Horror extent of RSL Victoria’s ‘financial crisis’ revealed

Insiders at the Victorian RSL say the organisation is in a “clear financial crisis” — and the worst may be yet to come.

RSL Victoria is in the grip of a financial crisis with an independent report declaring the organisation is at a tipping point. Picture:Rob Leeson.

RSL Victoria is in the grip of a financial crisis with an independent report declaring the organisation is at a tipping point.

It’s now asking for a government bailout to ensure financial survival.

State chief executive Jamie Twidale said the business model of the veterans’ welfare organisation needed transforming, because it was too reliant on two fundraising appeals, hospitality and memberships

“We need to have a funding and a revenue model that doesn’t have all of the eggs in a couple of baskets,’’ Mr Twidale said.

His admission follows a recent, damning report by consultants EY which said the RSL head office needed structural change.

“The immediate and long-term financial sustainability of RSL Victoria is in jeopardy,” the August report said.

The warning came as RSL head office recorded a $2 million loss in 2019 while many suburban sub-branches were also in the red. Most concerning was that the figures were all before the devastating economic impacts of COVID-19.

Also, the state’s patriotic fund recorded losses of almost $900,000 last year.

Jamie Twidale, CEO of RSL Victoria, says change is happening already.

Concerns: Hawthorn RSL sub-branch president Lucas Moon

Mr Twidale said the $2 million shortfall at Anzac House was not a cash loss but represented doubtful debts from previous loans to sub-branches.

The head office cost structure had been overhauled this year including redundancies, voluntary pay cuts and slashing of discretionary spending, he said.

The state RSL’s complicated financial structure needed to be overhauled but the organisation did not have the resources to do so, he said, and the state executive had already asked the state government for help.

Accountant and Hawthorn RSL sub-branch president Lucas Moon described the financial status at head office as concerning.

“There’s a very clear liquidity crisis,’’ Mr Moon said.

Anzac House in Collins Street Melbourne. Picture: Ian Currie

He said he was “flabbergasted’’ that the $2 million was being written off as a paper loss.

Most club members would have no idea of the state of the books, he said.

COVID closures are expected to further affect sub-branches’ bottom lines for 2020.

In 2019, more than a dozen city RSL clubs were in the red including Reservoir ($286,769 loss), Dandenong-Cranbourne ($191,254) and Waverley ($168,377).

“I would expect at the very least that across the sub-branch network those that run hospitality operations, your larger sub branches, have clearly used up a lot of their reserves,’’ Mr Twidale said.

Monthly utilities and other expenses were costing some clubs up to $50,000 during COVID hibernation, he said.

The Herald Sun reported in August that the RSL could be headed down the path to insolvency because of pokie levy losses.

The Victorian RSL held its first remote AGM at the weekend, re-electing Robert Webster as state president despite a push from younger veterans for generational change.

The meeting was due to be held mid-year but technical issues meant it was delayed.

So proud that at RSL Victoria AGM delegates voted that RSL Victoria must call for a Royal Commission into Veteran suicide. @JacquiLambie @AlboMP @JulieAnnFinney2 @VeteransRCNow #veteransspoke pic.twitter.com/ekUXfTVdpK

— Lucas Moon (Moondog) (@moonatron) November 28, 2020

Delegates voted to support a call for a Royal Commission into veteran suicides.

@IanRoyall