Community clubs across the ACT are facing growing financial strain, with industry body ClubsACT warning the expansion of portable long service leave could add further pressure to already tight margins.
ClubsACT chief executive Craig Shannon said the ACT Government’s proposal to apply the scheme to licensed clubs was not suited to the sector and risked becoming an additional cost without clear benefits for workers.
“Community clubs support fair employee entitlements, but this proposal is not evidence-based reform for our sector,” Mr Shannon said.
“It is a new cost and compliance burden being imposed on community venues where the policy fit is poor and the employee benefit case has not been proven.”
Mr Shannon said the structure of the club workforce — often casual, with mixed duties and irregular hours — made it difficult to apply the scheme effectively, increasing administrative complexity and costs.
He said clubs were already grappling with rising wages, energy, freight and food costs, alongside ongoing regulatory pressures affecting revenue.
“For many smaller venues, there is no fat left in the system. Another imposed cost is not absorbed easily — it pushes already tight margins closer to the wall,” he said.
ClubsACT also raised concerns about the timing of the proposal, with changes to “Payday Super” due to begin on July 1 expected to place additional administrative and cashflow demands on venues.
“To stack portable long service leave on top of that at the same time is poor sequencing and unnecessary pressure,” Mr Shannon said.
He called on the government to provide sector-specific evidence that club employees would see meaningful benefits before introducing any new levy.
“If the government wants clubs to carry a new wage levy, it should first prove that club employees will materially benefit in practice. That case has not been made,” he said.
Mr Shannon warned the cumulative impact of rising costs and regulatory changes could have tangible consequences for the community.
“When you hit community clubs with another unproven cost, the impact comes out of jobs, local services, maintenance, sporting facilities and community support,” he said.
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