Please advise your preferred date and venue for the end of year meeting.

1. Automotive Accountants
Network Forum
Meeting 3
The Manningham
23rd August 2011
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2. This presentation has been prepared by Colledges for the general
information of its clients and forum attendees. While the
information herein has been prepared with all reasonable care and
derived from sources believed to be accurate, no responsibility or
liability is accepted by Colledges or any of its affiliations, for any
errors or omissions, including liability to any person of negligence or
otherwise.
Recommendations may not be appropriate in all circumstances and
clients must consider their own personal objectives and financial
advice before acting on recommendations in this presentation.
Colledges
(ABN 52 439 950 641)
For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of
www.colledges.com.au

3. House Rules
 Feel free to ask questions
 Show respect for presenters and colleagues
 One discussion at a time
 Please switch phones to “silent”
 Enjoy the forum!
For more information, contact Angelo Sirianni on 03 9851 6500 or email angelosirianni@colledges.com.au Founding member of
www.colledges.com.au

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

60. Questions
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61. Next Meeting
Tuesday 25th October 2011
12 ~ 4:30pm
The Manningham
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62. End of Year Meeting
 Preferred date/venue
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63. End of Year Meeting
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64. Surveys Please
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65. Thank-you
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