Elite Australian Club gets $2m JobKeeper — and won’t give it back

One of Australia’s wealthiest and most elite private ‘gentlemen’s’ clubs has received more than $2m in JobKeeper payments – and doesn’t plan on giving it back

Members leave The Australia Club in Sydney. Picture: Jane Dempster

Australia’s premier “gentlemen’s club” has trousered $2m of government money – and managed to more than double its annual surplus – by keeping JobKeeper payments.

The ultra-exclusive Australian Club, which has counted former prime ministers Malcolm Turnbull and John Howard among its well-heeled members, managed to grow its current assets during the pandemic by almost $2m thanks in part to the generosity of the taxpayer, from $6.3m in 2019 to $8.3m in 2020.

Embracing a who’s who of the country’s most powerful men — women are permitted only as guests — the “not-for-profit” club is also sitting on more than $58m in net assets, including managed funds, share portfolios and property.

Revenues dropped by $2.7m at the height of COVID-related restrictions last year but, with a top-up from the taxpayer-funded JobKeeper subsidy, the club managed a surplus (after income tax expenses) of $1.8m, more than double the previous year’s $775,000.

However, unlike dozens of companies that turned a profit during the pandemic and have agreed to pay back some or all of their JobKeeper payments, the club has no intention of returning the money.

Founded in 1838, The Australian Club is the oldest members club in the southern hemisphere, its premises hidden behind a discreet door on Sydney’s Macquarie St, an easy lunch stroll from Parliament House, the courts and Top 100 companies scattered around Martin Place.

Membership is by invitation only and is offered only after extensive vetting and interviews.

The membership list is a tightly held secret, but is believed to include billionaire James Packer, businessmen Hugh Morgan, John Hewson and David Gonski, former judges Murray Gleeson and Dyson Heydon, and former governors-general Sir Peter Cosgrove and Sir William Deane.

Cardinal George Pell, former prime minister Tony Abbott and Sky News presenter Alan Jones – all believed to be members – were spotted dining together at the club last year.

Malcolm Turnbull lunched at the club with Australian Energy Council chief Sarah McNamara as his guest just days before losing his gig advising the NSW government on climate policy.

Under the club’s strict rules, women are permitted to enter the club only if they are accompanied by an existing male member.

The Australian Club building. Picture:Monique Harmer

Former High Court judge Mary Gaudron famously refused invitations to dine at the club in protest at the sexist admission policy.

“Members and gentlemen guests should wear a long-sleeved jacket and tie (business attire) and ladies may wear a dress, skirt, tailored trousers with a jacket, or evening pants in the club,” the rules state. “Denim is not permitted.”

The club offers a fully equipped gym and accommodation in modern rooms with views over the Botanic Gardens but the decor in the lounge and library reportedly leans more towards mahogany panelling, Chesterfield lounges and chandeliers.

Club members pay a four-figure annual fee, and between them forked out an extra $500,000 in subscriptions last year to total more than $4m, up from $3.5m the previous year.

The figures are contained in the club’s annual accounts lodged with the Australian Securities & Investments Commission last Friday. The club states that it was eligible for the federal government’s JobKeeper program “because measured turnover fell in excess of 30 per cent”.

“In consequence the club was able to maintain employment during the pandemic,” the financial report notes. “Hence the relatively modest reduction in employee benefit expenses (a fall of 8 per cent) relative to revenue from club operations (a fall of 38 per cent) in this fiscal year.”

The Australian Club building. Picture: Monique Harmer

However, after the healthy taxpayer subsidy, the club’s total revenue and income fell by only $360,000, from $11.21m in 2019 to $10.84m last year.

The club did not answer questions from The Australian about whether it would repay all or any of the JobKeeper subsidy, noting only that “100 per cent of the subsidy received by the club was paid to staff, as was intended by the program”.

“We were pleased to be able to maintain full employment of staff throughout the pandemic, especially those staff who were not eligible for JobKeeper payments because of visa and other complications,” a spokesperson said.

“The club made the decision that it would pay for these staff, given its commitment that no staff member would lose their job in the very difficult times.”

The club did not respond to a question asking if it believed it was ethical for such a wealthy institution to keep the subsidies in light of the surplus achieved.

The club should not be confused with Melbourne’s own Australian Club, established in 1878, which counts Liberal Party powerbroker Michael Kroger among its members, and is reportedly considering allowing women to join.