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With fleet managers having survived the COVID-induced ‘Carmaggedon’ earlier this year, many are continuing to explore ways to optimise the management of their vehicles – a trend that was firmly in place before the pandemic.

A recent webinar hosted by Jared Campbell, National Manager Customer Advisory of ORIX Australia, explored this theme and reflected on the many changes the automotive sector has experienced over the past 12 months, a period characterised by many highs and lows.

Calculating COVID’s cost

The pandemic prompted major changes to the automotive sector across Asia Pacific. Part of the fallout included disruptions to new car supply, after manufacturers shut factories in places like Thailand and parts could not be sourced from China’s Wuhan province – the ‘Detroit of Asia’. Supply problems were compounded by General Motors pulling out of the Australasian markets.

At the same time, the broader transport sector was experiencing other huge shifts. Businesses quickly produced new vehicle policies to ensure people could maintain social distancing in vehicles. For instance, sectors such as mining and infrastructure mandated single drivers in vehicles and businesses in these industries swapped large buses for smaller vehicles to maintain social distancing when transporting staff. According to the Australian Corporate Fleet Insights Report 2020, 62 per cent of companies placed restrictions on the number of staff who could simultaneously ride in the same vehicle. Additionally, some companies issued instructions to staff not to use public transport in favour of using online platforms such as Zoom or Teams to meet with colleagues and clients. Authorities also issued new restrictions to reduce the number of people who could ride buses, trains and other forms of public transport as part of COVID-safe protocols.

These opposing forces in the automotive and transport sectors resulted in a significant change in mobility trends. On one hand, there was reduced demand for vehicles as businesses sought to decrease their costs by rationalising their fleets and as people followed stay at home guidelines. On the other hand, social distancing and other protocols increased the demand for vehicles. Additionally, the Federal Government lifted the thresholds for the instant asset tax write off program so that businesses with a turnover of up to $500 million could instantly claim deductions for business purchases valued at up to $150,000.  This included some new and used cars which further lifted demand for vehicles.

Further changes emerged as the year progressed. With a diminished supply of new vehicles, demand for second-hand cars skyrocketed. Buyers who ordered new vehicles were faced with massive lead times. As a result, fleet managers started to look for alternatives.

Is the traditional fleet model still fit for purpose?

During this period, many fleet managers reviewed their fleet models and changed their approach. Operating leases with maintenance built in remain the mainstay of most fleet management strategies, due to their many positives. These include increased certainty in budgeting, costs pre-built into leases and no requirement for capital expenditure. Of course, they also have certain drawbacks, including fixed contract commitments and the potential for vehicles to be underutilised.

As a result, many businesses are undergoing a significant evolution of their fleet as they pursue greater flexibility, transparency and seek to avoid wastage of underutilised vehicles. Some are reducing the number of company cars they have at their disposal in favour of giving staff access to shared (pool) vehicles and rental vehicles to meet changing demand. ORIX can bring these new requirements together in a seamless way by allowing customers to manage their transport needs using our ORIX OneView platform.

One of our customers sought to reduce its fleet costs and drive more efficient use of their vehicles as part of its response to COVID. Starting with 29 vehicles over five locations, their recent fleet review has seen them lease fewer vehicles, which their staff can share using our ORIX Share smart booking system while maintaining strict, COVID-safe sanitation measures. The result has been a 41 per cent reduction in their fleet size, which has saved them $240,000 in vehicle costs over the life of the contract, while still ensuring staff can continue to provide vital community services.

As we have all seen this year, the way businesses operate their fleets has changed and continues to evolve. This means there has never been a better time to review your fleet management strategy. Look for solutions that enable you to scale your fleet up and down through a combination of long-term operating leases, carpooling and PAYG mobility solutions. This approach allows businesses to respond to changes in the broader environment and to deliver transparency over whole-of-life fleet costs. There are usually lots of opportunities to make adjustments. Overall, a combination of short-term action and medium-term course correction, as well as flexible strategic realignment, is the best way to optimise the fleet to get the wheels turning again.

Progress is being made addressing gender imbalances in leadership, but there is still a long way to go before genuine equity is achieved.

As Reggie Cabal, Chief Executive Officer and Managing Director of ORIX Australia told the audience for the recent Gaining Ground Together: Empowering Tomorrow’s Leaders Today event, women still suffer from imposter syndrome where they question themselves and their ability to juggle work, family and life.

“Additionally, many archaic views on women and leadership are still prevalent. But women in leadership roles are highly effective and organisations that embrace diversity reap the rewards such as an abundance of perspectives, experiences and capabilities, leading to better decision-making.”

Here are the main insights from this important event which was sponsored by ORIX Australia and Canon Australia.

Making the most of mentors and allies

Mentoring is one of the best ways to support women to advance their careers and it’s important that women know how to find mentors and make the most of these relationships.

Kate Nieass, People and Culture Business Partner at ORIX Australia, is mentored by her current manager and she has been mentored by previous supervisors. This allowed her to develop her career.

“Mentors share their experiences and challenges with you. They have given me that push to do things I wasn’t sure I was capable or ready for. It’s really pushed me ahead in my career,” she said.

Kate said the key for a productive mentor/mentee relationship is open communication and a foundation of trust. “You do need to be vulnerable and open to receiving feedback and different perspectives to get the most from the relationship.”

Other insights about developing a great mentor relationship, says Georgia Kollaras, Senior Marketing Manager, Metcash include:

• Finding somebody with whom you can be yourself
• Finding somebody with similar personality traits
• Finding somebody with whom you can talk about all aspects of your life
• Finding somebody who believes in your abilities.

Making the leadership path more accessible for women

Panellists noted a supportive network helps encourage women on their leadership journey.

Kate said: “It means when you jump in the deep end, they’re going to help you swim and make sure you succeed.”

Feeling comfortable to advocate for yourself in a business is another way to help yourself climb the leadership ladder, Georgia noted.

“It’s something I had to learn quickly. We talk about women being smaller or skinnier but the language we use with men is about being bigger and more muscly. We need to change this and feel comfortable talking about why we’re special.”

On a practical level, this means being open with mentors and talking about what you can bring to the table.

Creating change around workplace behaviours and systemic gender bias

Most women have experienced gender bias in the workplace. A positive way to deal with this is, rather than allowing it to become part of accepted behaviour, is to use it as an opportunity to create change and educate.

“Focus on what’s playing into systemic gender bias and what can we do differently, so we don’t keep falling into the same traps. You can steer the conversation away from gender and focus on people’s ability and skills. These conversations create momentum and help women succeed,” said Kate.

Juggling work-life balance

Work-life balance has never been more important or more blurred. Stephanie Wang, General Manager, Commercial and Finance, at Canon Business Services, said what’s important is to take a holistic view of work-life balance.

“As much as we may try to separate them, work and personal life are no longer mutually exclusive. It’s important that flexible working continues to be normalised; that’s key in achieving a more diverse workplace. It’s also important to be clear about what’s important for your wellbeing and place a value on it. It’s also really empowering to choose how to get your job done and have space to look after yourself.”

How to bring your authentic self to your role

Georgia noted she’s struggled with this in the past. “I wear my heart on my sleeve and I’m extremely passionate. Last year, I sat with my managing director for a performance appraisal and talked about these traits being weaknesses. He told me these traits make me unique and great at what I do, provided I know how to use them for good. That advice has allowed me to become comfortable in who I am and what I offer the business.”

Navigating power structures

When Jennefer Ramos, Head of Quality and Regulatory Affairs at Philips Australia and New Zealand, moved to Australia in 2004, self-belief and courage allowed her to develop her career as a leader.

“Be bold and stand tall because you’re the only one who can make and build good, lasting relationships, which is key in navigating power structures.”

Jennefer Ramos also said that workplaces now have a better understanding of how to prioritise women in leadership. “We’re more aware of being inclusive right from the start of someone’s career. At Philips, we’re transparent about succession planning, which involves collaborative work between team members and their leaders. It’s such an empowering process and prepares you for a leadership role.”

Three final top tips to encourage greater gender diversity at the leadership level:

• Encourage everyone in your team to have a voice
• Find out what people really want in their careers
• Ensure senior leaders tackle big issues like gender equality.

Sydney, Australia – OCTOBER 9, 2020 | ORIX Australia Corporation Limited is honoured to once again be recognised as one of Australia’s most innovative companies. Today, ORIX was named for the fourth year in a row as one of the most innovative companies in the AFR BOSS Most Innovative Companies list for 2020.

ORIX was honoured to rank #5 on the property, construction and transport companies list, from more than 600 nominated organisations across Australia and New Zealand.

ORIX achieved this year’s award for its innovative ORIX Share pool car management system, making it simple for businesses to manage their shared vehicles across various locations.

ORIX Managing Director and Chief Executive Officer Reggie Cabal said “Carpooling is a well-established concept re-imagined for today’s working environment with ORIX Share. Giving clients the flexibility to reduce their fleet size is a terrific result for them. ORIX Share is another example of our ability to disrupt our industry for our clients’ benefit,” he said.

Mr Cabal explained ORIX is constantly looking to create flexibility for their clients whilst identifying ways to optimise fleet operations and performance.

“Over the last five years, our focus has been on innovating our product and service offerings. We do this by taking on board feedback from clients and staff. We also pay close attention to what’s happening in fleet management overseas. This allows us to our clients’ changing needs.”

Additionally, Mr Cabal noted ORIX’s focus on providing flexibility to clients means the business has been able to develop extremely user-friendly technology, that gives them real time visibility over fleet usage and costs. “This has allowed us to move beyond traditional fleet management,” he said.

Mr Cabal noted innovation is embedded in ORIX’s DNA, not just for major initiatives, but in business-as-usual work as well.

“Innovation comes in different sizes, both big and small. It underscores our ability to respond to change and improves our day-to-day operations, making it easier for our staff to do their jobs and for clients and suppliers to engage with us. In a year such as 2020, an innovative approach has never been more important.”

About the AFR BOSS Most Innovative Companies List

The AFR BOSS Most Innovative Companies list (previously the BRW Most Innovative Companies list) is now in its ninth year. The list ranks the most innovative organisations in Australia and New Zealand, by industry, and is the only national list of its kind. The list is judged and compiled by Inventium – Australia’s leading innovation consultancy. Inventium uses a unique, scientifically proven approach to help organisations grow through innovation. In 2020, the list comprised of ten industry lists, compiled from over 600 nominations.

Aside from being named as one of the top property, construction and transport companies for four years running, ORIX has also previously been named in a tie as the company with the Best Innovation.

Following the recently announced Stage 4 ‘Stay at Home’ Restrictions for Melbourne, ORIX would like to reassure our customers that we have implemented a COVID Safe Plan which complies with the safety requirements outlined by Business Victoria.

In line with the restrictions, we can confirm that the relevant employees have been issued with a Permitted Worker Permit and we continue to follow strict measures including the limiting of customers in the office, social distancing, wearing of masks and high levels of office and vehicle sanitation.

Our operations are up and running to support essential services. Our fleet of trucks, trailers, and light commercial vehicles are ready for your rental needs. If you are in a permitted service or industry and require temporary vehicles, maintenance or repairs, please advise our Laverton Branch on (03) 8360 0760.

Our emergency breakdown and essential support services are also still in operation. Here’s a reminder of our operating hours and contact numbers:

Laverton office

33-47 Dohertys road (Wyndam Distribution Centre), Laverton North, VIC 3026

Laverton contact number
03 8360 0760

Email
rentallaverton@orix.com.au

ORIX Truck Rental breakdowns
1300 131 583

Passenger and Light Commercial vehicle breakdowns
1800 032 563

We are working with third party suppliers to do all that we can to understand their adjusted work hours and operations to facilitate them with meeting your fleet requirements.

As you know this is a dynamic situation and we will advise if there are any changes. We are here to support the Victorian communities that we are part of.

For more information

As we go forward, we’ll be sure to keep you updated as we continue to navigate through these uncertain times. If you have any concerns, questions or require a copy of our COVID Safe Plan, please reach out to us.

Information on Australian Government Assistance for Business and Households

For more information on COVID-19 and the Australian Government’s response, please visit: www.treasury.gov.au/coronavirus or www.australia.gov.au.

• Business.gov.au support line: 13 28 46
• Small or medium business with reduced cash flow? Here’s what the Government is doing to boost your cash flow.
• Is your business financially distressed? This is what the Government is doing to support you.

Eagle Farm, Queensland Australia – 15 July 2020 – ORIX Australia Corporation Limited (ORIX) has announced the launch of its new Emerald agency in Queensland to meet the growing demand of mine spec vehicles in the Bowen Basin and the surrounding region.

This ongoing network expansion is to support ORIX customers in the resource industry seeking flexible mobility solutions and to meet critical operational requirements with COVID-19 social distancing protocols. “This increased footprint not only represents an expansion of our rental capability, but it is providing Queensland regional businesses a flexible and cost-effective alternative to purchasing vehicles, particularly during times of economic uncertainty. We are still seeing companies moving from the once crowded modes of people movement to smaller less crowded modes including 4×4 dual cabs to socially distance and minimise employee exposure,” said ORIX Rental General Manager, Grant Harrison.

With ORIX already servicing North Queensland from their Townsville agency and the addition of the Moranbah agency in Central Queensland in 2018, this new agency will bring ORIX even closer to many key mining and energy projects in the region. “This greater expansion provides improved capability in the Bowen Basin area and now also the Galilee Basin. Our customers have wanted us to improve our geographic footprint so that they can continue to access high quality fit for purpose vehicles, economically. These are important hubs for not only regional Queensland, but also Australia,” said Harrison.

ORIX Rental is part of the world’s leading Fleet management, Leasing and Rental companies. With one of the broadest range of commercial vehicles, ORIX can support businesses with flexible short-term rental and leasing needs that keeping operations moving. ORIX continues to be a trusted supplier of mine spec vehicles for long-standing mining, infrastructure and energy companies and has built a specialist reputation over the last 34 years.

“Our continued investment in Queensland makes it clear that we are in this for the long-haul. We will continue to support our customers with the flexibility they need to meet their short and long-term requirements while keeping the most important asset safe – their people,” said Harrison.

If you need a vehicle(s) on short, medium or long term through ORIX Rental, contact us at www.orix.com.au for more information.

When WSP Australia required a new Novated Leasing partner, ORIX provided the support that made a previously complex process easier than ever.

WSP is one of the world’s leading engineering professional services consulting firms with 15 offices in Australia. Working in property and building, transportation and infrastructure, resources, water, power and environmental solutions, its teams specialise in project delivery and strategic consulting services.

A clear choice

Recognised as a Great Place to Work, WSP offers team members a range of benefits including Novated Leasing to provide tax-effective car financing. Always looking to improve the offer to staff, WSP wanted a partner that made Novated Leasing as simple as possible for employees, but also to reduce the load on the finance department. ORIX ticked both of those boxes, making the process clear and simple to understand and undertake.

“Pricing and transparency were the two main things that caused us to switch to ORIX. We weren’t happy with the way our previous provider priced leases – they weren’t competitive, or clear for our staff to understand,” says Adam Pegg, WSP Australia General Manager – Finance.

When it came to the quality of information and clarity of advice, WSP was impressed by ORIX’s offering.

“ORIX was also very flexible in the ways they could work with us. They could use some of our forms when staff were applying for a lease, and these little things took some of the pain away from the process.”

ORIX was also able to relieve the pain of managing multiple lease providers, by taking over any existing arrangements employees had with other companies.

Staying competitive

By selecting ORIX as their Novated Leasing partner, WSP Australia has bolstered its employee benefits program, which is a distinct advantage when competing for specialised talent.

“With so many infrastructure projects, we’ve seen talent shortages across Australia. Having a broad benefits program that includes Novated Leasing is essential for standing out and attracting the right people,” Pegg says.

“For example, if want to attract a specialist project manager – the only person in the country who could run this project, they might insist on staying with their Novated Leasing provider as part of their package. That was previously painful for us, because we ended up with a number of other arrangements.”

ORIX was able to umbrella and manage those arrangements on WSP’s behalf, and from the employer’s perspective it functions like all arrangements are with the one provider.

“Even though ORIX is probably not doing as well out of it, they’re willing to do that in order to manage our program. That makes a huge difference at our end.”

Clarity and transparency

ORIX’s simple approach removed a lot of the friction with WSP’s Novated Leasing program, particularly with greater clarity of price and choice. If staff wanted to look elsewhere, ORIX’s offering was competitive, resulting in many staff members switching their lease.

Since partnering with ORIX in 2017, Novated Leasing is currently taken up by approximately 4% of WSP’s staff. This includes 25% growth in the past 12 months, as more staff members learn about the program or switch existing lease agreements to ORIX. ORIX has made a huge difference to the overall satisfaction rate of the program, keeping WSP staff happy.

“The feedback I’ve got is that it’s quite painless and quite easy to work with. I was getting complaints about the old company around pricing and comparing interest rates. I haven’t had any of those complaints or questions since we changed to ORIX,” Pegg says.

Value for all

WSP was looking for value in their Novated Leasing partner. Value for the company, and value for their employees. Since switching to ORIX, Pegg says he’s satisfied that they have a partner who is helping them save time in the setup and termination phase of leases, while adding to the overall experience of working at WSP.

“It’s valuable because I know that our people are getting a competitive deal every time and I’m not having to field queries with everyone’s lease. I know it’s a good arrangement that runs well and is transparent. That’s worth a lot.”

Businesses of all sizes are feeling the economic effects of COVID-19. But small businesses are being hit the hardest.

“Small businesses are obviously being impacted the most,” says Pasquale Petrucci, ORIX National Manager of Small and Medium Enterprise. “Their cash flow and balance sheets are under pressure at the moment,” says Petrucci.

In March 2020, the federal government introduced a $17.6 billion economic stimulus package to help Australian businesses navigate these unprecedented times. It includes an expansion of the instant asset write-off scheme with increased thresholds for eligible assets and businesses.

What is the instant asset write-off scheme?

According to the ATO, the instant asset write-off scheme allows eligible businesses to, “immediately write off the cost of each asset that costs less than the threshold” and “claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use. (Some exclusions and limits apply.)

From 12 March 2020 until 31 December 2020, the threshold for the cost of a new or second-hand asset has been raised from less than $30,000 to less than $150,000. The annual turnover threshold for eligible businesses was raised from less than $50 million to less than $500 million. This now covers more than 99% of Australian businesses.*

Petrucci says his team has received many vehicle applications and inquiries recently, largely driven by the pending 30 June 2020 deadline to take advantage of the expanded instant asset write-off.

Visit the ATO website to learn more about the scheme.

Is the instant asset write-off right for you?

Before you make any asset purchase decisions, it’s important to talk to your accountant or financial adviser.

“The instant asset write-off could help some businesses withstand and recover from the effects of COVID-19,” Petrucci says. By potentially lowering your tax bill at the end of this financial year, it may provide some flexibility with cash flow while the environment is still uncertain.

“Let’s say a business was already planning to add three vehicles to their fleet across the next six months,” he explains. “This might make it most tax-effective to bring the purchases forward. Any money saved on tax can then be put to operational use – such as wages, rent or maintenance costs.” The previous $30,000 threshold made it difficult to apply to business vehicles. From July 1, the threshold reduces to $1,000 for businesses with turnover of less than $10 million^, so if you are interested, you need to move quickly.

Financing considerations

If you don’t want to pay for the assets upfront but still want to take advantage of the instant asset write off, you may want to explore chattel mortgages.

“A chattel mortgage is one of the few finance options available that allows you to take legal ownership of equipment from the time of purchase, so you may be eligible for the instant asset write off,” Petrucci says.

With a chattel mortgage, you own the asset legally while you pay back the mortgage over an agreed contract period. ORIX offers flexible repayment periods from one to five years, and the ability to increase the size of the balloon payment to reduce monthly payments.

“When you add in the fleet discounts ORIX can secure nationwide, along with our competitive finance rates, it can be a cost-effective way to purchase your vehicles,” says Petrucci. “We know how busy it is when you’re running a small business, so we do everything possible to save our customers time – you can add in optional service cards to make it simpler to track fuel and other running costs, with the added benefit of one consolidated monthly invoice covering all expenses. In addition, ORIX’s OneView online portal provides our customers with access to a range of reports and vehicle management data.”

How the instant asset write-off works

There are exclusions and limits to using the instant asset write-off for a business vehicle, including but not limited to the current ATO’s car limit of $57,581 for simplified depreciation. Visit the ATO for some detailed examples on how this works.

Contact your accountant or tax adviser for more information on your business’ specific circumstances.

Business from a safe distance

Keeping yourself and your team safe is the top priority in these uncertain times. You can add new vehicles to your fleet before the expanded instant asset write-off ends on 31 December 2020 – without having to visit a dealership.

You can research, compare and purchase hundreds of vehicles for your business online with VOOM. VOOM tied for Best Innovation in Property, Construction and Transport on the 2019 AFR Boss Most Innovative Companies List. Get in touch with the ORIX small business team by calling 1300 134 385 or emailing info@voom.com.au. We can discuss your options and help you decide if adding new assets makes sense for you today.

* treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Support_for_business_investment.pdf

^ treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Support_for_business_investment.pdf

The information provided in this email is of a general nature, may be subject to change and should not be construed as specific advice or relied upon as such. While ORIX Australia Corporation Ltd (ORIX) uses reasonable efforts to provide current information, ORIX does not warrant the accuracy, currency or completeness of the information. You should seek tax, legal or other professional advice before acting or relying on any content.

ORIX today announced it has received the WGEA Employer of Choice for Gender Equality (EOCGE) citation.

Awarded by the Workplace Gender Equality Agency (WGEA), an Australian Government statutory agency created by the Workplace Gender Equality Act 2012, the EOCGE citation is designed to encourage, recognise and promote active commitment to achieving gender equality in Australian workplaces.

ORIX received the citation for its work across a number of key areas including flexible work, gender pay equity, creating a gender balanced workforce, preventing gender based harassment and discrimination, and leadership and development.

“Building a more inclusive culture which harnesses the individual differences of our employees is critical to our success as a business, and the Gender Equality Strategy is key to that,” said Jill Edwards, General Manager – People and Culture, ORIX Australia. “Our employment framework focuses on inclusion throughout the employee lifecycle so we can attract, recruit, retain and develop the talent we need to achieve our strategic goals,” said Edwards.

Libby Lyons, Director at WGEA, said, “New research just released by WGEA and the University of Queensland’s AIBE Centre for Gender Equality in the Workplace shows that the targeted and strategic action EOCGE citation holders are taking has delivered significant improvements.”

ORIX’s Gender Equality Strategy contains several initiatives, including:

• Diversity and Inclusion (D&I) Network (Macquarie Park and North Ryde): ORIX founded a D&I Network Group in the Macquarie Park and North Ryde business hub to share best practices with neighbouring organisations
• Formalised Flexible Work policy: Open to all employees regardless of reason, this framework provides a range of flexible work types, including job share, remote working, varied hours, purchased leave and part-time
• Paid secondary carers leave: In addition to 12 weeks paid primary carers leave, ORIX has introduced four weeks paid secondary carers leave so that employees are supported during this crucial time
• Return to Work program: Employees who wish to stay connected with their workplace and team while on parental leave can nominate a personal email address so they are kept up to date and invited to events
• Introducing development plans for all employees to support and nurture career development.

“We believe it is important to be at the forefront of driving change within the community in which we operate, as well as aiming to lead by example. As the only fleet leasing and rental company to be accredited this year, we are proud to be setting the benchmark for similar companies to follow.” said Reggie Cabal, Chief Executive Officer at ORIX Australia. “Our Gender Equality Strategy, part of our broader Diversity and Inclusion Policy, will enable us to advance the culture we’ve fostered within our workforce. We are confident that together with our employees we can continue to build an inclusive culture and make ORIX an even greater place to work. I look forward to achieving our goals and building our future together,” said Cabal.