The Oasis Townsville collapses after labour costs ballooned by 275 per cent
The Oasis Townsville will shut next week, leaving veterans without crucial transition services as politicians trade blame over the historic closure.
A veteran support hub shutting next week saw labour costs surge 275 per cent before its collapse, publicly disclosed financial data reveals.
The Oasis Townsville, which helped veterans transition to civilian life, closes December 12 after failing to secure ongoing operational funding.
Employee expenses jumped from $314,800 in 2020-21 to $1,183,424 the following year, according to annual reports filed with the Australian Charities and Not-for-profits Commission.
The spike followed a $4.5 million federal grant to develop Operation NAVIGATOR, a smartphone app for transitioning personnel. Staff numbers swelled to 16 before being cut to three.
Chair Lieutenant General John Caligari defended the spending, saying all employees received award wages and the increase reflected the NAVIGATOR program’s demands.
“There’s nothing going on there,” he said, dismissing critics as “nasty people” who “don’t understand budgeting.”
Total expenditure hit $1.89 million in 2021-22 against revenue of $2.05 million—mostly from contracts. The organisation retained $317,637 in earnings that year.
Caligari said the ACNC praised Oasis as “one of the best run charities they’ve seen” for reporting accuracy.
The hub’s closure exposes a fundamental funding dispute between federal and state governments over who should bankroll veteran support services.
Opposition Assistant Defence Minister Phillip Thompson blamed the Albanese government for allowing the nation’s first veteran hub to close.
“It is extremely disappointing that the first veterans hub in Australia will now be the first to close,” the Herbert MP said.
“The government refused to come to the table. Townsville veterans and their families will miss out.”
Mr Thompson warned the closure removed a critical safety net for veterans experiencing mental health crises.
Veterans Affairs Minister Matt Keogh said the Commonwealth remained open to discussions but demanded a sustainable funding model.
“It was funded by the previous government on the basis they would work towards sustainable funding themselves,” Keogh said.
“We need to work with Oasis to see what the root of their financial position is going forward.
“A few weeks ago, they got in touch with us around requiring some additional funding. They provided us with some information and DVA has been engaging with Oasis around what pathway forward may look like.”
The facility received state government funding for specific services, with Queensland Assistant Veterans Minister Janelle Poole recently announcing a grant for an employment program.
Ms Poole said she was disappointed by the closure and thanked Caligari’s team for eight years of service.
Mr Caligari said Oasis had “sufficient equity” to wind up responsibly and was proud to have catalysed 16 other hubs nationally.
“The hub’s unique problem is we need paid permanent staff to establish connections for services that support veterans and families,” he said. “With five years’ experience of our 15,000-strong veteran community, we know the need.”
The closure leaves Townsville’s substantial defence community without a dedicated one-stop support facility.
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Originally published as The Oasis Townsville collapses after labour costs ballooned by 275 per cent
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