Road Map To Federal Election –The AHA's Reform Agenda

The AHA|SA is intensifying its advocacy in the lead-up to the Federal election due in or before May 17 2025, as well as the State Election in 2026.

This is part of our commitment to your business, representing our Publicans, and being a Voice for the Hotel Industry.

While a broad list of issues has been identified, nationally the Association is seeking long-overdue reform in eight critical areas:

1. Alcohol Excise

2. Fringe Benefit Tax relief

3. Industrial relations

4. Immigration

5. International student caps

6. Core skills

7. Cost of living and housing crisis

8. Accommodation

CLEAR, ACTIONABLE COMMITMENTS

“In the coming months, our association will be engaging with candidates and political parties, to ensure these issues are heard and addressed,” said David.

“We are calling on all political parties to make clear,

“Hotels play a critical role in Australia’s economy, culture and community,” said AHA|SA President, David Basheer.

“We are calling on political parties and individual politicians to commit to a range of policies that will support continued growth and sustainability.

“Naturally, our primary focus is on national issues as we head for a Federal election, although we aren’t taking our eyes off the ball and we will continue to pursue all issues. As the State election draw closer, State issues will be prioritised.” actionable commitments that will guide create a stronger, more resilient future for our sector.

AHA|SA CEO, Anna Moeller, reinforced the need for a focused strategy.

“Our association’s 153-year history reminds us that changing industry landscapes bring new challenges alongside existing ones,” she said.

“Our team is well equipped to engage directly with government and their advisors, and other stakeholders.

“We do this through a strong foundation built on networking and relationship management, formal submissions, as well as indirect methods such as social media, conventional media, and informal discussions,” Anna said.

“We urge all political leaders to prioritise these issues and take decisive action in the lead-up to the 2025 Federal Election and 2026 State Election.”

MEMBERS HAVE THEIR SAY

IMMIGRATION & CORE SKILLS

The hospitality industry is facing significant challenges in attracting and retaining skilled workers. We urge all parties to commit to overhauling training, including reducing the length of a chef’s apprenticeship from four years to three. We desperately need industry-driven training that aligns with the evolving needs of the workforce.

In addition, we are advocating for reforms to immigration policy that would streamline the process for skilled migrants, ensuring our sector can access the skilled workers it desperately needs. This includes expanding the list of eligible occupations for skilled migration, particularly for chefs, kitchen staff and other hospitality professionals, as well as making it easier for temporary workers to stay and contribute to the economy.

ANNA HURLEY, Hurley Hotel Group

The shortage of qualified kitchen staff is an acute issue for many hotels, particularly in the regions. For the first time in the history of the Hurley Hotel Group, last summer we were forced to close the restaurant in Port Lincoln on a Saturday night due to a lack of qualified staff. Along with education, immigration is critical to resolving the shortage of qualified hospitality staff.

Immigration policy seems to be based on issues in Sydney and Melbourne with little regard for the regions and no understanding of our needs in South Australia. We will be asking politicians to consider different needs for different parts of the country when forming

immigration policy. It is not good enough to cut total immigration numbers based on overcrowding in the Eastern states while some of our regions are crying out for skilled labour.

In addition, governments at both state and federal level are focussed on skills needs in defence and construction. While this is understandable, there needs to be a recognition that hospitality is an important industry for the economy and the community. While housing may be a priority, nobody is going to be happy if there aren’t enough chefs to cook you a Parmi at the local pub!

INDUSTRIAL RELATIONS & ACCOMMODATION

IR: The hospitality industry is burdened with complex and often onerous taxation and regulatory requirements. We call for a review of current policies and a commitment to simplifying these processes to make it easier for businesses to operate, innovate and grow. This includes reforming licensing laws, reducing red tape and offering financial incentives for investment in local communities.

Accommodation: A major issue is the housing shortage preventing potential staff from finding accommodation, especially in the regions. Short stay businesses like Airbnb are to blame and the problem could be fixed overnight with decisive government action to return short stay accommodation back to its ‘second bedroom’ intent. This and other changes to immigration laws are desperately needed.

MICHAEL KOSCH, The Commodore

Employment and the shortage of skilled workforce, including chefs and professional housekeeping managers and supervisors, is a problem in our regionally based accommodation hotels.

As we approached the important and busy Christmas period, two of our senior kitchen team each holding a near-to-expiry Visa, had received an invitation from the State to apply for a permanent visa, and were left waiting up to the expiry date (and beyond in one instance and relinquishing their working rights) for a decision from Immigration. Of course, this creates uncertainty for the employee and additional stress for the operator trying to fill out a roster.

Whilst the Government attempts to balance the housing shortages with immigration polices, these jobs will become vacant and remain vacant for some time – but our sector desperately needs skilled people now to deliver a quality offering expected by our customers.

The skills shortage extends to and beyond housekeeping managers and supervisors who currently cannot be accommodated under the skilled occupation lists. Even the role of Restaurant Manager was removed from the skilled occupation list in December!

These are critical jobs in our businesses, managing large teams of people. However, the roles appear to have lost attractiveness following the pandemic.

The Skilled Migration Income Threshold further challenges employment, as the demand for skills at the supervisory and newly qualified levels pushes salaries above what has been considered normal for their local counterparts. This of course comes at a time when cost of doing business has escalated quickly and sharply.

Most importantly, the industry attractiveness issue for employment needs to be addressed by building skills through apprenticeships and traineeships and recreating awareness of the industry for unskilled work, be that in housekeeping, the front office or casual food and beverage attendants.

DANIEL CASSIN, Golden Grove Tavern

Pubs play a vital role in our community. We endeavour to provide a warm, welcoming environment for anyone who walks through our doors, and often, it's the publican and their family working on the floor or in the bar who drive that vision.

Unfortunately, the ever-growing list of legislation and compliance measures compiled onto business owners by multiple levels of government has us off the floor and in the office like never before, taking valuable time away from us focusing on what makes our pubs great.

We are not alone in carrying the burden; our staff do as well. Increasing compliance measures are taking staff away from their duties to do a training session or understand new legislation, which not only adds extra costs to running a business but also puts unnecessary pressure on workloads.

Additionally, the time and effort that goes into training managers and office staff about the Hospitality Industry General Award is extraordinary. This award is outrageously complex, with its long list of classifications, allowances, penalties, and break structures. It doesn't meet the industry's realistic needs on the ground level and, at times, feels like you need a bachelor's degree to understand it.

We are at a point where upholding compliance is negatively impacting productivity, which operators just can't afford. We need an approach that minimises red tape, simplifies our operating procedures, and allows us and our staff to focus on growing our business for a sustainable future for our industry.

INTERNATIONAL STUDENTS

We commend the SA Government for resisting any Federal push to unreasonably cap South Australia’s overseas student intake.

Any cut would not only reduce our staffing pool – but also reduce the dollars that students - and their families – pour into our economy. Andrew Kemp outlines our position in detail below.

ANDREW KEMP, Matthews Hospitality

The hospitality industry is a cornerstone of the economy, providing jobs, supporting tourism, and driving local and regional development. International students have long played a pivotal role in this ecosystem, contributing diverse skills, cultural insights, and resources for part-time, entry-level, and seasonal roles. However, the sector continues to face significant challenges in recruiting, training and retaining this valuable workforce.

Our customers demand strong standards of service and quality in the food we produce, so it is essential to our industry that we can reliably roster strong teams in every department of our business to ensure those expectations are met. International students play an important part in ensuring a positive customer experience, however, immigration restrictions and capped working hours can limit availability, particularly during peak seasons.

When transitioning from a student visa into a suitable work visa, there can be significant obstacles, which limits their ability to remain in the industry postgraduation. Likewise, the capping of student hours creates unintended barriers to fully utilise these resources particularly during peak demand periods. For operators, the consequences of such barriers can be significant whether it is under-manned rosters, loss of customers due to inadequate service, staff burnout or turnover of key people due to these factors. When seeking access to training or internships, these too can be difficult due to visa restrictions, cultural barriers, or language proficiency issues, limiting their ability to contribute effectively.

Compounding with those issues above, the cost of living on reduced hours combined with the lack of affordable housing, can make the situation somewhat unworkable. Added to those costs are the fees associated with applying for permanent residency and the limited pathways to be approved, which all lead to an exceptionally low retention opportunity for appropriately skilled, motivated workers who provide essential support to our industry.

In order to reduce some of these negative impacts, we can look to our government for greater support to advance the cause of international students in the following ways:

Relaxation of Work Hour Limits: advocate for more flexible work-hour policies beyond a 20 hour per week cap for international students, especially during peak seasons or school breaks, to align workforce availability with industry demand.

Streamlined Visa Processes: simplify visa application and transition processes for international students, allowing them to move seamlessly from student to work visas.

Pathways to Permanent Residency: introduce industry-specific pathways to permanent residency for international students in hospitality-related roles.

Government-Supported Training Programs: provide subsidised or government-funded training programs tailored to international students, including language and technical skills development.

Affordable Housing Initiatives: collaborate with local governments to develop affordable housing solutions near hospitality hubs for workers, including international students. This may include a strong focus on regional areas where availability is particularly difficult.

FRINGE BENEFITS TAX

The FBT is a hot election issue. Read the story on page 9 for the AHA's policy position.

TOM HANNAH, Kent Town Hotel

A tax on (and therefore the eradication of) taking staff out for a thank you meal and drink, or to drive new business.

The AHA is calling for a 40% reduction on the tax levied on all keg beer and spirits served to a customer in the pub. That translates into a mere 2% reduction in the $8 billion annual excise receipts but will make a real cost of living difference to the customers at the pub, our family hoteliers, and our unfortunate young staff who constantly bear the brunt of patron anger.

I remember when FBT was introduced by Treasurer Keating in 1986. We were in our first pub in the difficult West End of the city. The new FBT was devastating for all of us. Hard times, especially with interest rates at 19%! Let’s look at some numbers.

• In 2022/2023 total Government tax revenue was up $67.6 billion to $756 billion.

• Total FBT in that total was $4.147 billion.

• Of that FBT, the greatest contributor by far, was cars, one way or another.

• So FBT contributed .0055% of total tax income, with minimal contribution of that from dining out. On those numbers why wouldn’t you prop up an important industry that had taken some big hits?

I get it. Benefits given in lieu of salary needed to be taxed. (Obviously, the Victorian AFL clubs didn’t get the memo).

And have you ever met an employee that is willing to swap part of their salary package for getting taken out to lunch? Or even think that such expenditure should even be part of their salary package!?

But apart from making sure all income or benefits are taxed, the reasons for tax are to pay for the running of the country, to reduce the use of harmful products, or to protect Australian industry. (Tariffs). So, despite a

lot of FBT hitting the target, what did FBT on dining out achieve in the above categories, if everyone stopped doing business over lunch making that tax a non-event?

Of course, there’s the immeasurable amount of loss of tax deductions for these expenses on company tax returns. But hang on, they still get 10% GST on all that extra dining out! Oh, but GST goes to the States.

And there’s the problem.

The Commonwealth giving up income in the form of minimal dining out FBT, and allowing company tax deductions, at the expense of the States getting more GST income.

So, could the Federal Govt now say, “no more FBT but we’ll reduce the GST of $86.2billion distributed to the states by a total of $4.147 billion (4.8%), since Stamp Duty, Land Tax and Payroll Tax didn’t get abolished by State governments as they were supposed to when GST came in?

Or does everyone just claim the FBT they pay on dining out off their Land Tax or Payroll Tax bills?

Sounds simple to me.

This is about helping to make our important, “big” industry prosperous and safe. To give more staff more hours during the week at lunch times, not just nights and weekends. To increase the number of jobs in our industry, an industry which was considered guaranteed and growing until COVID, and the subsequent bashing we were dealt. We need a bipartisan approach on this, to drive our industry forwards and the State with it. It’s not rocket science. Everyone can see what happens when this State hosts events, and the wonderful atmosphere of optimism and joy that comes from a full hospitality venue bulging out onto sidewalk dining. Whatever any of these community elected decisions makers can do to that end, just do it. If it makes sense, just do it.

Taxing dining out is Un-Australian.

THE RISING COST OF LIVING

The increasing cost of living is having a direct impact on discretionary spending, with fewer Australians able to afford to go out. Our political leaders must implement policies that alleviate financial pressures on consumers, including addressing housing affordability, energy prices and other cost-of-living factors. Reducing these pressures will encourage Australians to spend more in the hospitality sector, benefitting local businesses and communities.

KAREN MILESI, Murray Bridge Hotel

Some key points which are facing our industry and regional hotels in particular.

The reduction in consumer spending has a significant impact on a hotel business in a time of high cost of living. We rely on the discretionary spend of a business, family, individuals, low income earner, middle and high. When times are tough rather than dine out at the hotel a family and/or individual would up-spec their grocery shopping for a special occasion and stay home. Corporate business are having working lunches and afternoon drinks in the office.

Labour shortages and wage pressures contribute to the increasing operational costs for hotel businesses. Competing for staff and in a lot of cases essential unskilled labor has become the most difficult to bed down and retain. Nationally the industry has suffered an exit of qualified chefs over the past number of years combined with the low retention rate of apprentices.

As an industry we are working to seek from the Government strategies to entice and retain apprentices.

Could we reduce the four years to three or less and more align the skills required for a hotel Chef? Is it more attractive and beneficial for an individual apprentice to specialise after that time in skills of their choosing? Does a cheffing apprenticeship really need to be four years and should we give that option to the individual?

Talks by the Federal Opposition to introduce a tax deductible business lunch has given hope of a renewed market for our businesses not seen since the mid 80’s.

The rise of food and supply costs has had an enormous impact. Freight costs have more than doubled in my experience. The reasoning being that my business is in a regional area. There is only so much that can be absorbed without affecting profitability.

A moratorium on the twice yearly excise on draught beer would be music to everyone’s ears. Combine that with the introduction of the tax deductible business lunch could be – and hopefully will be – something to celebrate in 2026!

EXCISE ( TAX ) ON ALCOHOL

The high and never-ending excise on alcohol is placing an unnecessary financial burden on Australian consumers. There is a significant groundswell of opinion against this tax. The AHA nationally is calling for a reduction – or a freeze –to assist the everyday person and help support local businesses.

The AHA is calling for a 40% reduction on the tax levied on all keg beer and spirits served to a customer in the pub.

That translates into a mere 2% reduction in the $8 billion annual excise receipts but will make a real cost of living difference to the customers at the pub, our family hoteliers, and our unfortunate young staff who constantly bear the brunt of patron anger.

JAMES FRANZON, Hilton Hotel

A punter, a publican, and a politician walk into a bar. The punter orders three pints. The publican says, “That’ll be $45.” The politician gasps, “Why so expensive?” Then laughs.

When a bad joke becomes reality... and it’s all thanks to an outdated and unfair tax.

Every publican in Australia has seen it – the look of shock when punters get the bill. No wonder 11 million beer drinkers are being driven away from pubs and hospitality venues.

It’s time for the government to rethink, freeze, or better yet, scrap this tax. Pubs aren’t just businesses; they’re the heart of communities. They’re where mates catch up, families celebrate and locals unwind. Pushing people towards unregulated drinking at home isn’t just short-sighted – it’s bad policy.

THE THIRD - HIGHEST ALCOHOL TAX IN THE WORLD

Australia now has the third-highest alcohol tax in the world. It’s crippling jobs, shutting down venues, and piling pressure onto an already struggling industry.

Pubs and bars that once provided steady jobs and incomes are disappearing, never to return. With the cost of living soaring, people are being forced to stretch their dollars further, and hospitality is paying the price.

Meanwhile, countries like the UK have taken a smarter approach—cutting beer taxes to support their pubs and breweries. If we want a thriving hospitality industry, we need to take a page from their book.

Overtaxing an industry can lead to unintended consequences. Take tobacco, for example. Heavy taxation was meant to reduce smoking, yet it has fueled a thriving black market. In Australia, illicit tobacco sales now make up a significant portion of the market, with underground dealers avoiding taxes entirely. The result? Feuding rivalries and arson attacks –105 stores burned in Victoria alone in just 18 months. If alcohol keeps heading in the same direction, how long before illicit traders add it to their stock list?

CHAMPAGNE TASTE, BEER MONEY… OR JUST NO BEER AT ALL?

If the government keeps taking the easy road – sticking to a tax framework that’s failing – they’re not just abandoning everyday Aussies, they’re actively harming an industry that’s part of our national identity.

Pubs are still the safest and best place to drink responsibly. We have trained professionals to step in when needed – something you don’t get in an unmonitored setting.

There used to be a saying: "Champagne taste, Beer money/budget." At this rate, the next version might be another excise hike and no beer at all. Maybe they just want us to go thirsty?