Name: Professor Trevor H Cairney OAM

Title: Vice President

Qualifications: BA, M. Litt, PhD, GAICD

Experience and expertise: Trevor is Chief Executive

Officer of New College at the University of NSW (‘UNSW’),

which provides accommodation services for university

students. He is responsible for leadership of the company,

operational & stakeholder management, welfare of residents

and development. He has an international reputation as a

researcher in education, training and regional development.

Previous leadership roles include Pro Vice-chancellor

(Research & Development), Dean of Education, and Director

of the Centre for Regional Research and Innovation. He has

contributed to business and industry in many ways over the

last 20 years, including directorships and chairmanships

of various technology-based companies and industry

bodies, the judging of industry awards and advocacy for the

economic, social & cultural development of Western Sydney.

He was first elected as a director of the State Chamber of

Commerce (NSW) in 1997 and was President from 2001 to

2009. He led the former State Chamber of Commerce (NSW)

to merge with Australian Business Ltd (‘ABL’) in 2007. He

has been a director of the NSW Business Chamber since

2007, is current Vice President, and has served in varied ways

including as a member of the Investment Committee, the

Audit , Risk and Compliance Committee and as a director of

the Australian Business Foundation.

Special responsibilities: Member of the Investment

Committee

Name: Eleanor T Brown

Title: Non-executive director

Qualifications: BBus: Marketing, Cert IV TAA, Cert IV Beauty

Therapy, GAICD

Experience and expertise: Ellie was until recently the owner-

operator of a well-established multi-site/multi-discipline small

business in regional NSW in the retail, event management,

health and wellbeing, hospitality and industrial supply sectors.

Joining the Chamber movement over 15 years ago, Ellie was

the President of the Orange Business Chamber for five years,

the founding President of the Central West Business Chamber

and joined the NSW Business Chamber as a councillor in

2005. Ellie was named in the AFR and Westpac 100 Women of

Influence Awards in 2014. Ellie was named Orange Electorate

Woman of the Year in 2011, for her work within the business

community and her involvement with the Business Chamber.

Recognised for combining her tertiary business qualifications

with real-life, hands-on experience and examples, Ellie is

contracted by TAFE Western Institute to develop and deliver

business management programs and facilitate management

workshops. She regularly delivers seminars to regional areas

to assist businesses and communities to grow and embrace

change and innovation in the retail environment. Ellie is

currently Chair of Racing Orange, Chair of CCTV Audit

Committee, a member of the Police Community Safety

Precinct and a former member of the Board of the Business

Enterprise Centre Central West. Ellie maintains ownership of

Ellie Brown Business Solutions, a business consulting company.

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NSW Business Chamber Limited Directors’ report

30 June 2015

Special responsibilities: Chair of the Human Resources

& Succession Committee and member of the Audit, Risk &

Compliance Committee

Name: Lyall N Gorman

Title: Non-executive director

Qualifications: Dip Teach, BEd, MEd Admin

Experience and expertise: Lyall is a councillor of NSW

Business Chamber and was elected to the Board in 2014.

He is currently the Group CEO of the Cronulla Sharks and

is currently a Director of Cricket NSW. In June 2010 he was

appointed by Football Federation Australia as Head of

the Hyundai A-League and in May 2012 as the founding

Executive Chairman of the Western Sydney Wanderers, a

position he held until July 2014. Lyall is the former Executive

Director of an ASX listed public company (a merchant bank

and investment holding company specialising in corporate

finance, corporate advisory, strategic investment, property

and asset management) and was formerly its Executive

Director Finance and Administration. He was the founding

CEO and subsequently Executive Chairman of the Central

Coast Mariners, one of the eight founding clubs in the

new national football competition, the Hyundai A-League.

Lyall was extensively involved as the NSW Manager for the

implementation and management of the Commonwealth

Government Block Grant Authority capital construction

program involving the assessment of project viability,

risk analysis, financial overseeing and monitoring of the

construction of property projects valued in excess of $50

million per annum.

Special responsibilities: Member of the Human Resources

& Succession Committee and member of the Commercial

Services Committee

Name: Brett A Manwaring

Title: Non-executive director

Qualifications: Bachelor of Economics (Accounting)

Experience and expertise: Brett joined NSW Business

Chamber as a councillor in 2009 before being elected to the

Board in 2012. Brett is a director of the Illawarra Business

Chamber and a director of an Australasian advisory firm PPB

Advisory. Prior to joining PPB Advisory in 2008, Brett was

the Chief Operating Officer and Chief Financial Officer of

a major Australian based textiles manufacturing, wholesale

and distribution group. In addition, Brett has in excess of ten

years banking and finance experience, including roles with

GE Capital, St George Bank and the Commonwealth Bank of

Australia.

Special responsibilities: Chair of the Commercial Services

Committee, member of the Investment Committee and

member of the Audit, Risk and Compliance Committee

Name: Gregory J McNamara

Title: Non-executive director

Qualifications: AICD

Experience and expertise: Greg joined the NSW Business

Chamber as a councillor in 2013 before being elected to the

Board in 2014. Greg has spent his entire life working in the

agricultural sector, firstly as a dairy share farmer, then moving

to farm ownership in his mid-twenties. Greg currently runs

a 300-strong dairy herd in partnership with his wife Sue and

son Todd at Goolmangar, near Lismore. He has extensive

experience across the agricultural sector, including dairy,

beef, pigs, horticulture and animal genetics. Greg has also

been a Director of Norco Co-operative Limited since 1996.

In addition to holding the position of Chairman of the Board

of Directors since 1999, he is Chairman of the Executive and

Remuneration Committees and a member of the Capital

Repayment and Member Services Committees. Greg is a

member of the Australian Institute of Company Directors

(‘AICD’) and has previously completed their Company

Directors’ Course. He regularly attends AICD short courses

and director briefings to enhance and update his skills.

Special responsibilities: Member of the Audit, Risk

& Compliance Committee and member of the Human

Resources & Succession Committee

53

NSW Business Chamber Limited Directors’ report

30 June 2015

Name: Ian B Penfold

Title: Non-executive director

Qualifications: FAICD

Experience and expertise: Ian was appointed to the

Board of Australian Chamber of Commerce and Industry

in 2007. He is a Past President and has been a councillor

of NSW Business Chamber since 1997. An experienced

Chairman and Chief Executive, Ian’s particular skills and

experience were acquired as the head of major corporations

with licenses for well-known international retail brands. Ian

is a former Chairman and Managing Director of Speedo

Australia, and Chairman and President of Pentland Australia,

which in addition to Speedo, owned the license for other

international brands including Lacoste and Ellesse. He is also

a former Managing Director of Cork International, a leading

consumer products business with international brands and

of Charles Parsons & Company Pty Ltd, a major subsidiary

of the Charles Parsons Group - a multi-faceted supplier

and converter of textile products in Australia. Ian is also

Defence Reserves Support Council Sydney Metropolitan

Regional Chairman, Director of Australian Business Lawyers &

Advisors, Director, Hunter Business Chamber and Committee

Member, Corrective Industries Consultative Committee.

Special responsibilities: Chair of Australian Business

Lawyers & Advisors, member of the Commercial Services

Committee and member of the Investment Committee

Name: Nola Watson (appointed on 20 February 2015)

Title: Non-executive director

Qualifications: BA Dip Ed (Syd) Master Public Policy (ANU),

FAICD

Experience and expertise: Nola Watson is a councillor

of NSW Business Chamber and was elected to the board

in 2014. Nola Watson is Group General Manager, Risk and

Governance at Insurance Australia Group (‘IAG’), Australia’s

largest general insurance company with operations across

Australia, New Zealand and Asia. She has held a number

of Senior Executive positions in the IAG group, managing

portfolios covering Risk, Business Partnerships, Government

& International Relations, Corporate Affairs, and Customer

& Community. Prior to IAG, Nola spent many years in senior

executive positions within Commonwealth and New South

Wales governments. Amongst other roles, she was part of

the executive leadership team for the Sydney 2000 Olympics,

and also served in a diplomatic position in Washington DC.

Nola has a broad range of Board and Committee experience,

gained over the last 15 years. She is currently a member of

the Risk and Audit Committee of the Centenary Institute for

Medicine and Cell Biology. For four years, she was a Director

of the IAG and NRMA Superannuation Board and Chair of

its Audit and Risk Committee. She has served as a Director

of Australian Services Roundtable, Business for Millennium

Development and the State Records Authority of NSW.

Special responsibilities: Chair of the Audit, Risk &

Compliance Committee

Name: Terence C Wetherall

Title: Non-executive director

Qualifications: Graduate Diploma in Urban Planning,

Associate Diploma in Property Valuation, GAICD, Justice of

the Peace

Experience and expertise: Terry was elected President in

February 2012, was Deputy President for two years prior to

that and has been a councillor of NSW Business Chamber

since 2001. He has over 26 years’ experience in providing

a range of specialist town planning and property valuation

services. Terry operates his business, TCW Consulting

in Wollongong. He has held numerous senior positions

in the Illawarra, including President of the Wollongong

Chamber of Commerce and President of the Illawarra

Business Chamber. He is a member of various professional

associations, including the Australian Property Institute (‘API’)

and Planning Institute of Australia (‘PIA’), Terry is a respected

opinion leader within the property industry, particularly for

his understanding of regional issues. He is also the Deputy

President of Australian Chamber of Commerce and Industry

and Chair of its Audit and Risk Committee. Terry was recently

appointed as a Director of CareSuper.

Special responsibilities: Chair of the Investment Committee

and member of the Commercial Services Committee

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NSW Business Chamber Limited Directors’ report

30 June 2015

Meetings of directors

The number of meetings of the company’s Board of Directors (‘the Board’) and of each Board committee held during the year

ended 30 June 2015, and the number of meetings attended by each director were:

Full Board Investment Audit, Risk & ComplianceAttended Held Attended Held Attended Held

Anthony F Dormer 5 6 3 4 3 4 Eleanor T Brown 6 6 - - 3 4 Trevor H Cairney 6 6 4 4 - -Lyall Gorman 3 4 - - - -Brett A Manwaring 6 6 4 4 4 4 Gregory J McNamara 6 6 - - 4 4 Ian B Penfold 6 6 4 4 - -Nola Watson 6 6 - - 4 4 Terence C Wetherall 5 6 3 4 - -

Human Resources and Succession Commercial Services Council

Attended Held Attended Held Attended HeldAnthony F Dormer 3 4 7 7 4 4 Eleanor T Brown 3 4 - - 4 4 Trevor H Cairney 4 4 - - 4 4 Lyall Gorman 1 2 3 3 3 4 Karen A Howard - - 1 1 1 1 Brett A Manwaring - - 7 7 3 4 Gregory J McNamara 2 2 4 4 3 4 Ian B Penfold - - 7 7 3 4 Nola Watson 2 2 - - 3 4 Terence C Wetherall - - 7 7 4 4

Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee.

The President is an ex officio member of all Committees.

The Chief Executive Officer is an ex officio member of all Committees except the Audit, Risk & Compliance Committee.

55

NSW Business Chamber Limited Directors’ report

30 June 2015

Corporate governance

The consolidated entity is committed to ensuring that its policies and practices reflect a high standard of corporate

governance. The Board considers that the governance framework and adherence to that framework are fundamental in

demonstrating that the directors are accountable to stakeholders and are appropriately overseeing the management of

risk and the future direction of the consolidated entity. The Board voluntarily provides a corporate governance statement

to enhance transparency and communication with stakeholders in relation to its corporate governance practices.

The latest corporate governance statement which was approved by the Board on 1 September 2015 can be found

at http://www.nswbusinesschamber.com.au/About-Us/Corporate-governance.

Contributions on winding up

In the event of the company being wound up, ordinary members are required to contribute a maximum of $10 each. The total

amount that members of the company are liable to contribute if the company is wound up is $58,710 based on 5,871 current

ordinary members.

The Constitution does not permit the return of capital or the distribution of surplus by way of dividend to members.

Rounding of amounts

The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission,

relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Class Order to the nearest

thousand dollars, or in certain cases, the nearest dollar.

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 immediately

follows this report.

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

A F Dormer N Watson

Director Director

1 September 2015

Sydney

56

NSW Business Chamber Limited Auditor’s Independence Declaration

30 June 2015

57

NSW Business Chamber Limited Contents

30 June 2015

Contents

Page

Statement of profit or loss and other comprehensive income 58

Statement of financial position 59

Statement of changes in equity 60

Statement of cash flows 61

Notes to the financial statements 62

Directors’ declaration 93

Independent auditor’s report to the members of NSW Business Chamber Limited 94

General information

The financial statements cover NSW Business Chamber Limited as a consolidated entity consisting of NSW Business Chamber

Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian

dollars, which is NSW Business Chamber Limited’s functional and presentation currency.

NSW Business Chamber Limited is a not-for-profit incorporated association, incorporated and domiciled in Australia.

Its registered office and principal place of business is:

Level 15

140 Arthur Street

North Sydney NSW 2060

A description of the nature of the consolidated entity’s operations and its principal activities are included in the directors’

report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 1 September 2015. The

directors have the power to amend and reissue the financial statements.

All press releases, financial reports and other information are available on the company website: nswbusinesschamber.com.au

58

NSW Business Chamber Limited Statement of profit or loss and other comprehensive income

For the year ended 30 June 2015

ConsolidatedNote 2015 2014

$’000 $’000

Revenue 3 140,064 122,716

Gains and other income 4 32,910 41,307 Government grants 5 5,765 10,219

ExpensesAdvertising and marketing expense (2,765) (3,397)Direct salary and other costs of providing services (77,848) (60,493)Consultants, governance, legal and professional expenses (3,639) (4,656)Employee benefits expense (63,314) (58,608)Events and training (3,947) (3,910)Depreciation and amortisation expense 6 (1,977) (2,033)Finance and investment costs (2,089) (2,548)Impairment reversal/(expense) 6 777 (3,070)Information technology expense (3,257) (2,917)Motor vehicle expense (2,922) (3,133)Rent, building and occupancy costs (5,581) (5,573)Telecommunication expense (3,174) (2,910)Travel and entertaining expense (2,339) (2,011)Other expenses (3,244) (2,601)

Surplus before income tax expense 3,420 16,382

Income tax expense 7 - -

Surplus after income tax expense for the year 3,420 16,382

Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year 3,420 16,382

Surplus for the year is attributable to:Non-controlling interest (72) 144 Members of NSW Business Chamber Limited 21 3,492 16,238

3,420 16,382

Total comprehensive income for the year is attributable to:Non-controlling interest (72) 144 Members of NSW Business Chamber Limited 3,492 16,238

3,420 16,382

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

59

NSW Business Chamber Limited Statement of financial position

As at 30 June 2015

ConsolidatedNote 2015 2014

$’000 $’000

Assets

Current assetsCash and cash equivalents 8 10,515 7,196 Trade and other receivables 9 24,087 16,853 Financial assets at fair value through profit or loss 10 193,779 198,870 Investments in cash managed trusts 11 115,334 113,953 Other 12 1,344 1,090 Total current assets 345,059 337,962

Non-current assetsProperty, plant and equipment 13 3,492 4,227 Intangibles 14 18,797 16,623 Total non-current assets 22,289 20,850

Total assets 367,348 358,812

Liabilities

Current liabilitiesTrade and other payables 15 11,965 10,263 Employee benefits 16 5,542 4,637 Provisions 17 4,461 5,823 Other 18 9,452 5,916 Total current liabilities 31,420 26,639

Non-current liabilitiesEmployee benefits 19 1,422 1,096 Provisions 20 659 650 Total non-current liabilities 2,081 1,746

Total liabilities 33,501 28,385

Net assets 333,847 330,427

EquityRetained surpluses 21 332,606 329,114 Equity attributable to the members of NSW Business Chamber Limited 332,606 329,114 Non-controlling interest 22 1,241 1,313

Total equity 333,847 330,427

The above statement of financial position should be read in conjunction with the accompanying notes.

60

NSW Business Chamber Limited Statement of changes in equity

For the year ended 30 June 2015

Retained surpluses

Non-controlling

interest

Total equity

$’000 $’000 $’000ConsolidatedBalance at 1 July 2013 312,876 1,169 314,045

Surplus after income tax expense for the year 16,238 144 16,382

Other comprehensive income for the year, net of tax - - -

Total comprehensive income for the year 16,238 144 16,382

Balance at 30 June 2014 329,114 1,313 330,427

Retained surpluses

Non- controlling

interest

Total equity

$’000 $’000 $’000ConsolidatedBalance at 1 July 2014 329,114 1,313 330,427

Surplus/(deficit) after income tax expense for the year 3,492 (72) 3,420

Other comprehensive income for the year, net of tax - - -

Total comprehensive income for the year 3,492 (72) 3,420

Balance at 30 June 2015 332,606 1,241 333,847

The above statement of changes in equity should be read in conjunction with the accompanying notes.

61

NSW Business Chamber Limited Statement of cash flows

For the year ended 30 June 2015

ConsolidatedNote 2015 2014

$’000 $’000

Cash flows from operating activitiesReceipts from customers (inclusive of GST) 141,689 127,804 Receipts from members (inclusive of GST) 6,200 5,869 Dividends and investment income 16,024 17,462 Net withdrawal from financial assets at fair value 4,572 (9,840)Payments to suppliers and employees (inclusive of GST) (162,044) (140,076)

Net cash from operating activities 35 6,441 1,219

Cash flows from investing activitiesPayment for purchase of business, net of cash acquired 31 (2,447) (968)Payments for property, plant and equipment 13 (676) (940)Payments for intangibles 14 - (315)Proceeds from disposal of property, plant and equipment 1 33

Net cash used in investing activities (3,122) (2,190)

Cash flows from financing activitiesNet cash from financing activities - -

Net increase/(decrease) in cash and cash equivalents 3,319 (971)Cash and cash equivalents at the beginning of the financial year 7,196 8,167

Cash and cash equivalents at the end of the financial year 8 10,515 7,196

The above statement of cash flows should be read in conjunction with the accompanying notes.

62

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 1. Significant accounting policiesThe principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New, revised or amending Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following new, revised or amending Accounting Standards and Interpretations are most relevant to the consolidated entity:

AASB 10 Consolidated Financial Statements

The consolidated entity has applied AASB 10 from 1 July 2014, which has a new definition of ‘control’. Control exists when the reporting entity is exposed, or has the rights, to variable returns from its involvement with another entity and has the ability to affect those returns through its ‘power’ over that other entity. A reporting entity has power when it has rights that give it the current ability to direct the activities that significantly affect the investee’s returns. The consolidated entity not only has to consider its holdings and rights but also the holdings and rights of other shareholders in order to determine whether it has the necessary power for consolidation purposes.

AASB 11 Joint Arrangements

The consolidated entity has applied AASB 11 from 1 July 2014. The standard defines which entities qualify as joint arrangements and removes the option to account for joint ventures using proportional consolidation. Joint ventures, where the parties to the agreement have the rights to the net assets are accounted for using the equity method. Joint operations, where the parties to the agreements have the rights to the assets and obligations for the liabilities, will account for its share of the assets, liabilities, revenues and expenses separately under the appropriate classifications.

AASB 12 Disclosure of Interests in Other Entities

The consolidated entity has applied AASB 12 from 1 July 2014. The standard contains the entire disclosure requirement associated with other entities, being subsidiaries, associates, joint arrangements (joint operations and joint ventures) and unconsolidated structured entities. The disclosure requirements have been significantly enhanced when compared to the disclosures previously located in AASB 127 ‘Consolidated and Separate Financial Statements’, AASB 128 ‘Investments in Associates’, AASB 131 ‘Interests in Joint Ventures’ and Interpretation 112 ‘Consolidation - Special Purpose Entities’.

AASB 127 Separate Financial Statements (Revised), AASB 128 Investments in Associates and Joint Ventures (Reissued) and AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards

The consolidated entity has applied AASB 127, AASB 128 and AASB 2011-7 from 1 July 2014. AASB 127 and AASB 128 have been modified to remove specific guidance that is now contained in AASB 10, AASB 11 and AASB 12 and AASB 2011-7 makes numerous consequential changes to a range of Australian Accounting Standards and Interpretations. AASB 128 has also been amended to include the application of the equity method to investments in joint ventures.

Other amending Accounting Standards and Interpretations adopted by the consolidated entity include:

• AASB 2012-3 Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities;

• AASB 2012-10 Amendments to Australian Accounting Standards - Transition Guidance and Other Amendments;

• AASB 2013-3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets;

• AASB 2013-4 Amendments to Australian Accounting Standards - Novation of Derivatives and Continuation of Hedge Accounting;

• AASB 2014-1 Amendments to Australian Accounting Standards (Parts A to C); and

• Interpretation 21 Levies.

Basis of preparation

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001, as appropriate for not-for-profit oriented entities.

Historical cost convention

These financial statements are prepared under the historical cost convention, except for financial assets at fair value through profit or loss.

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 30.

Principles of consolidation

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of NSW Business Chamber Limited (‘company’ or ‘parent entity’) as at 30 June 2015 and

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

the results of all subsidiaries for the year then ended. NSW Business Chamber Limited and its subsidiaries together are referred to in these financial statements as the ‘consolidated entity’.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit balance.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss.

Revenue recognition

Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of allowances, rebates and amounts collected on behalf of third parties.

Fee for services and other related income

Fee for service income, including apprenticeship placement fees and legal services income, are brought to account on delivery of service in accordance with engagement letters or other relevant contracts or agreements. Other products’ income is brought to account when goods are despatched to a customer pursuant to a sales order and the associated risks have passed to the customer.

Recruitment services

Recruitment services income are brought to account when on-hire staff provide services in accordance with the recruitment contract.

Membership fees

Membership fees comprise annual subscriptions for the year and are recognised as revenue on a monthly basis over the period of membership.

Training services

Training services income are brought to account when the training is provided.

Other revenue

Other revenue is recognised when it is received or when the right to receive payment is established.

Investment income

Dividend income is recognised when it is received or when the right to receive payment is established. Interest income from managed investments is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Government grants

Grants from government are recognised when received.

Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

64

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Trade receivables are generally due for settlement within 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and default or delinquency in payments (more than 60 days overdue) are considered indicators that the trade receivable may be impaired. The amount of the impairment allowance is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.

Other receivables are recognised at amortised cost, less any provision for impairment.

Associates

Associates are entities over which the consolidated entity has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the consolidated entity’s share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment.

When the consolidated entity’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured long-term receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate.

The consolidated entity discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate’s carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

Investments and other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. They are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on the

purpose of the acquisition and subsequent reclassification to other categories is restricted.

Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are either: i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit; or ii) designated as such upon initial recognition, where they are managed on a fair value basis or to eliminate or significantly reduce an accounting mismatch. Fair value movements are recognised in profit or loss.

Impairment of financial assets

The consolidated entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated. In the case of equity investments classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator that the assets are impaired.

The amount of the impairment allowance for financial assets carried at cost is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for similar financial assets.

Property, plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment over their expected useful lives as follows:

Leasehold improvements 3-10 years

Furniture, fixtures and equipment 3-10 years

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Leases

The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to the ownership of leased assets, and operating leases, under which the lessor effectively retains substantially all such risks and benefits.

Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets, or if lower, the present value of minimum lease payments. Lease payments are allocated between the principal component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining balance of the liability.

Leased assets acquired under a finance lease are depreciated over the asset’s useful life or over the shorter of the asset’s useful life and the lease term if there is no reasonable certainty that the consolidated entity will obtain ownership at the end of the lease term.

Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-line basis over the term of the lease.

Intangible assets

Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

Goodwill

Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are not subsequently reversed.

Customer lists

Customer lists acquired in a business combination are amortised on a straight-line basis over the period of their expected benefit, being their finite useful life of five years.

Software development

Costs incurred in developing products or systems and costs incurred in acquiring software and licences that will contribute to future period financial benefits through revenue generation and/or cost reduction are capitalised. These costs include the external direct costs of materials and services. Amortisation is calculated on a straight line basis over the expected useful lives between three and five years. IT development costs include only those costs directly attributable to the development phase and are only recognised following completion and where the consolidated entity has an intention and ability to use the asset.

Intellectual property

Intellectual property is amortised on a straight line basis over the finite useful life of three years.

Impairment of non-financial assets

Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

Trade and other payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Provisions

Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Employee benefits

Short-term employee benefits

Liabilities for employee benefits leave expected to be settled within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Non-accumulating sick leave is expensed to profit or loss when incurred.

Other long-term employee benefits

Liabilities for employee benefits not expected to be settled within 12 months of the reporting date are measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The consolidated entity recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a

reassessment of the lowest level of input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

Business combinations

The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree’s identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.

On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity’s operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer’s previously held equity interest in the acquirer.

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value.

Goods and Services Tax (‘GST’) and other similar taxes

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.

Comparatives

Comparatives have been reallocated to be aligned with current year presentation. The reallocations did not affect the surplus for the year.

Rounding of amounts

The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2015. The consolidated entity’s assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below.

AASB 9 Financial Instruments

This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’. AASB 9 introduces new classification and measurement models for financial assets. New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements will use an

‘expected credit loss’ (‘ECL’) model to recognise an allowance. The consolidated entity will adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed.

AASB 15 Revenue from Contracts with Customers

This standard is currently applicable to annual reporting periods beginning on or after 1 January 2017. Exposure Draft (ED 263) ‘Effective Date of AASB 15’ proposes to defer the application date by one year (1 January 2018). The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services). The consolidated entity expects to adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed.

Other new or amending accounting standards issued but not mandatory are not considered to have a significant impact on the financial statements of the consolidated entity as they provide either clarification of existing accounting treatment or editorial amendments. These standards (and their operative dates) include:

• AASB 14 Regulatory Deferral Accounts (from 1 January 2016);

• AASB 2014-1 Amendments to Australian Accounting Standards (Part D from 1 January 2016 and Part E from 1 January 2018);

• AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations (from 1 January 2016);

• AASB 2014-4 Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation (from 1 January 2016);

• AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 (from 1 January 2017);

• AASB 2014-6 Amendments to Australian Accounting Standards – Agriculture: Bearer Plants (from 1 January 2016);

• AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) (from 1 January 2018);

• AASB 2014-8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) (from 1 January 2015);

• AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements (from 1 January 2016);

• AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (from 1 January 2016);

• AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012–2014 Cycle (from 1 January 2016);

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

• AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101(from 1 January 2016);

• AASB 2015-3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality (from 1 July 2015);

• 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent (from 1 July 2015);

• AASB 2015-5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception (from 1 January 2016); and

• AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities (from 1 July 2016).

Note 2. Critical accounting judgements, estimates and assumptionsThe preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Provision for impairment of receivables

The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtors financial position.

Fair value measurement hierarchy

The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective.

Estimation of useful lives of assets

The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Goodwill

The consolidated entity tests annually, or more frequently if events or changes in circumstances indicate impairment, whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 1. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. These calculations require the use of assumptions, including estimated discount rates based on the current cost of capital and growth rates of the estimated future cash flows.

Impairment of non-financial assets other than goodwill

The consolidated entity assesses impairment of non-financial assets other than goodwill at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.

Employee benefits provision

As discussed in note 1, the liability for employee benefits expected to be settled more than 12 months from the reporting date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

Control of entities where less than half of voting rights held

Management have determined that the consolidated entity controls Hunter Business Chamber Limited and Illawarra Business Chamber Limited, even though it holds no voting rights of these Chambers. Control is established via contractual agreements with these Chambers.

Management have also determined that the consolidated entity has control over Australian Business Foundation Limited and Sydney Chamber of Commerce, companies limited by guarantee. Control is established via sole membership and voting rights that the NSW Business Chamber Limited has in these entities.

69

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 3. Revenue

Consolidated2015 2014

$’000 $’000

Sales revenueFee for service and other related income 35,935 38,956 Recruitment services 96,911 76,364 Membership fees 5,688 5,371 Training services 1,328 1,634

139,862 122,325

Other revenueRents and sub-lease rentals 137 151 Interest income from current accounts in the bank 65 240

202 391

Revenue 140,064 122,716

Note 4. Gains and other income

Consolidated2015 2014

$’000 $’000

Net fair value gain on investments 16,886 23,845 Dividend income 12,014 15,000 Interest income from managed investments 4,010 2,462

Gains and investment income 32,910 41,307

Note 5. Government grants

Consolidated

2015 2014

$’000 $’000

Government grants 5,765 10,219

Government grants are recognised as other income by the consolidated entity during the financial year. A number of these grants extend into 2016 and will be acquitted in accordance with the terms of the grants. There are no unfulfilled conditions or contingencies relating to the 2015 year attached to these grants. The consolidated entity did not benefit from any other forms of government assistance.

70

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 6. Expenses

Consolidated2015 2014

$’000 $’000

Surplus before income tax includes the following specific expenses:

DepreciationLeasehold improvements 926 874 Furniture, fixtures and equipment 528 584

Total depreciation 1,454 1,458

AmortisationClient lists 100 179 Software development 423 347 Intellectual property - 49

Total amortisation 523 575

Total depreciation and amortisation 1,977 2,033

ImpairmentLeasehold improvements - 232 Furniture, fixtures and equipment - 61 Goodwill - 2,000 Onerous lease (777) 777

Total impairment (777) 3,070

Rental expense relating to operating leasesMinimum lease payments 7,494 7,334

Superannuation expenseDefined contribution superannuation expense 10,344 8,513

71

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 7. Income tax expense

Consolidated2015 2014

$’000 $’000

Numerical reconciliation of income tax expense and tax at the statutory rate

Surplus before income tax expense 3,420 16,382

Tax at the statutory tax rate of 30% 1,026 4,915

Tax effect amounts which are not deductible/(taxable) in calculating taxable income:

Tax exempt income (1,026) (4,915)

Income tax expense - -

Tax losses not recognisedUnused tax losses for which no deferred tax asset has been recognised 9,266 9,273

Potential tax benefit @ 30% 2,780 2,782

The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed. These tax losses reside in a subsidiary of the company that itself is subject to income tax.

Note 8. Current assets – cash and cash equivalents

Consolidated2015 2014

$’000 $’000

Cash at bank 10,515 7,196

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 9. Current assets – trade and other receivables

Consolidated2015 2014

$’000 $’000

Trade receivables 20,853 14,894 Less: Provision for impairment of receivables (339) (560)

20,514 14,334

Loans to other related entities – ABF 573 573 Less: Provision for non-recovery of ABF loan (573) (573)

- -

Other receivables 3,573 2,519

24,087 16,853

Impairment of receivables

The consolidated entity has recognised a loss of $107,000 (2014: $505,000) in profit or loss in respect of impairment of receivables for the year ended 30 June 2015

The ageing of the impaired receivables provided for above are as follows: Consolidated

2015 2014$’000 $’000

3 to 6 months overdue 32 8 Over 6 months overdue 880 1,125

912 1,133

Movements in the provision for impairment of receivables are as follows:

Consolidated

2015 2014

$’000 $’000

Opening balance 1,133 780

Additional provisions recognised 212 505

Receivables written off during the year as uncollectable (328) (152)

Unused amounts reversed (105) -

Closing balance 912 1,133

Past due but not impaired

Customers with balances past due but without provision for impairment of receivables amount to $6,718,000 as at 30 June 2015 ($5,888,000 as at 30 June 2014).

The consolidated entity did not consider a credit risk on the aggregate balances after reviewing the credit terms of customers based on recent collection practices.

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

The ageing of the past due but not impaired receivables are as follows: Consolidated

2015 2014$’000 $’000

0 to 3 months overdue 5,343 4,105 3 to 6 months overdue 1,138 1,484 Over 6 months overdue 237 299

6,718 5,888

Note 10. Current assets – financial assets at fair value through profit or loss

Consolidated2015 2014

$’000 $’000

Shares and units in public entities 120,969 130,885 Shares and units in unrelated entities (including equity and pool trusts) 40,512 38,923 Other investments (including corporate bonds and investment trusts) 32,298 29,062

193,779 198,870

Refer to note 24 for further information on fair value measurement.

Note 11. Current assets - investments in cash managed trusts

Consolidated2015 2014

$’000 $’000

Investments in cash managed trusts 115,334 113,953

Note 12. Current assets – other

Consolidated2015 2014

$’000 $’000

Prepayments 1,137 579 Lease incentives 207 511

1,344 1,090

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 13. Non-current assets – property, plant and equipment

Consolidated2015 2014

$’000 $’000

Leasehold improvements – at cost 8,279 8,159 Less: Accumulated depreciation (5,942) (5,015)

2,337 3,144

Furniture, fixtures and equipment – at cost 3,759 3,159 Less: Accumulated depreciation (2,604) (2,076)

1,155 1,083

3,492 4,227

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Leasehold improvements

Furniture, fixtures and equipment

Motor vehicles

Total

$’000 $’000 $’000 $’000ConsolidatedBalance at 1 July 2013 3,552 1,388 33 4,973 Additions 704 236 - 940 Additions through business combinations (note 31) 40 58 - 98 Disposals - - (33) (33)Impairment of assets (232) (61) - (293)Transfers in/(out) (46) 46 - - Depreciation expense (874) (584) - (1,458)

Balance at 30 June 2014 3,144 1,083 - 4,227 Additions 120 556 - 676 Additions through business combinations (note 31) - 44 - 44 Disposals (1) - - (1)Depreciation expense (926) (528) - (1,454)

Balance at 30 June 2015 2,337 1,155 - 3,492

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 14. Non-current assets – intangibles

Consolidated2015 2014

$’000 $’000

Goodwill – at cost 20,265 17,568 Less: Impairment (2,000) (2,000)

18,265 15,568

Client lists – at cost 700 700 Less: Accumulated amortisation (600) (500)

100 200

Software development – at cost 3,782 3,782 Less: Accumulated amortisation (3,350) (2,927)

432 855

Intellectual property – at cost 250 250 Less: Accumulated amortisation (250) (250)

- -

18,797 16,623

Reconciliations

Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:

Goodwill Client lists

Software development

Intellectual property

Total

$’000 $’000 $’000 $’000 $’000ConsolidatedBalance at 1 July 2013 16,966 79 887 49 17,981 Additions - - 315 - 315 Additions through business combinations (note 31) 602 300 - - 902 Impairment of assets (2,000) - - - (2,000)Amortisation expense - (179) (347) (49) (575)

Balance at 30 June 2014 15,568 200 855 - 16,623

Additions through business combinations (note 31)

2,686 - - - 2,686

Finalisation of prior year business combinations

11 - - - 11

Amortisation expense - (100) (423) - (523)

Balance at 30 June 2015 18,265 100 432 - 18,797

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 15. Current liabilities – trade and other payables

Consolidated2015 2014

$’000 $’000

Trade payables 633 1,268 Refundable carnet premiums 1,667 1,386 Related party payables 211 43 Other payables 9,454 7,566

11,965 10,263

Refer to note 23 for further information on financial instruments.

Note 16. Current liabilities – employee benefits

Consolidated2015 2014

$’000 $’000

Employee benefits 5,455 4,537 Redundancies 87 100

5,542 4,637

Amounts not expected to be settled within the next 12 months

The current provision for employee benefits includes all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount is presented as current, since the consolidated entity does not have an unconditional right to defer settlement. However, based on past experience, the consolidated entity does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.

The following amounts reflect leave that is not expected to be taken within the next 12 months:

Consolidated2015 2014

$’000 $’000

Employee benefits 1,799 1,490

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NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 17. Current liabilities – provisions

Consolidated2015 2014

$’000 $’000

Deferred consideration 603 800 Deferred lease incentives 2,244 3,055 Onerous lease - 777 Long term incentives 393 342 Short term incentives 1,221 849

4,461 5,823

Deferred consideration

The provision represents the obligation to pay deferred/contingent consideration following the acquisition of a business or assets. It is measured at the present value of the estimated liability.

Deferred lease incentives

The provision represents operating lease incentives received. The incentives are allocated to profit or loss in such a manner that the rent expense is recognised on a straight-line basis over the lease term.

Onerous lease

The provision represents the present value of the estimated costs, net of any sub-lease revenue, that will be incurred until the end of the lease terms where the obligation is expected to exceed the economic benefit to be received.

Short term and long term incentives

These provisions represents the estimated value of incentives recommended by management to be paid to employees.

Movements in provisions

Movements in each class of provision during the current financial year, other than employee benefits, are set out below:

Deferred consideration

Deferred lease

incentives

Onerouslease

Short and long termincentives

$’000 $’000 $’000 $’000Consolidated – 2015Carrying amount at the start of the year 800 3,055 777 1,191 Additional provisions recognised 1,803 - - 1,822 Amounts used - (811) - -Payments (2,000) - - (1,399)Unused amounts reversed - - (777) -

Carrying amount at the end of the year 603 2,244 - 1,614

78

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 18. Current liabilities – other

Consolidated2015 2014

$’000 $’000

Deferred revenue 3,650 603 Revenue received in advance 5,652 5,313 Subsidies and grants received in advance 150 -

9,452 5,916

Note 19. Non-current liabilities – employee benefits

Consolidated2015 2014

$’000 $’000

Employee benefits 1,422 1,096

Note 20. Non-current liabilities – provisions

Consolidated2015 2014

$’000 $’000

Lease make good 149 168 Long term incentives 510 482

659 650

Lease make good The provision represents the present value of the estimated costs to make good the premises leased by the consolidated entity at the end of the respective lease terms.

Long term incentives The provision represents the estimated value of incentives recommended by management to be paid to employees.

Movements in provisions Movements in each class of provision during the current financial year, other than employee benefits, are set out below:

Consolidated – 2015 Lease

make good Long term incentives

$’000 $’000

Carrying amount at the start of the year 168 482 Additional provisions recognised - 400 Additions through business combinations (note 31) 20 -Reclassification to current liability (39) (372)

Carrying amount at the end of the year 149 510

79

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 21. Equity – retained surpluses

Consolidated2015 2014

$’000 $’000

Retained surpluses at the beginning of the financial year 329,114 312,876 Surplus after income tax expense for the year 3,492 16,238

Retained surpluses at the end of the financial year 332,606 329,114

Note 22. Equity – non-controlling interest Consolidated

2015 2014$’000 $’000

Retained surpluses 1,241 1,313

Note 23. Financial instruments

Financial risk management objectives

The consolidated entity’s activities expose it to a variety of financial risks, market risk (price and interest rate risk), credit risk and liquidity risk. The consolidated entity’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable and leases. The consolidated entity’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the long term financial performance of the consolidated entity.

Risk management for the consolidated entity is carried out by a centralised finance and treasury function under policies approved by the Board of Directors. An Audit, Risk & Compliance Committee operates under a charter approved by the Board, monitoring the management of operational, financial and business risk in the consolidated entity. Risk management policies are approved and reviewed by the Board on a regular basis.

The consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of price risks, ageing analysis for credit risk and beta analysis in respect of investment portfolios to determine market risk.

Investment policy

The Investment Committee, a committee of the Board, is responsible for monitoring the performance of the appointed investment consultant, custodian and investment managers. The Investment Committee reviews the investment policy to assess the ability of the portfolio structure to successfully meet the objectives of the portfolio and recommends changes to the Board.

The consolidated entity maintains an investment portfolio for the purpose of providing an annual sustainable distribution to finance ongoing activities, including operational expenses and strategic investments. The investment strategy and asset allocation recognises the tax status of NSW Business Chamber Limited as an employer association which is exempt from Australian income tax and which derives no economic benefit from imputation credits attaching to dividends from investments in shares of Australian companies.

The investment objectives for the portfolio is to generate a total return which, when averaged over the total lifetime of the portfolio, will exceed the rate of inflation, as measured by the CPI, by at least 4% per annum. Maximisation of this long term return is subject to preserving the real value of the portfolio in perpetuity, which is dependent on the draw-downs as mentioned below.

80

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

The portfolio is diversified by asset class and active management process to reduce the risk from failure of individual investments and managers and to reduce volatility of the portfolio valuation. Diversification is in accordance with asset allocation ranges as set forth in the Strategic Asset Allocation as approved by the Investment Committee.

Investment managers which make use of derivatives within the investment strategy used by the consolidated entity are required to state the purpose of such use and the impact on risk and to provide copies of Risk Management Statements and other relevant documentation approved by the directors of the investment manager regarding use of derivatives of that manager.

Ongoing professional advice is sought in respect of the structure of investment mandates, the performance and continued suitability of externally appointed fund managers, the adequacy of the returns achieved and the continuing suitability of the investment policy. The consolidated entity has appointed a custodian and investment consultant to enhance the security of the consolidated entity’s investments, advise on an appropriate investment strategy and to report on the performance of the fund managers.

The Board has implemented a strategy of drawdown from the investment portfolio to finance ongoing activities of the consolidated entity whilst preserving the real value of the portfolio in perpetuity. Currently, the long term rate of distribution is 3.5%. 70% of the distribution for the financial year is calculated as a composite of the average of previous five years’ distributions (adjusted for inflation) and 30% relating to the portfolio value (valued as at 31 March of the previous financial year).

The Board may vary the drawdown for the year in exceptional circumstances at its discretion. Such abnormal additional draw-down causes future drawdowns to be adjusted to reflect the changed capital base.

The portfolio of assets at the reporting date is cash and cash equivalents and financial assets at fair value through profit or loss, as detailed in the statement of financial position.

Market risk

Foreign currency risk

The consolidated entity does not have any assets or liabilities denominated in foreign currency.

The investment portfolio held by the consolidated entity and disclosed at fair value through profit or loss does contain securities that have underlying exchange rate exposures, however as any exchange rate fluctuations impact the price of the securities, this risk category is considered to be price risk.

Price risk

The consolidated entity is exposed to equity securities price risk arising from investments held and classified on the statement of financial position at fair value through profit or loss. The consolidated entity is not exposed to commodity price risk. In accordance with the Investment Policy, to manage its price risk arising from investments in equity securities, the consolidated entity diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Board.

Average price increase Average price decrease

Consolidated – 2015 % change

Effect on profit

before tax$’000

Effect on equity$’000

% change

Effect on profit

before tax$’000

Effect on equity$’000

Shares and other investments 10% 19,378 19,378 10% (19,378) (19,378)

Average price increase Average price decrease

Consolidated – 2014 % change

Effect on profit

before tax

$’000

Effect on equity

$’000% change

Effect on profit

before tax

$’000

Effect on equity

$’000

Shares and other investments 10% 19,887 19,887 10% (19,887) (19,887)

81

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Interest rate risk

The consolidated entity’s interest bearing assets expose it to risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The risk is measured using sensitivity analysis. In accordance with the Investment Policy, a sufficient percentage of the investment portfolio is held in interest bearing securities to enable the consolidated entity to meet its cash flow requirements. These interest bearing securities have underlying fair value interest rate risk exposures; however as any interest fluctuation impacts the price of the securities, this risk category is considered to be price risk. The Investment Committee constantly monitor the diversity of the portfolio mix.

Basis points increase Basis points decrease

Consolidated – 2015Basis points

change

Effect on profit

before tax$’000

Effect on equity$’000

Basis points change

Effect on profit

before tax$’000

Effect on equity$’000

Cash 100 105 105 100 (105) (105)Investments in cash managed trusts 100 1,153 1,153 100 (1,153) (1,153)

1,258 1,258 (1,258) (1,258)

Basis points increase Basis points decrease

Consolidated – 2014Basis points

change

Effect on profit

before tax$’000

Effect on equity $’000

Basis points change

Effect on profit

before tax $’000

Effect on equity $’000

Cash 100 72 72 100 (72) (72)Investments in cash managed trusts 100 1,140 1,140 100 (1,140) (1,140)

1,212 1,212 (1,212) (1,212)

Credit risk

Credit risk primarily arises from investments in debt securities. None of these assets are impaired nor past due but not impaired. The consolidated entity invests in debt securities which have an investment grade as rated by reputable independent rating agencies. At the time of the initial investment, all debt securities must have a minimum rating of ‘A’. The Investment Committee approves the investment in any debt securities before any investment is undertaken and monitors the ongoing performance of the security.

Other credit risks arise from cash and cash equivalents, as well as credit exposures to members, non-members and government organisations, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted for initial investments. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.

The credit risk of members and non-members are regularly monitored by line management. The provision of member services is withdrawn to members who are un-financial for more than 90 days. For non-member entitlements, goods and services are not generally rendered until full payment is received. For some receivables the consolidated entity may also obtain security in the form of guarantees which can be called upon if the counterparty is in default under the terms of the agreement.

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings, if available, or to historical information about counterparty default rates. The maximum exposure for investments is the carrying amount of the financial assets at the reporting date.

82

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Consolidated2015 2014

$’000 $’000

Credit quality of financial assets held at the reporting date, net of impairment:A rated cash and cash equivalents 10,515 7,196 Trade receivables counterparties without credit rating 20,514 14,334 Current unsecured other receivables without external credit rating 3,573 2,519 Financial assets at fair value through profit or loss 193,779 198,870 Investments in cash managed trusts 115,334 113,953

343,715 336,872

The maximum exposure to credit risk at the reporting date is the carrying amount of each class of financial assets mentioned above.

Liquidity riskPrudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of available cash equivalents. The consolidated entity manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Further, the Board has adopted a distribution policy to finance the short term cash flow requirements of the consolidated entity.Surplus funds are generally only invested in instruments that are tradeable in highly liquid markets. The consolidated entity does not have any exposure to borrowings or finance leases.

Remaining contractual maturities

The following tables detail the consolidated entity’s remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position.

Consolidated – 2015Weighted

average interest rate

1 year or lessBetween 1

and 2 yearsBetween 2

and 5 yearsOver 5 years

Remaining contractual maturities

% $’000 $’000 $’000 $’000 $’000Non-derivativesNon-interest bearingTrade payables - 633 - - - 633 Other payables - 9,454 - - - 9,454 Deferred consideration - 603 - - - 603 Related party receivables - 211 - - - 211 Total non-derivatives 10,901 - - - 10,901

83

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Consolidated – 2014Weighted

average interest rate

1 year or lessBetween 1

and 2 yearsBetween 2

and 5 yearsOver 5 years

Remaining contractual maturities

% $’000 $’000 $’000 $’000 $’000Non-derivativesNon-interest bearingTrade payables - 1,268 - - - 1,268 Other payables - 7,566 - - - 7,566 Deferred consideration - 800 - - - 800 Related party receivables - 43 - - - 43 Total non-derivatives 9,677 - - - 9,677

The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.

Note 24. Fair value measurementFair value hierarchy

The following tables detail the consolidated entity’s assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

Consolidated – 2015 Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

AssetsInvestments in cash managed trusts - 115,334 - 115,334 Financial assets at fair value through profit or loss 120,969 72,810 - 193,779 Total assets 120,969 188,144 - 309,113

Consolidated – 2014 Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

AssetsInvestments in cash managed trusts - 113,953 - 113,953 Financial assets at fair value through profit or loss 130,885 67,985 - 198,870 Total assets 130,885 181,938 - 312,823

There were no transfers between levels during the financial year.The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature.Valuation techniques for fair value measurements categorised within level 2 and level 3The fair value of financial assets and liabilities that are not traded in an active market are recorded at their net realisable value, or redemption value per unit, as reported by the investment managers of such investments.

84

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 25. Key management personnel disclosures

Directors

The following persons were directors of NSW Business Chamber Limited during the financial year:

A F Dormer President - non-executive

T H Cairney Vice President - non-executive

E T Brown Non-executive director

B A Manwaring Non-executive director

G J McNamara Non-executive director

I B Penfold Non-executive director

N Watson Non-executive director

T C Wetherall Non-executive director

L N Gorman (appointed on 28 November 2014) Non-executive director

K A Howard (resigned on 28 August 2014) Former non-executive director

Other key management personnel

The following persons also had the authority and responsibility for planning, directing and controlling the major activities of the consolidated entity, directly or indirectly, during the financial year:

S M Cartwright Chief Executive Officer

S P Spicer Director, Finance and Strategy

D J Cocks Director, Member and Commercial Services

P H Orton Director, Policy and Advocacy

P Forsythe Executive Director, Sydney Business Chamber

A Tustin (resigned on 26 September 2014) Chief Financial Officer

A Berzins Company Secretary and Treasury Manager

Z Diab General Manager, Human Resources

G M Haffenden General Manager, Finance

M Koon Senior Manager, Marketing and Communications

P A Martin General Manager, Australian Business Consulting & Solutions

A D Seaton Deputy CEO and Director, Australian Business Lawyers & Advisors

R S Millar General Manager, ICT

M C Stedfut General Manager, Member Services

D M Stewart General Manager, Australian Business Recruitment Solutions

N J Ward CEO and Director, Australian Business Lawyers & Advisors

A J Williams General Manager, Australian Business Apprenticeships Centre

Compensation

The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below:

85

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Consolidated2015 2014

$ $

Short-term employee benefits 5,613,723 5,099,088 Post-employment benefits 380,632 404,098 Long-term benefits 290,405 276,068 Termination benefits - 118,112

6,284,760 5,897,366

The key management personnel whose remuneration from entities in consolidated entity was within the specified bands are as follows:

Consolidated2015 2014

$’000under $100 10 11 $100 to $200 1 3 $200 to $300 9 7 $300 to $400 2 3 $400 to $500 1 4 $600 to $700 3 - $700 to $800 1 1

27 29

Note 26. Remuneration of auditorsDuring the financial year the following fees were paid or payable for services provided by PwC, the auditor of the company:

Consolidated2015 2014

$ $

Audit services – PwCAudit of the financial statements 252,000 305,000

Other services – PwCOther audit and assurance services 53,550 74,050 Other accounting services 209,698 229,377 Taxation compliance services 50,298 12,479

313,546 315,906

565,546 620,906

It is the consolidated entity’s policy to employ PwC on assignments additional to their statutory audit duties where PwC’s expertise and experience with the consolidated entity are important. These assignments are principally tax advice and consulting services. PwC is awarded assignments on a competitive basis. It is the consolidated entity’s policy to seek competitive tenders for all major consulting work.

86

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 27. Contingent liabilitiesThe consolidated entity has a contingent liability of $3,988,000 (2014: $2,936,000) as at 30 June 2015, in respect of potential redundancies payable upon the non-renewal of the apprenticeship placement contracts held with the Commonwealth Government of Australia.

The existing contracts have terms until June 2016, at which time the consolidated entity intends to retender for contracts. The consolidated entity has been successful on a number of occasions with past tenders. It is not practical to estimate the potential effect of this contingency as at 30 June 2015 in the event that the contracts are not renewed or new contracts awarded, as it cannot be determined how many current employees will remain in employment at that time.

Note 28. Commitments

Consolidated2015 2014

$’000 $’000

Lease commitments – operating

Committed at the reporting date but not recognised as liabilities, payable:

Within one year 5,634 6,670 More than five years 9,964 13,901

15,598 20,571

The consolidated entity leases various offices under non-cancellable operating leases expiring within one to ten years. The leases are for varying terms, escalation clauses and renewal rights. On renewal, the terms of the leases are negotiable.

The consolidated entity leases various motor vehicles, office and computer equipment under non-cancellable operating leases expiring within one to three years. These leases are for varying terms. On renewal, the terms of the leases are negotiable.

87

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 29. Related party transactions

Parent entity

NSW Business Chamber Limited is the parent entity.

Subsidiaries

Interests in subsidiaries are set out in note 32.

Associates

Interests in associates are set out in note 33.

Key management personnel

Disclosures relating to key management personnel are set out in note 25.

Transactions with related parties

The following transactions occurred with related parties:

Consolidated2015 2014

$ $

Payment for goods and services:Provision of ICT support services to Canberra Business Council Limited 27,302 40,320

Provision of office support services to Canberra Business Council Limited 57,994 37,044

Receivable from and payable to related parties

The following balances are outstanding at the reporting date in relation to transactions with related parties:

Consolidated2015 2014

$ $

Current receivables:Trade receivables from Canberra Business Council Limited 2,312 51,131

Current payables:Trade payables to Canberra Business Council Limited - 15,404

Loans to/from related parties

There were no loans to or from related parties at the current and previous reporting date.

Terms and conditions

All transactions were made on normal commercial terms and conditions. Outstanding balances are unsecured and are repayable in cash.

88

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 30. Parent entity informationSet out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income Parent

2015 2014$’000 $’000

Surplus after income tax 773 10,963

Total comprehensive income 773 10,963

Statement of financial position Parent

2015 2014$’000 $’000

Total current assets 352,343 342,589

Total assets 360,942 352,402

Total current liabilities 32,860 33,888

Total liabilities 34,926 35,606

EquityIssued capital - - Retained surpluses 326,016 316,796

Total equity 326,016 316,796

Guarantees entered into by the parent entity in relation to the debts of its subsidiaries

The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2015 and 30 June 2014.

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2015 and 30 June 2014, except for as disclosed in note 27.

Capital commitments – Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2015 and 30 June 2014.

Significant accounting policies

The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following:

• Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.

• Investments in associates are accounted for at cost, less any impairment, in the parent entity.

• Dividends received from subsidiaries and associates are recognised as other income by the parent entity and their receipt may be an indicator of an impairment of the investment.

89

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 31. Business combinationsBelmore Community Care (previously known as Julie Warner Community Care)

On 28 July 2014, the consolidated entity acquired the business and certain assets of Julie Warner Community Care, re-branded Belmore Community Care, a health care provider engaged by not-for-profit organisations as a supplier of casual community workers to home care recipients. The total consideration was $222,000. The acquired business contributed revenues of $1,480,000 and loss after tax of $236,000 to the consolidated entity for the period from acquisition to 30 June 2015. If the acquisition occurred on 1 July 2014, the full year contributions would have been revenues of $1,610,000 and loss after tax of $257,000.

RNS Nursing

On 3 November 2014, the consolidated entity acquired the business and certain assets of RNS Nursing, a nursing staff recruitment agency servicing hospital and community healthcare providers The total consideration was $660,000. The acquired business contributed revenues of $4,880,000 and loss after tax of $170,000 to the consolidated entity for the period from acquisition to 30 June 2015. If the acquisition occurred on 1 July 2014, the full year contributions would have been revenues of $7,320,000 and loss after tax of $255,000.

Kaytone

On 9 March 2015, the consolidated entity acquired the business and certain assets of Kaytone, a labour hire and recruitment agency providing staff solutions primarily to the industrial sector. The total consideration was $1,565,000. The acquired business contributed revenues of $4,406,000 and profit after tax of $116,000 to the consolidated entity for the period from acquisition to 30 June 2015. If the acquisition occurred on 1 July 2014, the full year contributions would have been revenues of $13,800,000 and profit after tax of $364,000.

Details of the acquisition are as follows:

Belmore Community

CareFair value

RNS Nursing

Fair value Kaytone

Fair valueTotal

Fair value$’000 $’000 $’000 $’000

Furniture, fittings and equipment - 20 24 44 Other non-current assets 60 - - 60 Employee benefits (21) (95) - (116)Lease make-good provision - (10) (10) (20)Other provisions - - (39) (39)Other liabilities - (73) (95) (168)

Net assets/(liabilities) acquired 39 (158) (120) (239)Goodwill 183 818 1,685 2,686

Acquisition-date fair value of the total consideration transferred

222 660 1,565 2,447

Representing:Cash paid or payable to vendor 222 660 1,565 2,447

90

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Prior period acquisitions

During the prior period the consolidated entity acquired the following businesses:

• Commercial legal practice of Andrew Seaton, on 1 July 2013; and ●

• Business and certain assets of ACT Nursing Services, a nursing staff recruitment agency servicing hospital and community healthcare providers in the ACT, on 1 March 2014.

Details of the acquisition are as follows:

Legal practice of Andrew

SeatonFair value

ACT NursingServices* Fair value

Total Fair value

$’000 $’000 $’000

Leasehold improvements - 40 40 Furniture, fittings and equipment 58 58 Client lists 300 - 300 Employee benefits - (43) (43)

Net assets acquired 300 55 355 Goodwill - 613 613

Acquisition-date fair value of the total consideration transferred

300 668 968

Representing:Cash paid or payable to vendor 300 668 968

* ACT Nursing Services - employee benefits liability and corresponding goodwill increased by $11,000 on finalisation of business combination.

91

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 32. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 1:

Ownership interest

Principal place of business / Country of incorporation

2015 2014Name of entity % %

Australian Apprenticeship Alliance Pty Limited Australia 100 100

Australian Business Limited Apprenticeship Centre Pty Limited Australia 100 100

Australian Business Foundation Limited (1) Australia - -

Australian Business Lawyers & Advisors Pty Limited Australia 100 100

Australian Business Pty Limited Australia 100 100

Australian Business Training Solutions Group Pty Limited Australia 100 100

Australian Chambernet Pty Limited Australia 100 100

First People HR Pty Limited Australia 100 100

Hunter Business Chamber Limited (2) Australia - -

Illawarra Business Chamber Limited (2) Australia - -

Recruitment Solutions Group Australia Pty Limited Australia 100 100

Sydney Chamber of Commerce (1) Australia - -

Workplaceinfo Pty Limited Australia 100 100

Amaroo Business Centre Pty Limited Australia 100 -

Amaroo (Shanghai) Trading Co. Ltd China 100 -

(1) Australian Business Foundation Limited and Sydney Chamber of Commerce are companies limited by guarantee in which the parent entity owns a special membership in each entity which entitles it to control them.

(2) The parent entity has agreements with Hunter Business Chamber Limited and Illawarra Business Chamber Limited that enabled it control of these Chambers, without holding an equity interest.

Note 33. Investments in associatesInterests in associates are accounted for using the equity method of accounting. Information relating to associates that are material to the consolidated entity are set out below:

Ownership interest

Principal place of business / Country of incorporation

2015 2014

Name % %

Australian Chamber Alliance Pty Ltd Australia 14.00 14.00

Chambers Apprenticeship Support Australia Pty Ltd Australia 25.00 -

Summarised financial information for the associates has not been provided as they are not material to the consolidated entity.

92

NSW Business Chamber Limited Notes to the financial statements

30 June 2015

Note 34. Events after the reporting periodOn 11 August 2015, at a General Meeting of the Illawarra Business Chamber Limited, members voted unanimously to merge with the NSW Business Chamber Limited.

No other matter or circumstance has arisen since 30 June 2015 that has significantly affected, or may significantly affect the consolidated entity’s operations, the results of those operations, or the consolidated entity’s state of affairs in future financial years.

Note 35. Reconciliation of surplus after income tax to net cash from operating activities

Consolidated2015 2014

$’000 $’000

Surplus after income tax expense for the year 3,420 16,382

Adjustments for:Depreciation and amortisation 1,977 2,033 Impairment of property, plant and equipment - 293 Impairment of goodwill - 2,000 Onerous lease (777) 777

Change in operating assets and liabilities:Increase in trade and other receivables (7,174) (1,260)Decrease/(increase) in other operating assets 3,456 (15,313)Increase in trade and other payables 2,118 863 Increase/(decrease) in other provisions 3,421 (4,556)

Net cash from operating activities 6,441 1,219

93

NSW Business Chamber Limited Directors’ declaration

30 June 2015

In the directors’ opinion:

• the attached financial statements and notes thereto comply with the Corporations Act 2001, the Accounting Standards, the

Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes thereto give a true and fair view of the consolidated entity’s financial position as

at 30 June 2015 and of its performance for the financial year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and

payable.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

A F Dormer N Watson

Director Director

1 September 2015

Sydney

94

NSW Business Chamber Limited Auditor’s report

30 June 2015

95

NSW Business Chamber Limited Auditor’s report

30 June 2015

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