Clubs should cash in on the 120% claim for POS and training programs.

THE Federal Budget proposal of a 120 per cent tax deduction on eligible POS technology and small business skills and training programs is an offer too good for clubs to refuse. Astonishingly nearly half of all hospitality venues still use pen and paper to make bookings and have no online functionality, according to a survey commissioned by online booking system ResDiary.

While lack of staff remains the glaring industry issue, advanced POS technology can fill some of the gaps through more efficient F&B ordering systems front of house and stock control, gaming and membership data back-of-house.

According to the ATO, small businesses with an aggregated annual turnover of less than $50 million will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services. An annual $100,000 cap will apply to each qualifying income year. Businesses can continue to deduct expenditure over $100,000 under existing law.

The same sub $50 million turnover and 120 per cent deduction applies to approved skills and training programs with clubs being able to deduct the entire 120 per cent for both tech and training in their 2023–24 tax return.

“Offering new staff the correct training is one of the fundamental pillars of a successful club business,” says Andrew Lewis, CEO of Allara Learning which assists Central Wyong Leagues, Dooley’s and Currumbin RSL clubs, among others, with their training programs.

“While finding staff will be the main focus for many clubs, this deduction offers the extra incentive of training them properly, and also offers existing staff the opportunity to upskill.”  

While the hospitality industry is waiting for the budget proposal to be passed by Federal Parliament, club dining venues should also be using this time to investigate replacing outdated manual processes with tech solutions or upgrade if they are already in the process of introducing tech.

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