THE Labor government must take urgent action to reduce the economic impact of the coronavirus crisis on local businesses and workers, says ClubsACT CEO Gwyn Rees.

“Clubs have already been left reeling from the downturn in trade resulting from the terrible summer of bushfires and smoke,” he said.

“This will be compounded as Canberrans limit their public movements due to COVID-19 and by the very real possibility that public facilities like clubs may even have to close for periods of time to help prevent the spread of the virus.

“During Labor’s latest parliamentary term, they have imposed nearly $1.8 million in new taxes on our local clubs.

“To support our clubs and their employees during these uncertain times we are calling on the ACT government to urgently implement tax relief such as that being delivered by other jurisdictions and the Commonwealth.

“The club diversification fund which is derived from a new tax on each poker machine held should be put on hold immediately and money collected to date returned to clubs. We would also like a freeze on payments flowing to the Chief Minister’s Charitable Fund and on any commercial rate rises for the next financial year.

“Other states have implemented payroll tax relief and it is time for the ACT to catch up. A payroll tax freeze would be a straightforward and simple way of providing much needed relief to local businesses and go a long way to ensuring ongoing employment during these challenging times.

“All these measures combined would not only help keep Canberra clubs afloat, but enable them to financially support their staff. Sixty per cent of the club workforce is casual, which means sick leave or reduced shifts can leave them without an income.

“There is no question this pandemic will impact clubs’ bottom lines. One of their main revenue streams is already suffering as people cancel functions due to understandable concerns about holding large events.

“Government taxation can wait, but the need to continue to pay people in this period of uncertainty is paramount. This is an unprecedented crisis that requires an unprecedented response. Every option should be explored before it is too late.”