NOTICE OF REGULATORY IMPACT STATEMENT
Proposed two new public holidays in Victoria
We own a Winery with a Restaurant & Cellar Door.
In both businesses we employ 10 staff full time, 4 permanent part time and up to 20 casuals during peak periods.
Our business is dependent on Friday, Saturday, and Sunday and other days that are public holidays for trading.
We are in the tourism and hospitality industry and our business is in a rural area and not within a township.
Our restaurant which is quite large seats 120 patrons and has received local, regional and state awards and has been inoperation for over 5 years.
Our experience shows that to retain competent staff we have to trade for 5 days per week, Weds – Sunday.
On average the following is factual trading results
- Wednesday is not profitable
- Thursday is not profitable
- Friday breaks even
- Saturday is profitable
- Sunday is profitable
Any increase in public holidays that fall on our major trading days of Friday, Saturday and Sunday has a disastrous impact on our ability to remain viable and to employ staff, pay GST and employment taxes.
Penalty rates make trading impossible to be viable.
The impact on our businesses as a consequence of the impost of the two extra public holidays is as follows:-
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- Friday Grand Final Eve Public Holiday
As penalty rates will increase from normal rates by 2 ½ times, this would result in substantial losses. It would mean that our wages would leap from an average of 30% of turnover to 75% of our turnover and our losses would be estimated to be 30% of turnover.
The restaurant would therefore have to be closed resulting in the following consequences:-
- Permanent staff still have to be paid this is a direct loss of approx. $2000 to the restaurant and winery businesses
- Up to 4 permanent part time and up to 6 casuals will not have a job on that day.
- The Commonwealth Government will not receive GST on turnover or tax on wages for part time and casual employees.
- Easter Sunday Public Holiday
Penalty rates will increase from1 ½ times normal rate to 2 ½ times. Sunday is our biggest trading day and we will have to try and keep the restaurant open to keep faith and continuity with our customers.
Although we already apply a 10% surcharge on Sundays and Public Holidays, experience has shown that we would only break even on this day. This will result in a significant loss for the trading week.
Conclusions & Suggestions
We are most unhappy and frustrated with such adhoc decisions by Government without consultation with businesses that are already struggling to keep their head above water.
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If you do not accept that we are struggling then talk to the Australian Tax Office to see how often our restaurant business has had a payment plan with them.
We strongly believe that Tourism and Rural Hospitality businesses need to be exempted from Sunday and Public Holiday rates and that they be capped at the Saturday rate of 1.25 time normal rate.
This suggestion will not only make such business as ours viable but will extend trading times for the benefit of the Tourism and Hospitality industry.
We do not believe that there will be any problems with attracting employees – particularly young and part time employees and this will provide a direct benefit to the community in a number of ways.
Please listen to us as we are desperate!!
Gary Surman
Judith Surman
Business Owners
cc Gary BlackwoodMLA Member for Narracan
Harriet ShingMLC for Eastern Victoria
Russel BroadbentFederal Member for McMillian