01_QHA_July_Online

FINANCE FOCUS
SOCIETY’S NEED FOR SOCIAL INTERACTION AT A GOOD HOSPITALITY VENUE, ESPECIALLY IN TOUGH
TIMES, HAS BEEN HIGHLIGHTED BY THIS COVID PANDEMIC AND ACKNOWLEDGED BY KEEN INVESTORS
AS AN IDEAL TIME TO INCREASE THEIR HOLDINGS.
coming off Jobkeeper after the September 2020 quarter.
Hospitality venues without gaming (high level restaurants
and cafes) struggled more and those on Jobkeeper in
March 2021 with many of these forced to close their
doors.
Availability of staff was the biggest negative factor to
come out of the covid lockdown.
During the lockdown, obviously our international
backpacker workforce dried up and this was coupled
with the local hospitality workforce also using the
shutdown and Jobkeeper to fund further studies away
from the hospitality industry.
Most venues across the country are still struggling for
hospitality staff especially kitchen staff. The further west
you go the harder it is to find staff.
Succession & Estate Planning
With the forced shutdown, many publicans also suddenly
had extra time and thought about their own succession.
We have had increased discussions with large family
groups that typically have a retiring matriarch/patriarch
with a child actively working in the business driving
value in operations, with other children either partially
connected or disconnected with the business.
Sadly, with large sums of wealth, the inevitable happens,
there is often a fight between siblings to work out their
‘fair share’.
We have successfully assisted our clients in dealing with
this situation before it happens and have plans in place to
ensure the family wealth is increased after the matriarch/
patriarch is no longer around to drive business
Next round of high wealth ATO Audit activity
The ATO definitely took off its gloves at the end of March
2021 and is currently demanding compliance and
searching for tax revenue to return back to the ATO.
We have had clients in the ‘Wealth Australian Taskforce’
for the last ten years and we have successfully ensured
operations are in compliance with the tax minefield that
modern taxation law impose, especially on large and
complex family structures including trusts, companies,
joint ventures as well as the extended family members.
The ATO have currently dropped their focus down to the
next 5,000 wealthy Australians and have reinvigorated
their push to understand how large family groups are
structured and how individual entities interact with one
another to ensure appropriate taxes are paid.
Conclusion
The resilience of the hospitality sector during these
toughest of times has led to a crashing of yields with
prices for hotels and gaming authorities at all-time highs.
Society’s need for social interaction at a good hospitality
venue, especially in tough times, has been highlighted
by this COVID pandemic and acknowledged by keen
investors as an ideal time to increase their holdings.
We have seen most of the large Sydney family groups
coming up to Queensland and snapping up venues in
quick fashion.
With many Victorians’ moving, or looking to move into
Queensland, the state is poised to have hyper growth
in the hospitality sector helped along by the opening of
Queens Wharf Casino in 2023 and the prospect of the
Olympic games in 2032. These two large occurrences
will continue to keep the industry on its toes and drive
business into the state.
Steve Gagel, Director at Financial Advice
Firm Prosperity.
For more information: prosperity.com.au
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