AICM July 2015 Hi-Res Final PDF

Volume 22, No 5 July 2015
The Publication for Credit and Financial Professionals
IN AUSTRALIA
Credit teams
LEAD YOUR TEAM TO BE THE BEST
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Credit Management
Personal Property Security
Training news
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Conference Program
35
DIRECTORS
Australian President G.L. Morris MICM CCE
Australian VP, Legal Affairs J.A. Neate MICM
QLD Division: AICM QLD Council Brian Kay, Peter Mills,

Peter Ryan, Toni Sawyer, Julie McNamara, Melinda Grob,
Stacey Woodward and Roger Masamvu.
Professional Development S.D. Mitchinson LICM

YCPA & CCE G.C. Young MICM CCE
Member Services J.G. Hurst FICM CCE
Finance G. Odlum MICM CCE
CHIEF EXECUTIVE OFFICER
N. Pilavidis MICM CCE
Level 1, 619 Pacific Highway, St Leonards NSW 2065
Tel: (02) 9906 4563, Fax: (02) 9906 5686
Email: nick@aicm.com.au
38
NSW Division: Women in Credit Inaugural Lunch
EDITOR/PUBLISHER
Nick Pilavidis | Email: nick@aicm.com.au
CONTRIBUTING EDITORS
Colin Magee NSW
Stacey Woodward QLD
Gail Crowder SA
Warren Meyers WA
Donna Smith VIC/TAS
ADVERTISING MANAGER
Tony Paul | Association Media
Tel: 0401 917 799 | Email: tony@associationmedia.com.au
42
SA Division: Audience at mock trial.
EDITING & PRODUCTION

Anthea Vandertouw | Ferncliff Productions
Tel: 0408 290 440 | Email: ferncliff1@bigpond.com
THE EDITOR reserves the right to alter or omit any article or
advertisement submitted and requires idemnity from the advertisers and
contributors against damages or liabilities that may arise from material
published. CREDIT MANAGEMENT IN AUSTRALIA is published by the
Australian Institute of Credit Management, Level 1, 619 Pacific Highway, St
Leonards NSW 2065. The views expressed in CREDIT MANAGEMENT
IN AUSTRALIA are not necessarily those of Australian Institute of Credit
Management, which does not expect or invite any person to act or rely
on any statement, opinion or advice contained herein (whether in the
form of an advertisement or editorial) and neither the Institute or any
of its employees, agents or contributors shall be liable for any opinion
contained herein. The Australian Institute of Credit Management, 2015.
46
VIC/TAS Division: A stellar turnout to the June Breakfast at
Parkview Hotel Melbourne.
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EDITORIAL CONTRIBUTIONS SHOULD BE SENT TO:
The Editor, Level 1, 619 Pacific Highway
St Leonards NSW 2065 or Email: nick@aicm.com.au
CREDIT MANAGEMENT IN AUSTRALIAJuly 2015
49
WA Division: Members at the Breakfast.
Volume 22, Number 5 July 2015
Message From the President
Leadership and High Performance

Teach your team about appreciation
By Linda Murray
The future of Credit Management
Proactive team work
Linda Murray
10
Vicki Writer
Adrian Heath
By Adrian Heath
Why positivity is great for productivity

and profitability
10
By Vicki Writer
Moving the credit function out of the back office
16
13
16
Peter Mills
Credit Management
Construction industry alert
16
18
By Andrew Spring
Slow economy, fast payments
Andrew Spring
Chris Humby
By Peter Mills and Chris Humby
ATO bank begins calling in the loan book
18
20
Around the States

Queensland
New South Wales
South Australia
Victoria/Tasmania
By Darin Milner
Western Australia/Northern Territory
Legal
The principles of reciprocity and data exchange
(PRDE) and what it means for AICM members
New Members
22
By Elsa Markula
PPS
Protecting what your business owns with the PPSR
24
By Moses Samaha
PPS Fees
25
Court of Appeal allows Retention of Title Claim
26
By John Bennett and Daniel Turk
ASSOCIATION
MEDIA
For Advertising
Opportunities
in Credit Management
In Australia
AICM Training news
28
CALL Tony Paul
Women In Credit
30
Can we Help
32
Phone:
0401 917 799
Credit Network top post all your problems answered
Conference program
35
38
42
46
49
51
52
Email:
tony@associationmedia.com.au
aicm
From the President
Grant Morris CCE

Australian President
ts an exciting time of the year for many reasons.
in Sydney in October? A very comprehensive and
Most businesses celebrate (if thats the right word
worthwhile programme is now out. June 30 registrations
for you then great) their end of financial year which
already exceed those for the same time last year and the
is a time to draw a line in the sand, look back at
discounted hotel registrations expire shortly. Put simply
the results that have been achieved, report those results

to management, boards and owners; take some learnings
you should act now.

Last issue I got on my soap box about companies
from those results and then take a deep breath and get
under external control and preference payments. We have
ready to plough ahead into the new year.
received a strong supportive response, but would like
If like my team you have had a good year (the Boxing

Kangaroo has flown high in our office 10 months this year
more. If you recall I spoke about

1. The recovery of preferential payments and those
as they have recorded the lowest DSO for that month 10
Liquidator recovered funds not being paid in dividends
times and three times lowered their best ever result onya
to unsecured creditors.
team) then congratulations to you.

If not then take some time to reflect on where you can
improve and how you might make those improvements.
You should consider formal training for you and your
team such as certificate courses, less formal training such
as Credit Toolbox sessions and regular network sessions
where you can both learn something new and pick up
tips as you network with other credit professionals. All
2. Should unsecured creditors who are genuinely at arms

length be subject to preference claims?
3. The 3 year statute of limitations on making
preference claims is too long and should be shortened
to a year or less.
4. Spurious and inflated preference claims from
Liquidators ie claiming $700K and settling for $10K.
5. Fees charged by Administrators, Liquidators and
available from the AICM so renew or take up membership
Receivers & Managers ie specifically annual increases of
and kick goals.
5 10% and more.
Its also exciting as this month the Division finalists
We intend to take these issues up with the A-G and ARITA
are selected in the DnB sponsored AICM Young Credit
and ask you to show your support by sending Nick
Professional of the Year Award and the winners, who will
(our CEO) or I an email simply saying you support
represent the Division in the national final, are announced.
positive changes in these areas. The emails/links are
There was a record level of interest this year and I wish
grant.morris@coateshire.com.au and nick@aicm.com.au.
the best of luck to all who are participating. I look forward

to seeing the Division winners at the AICM National
Conference in Sydney in October, attendance at which is
part of their prize.
We at AICM are also excited as we have now launched
Our recently launched monthly newsletter seems to

have hit the mark. Please let us know what you think.
All the best for FY16 and I hope to see you at an AICM
event soon as you support the Institute which supports
you.
our quest to find this years Credit Team of the Year

which is sponsored by Veda. The two finalists also win
travel, accommodation and attendance at the National
Grant Morris
Conference in Sydney in October.
grant.morris@coateshire.com.au
Did I mention we have our National Conference
Ph: 0407 405 198
See you at AICMs
2015
Sofitel Sydney
Wentworth Hotel
14th - 16th October 2015
Click here
for early bird registration
2015 National
Conference
Leadership and
High Performance
Teach your team

about appreciation
By Linda Murray*
Research shows
that employees
who say they
have more
supportive
supervisors
are 67% more
engaged...
Do your team members seem to be

a little short on good humour lately?
Its possible that they are feeling
undervalued and taken for granted by
you and the leadership team.
You know how that feels. You
spend hours on a report or work the
weekend to meet a special deadline,
and there is no acknowledgement of
your effort or what it cost you. In fact,
you are lucky to be given a thank you
at all.
As much as you know that we
shouldnt rely on a thank you for
doing your job, its nice to hear it
sometimes, isnt it?
What appreciation does

to the brain
Researchshows that employees
Linda Murray
who say they have more supportive

supervisors are 67% more engaged,
and 53%report they would stay
longer at their company if they felt
more appreciation from their boss.
The feeling of appreciation has a
powerful effect on the brain. It causes
the release of dopamine inside the
brain, thefeel good hormone. We
learn that well feel good if we do
a good job and are rewarded with
appreciation from our managers and
team members. When it feels good,
we repeat the activity in order to
experience the pleasure again.
What appreciation does

to the behaviour
We know that when people feel good
about what they are doing, they
Leadership and
High Performance
As much as you know

that we shouldnt rely
on a thank you for doing
your job, its nice to hear
it sometimes, isnt it?
are less stressed. When they are less stressed, there
are fewer health issues and far less absenteeism. In
addition,81%of employees say theyre motivated to
work harder when their boss shows appreciation for
their work.
In terms of the organisations bottom line, we
know that it will save money by not having to recruit
new staff, and that engaged employees are 43% more
productive. In fact, organisations with highly engaged
employees achieve twice the annual net incomeof
those who dont.
Isnt it worth saying thanks now and then to achieve
that sort of result?
The Future
of Credit
Management
The AICM Board recently made amendments
to its Membership Policies aimed at helping
members develop the next generation of Credit
Professionals, specifically those who will join the
work force in 2033 and beyond, like NSW Director
Gregg Oddlums first daughter, Grace Maree
Odlum who arrived in May 2015.
How to model appreciation

for the team
As leader, it is up to you to show your teams how to
appreciate each other and the best way to do that
is by modelling the behaviour you want them to
demonstrate. Its up to you to set the pattern and shift
the focus to the positive.
Of course you can say thank you and well done
but you can do more than that. You can give feedback
to people on a job well done. We know that formal
and informal feedback which focuses on performance
strengths have been linked to a36%increase in
performance. When you show your team that your
attention is on the positives, thats where they will
place their own attention. They will learn to look for
the good things about what they and other team
members are doing. The more they see you model
this behaviour, the more they will imitate you.
The beauty of it is that once you have the ball
rolling, their brains will respond and help you to boost
and reinforce the happiness of the team.
Start changing the atmosphere within your
organisation by praising the work your team does and
thanking them for it. The effort will pay off. u
*Linda Murray is Business Coach, Executive Coach & Mentor for
high performing professional women and was inspirational as one
of the speakers at the NSW Women in Credit Luncheon.
M: 0405 322 005
www.athenacoaching.com.au
If you are taking an extended break from

Credit Management for maternity, maternity, a
sabbatical or any other planned break you may
apply for a break in your membership without
affecting your Membership continuity.
The break will apply from the commencement of
the next membership period and does not allow
for a refund of fees already paid. For example if
you are a current financial member and expect
to take 18 months maternity leave from January
2016 you will not need to pay for the 2017/2018
membership fee.
Members will not be entitled to vote at meetings,
hold office or receive members discounts during
an approved membership break but will receive
all other member benefits.
Membership breaks of over 2 years will not be
approved unless it can be shown that currency of
knowledge is maintained.
July 2015CREDIT MANAGEMENT IN AUSTRALIA
Leadership and
High Performance
Proactiveteamwork
By Adrian Heath*
Are you tired of dealing with last minute urgent tasks
foisted on you and your team by other areas of the
organisation?
You want the organisation to succeed so you and your
team work hard and late to complete these tasks.
There is a cost though. Your teams energy is depleted,
other tasks dont get done (usually yours), the stress levels
are very high and thats just in the short term.
In the long term, your team doesnt get to complete
its own projects, people burn out, people leave. Sound
familiar?
The solution is the shift from reactivity to proactivity.
Instead of reacting to the urgent requests of other areas
of the organisation, the key is to be proactively connected
to them so that you know what is occurring now and
what each area is aiming to achieve in the future. That
way you can anticipate the demands on your team and
plan accordingly, influence the success of others projects
Instead of reacting to the

urgent requests of other
areas of the organisation,
the key is to be proactively
connected to them...
through your expert knowledge and deliver that success in

a manner that means your team are energised and inspired
by the experience.
Metaphor time Its just like trees growing in the
forests, they dont grow independently, they actually
need each other and theyare connected by the Mycelium
(fungal strands) in the soil. Incredibly, the trees use this
mycelium network to exchange nutrients and help each
other to grow. So the shift from reactive to proactive can
take place if you:
1) grow the strands between your team and other teams
in the organisation at multiple levels and
2) effectively communicate that you wish to be involved
earlier in projects that will effect your team, that way you
will deliver more effectively on their needs and help them
to deliver success.
You will then experience the nutrient exchange and
your own teams projects will become more successfully
delivered as well.
This also applies to you if your team is customer facing,
the more embedded and connected with your customer
you are, the more proactive you can be.
If you are curious to know more about mycelium
natures internet then make time to watch 6 ways
mushrooms can save the world 18 minute videohere. u
*Adrian Heath is Director of Evolution Learning.

He partners with major Australian and international companies,
teamsand individuals to enable them to achieve their true potential.
Adrian will be speaking at the National Conference as part of the
Leadership Forum
Adrian Heath
Leadership and
High Performance
Why positivity is
great for productivity
and profitability
By Vicki Writer*
Vicki Writer
10
Why is it that human beings only ever

achieve about 10% of their potential?
There are many answers and I have
heard a number of them from the
participants that have attended my
trainings or presentations. Fear, lack
of knowledge, lack of confidence,
dont know how?
I tell my students that all of
these are very true, however where
in life do we receive an instruction
manual on how to get the best out
of ourselves or that of our teams?
When I went to school there was no
instruction manual. When I started
working there was no instruction
manual. We simply do not get an
instruction manual for how to achieve
our full potential.
I have been doing some research
into the emerging science of Positive
Psychology and my findings have
been fascinating. I would love to now
introduce you to the work of Barbara
Frederickson. Her work has had a
profound impact on me and her
research features quite heavily in my
teachings specifically around peak
performance and leadership.
Frederickson determined that
there is a positivity ratio and that ratio
is 3:1. That is we need three positive
emotions or feelings to every one

negative. We either spiral upwards or
we spiral downwards.
Because the brains primary
filtering architecture is pessimistic by
design (we tend to look for all of the
things that didnt go so well rather
than what did), we need to work
very hard at finding the things in our
life that have gone well. We need to
ensure we utilise this knowledge that
we have through Frederickson and
maintain and build our positivity ratio
of 3:1.
We literally need to train our brain
to look for all of the good things, the
wins that have happened in our day
or week and we need to write them
down. We need to give ourselves
every opportunity of feeling good
about ourselves and to acknowledge
our wins no matter how big or small.
If we train our brain to look for the
positives (because it usually doesnt
happen this way given the way our
brain works), we can increase our
wellbeing and set ourselves up for
happiness and ultimately success.
Barbara Frederickson teamed up
with Mathematician Marcial Losada
and his work focused on peak
performing teams. His work was
We literally need to train our brain to

look for all of the good things, the wins
that have happened in our day or week
and we need to write them down.
Leadership and
High Performance
closely aligned to that of Frederickson

and he determined that peak
performing teams have a ratio of 6:1.
Losada and his team would go
into organisations and sit behind
one way mirrors in boardrooms
and listen to the language that was
being used by the team members.
They determined the ratio of positive
to negative statements (positive
= supportive and encouraging
comments) to (negative = sarcasm
and disapproval comments). Losada
and his team determined that peak
performing teams have a ratio of
six positive statements to every one
negative.
If you lead a team at work, how
would your team rate when it comes
to the work of Marcial Losada?
There is work now being done
...if there is a ratio of greater than

3:1 positive emotions then the
business is considered to be
economically sound.
over in Europe that measures a
countrys prosperity based on the
levels of Hypertension (stress) of the
people who reside in that country.
How interesting! There are even
some suggestions that doctors
and economists may need to work
together to define future economic
policy.
To take this one step further, I
have to look at the correlation that
Frederickson has made between
profitability and positive wellbeing in
MARKET LEADING
the workplace. She says that if there

is a ratio of greater than 3:1 positive
emotions then the business is
considered to be economically sound.
If the ratio is less than that, then the
business is likely to be financially
in trouble. There is a definite
correlation between happiness
(wellbeing) and the success of a
business (its prosperity) and this is
why engagement and culture is so
critical when it comes to building a
successful and profitable business.
LEGAL
TRADE
CREDIT
SPECIALISTS
11
Leadership and
High Performance
The research suggests that the

connection between happiness and
goal accomplishment (success) has
now been proven to be undeniable.
In-fact the connection is so profound
that we are encouraged to gauge
how happy we are and look for ways
to improve our wellbeing in order to
perform at optimum levels.
What makes you feel good?
People who feel good about
themselves produce good results and
people who produce good results
feel good about themselves. The
symptoms are reciprocal.
Our emotional states are
contagious. If you surround yourself
with people who are positive and who
feel good about themselves, you too,
will feel good about yourself. If you
choose to spend time with people
who are negative and pessimistic, the
chances of you feeling the same way
are very high. Our social circle and
12
who we choose to spend time with

will have dramatic impacts on the
amount of well being that we have
and what we go on to achieve in our
life and in business.
Be conscious and deliberate
about building your positivity muscle.
A simple tool that I use each night
before I go to sleep is what I call
The Achievement Journal. I am
deliberately looking for three things
in my day that went well big or
small and personal or business. I am
strategically and very consciously
looking for any small achievement
or win that builds and enhances my
positivity ratio which in turn has
dramatic impacts on my wellbeing
and my results.
Could you implement something
similar into your own life? What about
having your team members bring
their own wins and achievements and
share these with others in the team
remembering that our emotional

states are contagious?
Set yourself a goal to look for
at-least three things each day that
went well and track your results.
You will be amazed at what you can
achieve.
If you found value in this article
and you are interested in learning
more about achievement, you can
visit the website www.the360solution.
com.au and purchase a copy of my
book The 360 Solution strategies,
tools and concepts to help you
design a conscious, deliberate and
achievable plan for the life you want
to live. u
*Vicki Writer is Founder of The 360 Solution.
Tel: (02) 4385 8885
M: +61 414 426 029
Email: vicki.writer@the360solution.com.au
www.the360solution.com.au
Vicki will be speaking at the National
Conference as part of the Leadership Forum.
Leadership and
High Performance
Moving the credit

function out of the
back office
Simply
documenting a
policy
and posting a list
of training
courses will
not create an
engaged and
high performing
team.
Many businesses understand the

importance of the credit function
as a vital component of a high
performance business, while others
are yet to unlock the potential of their
Credit Department.
Credit Management teams touch
every part of the organisation, this
gives Credit Professionals a great
opportunity to contribute to the
achievement of the businesses
objectives.
By focusing on achieving a high
performance culture, developing a
roadmap and connections across the
organisation the credit function can
move from being considered a back
office function to one that shapes the
business agenda.
Whether you are trying to get the
credit function on the map in your
business, want to improve the standing
further or are looking for ways you can
help the business even more, focusing
on these three key areas will ensure
your credit function moves from a back
office function to one recognised for
the value it adds to the business.
1. Developing an active
People Policy
It is important for credit functions to
develop a people policy encompassing:
zz Forecasting staff requirements.
zz Qualities and skills required for
high performance.
zz Values of the Credit Team.
zz Strategies to educate, develop,
retain, reward and recognise high
performance.
A thorough people policy will ensure
the mechanisms and opportunities

are in place necessary to achieve high
performance.
Great Credit Teams take the
people policy further and create an
active approach to staff and team
development. An active approach is
one where development of the staff is
part of every day and every role. It is
not just a quarterly review process or
the sole responsibility of the manager.
Simply documenting a policy
and posting a list of training courses
will not create an engaged and high
performing team. When leaders
include a focus on developing team
members in all daily activities this
results in a fully engaged team
which consistently exceeds their job
requirements and targets in a positive
and supportive way.
While a plan and policy are the
foundations of a high performing
team, actively living, is the most vital
component.
2. Develop a roadmap
Your organisation is likely to
have a roadmap, plan or strategy
and it is important for the Credit
Department to have its own
roadmap. This may be as simple as
documenting a currently agreed
plan. Your roadmap should:
Align with the organisations
roadmap, plan or strategy.
Be communicated with all
stakeholders within and external to
the credit team.
Focus on a uniting common
purpose for all to strive toward.
13
Leadership and
High Performance
Including the team members and

other divisions in the formulation of
your roadmap will ensure a greater
buy-in and commitment to the
plan.
Once the roadmap has been
documented it is important to
communicate this to each team
member. Often just showing
the team that there is a plan to
address issues will increase job
satisfaction but showing them
how their roles contribute to the
achievement of the plan and what
this will mean once it is achieved
is the foundation of a truly high
performing team.
A team that believes in the
roadmap will ensure it is achieved
with maximum efficiency.
14
3. High Performance Teams

Manage upwards and across
their organisation
It is a fact that relying solely on
the Credit Department to deliver
improved performance will not
give the best result, and Credit
Professionals need to do more to
manage stakeholders if we are to
improve performance.
Once your team is engaged,
actively involved in their
development and understand
the roadmap great results and
achievements will start to flow
and the Credit Team will start to
be noticed. It is also likely that to
achieve real change and ideal results
for the business the credit team
often require changes or at least
assistance from other departments

such as the IT department,
operational areas or sales. This is
where it becomes vital to manage
up and across the organisation.
Managing up or across requires
developing strong working
relationships and understanding of
other departments goals challenges
and roadmaps. By involving peers
in your roadmap you would have
already started to form many
of the necessary relationships,
now the focus becomes more on
understanding their challenges,
priorities and roadmaps.
Managing across the
organisation with peers will ensure
you are able to get help and
assistance to resolve issues and
Leadership and
High Performance
queries. Managing up will ensure

your plans are supported due to
them being aligned to superiors and
organisational goals.
A good way to achieve
relationships and understandings
across divisions is by equating credit
metrics to those more relevant to the
peer you are talking to e.g.:
zz relate DSO reductions to financial
measures such as increased cash
flow and reduced borrowing costs.
zz Bad debts to average number of
sales required to recover the loss.
zz Billing issues to number of hours of
Sales representatives time taken in
resolving and how many new sales
could have been achieved in this
time.
While these 3 key areas require
investment of time and energy, a
A good way to achieve relationships

and understandings across divisions
is by equating credit metrics to
those more relevant to the peer you
are talking to
team with an active development
culture, clear roadmap and strong
relationships will see the benefits
flow on and on. The leader will no
longer be the sole driving force
looking for improvements, the
team will feel more engaged and
valued hence reducing turn over,
new entrants quickly adapt to the
team culture and take ownership of
their own induction. This all allows
the leader to focus on adding more

value to the credit function and
business.
By focusing and continually
reviewing these three criteria
you will be well on the way to
ensuring the Credit Department
is never considered a back office
function again and is in a position
to drive the performance of the
organisation. u
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15
Credit Management
Trust account requirements

for NSW projects over $20m
to commence 1 May 2015
By Chris Humby
and Peter Mills*
A common concern among

subcontractors in the building and
construction industry is that retention
money is sometimes not returned
by head contractors. The Building
and Construction Industry Security
of Payment Amendment (Retention
Money Trust Account) Regulation
2015 (NSW) (Regulation) seeks to
deal with this.
The Regulation applies to
certain contractors, subcontractors
and suppliers in the building and
construction industry. Members
should consider the implications of
the Regulation. Members should also
consider if the new laws give rise to
proceeds which can be perfected
against under the Personal Property
Securities Act 2009 (PPSA) for any
recovery process.
The Regulation
Chris Humby
Peter Mills
16
The Regulation gives effect to one

of many recommendations by Bruce
Collins QC in his report Inquiry into
Construction Industry Insolvency in
NSW in November 2012.
The Regulation provides that
from 1 May 2015, head contractors
on construction projects with a value
of at least $20M will be required to
hold retention money in trust for
subcontractors, in a separate trust
account. Traditionally, these reflect a
percentage of each invoice issued by
a subcontractor for services and/or
goods supplied.
The Regulation limits the use
of retention money and creates
new record keeping and reporting
obligations for head contractors. The
changes will apply to subcontracts

entered into by a head contractor,
where the head contract was entered
into after 1 May 2015.
A summary of the changes is as
follows.
Application
The Regulation applies to retention
money held by a head contractor,
being the person who will carry out
construction work or supply related
goods and services for the principal
under a construction contract.
Construction work and related
goods and services are defined under
the Building and Construction Industry
Security of Payment Act 1999 (NSW)
(SOP Act).
The SOP Act does not apply to
some contracts, such as contracts for
residential building work for a party
who proposes to live in the property.
Some mining work is also excluded
from the definition of construction
work under the SOP Act. These
changes will not affect contracts
which do not fall within the broad
compass of a construction contract
under the SOP Act.
$20 million threshold

The $20 million threshold is calculated
by reference to the amount of
consideration payable under the head
contract. If the value of the contract
reaches the $20 million threshold
by variations, then subsequent
subcontracts entered into by the head
contractor will be subject to the trust
account requirements.
If the $20 million threshold is
Credit Management
reached after entry into the head

contract, then the trust account
requirements under the Regulation do
not apply to subcontracts entered into
before the $20 million threshold was
reached.
Trust account requirements

The Regulation provides that
retention money held by a head
contractor must be held in trust for
the subcontractor in a trust account
with an approved ADI, an authorised
deposit-taking institution, as in banks,
building societies and credit unions.
The head contractor can choose
to establish the trust account for a
particular subcontractor, a particular
project or for more than one project
by the head contractor. The account
name must include the name of the
head contractor and the words trust
account. The head contractor must
tell the deposit-taking institution that
the purpose of the account is as a
trust account under the Regulation.
The head contractor must notify
the Chief Executive of the Office
of Finance and Services (Chief
Executive) certain details of the trust
account.
Withdrawals from trust account

A head contractor may only withdraw
money from the trust account:
a. For the purpose of payment of
the money in accordance with the
terms of the subcontract;
b. As agreed in writing between
the head contractor and the
subcontractor; or
c. In accordance with the order of a
court or tribunal.
A head contractor may not
use retention money held in a
trust account to pay the head
contractors debts, albeit the head
contractor may still have recourse
to the retention money if the head
contractor is permitted to do so by
the subcontract.
Unless otherwise agreed, interest
on retention money is also held on
trust for the subcontractor.
It is an offence to withdraw
retention money from a trust
account otherwise than by cheque
or electronic funds transfer.
It is an offence to withdraw
retention money from a trust
account otherwise than by cheque or
electronic funds transfer.
Record keeping and reporting

The Regulation obliges a head
contractor to keep records in relation
to the retention money trust account.
A head contractor is required to keep
records of money paid in and out of
the trust account, and retain such
records for at least three years after
the account is closed.
The Chief Executive has the power
to request information from the head
contractor, subcontractor or approved
ADI, including in respect of the value
of the construction project.
A head contractor must annually
provide to the Chief Executive:
a. An annual review report; and
b. A retention account statement.
The annual review report must
be certified by a registered company
auditor. The retention account
statement must be in the form set out
in the Regulation. Upon submission,
a fee of $1,500 must be paid to the
Chief Executive.
PPSA
The Regulation was intended to
benefit subcontractors, rather than
sub-subcontractors, such as suppliers.
However, suppliers may also benefit
from the Regulation, as the retention
money held in trust may give rise to
proceeds which can be perfected
against under the PPSA.
Of relevance to suppliers to
subcontractors:
zz A supplier may have a claim
against the retention money held
in the head contractors trust
account for the subcontractor,

if the supplier has properly
documented, perfected and
provided timely notice of its
security interest under the PPSA.
This may require the supplier to
seek an order from the Court to
this effect.
zz A supplier might also obtain a
greater payment more quickly
(rather than through other
unsecured debt recovery options),
and despite the appointment of a
liquidator to the subcontractor or
head contractor.
Implications
Subcontractors on large projects will
now have the additional protections
for retention money under the
Regulation.
Head contractors must familiarise
themselves with the Regulation and
consider, for projects that will meet
the $20 million threshold, appropriate
amendments to their subcontracts.
In light of the Regulation, head
contractors are also likely to consider
insisting on other forms of security,
such as bank guarantees, to avoid the
trust account requirements.
Members should contact Peter or
Chris to discuss their situation, and
how the Regulation affects them. u
*Chris Humby is a senior associate in the
construction team at Thomson Geer, Brisbane.
He has expertise in building, construction
and engineering law as well as construction
contract drafting and advice and commercial
dispute resolution. E: chumby@tglaw.com.au
P: +61 7 3338 7909
*Peter Mills is a special counsel with Thomson
Geer and is currently the Vice-President (Qld
Division) of the AICM. Peter specialises in
recoveries and compliance under the PPSA
and its implications. E: pmills@tglaw.com.au
P: +61 7 3338 7921
17
Credit Management
ATO bank begins

calling in the
loan book
By Andrew Spring*
If you have noticed an increase in the

ATOs enforcement activity in recent
months, then this communication will
not come as a surprise. In this Alert
we discuss how our recent dealings,
along with our analysis of the ATOs
enforcement behaviour, has identified
a significant increase in the ATOs
enforcement activity when dealing
with tardy taxpayers.
It seems that the ATO are sending
a clear message that they will increase
their activities to identify and recover
unpaid taxes, improve their internal
systems to capture more information
on the taxpayer and initiate
enforcement activities at an earlier
stage.
As an example, Figure 1 below
shows the increase in the ATO
initiated winding up applications
during the last six (6) months through
the Federal Court of Australia:
We have also seen an increase in
Andrew Spring
18
the use of the ATOs other powers to

recover outstanding amounts, which
include:
zz Garnishee notices; and
zz Directors penalty notices.
Some other trends that we have
identified are:
zz With the increased corporate
winding up applications, the ATO
have been reluctant to consent
to an adjournment of the winding
up proceedings, to provide the
taxpayer with further time to get
their affairs in order;
zz When discussing a payment
arrangement for a corporate
entity, the ATO have recently
started referencing a directors
personal compliance history
where previously the affairs were
considered independently;
zz The utilisation of grouping
provisions when undertaking legal
enforcement.
Credit Management
All of the above activity is

consistent with comments made by
the Commissioner recently when
presenting to the Tax Institutes
30th National Convention. During
this speech, which is available online
(www.ato.gov.au), Commissioner
Jordan discussed the shift in the ATOs
approach to Debt Management i.e.
collecting unpaid taxes calculated
by the ATO at $19.5 billion in 2013/14
(up from $14.5 billion in 2009/10).
The Commissioner advised that
the ATOs new approach includes:
zz A more flexible and tailored
approach to payment
arrangements;
zz Earlier intervention to prevent the
escalation of debts;
zz A focus on a businesss viability;
zz L
egal enforcement at an earlier
stage with the Commissioner
offering an example by way of
average debt at legal enforcement
for both bankruptcy proceedings
and corporate winding up
proceedings.
The reasons that lead to a strained

relationship with the ATO are rarely
straightforward and may include
procedural complexity, economic
conditions, extraordinary events or
a simple inability to get a straight
answer. u
ATO initiated Other creditor initiated
(average debt)
(average debt)

Bankruptcy proceedings
$300,000
$35,000
Corporate winding up proceedings
$340,000
$93,000
zz Updated communication
techniques including simpler
letters and utilising electronic
communication techniques,
including email, SMS and myGov
channels.
*Andrew Spring is a Partner

at Jirsch Sutherland.
E: AndrewS@jirschsutherland.com.au
P: (02) 9236 8333, F: (02) 9236 8334
www.jirschsutherland.com.au
Connect with
credit
professionals
online
Access a world of resources for credit professionals.
creditnetwork.com.au
Proudly sPonsored by
19
Credit Management
Slow economy,
fast payments
Invoice payment times reach

record pace in 2015
Despite an Australian economy
growing at a moderate 2.3 per cent
according to March quarter figures
released by the ABS last month, the
latest data on trade payments reveals
that businesses are paying their
invoices at the fastest rate on record.
Dun & Bradstreets Trade Payments
Analysis reveals that average invoice
payment times were 50.4 days during
the first quarter of the year, down
from 56 days a year earlier. While
payment times slowed marginally
quarter-on-quarter, the current rate
is the fastest measured by Dun &
Bradstreet for a Q1 period in the eightyear history of the data.
The sharp drop in payment times
over the past 12-months has been
driven by a jump in the percentage of
invoices settled within 30 days, which

lifted from 44 per cent to 56 per cent.
According to Darin Milner, Director
of Risk Management Solutions at Dun
& Bradstreet, the latest findings reflect
the positive impact of low interest
rates on cash flow and the improved
efficiency of the business sector in the
post-GFC environment.
The lower cost of debt is certainly
helping businesses to manage their
repayments and control their cash
flow in an operating environment of
soft demand, said Mr Milner.
The protracted recovery since
the global financial crisis has also
forced businesses to become leaner
and more efficient operations, with
a greater flexibility in payment
terms and conditions to improve
the likelihood
of timely
payment.
Despite the
improvement,
Darin Milner
44 per cent of
commercial invoices in Australia are
still being paid late, which withholds
significant amounts of money from
the financial system and places
financial strain on supply chains, he
added.
According to Dun & Bradstreets
latest Business Expectations Survey,
46 per cent of businesses would
choose to miss a payment to a trade
supplier if without enough money
to cover all of their expenses. The
survey also found that 34 per cent
of businesses have had a customer
Average invoice payment times: Australia

58
56
No. of days
54
52
50
50.4 days
48
20
06
20 Q4
0
20 7 Q
07 1
20 Q
0 2
20 7 Q
07 3
20 Q4
0
20 8 Q
08 1
20 Q
0 2
20 8 Q
08 3
20 Q
0 4
20 9 Q
1
0
20 9 Q
09 2
20 Q
09 3
20 Q4
1
20 0 Q
10 1
20 Q
10 2
20 Q
10 3
20 Q4
11
20 Q1
11
20 Q2
11
20 Q3
11
20 Q4
1
20 2 Q
12 1
20 Q2
12
20 Q3
12
20 Q4
1
20 3 Q
13 1
20 Q2
13
20 Q
13 3
20 Q4
1
20 4 Q
14 1
20 Q2
14
20 Q
14 3
20 Q4
15
Q
1
46
20
Credit Management
or supplier become insolvent or

otherwise unable to pay them during
the past year. The findings underscore
the challenge facing businesses to
ensure prompt payment for their
goods and services.
Despite more limited financial
reserves, businesses with between
one and five employees paid their
accounts in an average of 47.2 days
during the first quarter of the year,
three days faster than the national
average. In comparison, those
companies with more than 500
employees paid their bills more than a
week later, at an average of 55.1 days.
Although improving by four
days from the year before, the
ACT recorded the slowest average
payment time of 53.3 days. Meanwhile,
businesses in Tasmania were the
fastest to pay their invoices, averaging
46.6 days during Q1 2015, down from
54.9 days at the same time last year.
Across the country, businesses
operating in the utilities sector were
the slowest to pay their invoices,
averaging 55.2 days, down from 57.5
...44 per cent of commercial invoices in

Australia are still being paid late, which
withholds significant amounts of money
from the financial system and places
financial strain on supply chains...
days last year although up on the 51.9
days in the previous quarter. The retail
and mining sectors were next slowest,
averaging 52.6 days and 52.2 days
respectively.
At the other end of the scale,
businesses in the fishing industry
averaged 43.7 days to complete their
payments during Q1 2015. Businesses
in agriculture and forestry averaged
the next fastest payment times, at
45.7 days and 46.5 days respectively.
According to Stephen Koukoulas,
Economic Adviser to Dun & Bradstreet
the improvement in trade payment
times indicates healthy finances within
the business sector.
With firms paying their bills faster
than the historical average, cash flow

appears strong, said Mr Koukoulas.
The extremely low level of interest
rates is certainly assisting, with the
current period of very low wages
growth helping many businesses build
a stronger financial position.
We will be watching with
interest to see whether businesses
can maintain lower payment times,
or whether the slight quarter-onquarter uptick develops into a trend
given the soft economic performance
expected for the remainder of 2015,
Mr Koukoulas noted. u
The full report is available by clicking here.
www.dnb.com.au
Archer Capital acquires Dun & Bradstreet

Australia and New Zealand
In a change of ownership set to bring new investment
and a local focus to its operations, Dun & Bradstreet has
divested its Australia & New Zealand business to local
private equity firm Archer Capital via its newly formed
Credit Data Solutions business.
Announced last month, the transaction sees the
Australia & New Zealand business become a partner within
Dun & Bradstreets expansive Worldwide Network and
maintain its access to the Dun & Bradstreet brand and the
worlds largest commercial database.
The change of ownership acknowledged the unique
nature of the Australia & New Zealand business; which was
only market in the Dun & Bradstreet global organisation
with a consumer bureau and debt-recovery line, in
addition to its traditional operations in commercial risk
management, and sales & marketing.
The strength of the integrated offering was recognised
by Archer Capital, one of Australias leading private equity
firms, with a track record for developing strong, innovative
organisations.
We believe there are many opportunities to invest in

and grow each of these businesses, says Archer Capitals
Frank Heckes.
We are looking forward to working closely with the
Australia & New Zealand team and to being a valuable
member of Dun & Bradstreets Worldwide Network.
The Worldwide Network is an alliance of Dun &
Bradstreet and nearly 25 leading business information
providers across four continents.
All of the partners in the Worldwide Network are fully a
part of the Dun & Bradstreet family, leverage the strength
of the brand, invest in data quality and develop innovative
ways to deliver solutions to customers when and where
they need it, on a global, real-time basis.
Within this network, Dun & BradstreetAustralia & New
Zealand will continue to deliver its integrated offering and
existing services: Risk Management Solutions, Consumer
Risk Solutions, Debt Management Solutions, Sales &
Marketing Solutions, Decision Intellect and Milton Graham
Lawyers.u
21
Legal
The Principles of Reciprocity

and Data Exchange (PRDE)
and what it means for AICM members
By Elsa Markula*
Access to credit reporting
information can have a critical impact
both on lending decisions and the
ongoing management of credit
accounts. Borrowers may either
inadvertently or deliberately underdisclose their liabilities, in which case
the onus will fall on the lender to fill
in the blanks from other, possibly
unreliable, sources.
The use of comprehensive credit
reporting information makes a lenders
job a lot easier, as this information
provides an impartial, easily accessible
source of accurate information
about a borrower. For AICM
members operating in a commercial
environment, consumer information
still has its role to play1. Commercial
credit will often be advanced on
the basis of a personal or directors
guarantee, and that individuals
capacity to repay can be a significant
factor in the credit decision.
In Australia, legislation allowing
comprehensive credit reporting
commenced operation in March 2014.
Comprehensive credit reporting refers
to two new data sets: consumer
credit liability information (CCLI)
and repayment history information
(RHI). RHI can only be accessed
by Australian Credit Licence (ACL)
holders, which may exclude a number
of AICM members. However, CCLI can
be accessed by all credit providers,
and provides valuable information
about the consumer credit accounts
held by a borrower, including the
responsible credit provider, type of
account, limit, date opened and date
closed, and terms and conditions for
22
the account. In a fully functioning

credit reporting system, CCLI would
include information about both
traditional financial credit accounts,
as well as telecommunications and
utilities accounts.
To date, there has been limited
exchange of comprehensive credit
reporting information by lenders.
There are a multitude of reasons for
this, not least of which is the need for
a set of rules to govern the exchange
of this data.
The Australian Retail Credit
Association (ARCA) has drafted the
Principles of Reciprocity and Data
Exchange (PRDE) as this set of rules.
It is a voluntary set of rules, and was
developed over a two year period by
ARCA Members.
The PRDE is not yet operational,
and is currently subject to an
authorisation process by the
Australian Competition and Consumer
Commission (ACCC). This authorisation
process commenced in February 2015,
and ARCA hopes it will be concluded,
and the PRDE operational, by about
October or November 2015.
The rules in the PRDE are
structured under six principles. The
way these principles work is relatively
straightforward:
zz The PRDE sets up a data exchange

of the new types of data (CCLI and
RHI) which will only be accessible
to other PRDE signatories. An
organisation becomes a signatory
by signing the PRDE deed poll, and
notifying the PRDE administrator
and their credit reporting body
(CRB) (for credit providers), and
their customers (for CRBs).
zz Under the PRDE, information
is structured in three tiers:
negative (which includes defaults,
bankruptcies, judgements etc),
partial (which includes negative
plus CCLI) and comprehensive
(which includes negative and partial
plus RHI). Once an organisation
nominates a tier level, it can only
exchange information at that tier
level. It is also required to contribute
all of its available information at
that tier level within 12 months
(with a requirement to provide
50% of its available information
as soon as it starts participating in
the exchange). One of the flow-on
effects of this will be that the
contribution of negative information
will improve as all signatories
will have a minimum requirement
to contribute all of their defaults
across all of their portfolios.
Legal
zz The PRDE information exchange

is exclusive. This means that only
signatories will have access to
other signatory information (at
partial and comprehensive tier
levels). Negative information can
be shared outside of the signatory
base, without restriction.
zz Signatories will know who else
has signed, what level they are
exchanging information and
the date they should each be at
full levels of contribution. This
transparency provides the basis for
the compliance framework.
zz The compliance framework
enables all signatories to raise
issues of non-compliant conduct
against all other signatories.
When an issue is raised, it will be
dealt with in a series of stages.
In the initial stages, signatories
will be encouraged to resolve
issues between themselves. If
that doesnt occur, a dispute
can progress through to peer
review and, in exceptional cases,
it may progress to review and
determination by an independent
eminent person. Outcomes of
disputes (other than those agreed
between signatories in the very
early stages) will be published to
the entire signatory network.
For AICM members, the impact of the
PRDE will be twofold:
1. As set out above, better
contribution of negative
information within the credit
reporting system, regardless of
whether the AICM member is a
PRDE signatory or not; and
2. For those AICM members who opt
to become PRDE signatories, an
ability to access more consumer
credit information for use in both
commercial and consumer credit
lending decisions.
So what do AICM members need to
do, on signing the PRDE, to get access
to this information?
To access this information2, AICM
members will need to be able to
reciprocate by contributing the same
tier of information they are seeking
to access. However, this requirement

to contribute only applies to the
available information held by the
AICM member so if the member
does not generate the information
it is seeking to access, this does not
prevent it from participating in this
exchange. The proviso to this is that, if
the AICM member does ever generate
that information it must be able to
contribute it to the PRDE exchange.
The best means to illustrate how
this works is by means of an example:
Bobs Tyres and Imports (BTI) has
a process that requires, when setting
up a trade account for a new client,
that it runs a credit report for any
negative information on that clients
consumer file.
BTI has heard about the PRDE
exchange and wants to participate
at partial tier level (which would
mean knowing, for any new client,
the amount and extent of all of their
existing consumer credit accounts).
However, BTI doesnt provide consumer
credit: it only provides commercial
trade accounts for trade creditors.
If BTI does ever offer consumer
credit, it understands that under the
PRDE, it will be required to contribute
information about those consumer
credit accounts. In the meantime,
BTI will be able to receive a credit
report with both negative and partial
information for its clients.
Again, it should be borne in mind
that AICM members are unlikely to be
able to participate at comprehensive
tier as this will mean the AICM
member must have an Australian Credit
Licence (ACL) issued by the Australian
Securities and Investments Commission
(ASIC). However, AICM members will be
able to access CCLI, which is valuable
information about the type and extent
of a borrowers current liabilities.
Why is this valuable information?
Experience in overseas markets has
shown that information about a
borrowers current liabilities results
in better credit decisions because a
lender is able to use this information
to more accurately assess a potential
borrowers risk, and make a decision
which reflects this assessment. It

also leads to efficiencies in ongoing
account management and collections,
as a lender can better assess the
likelihood of a borrower experiencing
and self-curing any delinquencies.
So what else would an AICM
member need to do to participate in
the PRDE exchange?
Pay an annual fee to the
administrator of the PRDE exchange,
which for smaller organisations will
likely be an amount between $1,000
and $1,500.
Be included in the register of
signatories, which will be accessible
to other signatories. In turn, this may
mean being subject to any complaint
of non-compliance with the PRDE
bought by another signatory.
Be satisfied that it is contributing
all of its available consumer credit
information. If it does have some
consumer credit accounts, these will
need to form part of its exchange
of data (although noting if offering
consumer credit accounts, it will
also no longer be exempt from the
External Dispute Resolution (EDR)
scheme requirement which will
mean both being PRDE compliant,
as well as being a member of an EDR
scheme).
In summary, participation in the
PRDE exchange looks likely to result
in considerable benefits for AICM
members, not least of which will be
the ability to make credit decisions
and manage credit accounts based on
better client information. u
*Elsa Markula is Legal and Regulatory Affairs
Manager, ARCA. For more information,
please contact Robert Falvo, ARCAs Industry
Engagement Manager. Email: rfalvo@arca.asn.
au; Tel: (03) 9863 7861.
FOOTNOTES
1
It should also be noted that in accessing
this personal information, an organisation
(whether a commercial credit provider or
consumer credit provider) will be subject
to requirements under the Privacy Act, and
Privacy Credit Reporting Code in respect to
the use and disclosure of that information.
As noted in footnote 1 above, at all times,
any access to credit reporting information
will also need to be in accordance with the
Privacy Act and Privacy Credit Reporting
Code requirements.
23
PPS
Protecting what your

business owns with the PPSR
By Moses Samaha*
If youre a business that
leases, rents or sells
goods under terms,
you need to register
securities on the PPSR
to avoid being left out of
pocket and even out of
business. Because what
you think you own could
end up in someone elses
hands.
The Federal Governments Personal

Property Securities Register (PPSR)
requires any company, big or small, to
register their interests in goods on a
national online register.
Your retention of title, rental or
lease agreements are effectively
worthless unless youve taken that
extra step to register and secure your
interest on the PPSR.
The changing nature of

ownership
Many businesses face disappointment
and stress when faced with looking to
recoup their goods or finances when a
customer goes into liquidation.
The biggest stumbling block
for businesses is the concept of
ownership what businesses believe it
means and how thats all changed.
To enforce ownership now requires
that extra step of registering on the
PPSR. And businesses with lease
agreements are especially exposed
unless theyve registered their security
interest.
Example: Company A leases
an excavator to Company B for 12
months. Company B go belly up
and a liquidator is appointed. If that
excavator is on Company Bs property
then that excavator falls into the
liquidators hands if Company A hasnt
registered the excavator on the PPSR.
It doesnt matter what the lease says;
ownership means very little now that
the PPSR is in full force.
How to integrate the PPSR

into your business
Moses Samaha
24
Adopting a new set of systems and

procedures, including changes to your
sales contracts, terms and conditions
of sale, invoices and invoicing
procedures is what is required to
protect your business.
The best way to move forward is:
CREDIT MANAGEMENT IN AUSTRALIAMay 2015
1. Weigh up the costs and benefits

The cost of registering your interest
against goods or personal property
depends on the item and how long
you want to secure your interest in
that item.
Businesses can ask themselves
how many bad debts have I suffered
in the past 12 months, two years or
even five years, and are these debts
sustainable?
A one-off $50,000 debt could be
immediately detrimental to a small
company.
2. Consult a professional adviser
If you do decide to register your
security interests on the PPSR, its
important to set up your business
processes and systems beforehand.
This is where a risk adviser comes
in handy, especially for an SME. As
an SME, its not always financially
practical to take on a full-time
credit manager, but an affordable
alternative is to hire a credit manager
on a consultancy basis. Employing a
professional credit manager to set up
PPSR-related business systems and
procedures can then be managed by
internal staff who dont have years of
credit experience.
Veda, a trusted source of
commercial credit information, assists
thousands of businesses each year by
providing data intelligence, including
PPSR insights, through its dedicated
VedaCheck web portal.
VedaCheck is an easy-to-use online
portal that businesses can access for
their individual or bulk PPSR search
and registration requirements.
Since 2012, Veda has processed
more than 5 million PPSR transactions
for over 4,000 businesses. u
*Moses Samaha is General Manager,
Commercial Credit for Veda.
www.veda.com.au
PPS
PPSA Registration Costs

Registering your security interests
makes financial sense for most
business and from 1 July it will
make even more sense with the
government reducing the fees.
AFSA (Australian Financial
Security Authority) administers the
register and charges fees under the
Australian Governments policy that
the costs of the PPSR operation be
cost recovered.
All fees for activities, except
Develop a special purpose report for
Account Holders, have been reduced
by 15%. This reduction is a result of
AFSA finalising repayments to the
Government for the initial investment
in the register.
The table below summaries the
reduction in some of the common fees.
In an statement outlining the
approach taken by AFSA in setting
fees AFSA noted the following:
The fees that have been charged
since the implementation of the PPSR
on 30 January 2012 have included a
repayment to the Government for the
initial investment in the register. The

final repayment will be made in the
2014-15 financial year. AFSA is seeking
to reduce the fees charged in line with
the cessation of the repayment.
AFSA states that The charges
imposed for registrations and
searches are designed to cover the
costs of operating and maintaining
the PPSR. The PPSR is available
online on a 24/7 basis with personal
assistance available through the
National Service Centre.
In determining the price for
each activity, AFSA seeks to
equitably allocate the PPSRs
operating costs. The majority
of expenditure attributable to
operating the register relates to
information and communication
technology (ICT) which is primarily
composed of:
zz ICT personnel dedicated
specifically to PPSR operations
zz a number of ICT personnel who
dedicate a portion of their time
to the PPSR
zz PPSR ICT infrastructure

operating costs
zz amortisation of software
developed or purchased
specifically to operate the PPSR.
In addition to ICT, costs are
attributed for support staff from
the National Service Centre, as well
as PPSR-related administration
such as, the PPS Registrar, legal
and communications. Indirect costs
such as finance and human resource
management are allocated using a
cost-driver appropriate to the given
function.
The price for each activity is
assessed on the utilisation of the
allocated resources and attributed
on the basis of the level of resources
required to deliver on the forecast
volume. u
To read more about the cost
recovery activities and a full list
of the PPSR fees visit:
https://www.ppsr.gov.au/fees
Current Fees
Proposed Fees
Register a Financing Statement for a not stated end time
$140.00
$119.00
Register a Financing Statement where the duration is 7 years or less
$8.00
$6.80
Register a Financing Statement where the duration is more than 7 years

but less than or equal to 25 years
$40.00
$34.00
Discharge Financing Statement
$0.00
$0.00
Minor amendment to Financing Statement or a change of free text

description of collateral (where change of details do not impact on end
date, result in additional grantor)
$4.00
$3.40
All fees for activities, except Develop a

special purpose report for Account Holders,
have been reduced by 15%.

May 2015CREDIT MANAGEMENT IN AUSTRALIA
25
PPS
Court of Appeal allows

Retention of Title Claim
Summary
By John Bennett and

Daniel Turk*
The Supreme Court of Victoria

Court of Appeal has handed down
a decision in favour of a supplier of
goods on credit, enabling it to enforce
its retention of title (ROT) rights. The
decision overturns an earlier Supreme
Court decision upon which it was
found that the suppliers ROT terms of
trade contained on its invoices were
not part of the agreement signed
by the purchaser and could not be
enforced.
The decision is particularly helpful
for trade credit suppliers who trade
on ROT terms as it provides some
level of clarity as to the time an
agreement is entered with a customer.
In this instance the credit application
is an offer by a customer which
was accepted by the supplier when
agreeing to an order for goods. The
Court incorporated the ROT terms
written on the invoices, into the
agreement although they were not
contained in the credit application.
John Bennett
Background
On 3 September 2009, Swan Services
Pty Ltd (In Liquidation) (Swan)
signed and lodged with Central
Cleaning Supplies (Aust) Pty Ltd
(Central) a credit application which
provided:
The supply of goods by
[Central] is governed by
[Centrals] Standard Terms and
Conditions as in force from
time to time. The Standard
Terms and Conditions override
any terms and conditions of
purchase used by [Swan].
Daniel Turk
26
Central invoiced Swan for each supply.

The invoice for the first supply was
CREDIT MANAGEMENT IN AUSTRALIAMay 2015
dated 4 September 2009. Each

Central invoice included a ROT clause
providing:
CONDITION OF SALE:
Goods the subject of this
sale remain the property of
Centraluntil the whole of
purchase price has been paid
by the Purchaser to Central in
full.
In May 2013, Swan was placed in
external administration. Central
sought to enforce the ROT clause in
its invoices and reclaim its goods. The
liquidator of Swan resisted this claim
under the Personal Property Securities
Act 2009 (Cth) (PPSA).
Pursuant to the PPSA, an
agreement to sell goods subject to
ROT creates a security interest in
the goods.1 From 30 January 2012,
such security interests need to be
registered on the Personal Property
Securities Register. If today a ROT
supplier has not registered and its
customer enters administration, the
supplier loses its ROT.2
Central never registered its ROT
security interest. However this was not
necessarily fatal to its claim. Central
could still enforce its ROT if it had
a transitional security agreement
being an agreement in force before
30 January 2012.3 ROT provisions
arising from such agreements were
automatically protected by the PPSA
without having to be registered for a
period of 24 months after 30 January
2012.4
Decision
The Court of Appeal held that signing
the credit application did not create
a contract between the parties.
PPS
Rather, it was an offer by Swan to

acquire equipment from Central on
an ongoing basis subject to Centrals
Standard Terms and Conditions as
in force from time to time. Central
accepted this offer by delivering
equipment ordered by Swan and
sending an invoice dated 4 September
2009 confirming that the supply was
on 30 day credit. This established a
supply agreement between Central
and Swan which included Centrals
Standard Terms and Conditions.
Those terms and conditions included
the ROT clause because on the
evidence it was incontrovertibly
Centrals standard terms the ROT
clause appeared in identical terms on
every invoice before the Court.
The Court of Appeal found each
ROT clause applied only to the
invoiced goods the subject of the
particular supply. However, the result of
the Courts contractual analysis was:
zz Swan undertook in the credit
application to be bound by
Centrals standard terms;
zz the ROT clause existed as a
standard term when the credit
agreement became binding on
Swan, being the date on which
Swan received the first invoice; and
zz under that agreement, Swan
A Court will treat a credit application

signed by a potential customer as
an offer by the customer which is
later accepted by the supplier.
accepted that all future supplies
of equipment would be governed
by ROT.
Accordingly an agreement came
into force providing for the grant of
a security interest in relation to all
future supplies. This agreement was
a transitional security agreement and
Central could enforce its ROT clause.
Implications
A Court will treat a credit application
signed by a potential customer as
an offer by the customer which is
later accepted by the supplier. This is
important as the date of agreement
(being acceptance) is relevant for
claims under the PPSA.
The outcome depended very
much on the facts. Circumstances
may exist where the credit
application is contractual and
governs all the supply arrangements
between the parties. In such
circumstances the document itself

would need to provide for ROT.
The decision suggests that the
Court is willing to take a commercial
approach in respect of ROT claims.
It is consistent with the recognition
in the PPSA that ROT agreements
do not always come about by the
customer signing off on the ROT
terms.5 u
*John Bennett is a Lawyer for Turks Legal.
*Daniel Turk is a Partner at Turks Legal.
T: (02) 8257 5727, M: 0408 667 220,
Email: daniel.turk@turkslegal.com.au
Sydney: (02) 8257 5700
Melbourne: (03) 8600 5000
www.turkslegal.com.au
FOOTNOTES:
1
PPSA ss 12(1) and 12(2)(d).
2
PPSA s 267.
3
PPSA s 322(1).
4
PPSA s 322(1).
5
PPSA s 20(2); Anthony Duggan and
David Brown, Australian Personal Property
Securities Law (LexisNexis Butterworths
Australia, 2012), 85, [4.29].
Connect with the right people

for trade credit solutions.
When it comes to credit risk management, navigating the different options
requires specialist expertise.
And thats what you get with NCI:
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Superior service
National coverage
Long-term partnerships
Innovative solutions
NCINet online access
To find out how all this can benefit you and your clients, visit www.nci.com.au,
email info@nci.com.au or telephone 1300 654 500 (Aust) and 0800 442 556 (NZ).
National Credit Insurance (Brokers) Pty Ltd
ABN 68 008 090 702 AFS Licence No 233817
Adelaide | Melbourne | Sydney | Brisbane | Perth

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May 2015CREDIT MANAGEMENT IN AUSTRALIA
27
aicm Training News

Why obtaining Qualifications
in Credit Management
is important
Ensuring suitable qualifications are held by Credit
Professionals is a fundamental requirement as they are
the custodians ofmany businesses largest asset (the
Accounts Receivable Ledger)and ensure an efficient sale
to payment process by mitigating the risks of slow cash
flow and bad debts.
The skills and knowledge required to be a proficient
Credit Professional have been impacted by todays
complex business world and times of high corporate
insolvency and bankruptcy. This emphasises the
importance ofeffective risk assessment, the timely
monitoring and collection of receivables and the skills and
knowledge of those tasked with these responsibilities.
AICMs learning services

mission statement:
to provide the training to
individuals working in the
credit function in order to
develop their career, skills
and knowledge. This will
help businesses ensure
the most important part of
their business is adequately
skilled to meet the
demands of this function
The Credit Function is a highly specialized function
requiring specific knowledge and skills including
Risk Analysis, Accounting, Dispute resolution, Legal,
Insolvency, debt collection and general business skills.
Each individual needs to possess the full knowledge and
skill set in order to ensure the efficient operation of the
Credit Function and business.
To learn more about AICM Learning services Click here
28
HAVE YOU CONSIDERED FUNDED

TRAINEESHIPS FOR YOUR EMPLOYEES?
ABOUT TRAINEESHIPS
Traineeships are employment arrangements where the
Commonwealth and state and territory Governments
support and encourage the training of new and existing
employees.
EMPLOYER INCENTIVES UNDER

NEW WORKER TRAINEESHIPS
By enrolling eligible new employees into Traineeships,
employers maybe entitled to receive up to $4000 in
Commonwealth Employer Incentive payments for full-time
staff and $1500 for part-time staff. In some states other
significant benefits such as payroll tax exemptions are
available, making traineeships a great value way to employ
new staff.
FOR EMPLOYEES OF ANY AGE

Traineeships are suitable for all employees no matter what
their age is. AICM qualification materials are based on work
place skills, so no matter how old your employees are, they
will still benefit from the training. AICM has worked with
employers of all sizes within the Credit Industry to utilise
Government funded traineeship opportunities to meet staff
training needs.
NEW WORKER ELIGIBILITY FOR TRAINEESHIPS

Australian Apprenticeship Centres determines the
eligibility of employees for New Worker Traineeships.
The eligibility of employees to participate in
Traineeships and the employers entitlement to Incentives is
generally determined by the following criteria:
zz the employee must be an Australian Citizen or
Permanent Resident
zz the employee cannot already hold a formal qualification
zz New Worker Traineeships requires the employee to
register a Trainee within 3 months of starting work.
Longer periods apply for part-time employees.
aicm Training News

In certain circumstances the course may still be funded
where the employee has a formal qualification. Contact
us to arrange specific advice from an Australian
Apprenticeships Centre.
WHAT INCENTIVES MAY BE AVAILABLE?

In total, employers may be entitled to up to $4000 for
each eligible full-time employee and $1500 for part-time
employees.
The payments for full-time employees are spread across
the training period as follows:
zz $1500 upon commencement and registration of the
traineeship (this takes approx - 6 months)
zz $2500 upon completion of the traineeship period and
training course.
Payment for part-time employees occurs after you
advise that the part-time employee has successfully
completed their traineeship.
DETERMINING ELIGIBILITY FOR INCENTIVES
an Australian Apprenticeships Centre representative to

officially assess and determine eligibility and entitlements.
TESTIMONIAL
Certificate IV in Credit Management has taught me
invaluable knowledge, to assist me in my current role
as the Credit Controller. Its been a great exposure
to the industry, to share and learn from the other
participants.
Diana Sullivan MICM, Trade Credit Controller at Haymes Paint
RECENT GRADUATES
Ruth Erika
Donna Willcocks
Diana Sullivan
Tian Zeng
Sarah Blackah
Rebecca Harris
Kaliopi Leddicoat
John Minieri
Grace Zhao
Don Lekamge
AICM will arrange an Australian Apprenticeships Centre to

assess your exact entitlement to incentives and the amount
of incentives and when they are payable.
Eligibility of employers for traineeship incentives,
and the amount of incentives available, will be assessed
and determined by an Australian Apprenticeships
Centre. Eligibility and incentives will vary depending on
the characteristics of your employee, the qualification
chosen and successful completion of the course by your
employee.
THE ROLE OF AICM IN TRAINEESHIP DELIVERY

The role of AICM is to listen and provide qualifications
that are relevant to your workplace and staff development
needs. We provide the assistance and structured course
materials to ensure that the employee completes the
training components of the Traineeship. AICM have a
long and successful history of working with employers to
implement Traineeship programs successfully nationally!
Helpful information on supervising your Trainee:
https://www.youtube.com/user/DETSTSNSW
A complete guide to Traineeships (NSW) http://www.
training.nsw.gov.au/forms_documents/apprenticeships_
traineeships/fullguide.pdf
WHAT IS THE NEXT STEP TO GET STARTED?

Simply email debby@aicm.com.au or phone 02-99064563.
Remember you will know your entitlements to Incentives
before any enrolments are done! We will arrange for
KEEP THESE DATES:

Sydney
zz 13th & 14th August Factoring and invoice
discounting
zz 22nd September Assess credit applications
Brisbane
zz 16th July Manage bad and doubtful debts
discounting
zz 11th September Assess credit applications
Melbourne
discounting
zz 18th September Assess credit applications
29
Women in Credit
WINC women in
credit inaugural lunch
Friday May 15 2015
Women in credit (WINC) finally arrived
with a bang in May and we had a
fantastic lunch with some amazing
speakers, sponsors and giveaways.
The WINC initiative has been established by a working
committee of the NSW Division Council and members
comprising:
zz Treacy Sheehan, MD Trace Personnel
zz Debbie Leo, General Manager, Major Accounts Veda
zz Susan Day, National Credit Manager, Manassen Food
Group
zz Beth Gray, National Credit Manager, Red Bull Australia
Pty Ltd
The Working Committee hopes to provide informative
events which help Credit Professionals at all levels and
ages. For example, sharing tips on how to progress the
careers for the younger members and how to prepare for
life after credit for members planning retirement.
We intend to make this initiative national with different
events across the states. We are currently in the process of
organising the Brisbane and Melbourne events.
The inaugural event was developed out of a growing
need to focus on the specific challenges Women face in the
Credit Industry and was designed to give Women some tips
on how to tackle some of the general challenges for women
in business in an inspiring and relatable manner.
The Sydney event was held at KPMG Head Office with a
fantastic line up of speakers including:
zz Holly Kramer CEO of Best & Less
zz Yolanda Vega Chief Executive of Australian Women
Chamber of Commerce & Industry
zz Linda Murray Athena Coaching
zz Debbie Leo MICM General Manager of Major Accounts
Veda
The speakers were insightful and the room was mesmerised
by the powerful words and advice each lady provided on
life, career and succession planning with helpful antidotes
of professional and personal success.
It was an afternoon of takeaways with everyone finding
something that resonated and inspired them.
30
Some of the takeaways worth mentioning

included:
Holly Kramer, CEO of Best and Less
Work hard. Success relies on the basics and working
hard cant be overlooked.
Take Risks. Establish a stable financial basis so you can
take risks in your career.
Network. Luncheons, seminars, conferences are a great
way to develop your networks and learn from others.
Dont just focus on networking with those in more
senior spheres but also those at other levels, professions
and industries.
Linda Murray Athena Coaching
Put your strengths as a women on the table
When faced with choice points in your life, take
responsibility and step into it
Only 2% of fears come true so have a go.
Linda has provided the following links for more information
on some of the points she covered:
White paper The Stiletto Approach: What Winning
Women Do go to http://www.athenacoaching.com.au/ and
down load the white paper
The Video Interview with Linda Murray and Elise Mah
Chut about Personal Brand (http://www.athenacoaching.
com.au/video-library/)
Women in Credit
Yolanda Vega
Yolanda is very passionate about
breaking down discrimination toward
Women and others, she recommends:
To Never Burn your Bridge
To know what you can and cant do
To learn more about the Australian
Women Chamber of Commerce and
Industry go to http://www.awcci.org.au/
Dress for Success

The WINC committee feels very
passionately about supporting a
charity and decided Dress for Success
would be our initial charity nationally.
We were also delighted to hear
from Robyn D Szoeke about the
great work Dress for Success does to
promote the economic independence
of disadvantaged women by providing
professional attire, a network of support
and the career development tools to
help women thrive in work and in life.
Dress for Success Sydney is
recognised by our stakeholders as a
highly professional & compassionate
organisation making a difference

for disadvantaged women building
confidence and optimising their
potential to achieve self-sufficiency
and financial independence.
Dress for Success Sydney is a
registered charity that improves the
employability of women in need in
NSW by providing; free of charge,
professional clothing, a network of
support and the career development
tools to help women achieve selfsufficiency.
They endeavour to dressover 2000
women per year. Together $1,600 was
raised which will go toward Dress for
Success and to Support Holly in her
CEO Vinnies Sleep out.
We would like to thank all of the
clients and friends of WINC and
the institute that provided fabulous
giveaways to make our raffle and the
goody bags a big treat for all. We
would also like to say a special thanks
to Debbie Leo for her stellar Master of
Ceremonies and the major sponsor
Veda and also The Lucky door prize
donated from Australian Receivable
Collections (ARC).
Next events for WINC

Make sure you lock the dates into your
diaries now ladies and gents.
Melbourne
Friday 11th September 2015
Brisbane
Friday 18th September 2015
Please also let us know if you have any
further ideas to make these events an
ongoing success.
Photographs by Jarryde Paterson
www.jarrydepaterson.com
31
aicm Can We Help?

In this issue of Can we Help we look at another way the AICM is helping Credit
Professionals by featuring the Credit Network.
The AICM is fully supportive of the Credit Network which has been formed with the support of Veda, NCI and Results Legal.
All your problems answered

Credit Network is the go to place for answers and support from other credit professionals. The creditnetwork.
com.au has a wealth of relevant, practical information for credit professionals. The interactive forum allows credit
professionals to list and respond to posts specific to credit related issues. Below are some examples of recent posts
and the prompt, informative responses that followed.
Do we need to include the PPSR in our terms and conditions? Does the customer need to agree to have them
registered? Does anyone has a good line to add to our T&Cs?
Many thanks!
Username: Olivia
Name:Olivia Cave Role:Credit Manager Industry:Building And Construction Posted:25/05/2015 11:07 AM
Q 1. If you want to register on the PPSR, you need to have a valid security interest. The usual way to create a security
interest in trade credit is to include one in your T&Cs.
Q 2. No, you dont need consent to register. You do, however, need a registrable security interest (which usually arises
under your T&Cs).
Q. 3 In trade credit, the main security interests to protect under PPSA are retention of title rights. It isnt quite as simple
as including 1 or 2 PPSA clauses as the terms need to work together. Key aspects though include contracting out of
notice requirements (to the extent possible) and drafting the RoT clauses in a way which maximise your PMSI claim
(particularly in how your all moneys security operates).
Name:Karl Hill Role:Managing Director Industry:Legal AICM Member Posted:28/05/2015 4:02 PM
What happens if there is a change of trustee for a trust? Is the new trustee liable for all old and new debts?
Username: Amy Beigoff
Name:Amy Beigoff Role:National Credit Manager Industry:Building And Construction Posted:21/05/2015 10:51 AM
Hi Amy
In general, an incoming trustee of a trust will only be liable for the debts of the trust from the date of its appointment as
a trustee.
It is the trustee who was acting at the time the debt is incurred who will be liable for the debt, and will remain liable
despite the retiring trustees resignation.
The issue of liability (between the outgoing and incoming trustees) is often covered in the deed of resignation and
appointment of trustee which is an agreement between the retiring trustee, the incoming trustee and the appointer
(executor) of the trust. The deed should contain a clause which releases the retiring trustee of any liabilities upon
performance of certain conditions (eg. paying off all existing liabilities as at the date of execution of the deed). However,
please note that such an agreement does not, absent the agreement of the creditor, effect the liability of the retiring
trustee for the debt to the creditor.
Usually, at law, the former trustee will have the right to realise trust assets to pay unsatisfied debts and liabilities despite
its removal as a trustee.
This response is general in nature. If you require further advice, you should seek tailored legal advice. There may be other
recovery avenues open to you, such as indirectly enforcing the retiring trustees right of indemnity (another topic in
itself). This may give you a secured position for the debt.
I hope this helps.
David Chen, Results Legal
Name:David Chen Role:Solicitor Industry:Legal Posted:21/05/2015 11:14 AM
32
aicm Can We Help?

Some options might also depend on the terms of the trust deed and whether you have a suitable perfected
security interest and whether the former trustee went into liquidation or bankruptcy. Generally, you can still
sue the former trustee for the debt; you can sue the new trustee to enforce the security interest and/or you
can enforce the security interest without suing and/or lodge a caveat or possibly prescribed interest over trust
property and/or sue the new trustee to enforce an equitable lien which is subrogated to you over the trust
property. I did an AICM Paper on thes and have done several court actions and recoveries using these. Sometimes
you are better off than if no change of trustee had occurred. Cheers
Name:Peter Mills Role:Solicitor Industry:Legal AICM Member Posted:21/05/2015 9:05 PM
Hi All,
Occasionally we have customers that stop buying from us having gone to an opposition company. When pressed for
payment, the customer sometimes start paying minimal monthly amounts that can take 1-2 years to settle. Obviously
this is unacceptable & Ive sent Final Demands with mention of a default listing without response.
I cant justify legal action because of the amount involved & if I list a default they may stop payments altogether.
Damned if I do & damned if I dont, your thoughts please?
Rodney
Username: Rodney Jarvis
Name:Rodney Jarvis Role:National Credit Manager Industry:Automotive AICM Member Posted:02/06/2015 11:06 AM
Rod,
my thoughts are that I would take a punt and lodge the default report. This is of course after advising them in writing
that this will stay on their credit files for 5 years, and may affect tehir ability to obtain credit in the future. If everyone
took this course of action, credit files would be of more value when assessing, and the professional debtors may
eventually get the message.
FrankV
Name:Frank Vredenbregt Role:National Credit Manager Industry:Automotive AICM MemberPosted:02/06/2015 7:38 PM
Hi Rod,
This is a great example of the tough positions Credit Managers are placed in every day.
Defaulting has a number of things going for it e.g. you are contributing to better information about this customers
unprofessional behaviour, it will lessen the chance of them shopping around between the different suppliers and has a
great chance of leading to prompt payment.
On the other hand if they are meeting the obligations of a repayment arrangement why upset the apple cart. However
it sounds like this is not the case so not defaulting or taking action means that the disruption will continue for your
company, your industry or the broader Credit Industry. Not to mention the growing risk of insolvency this behaviour
indicates.
Thats my opinion and I hope it helps.
Name:Nick Pilavidis Role:Chief Executive Officer Industry:Industry Body & Training Provider AICM MemberPosted:03/06/2015 10:23 AM
Hi Rodney.
This happens to us all the time. Advising debtor that you are prepared to take the matter to small claims court , coupled
with the notification that you will default their credit file and that all cost associated with the summons will be added to
their debt usually brings about the desired result,
Danielle R
Name:Danielle Robinson Role:National Credit ManagerIndustry:Manufacturing & Distribution Posted:12/06/2015 12:27 PM
33
aicm Can We Help?

Hi All,
As a general rule, we never like to off set amounts owed, however when a debtor is also a creditor, and the debtor is
struggling to pay their outstanding debts, do we have a right to automatically off set the funds owed to them, or do we
need to have a formal agreement between both parties (in writing) for this to occur?
Are there any repercussions in the event of insolvency if an off set occurs?
Thanks,
Username: JulieHaigh
Username:JulieHaigh Role:National Credit Manager Industry:Mining Posted:03/06/2015 9:26 AM
Replies
Hi Julie, in short;
1. Its better to have a clause in your credit documentation to set-off;
2. If no credit documentation or terms, then at general law you may be able to set-off;
3. Yes there may be insolvency repercussions, e.g. preference payment, but there may also be a legitimate defence.
Feel free to give us a call for an obligation free discussion.
Regards, Julie McNamara, National Credit Consultant, Patane Lawyers.
Name:Julie McNamara Role:National Credit Manager Industry:Legal Posted:03/06/2015 11:05 AM
Julie
I would offset and take the chance IF an insolvency issue came up.
You could always seek a settlement in satisfaction of, if you fell into the category of preference payment.
Regards,
Name:Ralph Ziccarello Role:Credit Manager Industry:Building Supply & Manufacture AICM MemberPosted:08/06/2015 5:39 PM
Click here to go to the Credit Network
All articles contain general information only. They are not legal advice. You should seek your own legal advice if faced with a similar situation.
34
Queensland
Presidents Report
June already and some of you are in financial year end mode,
where does the time go?
Young Credit Professional judging for the Queensland
Division is underway in the next couple of weeks, the
presentation of the Dun & Bradstreet Queensland Young Credit
Professional for 2015 will be held on the 22nd July at Customs
House.
This event is certainly one of the highlights of our calendar
and I would urge you to attend, bring your team in supporting
the up and coming in our industry. This is a very popular event
so book early.
At the request of some of our members we have an
alternate venue which is Customs House, one of Brisbanes
heritage icons, is located on the river in the CBD. It is owned
and operated by The University of Queensland as a cultural,
educational and heritage facility. Behind the grand Corinthian
columns you will find exquisite boardrooms, a stunning
ballroom, seminar rooms, a licensed restaurant and UQ
Information Office.
Customs House is regarded as one of Brisbanes premier
function and features beautiful heritage surroundings, outside
on the terrace overlooks the Brisbane River and the Story
Bridge You will be stimulated by a presence of the past and will
enjoy the splendor of this magnificent buildings origin. I invite
you to take advantage of this venue by attending the next CNN
held there.
This year has seen the reintroduction of our Toolbox series of
credit related topics, a national standard offering of the basics of
credit control.
These sessions are excellent for someone new to credit or for
those that have been around for a while who need a refresher
on the relevant practice and legislation. These can be tailored to
suit your business and be presented in-house with a particular
focus on your policies and procedures. Please enquire with local
councilors or with Head Office.
I feel that Queensland Council has built a very strong

Nick Pilavidis, Roger Masamvu, Peter Mills and Peter Ryan.
platform to continue to provide specialist education to its

members and interested persons for the times ahead.
Yours in credit.
Brian Kay CCE
Upcoming Events
YOUNG CREDIT PROFESSIONAL OF THE YEAR
Judging for the Queensland Division YCP of the year is
underway in the next couple of weeks and the presentation of
the Dun & Bradstreet Queensland Young Credit Professional
for 2015 will be held on the 22nd July at Customs House. This
event is certainly one of the highlights of our calendar and I
would urge you to attend, bring your team in supporting the
up and coming in our industry. This is a very popular event so
book early.
GOLF
The Queensland Division Wincollect Annual Golf Day is on
Friday 21st August 2015 at the Wynnum Golf Course 64
Stradbroke Avenue.
Time: 11am registration

Tee off starts at 12pm
Cost: Individual - $95

Team of 4 - $380

Hole - $750
EDUCATIONAL TOOLBOXES
This year has seen the reintroduction of our Toolbox series
of credit related topics, a national standard offering of the
basics of credit control. These sessions are excellent for
someone new to credit or for those that have been around
for a while who need a refresher on the relevant practice and
legislation. These can be tailored to suit your business and
be presented in-house with a particular focus on your policies
35
AROUND THE STATES
The QLD AICM Council Brian Kay, Peter Mills, Peter Ryan,
Toni Sawyer, Julie McNamara, Melinda Grob, Stacey
Woodward and Roger Masamvu.
AROUND THE STATES
Queensland
Re-enactment of an Enforcement Hearing
Events Calendar
8 July
CNN Trivia Night, VENUE: TBA
Nick Pilavidis and Murray Walter.
Annual Golf Day
and procedures. Please enquire with local councilors or with

Head Office.
I feel that Queensland Council has built a very strong
platform to continue to provide specialist education to its
members and interested persons for the times ahead.
19 August
CHRISTMAS FUNCTION
22 July
AGM & YCP Awards, VENUE: TBA

August
Credit Tool Box Leadership & Management

Skills (Part 3 & 4)
Part 3 and 4 each a Half Day Seminar
VENUE: TBA
8 September
CNN Identity Theft & Fraud
This year promises to be a very special End of Year function, a

time to catch up with friends and see the old year out. Last Year
we were at Toowong in The Regatta Hotel, this year we are by
the Brisbane River with the Story Bridge as a backdrop in the
stately heritage listed Customs House. The date is Wednesday
25th November so ensure that you put that in your diaries.
Speaker: Fraud Squad Qld Police

11 14 September
CCE Exam
16 September
Credit Tool Box Insolvency Issues (Part 5)

VENUE: TBA
CNN 13th May 2015 Data Protection

Last month we enjoyed our latest CNN at a new venue,
Customs House along Queen St in Brisbane. Not only did we
enjoy a fantastic view of the Story Bridge and the Brisbane
River we also got to enjoy an interesting presentation from
Murray Walter (Dun & Bradstreet) on Data Protection.
October
CNN People in Credit, Challenges & case study

VENUE: TBA
14 - 16 October
National Conference Sydney

VENUE: SOFITEL WENTWORTH HOTEL - SYDNEY
November
End of Year Event

VENUE: TBA
36
CNN 10th June 2015

Re-enactment of Enforcement Hearing
Queenslands June CNN covered the topic of Debtor
Enforcement Hearings. Peter Ryan commenced by eloquently
outlining the purpose of Enforcement Hearings in the collection
process; the type of questions that could and should be asked
and the ability of the court to compel such responses.
Armed with the overview of the process, an entertaining
reenactment ensued which not only showed the process but
also that anything can happen and that you need to think on your
feet, particularly when actors start to ad lib. Rick Jones judiciously
Queensland
AROUND THE STATES
QLD president Brian Kay opening CNN on 10 June.

Above and below: A new venue and new view
Customs House.
played the part of the judge, Peter Ryan that of the examining
officer add to the mix a rather belligerent debtor who acted
like the love child of Brian May and Gordon Ramsey. A most
educational and humourous look at Enforcement proceedings.
Councillor Introduction
Stacey Woodward CCE
Qualifications:
Certificate IV in Credit Management
50% completed
Current Position:
Credit Officer QLD Major Mining
Employer: Hastings Deering
How long at that company:
5 months
The Australian Institute of Credit

Management welcomes our Partners for 2015.
Credit/professional background:
My credit career started with Boral
Construction Materials in 2011 as
a Credit Officer looking after the
QLD/NT Trade accounts, I then
progressed into the QLD/NT Major
accounts role in 2013.
National Partners
Why I volunteer on the AICM council/Goals as Councillor:

I currently sit on the QLD council looking after the Media
portfolio. I love being part of something that I am passionate
about and am always looking to learn new things.
Divisional Partners
Achievements with AICM (inc how much time on council): QLD

National finalist for the 2014 Young Credit Professional of the
year award, have been involved with the council for 9 months.
Value I have gained through volunteering with AICM: Since
taking on the media portfolio on the QLD council, I will be
expanding my social media marketing skills with an online
course due to start in June.
My passions aside from Credit/work: Scuba diving and
travelling the world I usually plan trips that combine the two!
Contact details: Feel free to connect with me via LinkedIn or
aicm@aicm.com.au

Our National and Divisional Partners support and work with the
AICM to promote the Institutes activities, represent the Credit
Industry and develop the careers of all Credit Professionals.
As these organisations support your Institute and your Industry
please consider them when you require assistance.
37
AROUND THE STATES
New South Wales
Women in Credit Inaugural Lunch
Presidents Report
support of our Partners we would really struggle to exist. They

are always promoting our events and also have their staff and
clients attending next to everything we put on.
Next time you attend an event spend some time with
our Partners and see what benefits they can bring to your
companies and or yourselves.
Hello to all our members.

We have had some fantastic events in NSW since the last
magazine with next to all of them being sold out with over 200
people attending events in May alone.
The individual reports on these events are as per below.
It was great seeing so many people learning, enjoying
themselves and networking, it was also refreshing seeing all
the different Credit Managers attending these events and we
look forward to seeing you all at our upcoming networking
nights leading into this years conference at the Sofitel
Wentworth Sydney.
We are in the process of our YCP judging and it has been
fantastic to see so many quality candidates apply.
I am looking forward to meeting all of our finalists at the Gala
dinner at Kirribilli Club on the 16th July for the announcement
of our 2015 State champion who will go on to represent NSW in
the attempt to bring the National YCP title back to NSW again. I
want to make a special mention to all of our partners this issue.
I know I do this each month however they have been a big part
in helping us achieve the great events lately and without the
38
Our National Partners are:

Veda, Dun and Bradstreet and Austral Mercantile.
Our State Partners are:
Ampac, Results Legal, Randstad, NCML and OnGuard.
Our Supporting Sponsors are:
Baycorp and Byron Thomas.
In closing I would like to thank my council for a sensational
year, these councillors do some unbelievable work behind the
scenes making all of our events so successful and ensuring
we provide the professional development Credit Professionals
need in this challenging role also want to thank Nick & his staff
at Head Office for all of their support.
I look forward to seeing you at the events as well as this
years National Conference in Sydney
New South Wales

AROUND THE STATES
Trivia night.
Trivia night.
In Memoriam
It is with great sadness that we note
the passing of Murray Godfrey after
his battle with cancer. With a career
spanning more than 25 years Murray
was known and respected through the
insolvency profession. His presence
and jovial laugh will be sadly missed
in Veritas Advisory. He was a great
supporter of the AICM presenting at
many Network Nights, Symposiums and Seminars.
Our thoughts and prayers go out to his wife Maggie and
son David.
City Youth Network Night, 21 May 2015

The NSW Council hosted the City Youth Networking Night at
the Windsor Hotel. It was a Trivia themed night and the quiz
master was revved up and ready to take on the 120 members
and guests who registered for the event.
We had participants of all ages, being past and present
winners of Young Credit Professional Award, Credit Team of
the Year and Pinnacle recipients. Amongst the familiar faces
were some very distinguished guests from the National Board
including James Neate (National Vice President and SA
Director), Grant Morris (National President) and Nick Pilavidis
(CEO).
As the night progressed the competition definitely fired
up, as only a few points came between the teams. However
for a second year in a row Maximillian took out first place and
continued to be the reigning champions.
Our generous event supporters went above and beyond to
make the night possible, and to ensure that everybody had a
memorable evening.
The NSW Council are thankful to the generosity of SLF
Lawyers, Veritas Recruitment, Performance Education, Startrack

Trivia night.
and Recoveries National for their support at this particular

event. The next City Youth Networking Night is Barefoot Bowls
scheduled for 8 October 2015 so lock it into your diaries.
City Network Meeting

Summary Judgement Process
On 23 April Curwoods Lawyers hosted the City Network
lunchtime presentation which was attended by AICM members
and staff from Curwoods. Sam Pearlman talked on the summary
judgment process and its application to the recovery industry.
Approximately 50 people attended for lunch.
The presentation provided some great insights on how to
get a quicker and cost efficient result by short cutting disputes
intended to frustrate and delay the legal recovery process. This
was followed by attendees enjoying the impressive art work on
display and reflecting on how using the summary judgement
process could work in situations regularly faced by Credit
Professionals.
39
AROUND THE STATES
New South Wales
City Network Meeting hosted by Curwoods Lawyers.
Events Calendar
16 July
YCPA Awards Night

VENUE: SOFITEL
11 August
City Networking Night
Speaker: to be confirmed
Subject: Forecasting Cash Flow
11 14 September
CCE Exam
20 September
City Networking Night Wine tasting

VENUE: CITY VENUE
8 October
City Youth Network Night Barefoot Bowling

VENUE: PADDINGTON
13 October
NSW/National Golf Day

VENUE: OATLANDS GOLF COURSE
13 October
Harbour Cruise
VENUE: SYDNEY HARBOUR
14 16 October
AICM 2015 National Conference

2015 Master Class/Credit Symposium and Pinnacle
VENUE: SOFITEL
17 November
Awards Dinner
Featuring: TBA
VENUE: PULLMAN HOTEL
40
City Network Meeting hosted by Curwoods Lawyers.
Councillor Introduction
TREACY SHEEHAN,
Trace Personnel
Treacy ran the recruitment
arm of the group of
companies specialising in
debtor risk management and
administration from 1998 until
2001 where she gained her
knowledge of recruitment
and specialising in the niche
area of debtor finance/credit/
invoice finance.
Trace Personnel was set up in 2001 with Treacys passion
for creating a positive environment for employees, which led
to great ongoing experience for clients and candidates alike.
This has been clearly embedded into the companys mission
statement which is To approach recruitment in a
fresh, personal way that is ethical & mutually rewarding.
Trace Personnel is celebrating 14 years of success.
As the Managing Director of Trace Personnel and a director
of Fresh Catering (a Sydney based catering company), Treacy
is also a member of the Recruitment & Consulting Services
Association (RCSA) and an active Councillor of the Australian
Institute of Credit Management (AICM) having recently assisted
in setting up a Women in Credit network (WINC) designed
to attract women to an exciting career in credit and finance.
Treacy is also an affiliate member of Debtor Invoice Finance
Association (DIFA). Treacy is also a member of the Institute
of Company Directors (AICD) and has an Advanced Diploma
of Marketing Management and a background in sales and
marketing spanning 25 years within the hospitality and
recruitment industry.
Being in the Credit Industry for some time, now has enabled
me to work with people in all areas of the Credit Industry in
NSW and around the country.
New South Wales
Economic update by Michael Witts of ING.
I joined the AICM 17 years ago and have helped out

nationally with anything I could from Trace Personnel
sponsoring, to organising events and assisting in State
and National Conferences. For the last 3 years, working
as a councillor with NSW, I have focused on organising
the NSW Division events which has been great to help
co-ordinate some exciting events and to see an increase in
the attendances from some fabulous speakers we organise.
I am particularly excited to be part of the team driving the
Women In Credit (WINC) events nationally as I hope to
show other women that the Credit Profession is one we can
succeed in.
In the words of Ariana Huffington a great woman and

author We need to accept that we wont always make
the right decisions, that well screw up royally sometime
Treacys Success Tips include

Take risks and believe in yourself. Having run a business for
over 14 years now, I continually strive to be the best I can be.
Some days it works other days, not so much.
My philosophy to success is take the risk to do it, be it and
make it happen the worst thing that will or could possibly
happen is you will fail and need to renegotiate success as you
see it, it may take many twists and turns, so see the setbacks
as stepping stones to your goal for everyone success is
different but if you never try you will never get to your goal.You
may fall off the bike but you get right back up and start again.
Ive had many setbacks along the way and much trauma so the
bottom line of believe in yourself and your goal is where my
next tip comes in dont ever let someone sway you on your
self-worth and confidence and if they do they shouldnt be
in your life. Its important to listen to critical and constructive
criticism, and as individuals I would encourage this as we dont
know everything, however, know oneself and believe in oneself
and never let anyone make you feel worthless. My final piece
of advice is to be humble, kind and thank people along the
way the great secretary youve had, the lovely and inspiring
boss, the business partner, the mentor. Its a battle out there
most days so be kind and humble to those that help along your
journey.

AROUND THE STATES
Economic update by Michael Witts of ING.
understanding that failure is not the opposite of success,

its part of success.

National Partners
Divisional Partners
Professional Partner
Official Division Supporting Sponsors
Our National, Divisional and Professional Partners support

and work with the AICM to promote the Institutes activities,
represent the Credit Industry and develop the careers of all
Credit Professionals. As these organisations support your
Institute and your Industry please consider them when you
require assistance.
41
AROUND THE STATES
South Australia
Josh Richards, Hunt & Hunt Lawyers.
Audience in the docks.
Magistrate, Plaintiff and Defence Counsellors.
Rodney Reliable AKA Trevor Goodwin.
Presidents Report
The SA Division is now entering into the busy time of the year.
All councillors are working together to prepare for the Annual
Awards Night, YCP judging and the Quiz Night!
Our Networking evening, held at Proof, turned out to be a
winner. The venue was quirky, original, intimate and enchanting.
They turned on amazing scrumptious food and wines that kept
everyone networking well into the evening.
Credit Focuss Mock Court was professional, informative,
entertaining and humorous. Hunt and Hunt hosted the after
networking event overlooking the city lights of Adelaide what
a beautiful view and setting it was.
The functions team are finalising the Quiz Night, with a
different venue the Unley Community Hall, cosy for a winters
night. Lots of fun to be had with our wonderful SA businesses
donating prizes and everyone rallying around their friends and
colleagues to bring their highest intellect with them!
With the YCP nominations locked in, SA has some great
new applicants for the judging panel to interview. Lets hope
we have another outstanding candidate to take to the national
conference in October.
We currently have two candidates for CCE. We understand
how difficult it is to find the time to complete the studies
whilst juggling pressuring roles in the workforce and home
42
lives, so we certainly give strong encouragement to both

candidates over the next few months whilst they complete their
accreditation.
New members are always being sought to grow the AICM
in SA. We urge members to bring along your colleagues and
contacts in the credit industry to events, particularly the Credit
Focus mornings, as here they can meet people within their
industry and share their experiences and knowledge.
Thank you to the strong council we have in SA, we continue
to brain storm and support one another from event to event.
Ideas are bounced around the monthly meetings and it is
warming to see and hear everyone working as a team. Dont
be a stranger to the councillors as we are here for you, our
members, at all times!
Trust you are all coping with the pressures of the EOFY
Look forward to seeing you at a function soon.
Gail Crowder
SA Division President
Credit Symposium, 20 February 2015

The SA Division held its annual Credit Symposium early this year
at the beautiful Hahndorf Resort in the Adelaide Hills. We were
fortunate to have a truly exceptional line up of speakers. The
South Australia
AROUND THE STATES
Magistrate Milazzo.
Gail Crowder SA President with Magistrate Milazzo.
day started with an in-depth look at the state of the economy by

Travis Adams, from Prescott Securities. Travis, a Senior Analyst,
provided a technical analysis of the global and local economies
and gave the attendees some cause for cautious optimism,
after noting the rebounding USA economy and its flow-on
effects for Australia. James Neate, from Lynch Meyer Lawyers,
in his usual informative and entertaining style, provided timely
advice on electronic personal guarantees and the tips and
traps for obtaining an enforceable electronic guarantee. Simon
Read, from EDX, gave a useful and engaging presentation on
enforcing PPSA rights with clear real life examples of PPSA
success stories that he had been involved with. Jane Calleja, of
National Credit (Insurance Brokers) Pty Ltd, gave an energetic
presentation on effective leadership skills, which generated
widespread audience participation and discussion. After a
delicious lunch in the adjoining 5245 Restaurant, Mark Gare
of McGrathNicol presented on identity fraud and data security
risks. Mark, a forensic expert in electronic data, provided
insight into the flourishing crime of identity fraud and how
organisations are exposed and what they can do. From there,
Eric Milne of Fujitsu General (Australia) Pty Ltd, gave a unique
and very interesting presentation on credit hypotheticals. Lastly,
Sharon Ferrier of Persuasive Presentations gave a presentation
on effective communication and gave all the attending credit
professionals excellent tips on how to influence the boss and
most importantly, the sales team! The day finished with EDX
sponsored networking drinks in the adjoining bar, which was a
welcome way to relax at the end of a busy schedule. Overall it
was a fantastic day with many attendees saying it was the best
symposium yet! The SA Council thanks all the presenters, who
gave of their time and particularly Eric Milne and Simon Read
who both flew from interstate for the symposium.
James Devonish,
Professional Development Chairperson
Credit Focus, 12 March 2015

The 2015 Credit Focus calendar started off with an enthralling
presentation by Maris Rudaks of BRI Ferrier on the topic, 10
things a Liquidator or Bankruptcy Trustee will not tell you!
Maris, a very knowledgeable and experienced insolvency
practitioner, gave some great tips on how creditors can better

Josh Richards, Hunt & Hunt Lawyers, Magistrate Milazzo

and Melanie Bird, Hunt & Hunt Lawyers.
advocate their position and also avoid pitfalls when dealing

with liquidators and bankruptcy trustees. Maris gave insightful
practical examples and interesting hypothetical scenarios. The
attendees were left with a greater appreciation of creditors
rights in situations where their customers enter liquidation
or bankruptcy. Maris helpfully provided each member of the
audience with a takeaway USB stick containing a soft copy
of his presentation so that the attendees would not lose the
tips and insights he provided on the day. The session was
well attended with 30 credit professionals attending. The
presentation generated a lot of questions and open discussion.
Our thanks go to BRI Ferrier and Maris Rudaks for the
presentation.
James Devonish and Anne Wilkins,
Credit Focus Committee
Credit Focus Report, May 2015

May Credit Focus Mock Court Trial with Josh Richards and
Melanie Bird from Hunt & Hunt Lawyers and Magistrate Simon
Milazzo. I must say this presentation was very well received
and everyone played their part well including Rodney
43
AROUND THE STATES
South Australia
Events Calendar
9 July
Credit Focus The basics of credit
Speaker: Trevor Goodwin

Subject: Processes Risk analysing customers
VENUE: EDUCATION DEVELOPMENT CENTRE, HINDMARSH
August
Awards Dinner 2015

VENUE: TBA
13 August
Networking after the Mock Trial at Hunt & Hunt Lawyers.
Credit Focus Trading trusts
Subject: Credit approval, liability and recovery action

10 September
Credit Focus Bad debts and ways to avoid them

Subject: Processes Risk analysing customers
11 14 September
CCE Exam
8 October
Credit Focus
14 16 October
AICM 2015 National Conference
Yulia Petrenko and Nick Cooper from Worrells.
VENUE: SOFITEL SYDNEY WENTWORTH
12 November
Credit Focus PPSR and retention of title implications

Speaker: TBA
Subject: Protecting your security interest
4 December
Network evening and Christmas break up
Reliable! (aka Trevor Goodwin). Magistrate Milazzo addressed

all attendees on the trial process. With the absence of the
Court Clerk and Orderly, Magistrate Milazzo showed his multitasking skills by taking notes, registering names, swearing in
witnesses and handing in the paperwork as evidence. Once the
formal introductions were over Josh played the Defendant and
Melanie the Plaintiff.
Josh put his defence forward in saying I did not receive the
goods. He went on to say that The fruit and vegetables were
damaged and I did not receive the invoices.
Melanie showed the court the invoices and the proof of
delivery of the said goods, which were signed by Con Spiros
(aka, Josh Richards). After handing these to the Magistrate they
were entered as evidence.
44
Rodney Reliable was called as the witness. He testified that

he is an employee of Cheap Couriers and delivered the fruit
and vegetables. He then stated that, in fact, Yes, Con did sign
the delivery dockets himself.
Magistrate Milazzo then asked questions of both parties and
read all the evidence. He made his decision for the Plaintiff.
Con was not a happy chappy! Magistrate Milazzo stated that he
always endeavours to finalize the hearing on the day.
Points of interest made by Magistrate Milazzo were: He
likes the Hot-tub approach this is where everyone from
both sides is in the tub together. He asks all of them questions
to try and resolves issues quickly and effectively. Magistrate
Milazzo has shared his approach with other Magistrates here
in SA.
Four (4) important points/tips from Magistrate Milazzo are: to
have all your documents in order; look through your case the
day before; make sure your witnesses are debriefed early with
all details of when and where to be; understand your case.
We then went to Hunt & Hunt Lawyers for drinks and finger
food and a chance to discuss the Mock Court Trial. It was lovely
to see most attendees were able to come back and network.
The view was just amazing from the 10th floor looking straight
down King William Street towards Victoria Square.
Anne Wilkins FICM CCE, Credit Focus Portfolio
South Australia
Credit Focus Report, June 2015

June Credit Focus Liquidation Case Study with experienced
presenters Nick Cooper and Yulia Petrenko from Worrells
Solvency & Forensic Accountants. Their presentation covered
all the needs to know of liquidation. I must say Oh Mr Hart
what a mess. The case study was Bedroom Bazurka and
Faulty Towels which is currently not resolved and expected to
be ongoing for some time.
Nick pointed out that the Liquidator has to make the
judgement call on whether or not it is feasible to pursue
the debt. He also went on to explain that the $28,000 debt
turned into $500,000, this being the cost for chasing the
debt! The Liquidator clearly breached due care and diligence
responsibility by spending excessive money to try and recover
the debt.
Not all the audience were aware that the creditor can pursue
the directors if they believe the Liquidator is not effectively
recovering the debt. This is certainly a tip to take home for the
day.
There were some great questions raised and everyone left
with more knowledge about the step-by-step procedures. This
case study was well presented by Nick and easily understood
by all in attendance. Yulias presentation was also well received
with her overall knowledge on liquidations.
Anne Wilkins FICM CCE,
Credit Focus Portfolio
Amanda Campbell and AJ Jaramillo.
President Gail Crowder welcomed all in attendance and

informed members of our upcoming events. Josh Richards
welcomed two new members in Jayne Gurney and Irene Baird
from Bendigo and Adelaide Bank and handed them their
Membership certificates.
The Functions committee is keen to try new and trendy
venues, such as Proof, as it turned out to be a real winner.
These venues are starting to pop up around Adelaide so we
will continue to seek them out for future events.
The committee is now busily planning our next social
function, which is a Quiz night on June 26th. This is always a
great night with a lot of fun and humour. We look forward to
seeing a good crowd attend.
Trevor Goodwin, Functions

National Partners
Divisional Partners
Function Magazine Report

The SA Division held a successful Network Night on May 7th at
a funky but rustic bar called Proof. It proved to be a great venue
with 30 attendees. They all made full use of both the indoor
and outdoor/rooftop facility on a cold wintery evening. It had a
cosy feel, which enabled people to mix well together.
The food provided by Proof was scrumptious and plentiful
and just perfect for this cocktail function.
It was pleasing to hear that SA may have some additional
YCP candidates, which have come to our attention. We
will certainly be following them up and giving them lots
of encouragement and support from the committee and
members.

45
AROUND THE STATES
Nick Cooper, Yulia Petrenko, Rebecca Young, Antony

Disciscio, and Montgomery Wolf.
AROUND THE STATES
Victoria/Tasmania
Intent consideration from participants at the PPSA

breakfast.
Lionel Meehan (Ashurst Lawyers) presents on PPSA.
A stellar turnout to the June Breakfast at Parkview Hotel

Melbourne.
Members and guests at the PPSA Breakfast.
Presidents Report
This year we had another fantastic level of interest in the Vic/
Tas Young Credit Professional Award. Over 22 Young Credit
Professionals registered their interest with 14 applications
submitted. From the 14 applicants 5 finalists will be selected to
proceed to the interviews.
The Victorian and Tasmanian Council would like to wish
all the participates the very best at their interviews with the
successful candidate announced at the YCPA Gala dinner at the
InterContinental The Rialto Melbourne on the 8th of July 2015,
with the successful candidate will be invited to participate in the
National YCPA in Sydney at the National Conference in October.
It has been fantastic to see great numbers at our events
over recent months and it has been very pleasing to see many
new faces and we look forward to seeing many more at the
upcoming events. We invite all our members to participate
where possible by attending network events and seminars as
you will learn something new, get an update or make a valuable
connection with one of your fellow Credit Professionals.
The Vic/Tas council is currently in the planning stages for the
2016 calendar so, as always if there is a topic or seminar you
would like included in next years calendar of events please get
in contact with us via our email address vic@aicm.com.au.
These events are for your benefit so dont hesitate to let us
know your preferences on the what, where and when of future
events. With women making up 50% of our membership we have
formed a committee to bring you a Women In Credit Forum to be
held on 11 September 2015. This will be a not to be missed event
for Women and Men with inspirational female speakers so stay
tuned for further announcements on Women in Credit forum to
held late in the year in the Melbourne CDB.
Lou Caldararo, VIC/TAS State President
46
Network Night The Successful

Restructure of a Distressed Business
APRIL 2015
Robyn Erskine Partner at Brooke Bird Restructuring and
Insolvency Specialists, and longtime committee member,
delivered an informative presentation on the vexed issues
of business restructure as it plays out in the world of credit.
Robyn is the immediate Past President of ARITA (Australian
Restructuring Insolvency and Turnaround Association) and has
over 25 years experience as an insolvency practitioner.
Since the changes to legislation that makes directors more
accountable for company debts and as the Australian Taxation
Office ramps up proceedings against companies in default on
their tax obligations, it seems that restructure and turnaround
are now the buzz words within the industry.
Robyn examined some of the indicators and elements
required within a struggling business to make it a candidate for
a successful restructure.
She also covered in some detail the reasons why are we
seeing so few restructures, and some of the reasons why
suppliers should be supporting restructures. Not every business
can be restructured as it depends greatly on the position of
the business and the cooperation of the directors. However
if restructure is successful creditors may walk away with a
percentage of payment in their pocket, which may be better
than nothing which is likely if restructure isnt attempted.
Ultimately the key to dealing with any failing business is in
making sure that you have assessed and addressed your risk
at the commencement of the relationship by getting solid legal
advice about credit applications, the right terms and conditions
for your business including PPSA, and directors guarantees and
the like, rather than being at the end losing in a liquidation.
Victoria/Tasmania
Young Credit Professional (YCP) in

Focus Amaran Navaratnam (Runner
up 2014 VIC/TAS YCP Awards)
Members and guests at April Network Night.
Active Participation at the April Network Night.
Network Breakfast PPSA made easy

for Credit Managers
JUNE 2015
Lionel Meehan, Partner at Ashurst Lawyers, provided members
and guests with another comprehensive look into the PPSA
(Personal Properties Securities Act). Lionel is well placed to
help businesses navigate the world of PPS, as he has literally
written a book called The PPS Guide, and he delivered
another excellent presentation covering a recap on registering
purchase money security interests (PMSIS), sales in ordinary
business cutting off security interests, and an update on the
3-year review of PPSA.
This attendees experience, despite repeated education on
the PPSA subject, is that much mystery still shrouds this very
complex piece of legislation, and that the goal posts continue
to move as more new cases are tested in the courts. Lionel
broached an interesting scenario involving selling goods to
a parent company whereby terms and conditions and PPS
Registrations are perfected with the parent company, however
unbeknown to the supplier the parent company onsells the
goods to a subsidiary, where no customer agreement is in
place, so PPSR is not perfected for the 2nd exchange of goods,
thus nullifying the suppliers PPS rights.
Lionel advises that suppliers are limited in what they can
do to prevent such a scenario but instilled in participants that
it is all the more reason to be diligent in your preparation and
risk assessment with your customers to ensure that when a
liquidation event occurs you are as protected as you can be.
The golden advice for credit professionals, when it comes
to PPSA, is to make sure that you get the right legal advice and
continue to educate yourself as much as possible because

The YCP applications

have closed for 2015,
but with our current
applicants in the YCP
Awards having lodged
their applications and
submissions, and
currently working on
their presentations for
the 2015 awards, we
thought it appropriate
to take a look at the
process and examine
the benefits to young
credit professionals in
becoming involved in the YCP Awards program.
Perhaps you can think about involving yourself in next years
awards. And who better to ask than last years VIC/TAS runner
up Amaran Navaratnam from Recoveriescorp, who has actively
become involved on the committee of the AICM VIC/TAS
Division since his running in the 2014 awards. Already an up
and comer within Recoveriescorp, Amaran always attended to
his role with energy and enthusiasm, which drew the attention
of senior management, who nominated him to represent
Recoveriescorp in the 2014 YCP awards.
After completing and submitting an application, including
work references and confirmation of employment, Amaran
had to complete a further submission for the awards process
and was guided through that process by Louie Tzakopoulos,
National Credit Manager, Wurth Australia, who is the YCP Chair
on the VIC/TAS Division Committee and a former state winner
of the YCPA.
Amaran describes being nervous after making his
submission, but exceptionally pleased with the level of
assistance and support that he received from Louie guiding him
through that process. He bore the burden of uncertainty as he
awaited news of his being short listed for the interview process,
which he says came at great relief.
He said that he was also incredibly nervous before
performing his presentation in front of the panel of judges, all
credit professionals of standing here in Victoria, but he said like
anything worthwhile the key for him was being well prepared,
so he knew that he had done everything that he could to
prepare, and he felt comfortable in that knowledge walking into
the interview.
He said that he spoke confidently and passionately about
his employment with Recoveriescorp and the credit industry as
a whole, and of the wonderful experience the YCP process has
been for him. In the 2014 YCP Awards, Amaran was awarded
the Tony Mammone award for runner up. He says since that
47
AROUND THE STATES
its here to stay and trying to navigate it without the right legal
advice can be very much to your detriment. We will continue to
educate our members on PPSA and hope to include another
event on this topic later in the year.
AROUND THE STATES
Victoria/Tasmania
time he hasnt needed to look back. After the YCP awards night
he was awarded by Recoveriescorp the prestigious Employee
of the Year Award as well as being presented a Customer
Excellence award by one of his clients.
Amaran said that he has always been ambitious and has
always been enthusiastic for whichever company he worked,
but that because his employer has taken an interest in him and
rewarded him for his active participation he has become more
involved at work and taken on more responsibility within the
company.
Amaran is now involved with training staff, assisting the
project team with testing new projects and he has been
appointed chairman of Recoveriescorps Business Process
Review Committee, and has recently joined the Business
Development team on secondment. He said that being involved
in this process has made him feel valued and recognized and
Events Calendar
MELBOURNE NETWORK EVENTS
(1 CCE Point for each Network Evening)
21 July 2015
PPSA made easy for Credit Managers (Breakfast Session)

Speaker: Lionel Meehan, Partner at Ashurst Lawyers
has resulted in exponential growth in his career development.

Amaran expressed his sincere gratitude to Recoveriescorp for
nominating him, and the AICM for their consideration, and to
both for recognising his credit skills and passion towards the
credit industry.
He said that he highly recommends YCPs to get active
and become involved in the program, whether it is by
self-nomination or nomination by their manager, they are
representing themselves as well as their company and their
state.
Amaran went further to say that the YCPA process offers
a great vehicle for career development, recognition within
the industry and with your employer, and that the AICM hosts
a plethora of networking sessions and credit seminars on
diverse topics giving all YCPs a competitive edge with industry
knowledge. If you want to get ahead get involved, he says, you
wont regret it.
Thank you to Amaran for taking the time to provide us with
this valuable insight into the YCP Awards process, and good
luck to the 2015 applicants.
Suggestion Box
As a Credit Professional if there is a topic that we have
not recently covered that you would like covered or a
social event you would like us to try please email
dsmith@relrec.com.au and we will raise it at the next
committee meeting for consideration.
20 August 2015
What defines a good Leader? (Breakfast Session)

Jason McCutcheon, Proprietor Biscom
Caption

19 November 201
ABC of Financials
National Partners
YOUTH NETWORKING
17 September 2015, Trivia Night
HALF DAY SEMINARS (3 CCE points for each Seminar)
10 August 2015, See you in Court!
Speaker: Tracey Rothwell Rothwell Lawyers
Divisional Partners
CCE EVENTS (1 CCE Point for each CCE event)

26 November 2015: CCE Breakfast (7.15am 9.00am)
CCE EXAMS
11 14 September 2015
DINNERS & FUNCTIONS

8 July 2015: YCPA Dinner
Professional Partners
14 16 October 2015:
AICM National Conference

VENUE: SOFITEL SYDNEY WENTWORTH
4 December 2015
Christmas Party River Cruise (Subject to numbers)
48
Our National, Divisional and Professional Partners support

and work with the AICM to promote the Institutes activities,
represent the Credit Industry and develop the careers of all
Credit Professionals. As these organisations support your
Institute and your Industry please consider them when you
require assistance.
Western Australia/NT
AROUND THE STATES
WA Members at the Breakfast.
Dino Travaglini Breakfast Club Speaker.
Finally, I urge all WA members to participate as much as

they can in the various functions and events that form part
of the yearly calendar and as I have said on many occasions
Everything the WA Council strives to do is for the benefit of the
WA members
I will be continuing to focus on my real job as Managing
Director of AMPAC Debt Recovery (WA) and I will be staying on
as a member of the Institute, so I look forward to networking
with as many of you as possible in the years ahead.
WA Members Sharron, Meredith and Cara.
Presidents Report
It is with some sadness that I am writing this report as it will be
my final report as I step down from my tenure as WA President,
after 4 years in the role.
I think it is time for a change and the thing I am most pleased
with is that the incoming President will have the opportunity
to work with a very supportive local Council which includes
some seasoned long term professionals and a number of new
faces who are bringing renewed energy and creativity to their
portfolios.
Like any voluntary role within a National membership driven
framework there are challenges and rewards and I can assure
you I have experienced and enjoyed both.
Working together for a common purpose in a dynamic
environment is never just straight forward but when everything
comes together and objectives and outcomes are achieved, it
is very rewarding in deed.
It would be remiss of me not to mention the ongoing support
of the National Office and my thanks go out to Nick and his team.
I am looking forward to catching up with a number of our
WA members in my last official capacity at our Gala Dinner in
July, where we will introduce the WA Young Credit Professional
Finalists for 2015 and celebrate the announcement of the winner.

Colin Phillis MICM,

WA AICM President 2015
The Credit Breakfast Club

On Friday 12 June, the WA Division held a breakfast function
at the Matilda Bay restaurant. The topic was Practical Aspects
in the Recovery of Property in Bankruptcy, presented by Dino
Travaglini of Cor Cordis.
The event was well attended and the subject matter
was very relevant to the current economic climate we
find ourselves in WA. Dino has 20+ years of experience
working as a bankruptcy trustee and imparted some
valuable knowledge on how to use this often misunderstood
collection tool.
WA Events and Seminars

First halfof 2015 has seen a number of sessions full of content
to help you in your daily roles. It has also been great to see a
lot of new faces and experienced faces taking the time to keep
49
AROUND THE STATES
Western Australia/Northern Territory

up their professional development and develop their contacts.
March 2015 PPSA: Practical and Useful information regarding
the Act.
Simon Read from EDX WApresented plenty of practical
information and food for thought concerning lodgement dates,
cost, timing, product identity and retention of title.
While valid claims with all boxes ticked are processed
quicker in an insolvency situation that does not hinder claims
with insufficient information it just means they take longer to
process.
Simons advice to creditors enforcing their PPS rights in an
insolvency situation is to get in early and check, check and then
check again.
The WA Division hosted this years sponsor luncheon at the

Blue Duck Caf in North Cottesloe the Caf that Alan Bond had
his daily coffee at when at home.
The event was well attended by both our National and State
Divisional Partners.
These events are run to thank our partners for the very
valuable part they play in helping us drive our Institute forward.
The afternoon was well received as was the venue.
Kevin Allen MICM,
Sponsorship Porfolio
Young Credit Professional Award 2015
Up coming events
August 2015 Mining and Mining Services is on the agenda
for the next Breakfast Club. Whats making businesses in these
industries a bit riskier?
October 2015 High Tea for the Credit Conscious This will
be a great opportunity to catch up on all the movements since
last years event and perhaps a glass of bubbles or two
Other upcoming functions include the YCP Gala Dinner in
July, our next instalment in the Credit Toolbox series in August.
Lisa Marr MICM & Rowan McClarty MICM,
Functions Portfolio Chairpersons
Applications have closed, judging is finished, and the winner

has been chosen Now we just have to wait for the winner to
be announced at the WA Gala Dinner on the 16thJuly! We are
very excited to have the WA Gala dinner at a new and exciting
venue this year. The Perth Convention and Exhibition Centre
is a premier venue in WA and has hosted events such as the
Lexus Ball and Telethon.
Planning is well under way, and we hope the WA Credit
Community will make it an event to remember.
Tamera RussellMICM,
YCP Chairperson

Membership
While we faced a challenging environment across Australia and
specifically in WA at the moment this is when your membership
and participation in the AICM is all the more important.
With the WA economy especially sensitive to the Mining
industry we are definitely in a trough at the moment but there
is some confidence about that says the tide will change, as it
does, and it will come back strong.
We have also been hit by another wave of centralisation
of WA-based credit operations to the Eastern States. As a
Westralian Ive been here before and I am confident that it will
come back around the value of people on the ground in Perth
to keep their business share recognised.
With these times in Western Australia people are realizing
that while Social Media is essential the value of old skool
methods like Face to Face meet ups facilitated by Associations
are becoming even more vital. The additional dimensions
of learning that can be achieved by attending seminars and
breakfast club meetings with your peers cannot be replicated
via Social MediaSo I invite WA and Eastern States members to
look at the person sitting next to you at work and invite them
along to the next AICM seminar and breakfast and encourage
them to join one of the best associations one could join.
Warren Myers MICM,
Membership Chairperson
50
WA Division Annual Sponsor/Partners

Luncheon
National Partners
Divisional Partners
New Members
The Institute welcomes the following credit professionals who were recently admitted to membership in April, May and June 2015.
NEW SOUTH WALES
QUEENSLAND
Philip Aldridge
Brenda Antrobus
Warwick Brazier
Jeffrey Brown
Florencia Cochrane
Haley Condon
Simone Conley

Sarah Jane Dave
Melissa Dinning
Brian Engel
Jennifer Evans
Gregory Everingham
Mary-Lisa Falealoto
Maria Fay
Maria Frank
Sazid Hasan
Wendy Heal
Julie Hunt
Kshama Jason
Laura Kelly
Sethea Keo
Tracey Lewis
Helen Matthews
Pamela McLoughlin
Leslea Morrison
Andrew Ng
Maria Nicolaidis
Shane Northam
Sara Obeid
Allison Parry
Rebecca Pillai
Manel Pillai
Aleksandar Popic
Emanuel Poulos
Peter Quinn
David Schilling
Rowena Silva Das
Andrew Smith
Mitchell Sobel
Mia Soravia
Jacinta Steinke
Matthew Stillone
Jocelin Vieira
Anne Vojcena
Carol Wards
Lindsay Westaway
Laura Willis
Kim Wrobel
Janice Bedford
Michael Costello
Tandy Day
Felicity Ford
Karen Fuller
David Hibbins
Emma Hill
Evelyn Hughes
Hayley Kuhn
Kayleen Nicholson
Reshma Patel
Polima Rudra
Lynda Shorley
Louise Thomson
Kayla Woods
Dun & Bradstreet

Benedict Industries
Caltex Australia Petroleum Pty Ltd
Matthews Folbigg
Matthews Folbigg
Voyages Indigenous
Tourism Australia
Ecolab Pty Ltd
Snap-On Tools (Aust) Pty Ltd
Benedict Industries
Benedict Industries
Benedict Industries
Coates Hire Operations Pty Ltd
Benedict Industries
Ingredion ANZ Pty Ltd
Dun & Bradstreet
Benedict Industries
Matthews Folbigg
Metcash Pty Ltd
Cavalier Bremworth
Ecolab Pty Ltd
Ecolab Pty Ltd
Ashurst Australia
QBE Insurance Aust. Ltd
Ecolab Pty Ltd
Dun & Bradstreet
Ricoh
Sydney City Toyota
Snap-On Tools (Aust) Pty Ltd
Kennards Hire
Dun & Bradstreet
Matthews Folbigg
Dun & Bradstreet
VICTORIA/TASMANIA
Sally Adams
Joel Cox
Lorita Danielson-Upumoni
Stephen Eddie
Catrina Galanti
Stephanie Iacobucci
Kian Jackson
Sharon Jansen
Seetha Kris
Karishma Madhwani
Lee Monlinaro
Eoin OBaoill
Debbie Piening
Bree Roberts
Nick Rogers
George Salmanis
Stefanie Scardamaglia
Paul Sharp
Zoe Smith
Jordan Stephen
Jessica Zabel
CGU
Silver Chef Ltd
REA Group
Dun & Bradstreet
Austral Mercantile
Reece Plumbing
Securepay
Spicers Paper
Impact Fertilisers
Insurance Australia Group
Spicers Paper
Dun & Bradstreet
Dun & Bradstreet
Dun & Bradstreet
Dun & Bradstreet
Reece Plumbing
Dun & Bradstreet
Recoveriescorp
Dun & Bradstreet
Reece Plumbing
SOUTH AUSTRALIA
Julie Agostino
Pam Gauci
Heath Rodda
David Scrymgour
Orrcon Steel
Leader Computers Pty Ltd
Insurance Australia Group
Leader Computers Pty Ltd
WESTERN AUSTRALIA
Joanna Tomlinson
Yuan Tian
Linda Docherty

Austral Mercantile Collections
Secured Funding Solutions Ltd

Hyne Timber
Dun & Bradstreet
Grant Thornton Australia Ltd
Dun & Bradstreet
Vinidex Pty Ltd
The Laminex Group
Dun & Bradstreet

Laminex Australia
51
AROUND THE STATES
NEW MEMBERS
2015 NATIONAL
CONFERENCE
2015 NATIONAL
CONFERENCE
Registration Book
PREMIUM SPONSOR
14-16 October 2015

SUPPORTING SPONSOR
Sofitel Sydney Wentworth
PROGRAM
Click here for full registration book
52
Click here to register online
2015 NATIONAL
CONFERENCE
Registration Book
Leadership Forum
Wednesday 14th October 2015 9:00 am - 12:00pm, Registration: 8:30am
The Leadership Forum is a new addition to the AICM
National Conference for 2015 in recognition of the
leadership role Credit Professionals need to take within
the Credit Function and within the Business.
Combined with the credit specific learning and updates
you will gain from the conference the Leadership Forum
will give you the ability to put this knowledge to the
most effective use.
The two sessions will be delivered by Leadership experts
who have helped good managers become exceptional
leaders, professionally and personally.
The Leadership Forum is designed for experienced and

aspiring leaders, managers, supervisors, team leaders and
team members. The benefits of the workshop include:
zz Gain control over your teams outcomes.
zz Build team adaptability and build on your current
level of success.
zz Save you time which will allow you to have a more
strategic approach.
zz Increase team engagement, effectiveness and
results.
zz Help your team to improve their abilities and
connection to the rest of the business.
TOPIC 1:
TOPIC 2:
The Bridge from Management

to Leadership
From Great to Exceptional

Leading from the inside out
Presented by Adrian Heath

Evolution Learning
Presented by Vicki Writer

The 360 Solution
OVERVIEW
How to generate the patterns of
success in your team by learning how
to move the levers that create selfgenerating high performance.
OVERVIEW
As a leader in the 21st Century, we
need to be armed with a set of
strategies that help bring out the best
in ourselves as well as our team. This
presentation is the introduction to
the instruction manual that most of
us were never given when it comes to achieving our full
potential and the potential of our teams.
What if you could really understand what someone
meant when they spoke to you? Even better, what if you
could predict their behavior based on what they said?
Better still, what if you could influence their behavior by
how you respond?
You will gain very valuable insights into the way your
brain works and why you do what you do. You will learn
the intricacies of human thought and behavior and be
given a set of strategies that will help you achieve any
goal in life. You will gain an understanding of why we
make the choices that we do and how our behaviours
have become conditioned over time.
This presentation will transform the way you think &
how you communicate. It will provide you with a set of
practical strategies for unlocking the potential for change
and achieving extraordinary results in life and business.
LEARNING OUTCOMES
Be able to identify the Patterns that are creating your
current team outcomes.
Learn the Patterns that create superior team
outcomes.
The difference between Leadership and Management
and how they are a lethal combination.
Leading team engagement through Purpose, Vision
and Values.
Leadership strategies, skills and mindsets.
53
2015 NATIONAL
CONFERENCE
Registration Book
National Conference Professional Development Workshop

Wednesday 14th October 2015 9:00 am - 12:00pm, Registration: 8:30am
The Workshop is a unique opportunity for Credit
Professionals to get practical tips and insights into the
Credit Management Profession.
It is designed for Credit Professionals at all levels looking
to expand their knowledge, check their understanding
or a practical update.
This years workshop includes 3 sessions featuring
requirements for quality credit management, what great
credit managers do and a case study putting it all into
action.
Workshop objectives
zz Understand the requirements for effective control of
the Credit Management function
zz Be effective in a constantly changing environment
zz Discover the key tasks that can improve your
performance
zz How to implement theory to achieve wins for your
business.
1. 6 Facets of Credit Management

Presented by John Field, FICM CCE ACPM
Learn about the 6 areas required for a quality credit operation and what you need to do in each
of these facets to contribute to a continually improving and high performance credit function.
2. Insights of What Great Credit Managers Do

Presented by Panel of Credit Managers
A panel of Credit Managers who control some of the largest Accounts Receivable ledgers and teams in the country
will share the tips that have helped them accelerate their careers and that allow them to prove the value of the credit
operation to their business.
3. Credit Management in Action What Would You Do?

Presented by Eric Milne, LICM CCE
Understanding the requirements of a credit operation and what it takes to be a great credit
manager will only help if you know how to put it into action.
In this session Eric Milne, National Credit Manager at Fujitsu General (Aust) Pty Ltd, will present
a hypothetical What Would You Do case study. This will be put you in the hot seat assessing a
scenario based on real life experiences.
Eric will pose a series of complex day to day Credit Management decisions for discussion and debate with perhaps
with a surprise twist at the end?
54
2015 NATIONAL
CONFERENCE
Registration Book
Conference Program
Wednesday 14th October 2015
Time
Topic
Description
Speaker
12:00 1:00 pm
CCE Lunch
CCEs are welcome to attend a luncheon

featuring presentation of Re-certifications
and new CCEs. Paul Bloxham will provide
an Economic update.
Paul Bloxham
Chief Economist at HSBC
1:30 to 1:45 pm
Conference Opening
Presidental Address
Welcome by Conference Premium
Sponsor
Grant Morris MICM CCE

AICM Australian President
Nerida Caesar
Chief Executive Officer, Veda
1:45 2:45 pm
State of the Economy
2:45 3:15 pm
Afternoon Tea
3:15 4:00 pm
Credit Management of
the Future
How to:
See More. Know More. Do More
Moses Samaha
General Manager, Commercial
and Property Solutions, Veda
4:00 4:15 pm
Credit Team of the Year

Announcement and
Presentation
Meet the 2 Natitional Finalist teams

and find out who will be the
Credit Team of 2015

4:15 5:00 pm
Fintech Evolution
The future of financial services sector
Panel of Fintech innovation experts
7:00 pm
Welcome Drinks
SPEAKERS:

Stephen Koukoulas Managing Director, Market Economics Pty Ltd

Paul Bloxham Chief Economist at HSBC
Michael Witts Treasurer at ING Direct
Justin Fabo Senior Economist, ANZ
Debbie Leo MICM

General Manager,
Major Accounts, Veda
Thursday 15th October 2015

Time
Topic
Description
Speaker
9:00 9:45 am
SMEs: understanding
the segment and
how to mitigate risk
- Explores the recent rise and focus

on SMEs in Australia
- How credit providers are trying to
capture this market
- How Credit professionals can
promote growth yet mitigate risk
Darin Milner MICM

Director Risk Management Solutions,
Dun & Bradstreet
9:45 10:00 am
Young Credit
Professional
of the Year
Meet this years Finalists

Darin Milner MICM
Director Risk Management Solutions,
Dun & Bradstreet
55
2015 NATIONAL
CONFERENCE
Registration Book
Thursday 15th October 2015
contd
Time
Topic
Description
Speaker
10:00 10:45 am
Global Trends in Credit

Management and their
application in Australia
1. Global and local trade credit trends

since the GFC
2. Implications for the Australian trade
credit market
3. Why is trade credit relevant to you?
4. Market leading innovations future
proofing your business
Victor Walter
Chief Financial Officer
10:45 11:15 am
Morning Tea
Parallel Sessions
Stream 1
11:15 12:00 pm
Parallel
Sessions
12:00 12:45 pm
Parallel
Sessions
Stream 2
Stream 3
Customer Information,
Business Asset: Privacy Law
Compliance or Good Practice?
Effective Terms of Trade and

how they interact with your
organisations politics
Key aspects of the Privacy

Act impacting the credit
function of AICM members
Identification of areas of risk
and strategies to manage
Realising growth through a
data management culture
What needs to be covered to

for effective Terms.
How to ensure these are
adopted by your business.
Helen Gordon Regional

Director & Corporate Lawyer,
Australian Finance Conference
Geoffrey McDonald MICM

Barrister at Law
Joseph Scarcella MICM

Partner, Ashurst Lawyers
Comprehensive Credit
Reporting and What it means
for the future of Credit
Management
DIY Legals
When to DIY and When not to
Pitfalls
How to do it well
Getting the best results from your

collections agency before referral and
after
Tips for Credit Professionals from a
Mercantile agents perspective
Matt Gijselman
Head of Government,
Regulatory & Industry Affairs
Australian Retail Credit
Association
Sam Pearlman MICM

Partner Curwoods Lawyers
12:45 2:00 pm
Lunch
2:00 3:00 pm
ATO and ASIC

Pheonix activity
Rebecca Ross
Solicitor, Gavin Parsons and
Associates Pty Ltd
Dealing with customers in financial

distress, Warning Signs of Insolvency
Payment plans and settlements
(how to do them properly)
enforcement of any securities and
priority risks
Impact of director guarantees
(eg Bankruptcy issues)
Voluntary Administration/
Liquidation risks
Val Baynes MICM National

Commercial Collections Manager,
Austral Mercantile Collections Pty Ltd
Cynthia Thomas MICM
National Sales Manager, Austral
Mercantile Collections Pty Ltd
Developments on Pheonix
activity and enforcement.
Michael Seddon
National Director for Pheonix, ATO
Adrian Brown Senior Executive Leader,
Insolvency Practioners Team ASIC
3:00 3:30 pm
Afternoon Tea
3:30 4:45 pm
High Impact Initiatives in

Credit
See how 3 National Credit

Managers identified, planned,
and implemented High Impact
Inniatives

National Credit Manager, Coates Hire
Alison Beythien MICM CCE National
Credit Manager, Holcim Australia Pty Ltd
Karl Hill MICM Managing Director
Results Legal
4:45 5:00 pm
Annual General Meeting
7:00 pm
Presidents dinner YCPA announcement, Presidents Trophy
56
2015 NATIONAL
CONFERENCE
Registration Book
Friday 16th October 2015

Time
Topic
Description
Speaker
9:00 9:45 am
Improving the quality

of the business
environment
Initiatives to improve the operating

environment for small business
Model behaviours for government and
business (including payment behaviour)
the benefits of mediation to resolve small
businesses disputes.
Mark Brennan
Australian Small Business
Commissioner
9:45 10:45 am
Personal Properties
Securities What is
working and what is not
Bruce will explain some of the changes

recommended by his review of the PPSA
and Kim will examine what this means for
Credit Professionals
Bruce Whittaker
Senior Consultant, Ashurst
10:45 11:15am
Kim Powell MICM

Director, EDX Australia Pty Ltd
Morning Tea
Parallel Sessions
Stream 1
11:15 12:00 pm
Parallel
Sessions
Trends and Challenges of

Small Business
Understand the drivers and
challenges faced by small
business so you can achieve
better results when assessing risk,
managing accounts, enforcing
recovery or assisting sales to
identify good sales opportunities.
Stream 2
DIY Legals
When to DIY and When not to
Pitfalls
How to do it well
Sam Pearlman MICM
Partner, Curwoods Lawyers
Colin Porter Managing Director,

CreditorWatch
12:00 12:45
pm
Parallel
Sessions
How to address poor

performance legally and
effectively
Examples of performance
management from a Credit
Manager with insights of the
legal requirements from a Human
Resources Lawyer.
Simon Holloway MICM
National Credit Manager,
SAB Miller
Veronica Siow Employment
Relations Partner, Allens Linklaters
Stream 3
Getting the best results from your
collections agency before referral
and after
Tips for Credit Professionals from
a Mercantile Agents perspective
Val Baynes MICM
National Commercial Collections
Manager, Austral Mercantile
Collections Pty Ltd
Cynthia Thomas MICM
National Sales Manager Austral
Mercantile Collections Pty Ltd
Effective Terms of Trade and

how they interact with your
organisations politics
Rebecca Ross
Solicitor, Gavin Parsons and
Associates Pty Ltd
Dealing with customers in

financial distress, Warning Signs of
Insolvency
Payment plans and settlements
(how to do them properly)
enforcement of any securities
and priority risks
Impact of director guarantees (eg
Bankruptcy issues)
Voluntary Administration/
Liquidation risks
Geoffrey McDonald MICM

Barrister at Law
Joseph Scarcella MICM

Partner
Industry Leaders and specialists

debate the key credit issues of
our time.
Q
&A meets forensic cross
examination as industry
conundrum are dissected to reveal
insight.
Chaired by
James Neate, MC
What needs to be covered to for

effective Terms.
How to ensure these are
adopted by your business.
12:45 2:00 pm
Lunch
2:00 2:30 pm
Credit Maximus, the Great

Credit Debate
3:00 4:00 pm
Presidents Trophy Presentation, Closing Ceremony and Prize Draw
57

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Volume 22, No 5 July 2015

The Publication for Credit and Financial Professionals

Leadership & High Performance

See page 52 for

QLD Division: AICM QLD Council Brian Kay, Peter Mills,

Professional Development S.D. Mitchinson LICM

EDITING & PRODUCTION

Volume 22, Number 5 July 2015

Message From the President

Leadership and High Performance

The future of Credit Management

Proactive team work

Why positivity is great for productivity

Moving the credit function out of the back office

Slow economy, fast payments

By Peter Mills and Chris Humby

ATO bank begins calling in the loan book

Around the States

Western Australia/Northern Territory

Court of Appeal allows Retention of Title Claim

By John Bennett and Daniel Turk

AICM Training news

CALL Tony Paul

Credit Network top post all your problems answered

From the President

Grant Morris CCE

ts an exciting time of the year for many reasons.

in Sydney in October? A very comprehensive and

Most businesses celebrate (if thats the right word

worthwhile programme is now out. June 30 registrations

for you then great) their end of financial year which

is a time to draw a line in the sand, look back at

discounted hotel registrations expire shortly. Put simply

the results that have been achieved, report those results

you should act now.

under external control and preference payments. We have

ready to plough ahead into the new year.

received a strong supportive response, but would like

If like my team you have had a good year (the Boxing

more. If you recall I spoke about

as they have recorded the lowest DSO for that month 10

Liquidator recovered funds not being paid in dividends

team) then congratulations to you.

2. Should unsecured creditors who are genuinely at arms

available from the AICM so renew or take up membership

Receivers & Managers ie specifically annual increases of

and kick goals.

5 10% and more.

Its also exciting as this month the Division finalists

We intend to take these issues up with the A-G and ARITA

are selected in the DnB sponsored AICM Young Credit

and ask you to show your support by sending Nick

Professional of the Year Award and the winners, who will

(our CEO) or I an email simply saying you support

represent the Division in the national final, are announced.

positive changes in these areas. The emails/links are

There was a record level of interest this year and I wish

grant.morris@coateshire.com.au and nick@aicm.com.au.

the best of luck to all who are participating. I look forward

Our recently launched monthly newsletter seems to

our quest to find this years Credit Team of the Year

Conference in Sydney in October.

Did I mention we have our National Conference