Business Newcastle president asks what's next if traders reject controversial rate
CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue.
Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no?
This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent.
Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme.
"We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said.
"The more money that traders have to give to the council, the more it just inhibits what they can do.
"It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment."
City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council.
The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates.
The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions.
If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses.
Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners.
In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey.
"The elected council and community will be informed at the appropriate time," he said.
The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely.
In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied.
Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year.
That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand.
The council decides how the remainder of SBR funds are spent.
Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them.
"We've got to make sure that all of the people who actually pay the levy get to have a say," he said.
"If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter.
"Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed."
The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration.
CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue.
Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no?
This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent.
Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme.
"We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said.
"The more money that traders have to give to the council, the more it just inhibits what they can do.
"It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment."
City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council.
The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates.
The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions.
If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses.
Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners.
In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey.
"The elected council and community will be informed at the appropriate time," he said.
The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely.
In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied.
Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year.
That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand.
The council decides how the remainder of SBR funds are spent.
Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them.
"We've got to make sure that all of the people who actually pay the levy get to have a say," he said.
"If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter.
"Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed."
The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration.
CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue.
Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no?
This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent.
Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme.
"We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said.
"The more money that traders have to give to the council, the more it just inhibits what they can do.
"It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment."
City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council.
The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates.
The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions.
If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses.
Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners.
In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey.
"The elected council and community will be informed at the appropriate time," he said.
The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely.
In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied.
Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year.
That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand.
The council decides how the remainder of SBR funds are spent.
Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them.
"We've got to make sure that all of the people who actually pay the levy get to have a say," he said.
"If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter.
"Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed."
The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration.
CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue.
Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no?
This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent.
Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme.
"We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said.
"The more money that traders have to give to the council, the more it just inhibits what they can do.
"It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment."
City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council.
The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates.
The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions.
If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses.
Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners.
In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey.
"The elected council and community will be informed at the appropriate time," he said.
The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely.
In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied.
Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year.
That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand.
The council decides how the remainder of SBR funds are spent.
Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them.
"We've got to make sure that all of the people who actually pay the levy get to have a say," he said.
"If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter.
"Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed."
The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration.
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The Advertiser
3 days ago
- The Advertiser
'Important opportunity': Newcastle Airport aerospace hub in survey spotlight
CITY of Newcastle will undertake a temperature check on community sentiment around a 76-hectare innovation, defence and aerospace hub next to Newcastle Airport and the Williamtown RAAF Base. The Astra Aerolab precinct will be home to defence contractor BAE Systems and Australia's first missile factory, after the federal government signed an $850 million deal with Norwegian company Kongsberg Defence Australia. Greens Cr Charlotte McCabe said it was appropriate for the council, as a co-owner of the airport, to understand the community's views on the development. "This survey is an important opportunity for the community to give feedback about the Astra Aerolab defence precinct, which the council jointly owns with Port Stephens Council," she said. "Revenue that's generated by the precinct will be used to deliver services and infrastructure in our Newcastle local government area, so the community needs to be fully informed and carefully consulted." The council will undertake a mix of phone, online and face-to-face surveys to gauge residents' sentiments, identify any issues or concerns and help build understanding of the project. Newcastle Airport, which is jointly owned by Newcastle and Port Stephens councils, owns Astra Aerolab. In August 2024, Cr McCabe said she felt she was "lied to" finding out the missile factory would be built on Newcastle Airport land after the council said the airport had no intention to secure explosive ordnance manufacturing tenants. In a report to councillors in June that same year, the council said there was "no explosive ordnance manufacture/assembly on land owned by Newcastle Airport" and "there is no intention by the airport to seek this type of tenant". Councillors made it clear they wanted more information about goings-on at the airport, particularly around Astra Aerolab and the Kongsberg facility. At the time, Cr McCabe said that as part-owner of the airport, the means by which it generates revenue for the council to spend in Newcastle should be in line with the council's own Investment and Borrowing Policy. City of Newcastle's policy stipulates it should avoid investment in "production or supply of armaments", which it lists as "socially harmful". A City of Newcastle chief executive report presented to councillors in 2024 said the council's investment policy did not apply to the airport, which was a separate entity controlled by a "majority independent" board. The Astra Aerolab site was purchased in 2018 as part of Newcastle Airport's master plan to transform the airport precinct. The aim was to attract new industries to the Hunter to support the defence sector, including advanced manufacturing. Ratepayers will not have a direct say in the future of the precinct as decisions are made by Newcastle Airport boards. Both councils have representative members on the boards. The council maintains ratepayers will not have to pay if Newcastle Airport or Astra Aerolab incur debts, arguing the company structures "ensure any debt incurred by Newcastle Airport or Astra Aerolab would be kept in the company's asset pool". The Newcastle Herald has previously reported that the airport's own documents show it has been diverting millions in unbudgeted cash reserves to prop up its burgeoning property development arm, which has placed significant financial strain on the business. According to the council, a recent external audit confirmed the airport is "financially sound" and forecast to make a net profit for the 2024/2025 financial year of "approximately $3 million". The first stage of civil infrastructure work at Astra Aerolab is complete, with future development stages under way. Construction of the first building is expected to start in August and be finished by the end of 2026. BAE Systems Australia and Kongsberg Defence Australia have already been secured as tenants, and the council said negotiations are under way with another potential "global aerospace company". CITY of Newcastle will undertake a temperature check on community sentiment around a 76-hectare innovation, defence and aerospace hub next to Newcastle Airport and the Williamtown RAAF Base. The Astra Aerolab precinct will be home to defence contractor BAE Systems and Australia's first missile factory, after the federal government signed an $850 million deal with Norwegian company Kongsberg Defence Australia. Greens Cr Charlotte McCabe said it was appropriate for the council, as a co-owner of the airport, to understand the community's views on the development. "This survey is an important opportunity for the community to give feedback about the Astra Aerolab defence precinct, which the council jointly owns with Port Stephens Council," she said. "Revenue that's generated by the precinct will be used to deliver services and infrastructure in our Newcastle local government area, so the community needs to be fully informed and carefully consulted." The council will undertake a mix of phone, online and face-to-face surveys to gauge residents' sentiments, identify any issues or concerns and help build understanding of the project. Newcastle Airport, which is jointly owned by Newcastle and Port Stephens councils, owns Astra Aerolab. In August 2024, Cr McCabe said she felt she was "lied to" finding out the missile factory would be built on Newcastle Airport land after the council said the airport had no intention to secure explosive ordnance manufacturing tenants. In a report to councillors in June that same year, the council said there was "no explosive ordnance manufacture/assembly on land owned by Newcastle Airport" and "there is no intention by the airport to seek this type of tenant". Councillors made it clear they wanted more information about goings-on at the airport, particularly around Astra Aerolab and the Kongsberg facility. At the time, Cr McCabe said that as part-owner of the airport, the means by which it generates revenue for the council to spend in Newcastle should be in line with the council's own Investment and Borrowing Policy. City of Newcastle's policy stipulates it should avoid investment in "production or supply of armaments", which it lists as "socially harmful". A City of Newcastle chief executive report presented to councillors in 2024 said the council's investment policy did not apply to the airport, which was a separate entity controlled by a "majority independent" board. The Astra Aerolab site was purchased in 2018 as part of Newcastle Airport's master plan to transform the airport precinct. The aim was to attract new industries to the Hunter to support the defence sector, including advanced manufacturing. Ratepayers will not have a direct say in the future of the precinct as decisions are made by Newcastle Airport boards. Both councils have representative members on the boards. The council maintains ratepayers will not have to pay if Newcastle Airport or Astra Aerolab incur debts, arguing the company structures "ensure any debt incurred by Newcastle Airport or Astra Aerolab would be kept in the company's asset pool". The Newcastle Herald has previously reported that the airport's own documents show it has been diverting millions in unbudgeted cash reserves to prop up its burgeoning property development arm, which has placed significant financial strain on the business. According to the council, a recent external audit confirmed the airport is "financially sound" and forecast to make a net profit for the 2024/2025 financial year of "approximately $3 million". The first stage of civil infrastructure work at Astra Aerolab is complete, with future development stages under way. Construction of the first building is expected to start in August and be finished by the end of 2026. BAE Systems Australia and Kongsberg Defence Australia have already been secured as tenants, and the council said negotiations are under way with another potential "global aerospace company". CITY of Newcastle will undertake a temperature check on community sentiment around a 76-hectare innovation, defence and aerospace hub next to Newcastle Airport and the Williamtown RAAF Base. The Astra Aerolab precinct will be home to defence contractor BAE Systems and Australia's first missile factory, after the federal government signed an $850 million deal with Norwegian company Kongsberg Defence Australia. Greens Cr Charlotte McCabe said it was appropriate for the council, as a co-owner of the airport, to understand the community's views on the development. "This survey is an important opportunity for the community to give feedback about the Astra Aerolab defence precinct, which the council jointly owns with Port Stephens Council," she said. "Revenue that's generated by the precinct will be used to deliver services and infrastructure in our Newcastle local government area, so the community needs to be fully informed and carefully consulted." The council will undertake a mix of phone, online and face-to-face surveys to gauge residents' sentiments, identify any issues or concerns and help build understanding of the project. Newcastle Airport, which is jointly owned by Newcastle and Port Stephens councils, owns Astra Aerolab. In August 2024, Cr McCabe said she felt she was "lied to" finding out the missile factory would be built on Newcastle Airport land after the council said the airport had no intention to secure explosive ordnance manufacturing tenants. In a report to councillors in June that same year, the council said there was "no explosive ordnance manufacture/assembly on land owned by Newcastle Airport" and "there is no intention by the airport to seek this type of tenant". Councillors made it clear they wanted more information about goings-on at the airport, particularly around Astra Aerolab and the Kongsberg facility. At the time, Cr McCabe said that as part-owner of the airport, the means by which it generates revenue for the council to spend in Newcastle should be in line with the council's own Investment and Borrowing Policy. City of Newcastle's policy stipulates it should avoid investment in "production or supply of armaments", which it lists as "socially harmful". A City of Newcastle chief executive report presented to councillors in 2024 said the council's investment policy did not apply to the airport, which was a separate entity controlled by a "majority independent" board. The Astra Aerolab site was purchased in 2018 as part of Newcastle Airport's master plan to transform the airport precinct. The aim was to attract new industries to the Hunter to support the defence sector, including advanced manufacturing. Ratepayers will not have a direct say in the future of the precinct as decisions are made by Newcastle Airport boards. Both councils have representative members on the boards. The council maintains ratepayers will not have to pay if Newcastle Airport or Astra Aerolab incur debts, arguing the company structures "ensure any debt incurred by Newcastle Airport or Astra Aerolab would be kept in the company's asset pool". The Newcastle Herald has previously reported that the airport's own documents show it has been diverting millions in unbudgeted cash reserves to prop up its burgeoning property development arm, which has placed significant financial strain on the business. According to the council, a recent external audit confirmed the airport is "financially sound" and forecast to make a net profit for the 2024/2025 financial year of "approximately $3 million". The first stage of civil infrastructure work at Astra Aerolab is complete, with future development stages under way. Construction of the first building is expected to start in August and be finished by the end of 2026. BAE Systems Australia and Kongsberg Defence Australia have already been secured as tenants, and the council said negotiations are under way with another potential "global aerospace company". CITY of Newcastle will undertake a temperature check on community sentiment around a 76-hectare innovation, defence and aerospace hub next to Newcastle Airport and the Williamtown RAAF Base. The Astra Aerolab precinct will be home to defence contractor BAE Systems and Australia's first missile factory, after the federal government signed an $850 million deal with Norwegian company Kongsberg Defence Australia. Greens Cr Charlotte McCabe said it was appropriate for the council, as a co-owner of the airport, to understand the community's views on the development. "This survey is an important opportunity for the community to give feedback about the Astra Aerolab defence precinct, which the council jointly owns with Port Stephens Council," she said. "Revenue that's generated by the precinct will be used to deliver services and infrastructure in our Newcastle local government area, so the community needs to be fully informed and carefully consulted." The council will undertake a mix of phone, online and face-to-face surveys to gauge residents' sentiments, identify any issues or concerns and help build understanding of the project. Newcastle Airport, which is jointly owned by Newcastle and Port Stephens councils, owns Astra Aerolab. In August 2024, Cr McCabe said she felt she was "lied to" finding out the missile factory would be built on Newcastle Airport land after the council said the airport had no intention to secure explosive ordnance manufacturing tenants. In a report to councillors in June that same year, the council said there was "no explosive ordnance manufacture/assembly on land owned by Newcastle Airport" and "there is no intention by the airport to seek this type of tenant". Councillors made it clear they wanted more information about goings-on at the airport, particularly around Astra Aerolab and the Kongsberg facility. At the time, Cr McCabe said that as part-owner of the airport, the means by which it generates revenue for the council to spend in Newcastle should be in line with the council's own Investment and Borrowing Policy. City of Newcastle's policy stipulates it should avoid investment in "production or supply of armaments", which it lists as "socially harmful". A City of Newcastle chief executive report presented to councillors in 2024 said the council's investment policy did not apply to the airport, which was a separate entity controlled by a "majority independent" board. The Astra Aerolab site was purchased in 2018 as part of Newcastle Airport's master plan to transform the airport precinct. The aim was to attract new industries to the Hunter to support the defence sector, including advanced manufacturing. Ratepayers will not have a direct say in the future of the precinct as decisions are made by Newcastle Airport boards. Both councils have representative members on the boards. The council maintains ratepayers will not have to pay if Newcastle Airport or Astra Aerolab incur debts, arguing the company structures "ensure any debt incurred by Newcastle Airport or Astra Aerolab would be kept in the company's asset pool". The Newcastle Herald has previously reported that the airport's own documents show it has been diverting millions in unbudgeted cash reserves to prop up its burgeoning property development arm, which has placed significant financial strain on the business. According to the council, a recent external audit confirmed the airport is "financially sound" and forecast to make a net profit for the 2024/2025 financial year of "approximately $3 million". The first stage of civil infrastructure work at Astra Aerolab is complete, with future development stages under way. Construction of the first building is expected to start in August and be finished by the end of 2026. BAE Systems Australia and Kongsberg Defence Australia have already been secured as tenants, and the council said negotiations are under way with another potential "global aerospace company".
The Advertiser
4 days ago
- The Advertiser
Business Newcastle president asks what's next if traders reject controversial rate
CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue. Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no? This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent. Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme. "We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said. "The more money that traders have to give to the council, the more it just inhibits what they can do. "It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment." City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions. If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses. Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners. In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey. "The elected council and community will be informed at the appropriate time," he said. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. The council decides how the remainder of SBR funds are spent. Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them. "We've got to make sure that all of the people who actually pay the levy get to have a say," he said. "If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter. "Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed." The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue. Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no? This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent. Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme. "We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said. "The more money that traders have to give to the council, the more it just inhibits what they can do. "It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment." City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions. If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses. Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners. In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey. "The elected council and community will be informed at the appropriate time," he said. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. The council decides how the remainder of SBR funds are spent. Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them. "We've got to make sure that all of the people who actually pay the levy get to have a say," he said. "If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter. "Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed." The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue. Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no? This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent. Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme. "We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said. "The more money that traders have to give to the council, the more it just inhibits what they can do. "It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment." City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions. If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses. Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners. In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey. "The elected council and community will be informed at the appropriate time," he said. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. The council decides how the remainder of SBR funds are spent. Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them. "We've got to make sure that all of the people who actually pay the levy get to have a say," he said. "If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter. "Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed." The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. CITY of Newcastle will go to business owners that pay a Special Business Rate (SBR) with two questions: whether they think the scheme provides value for money, and if it should continue. Business Newcastle president Edward Duc has a question of his own: What's next if the answer is no? This week, councillors voted to survey business owners in SBR precincts about the future of the controversial scheme after several submissions to a recent independent probe into the council raised concerns about the transparency of how the funds are levied, allocated and spent. Mr Duc said feedback he has received is that a large proportion of those who pay the SBR do not see the value in the scheme. "We've got businesses, and I'm not saying this is the only reason, who are moving from Newcastle to Charlestown because of the high commercial rates," he said. "The more money that traders have to give to the council, the more it just inhibits what they can do. "It is Business Newcastle's view that the council should suspend the SBR and generate the funding themselves out of the generous commercial rates they're charging, that's our stand at the moment." City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The Newcastle Herald asked City of Newcastle when it intends to conduct the survey and whether it intends to remove the SBR if businesses answer no to its two questions. If not, the Herald asked what the purpose of the survey is and what the council feels the value of the SBR is to businesses. Questions were also asked about the impact of the Port of Newcastle on commercial rates and the council's response to claims that SBR funds used on events should be funded by ratepayers and the council rather than business owners. In response, a City of Newcastle spokesman said following Tuesday's council meeting, the council is considering the "most appropriate" mechanism for implementing the SBR survey. "The elected council and community will be informed at the appropriate time," he said. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. Business Improvement Associations (BIA) in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend are independent organisations responsible for disbursing up to $100,000 of SBR funds each year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. The council decides how the remainder of SBR funds are spent. Mr Duc said many business owners do not feel the SBR is being spent in a way that directly benefits them. "We've got to make sure that all of the people who actually pay the levy get to have a say," he said. "If the council doesn't take notice of the business community, then we will be having a big say, and we have a bit of muscle because we're part of Business NSW and Business Hunter. "Be assured, if the answer from businesses is no and the council decides not to act on it through the BIAs, then we will be lobbying to have it [the SBR] removed." The Davidson review recommended that the council require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration.
The Advertiser
6 days ago
- The Advertiser
Business owners to give their two cents on controversial rate scheme
BUSINESS owners who fork out to pay City of Newcastle business rates will have the chance to offer their two cents on a controversial scheme. Several submissions to a recent independent probe into the council raised concerns about the transparency of how Special Business Rate (SBR) funds are levied, allocated and spent. Some argued Business Improvement Associations (BIA) may not be the most appropriate bodies to oversee funds intended for local benefit. The BIAs are independent organisations responsible for the disbursement of up to $100,000 a year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. Business owners have long questioned the value they receive and the costs of administering the scheme. Liberal councillors Callum Pull and Jenny Barrie at this week's council meeting moved a motion that will give business owners in SBR precincts in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend a chance to have their say on the future of the scheme. Cr Pull said the independent review reinforced the need for better engagement with businesses about the SBR. "Council will now oversee annual consultation with business owners in the SBR precincts, with much broader consultation occurring with the whole community each council term," he said. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. The Davidson Business Advisory review of the council recommended that it require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. As part of the council's decision this week, business owners will be asked annually whether they feel the scheme provides value for money and whether they think it should continue. A broad survey will poll community members, grant recipients, property owners, rate-paying residents and tenants on the value of retaining the SBR. Cr Pull said the survey should give the council a clear picture of the position of business owners on the scheme. "These won't be the only questions the council asks in their consultation, but they will be a crucial part of deciding the future of the scheme," he said. Reports were made to the Davidson review of SBR money being redirected to unrelated council promotions that do not directly benefit businesses. The funds, according to Newcastle council, are reserved exclusively for the promotion, beautification and development of those business precincts. BUSINESS owners who fork out to pay City of Newcastle business rates will have the chance to offer their two cents on a controversial scheme. Several submissions to a recent independent probe into the council raised concerns about the transparency of how Special Business Rate (SBR) funds are levied, allocated and spent. Some argued Business Improvement Associations (BIA) may not be the most appropriate bodies to oversee funds intended for local benefit. The BIAs are independent organisations responsible for the disbursement of up to $100,000 a year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. Business owners have long questioned the value they receive and the costs of administering the scheme. Liberal councillors Callum Pull and Jenny Barrie at this week's council meeting moved a motion that will give business owners in SBR precincts in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend a chance to have their say on the future of the scheme. Cr Pull said the independent review reinforced the need for better engagement with businesses about the SBR. "Council will now oversee annual consultation with business owners in the SBR precincts, with much broader consultation occurring with the whole community each council term," he said. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. The Davidson Business Advisory review of the council recommended that it require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. As part of the council's decision this week, business owners will be asked annually whether they feel the scheme provides value for money and whether they think it should continue. A broad survey will poll community members, grant recipients, property owners, rate-paying residents and tenants on the value of retaining the SBR. Cr Pull said the survey should give the council a clear picture of the position of business owners on the scheme. "These won't be the only questions the council asks in their consultation, but they will be a crucial part of deciding the future of the scheme," he said. Reports were made to the Davidson review of SBR money being redirected to unrelated council promotions that do not directly benefit businesses. The funds, according to Newcastle council, are reserved exclusively for the promotion, beautification and development of those business precincts. BUSINESS owners who fork out to pay City of Newcastle business rates will have the chance to offer their two cents on a controversial scheme. Several submissions to a recent independent probe into the council raised concerns about the transparency of how Special Business Rate (SBR) funds are levied, allocated and spent. Some argued Business Improvement Associations (BIA) may not be the most appropriate bodies to oversee funds intended for local benefit. The BIAs are independent organisations responsible for the disbursement of up to $100,000 a year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. Business owners have long questioned the value they receive and the costs of administering the scheme. Liberal councillors Callum Pull and Jenny Barrie at this week's council meeting moved a motion that will give business owners in SBR precincts in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend a chance to have their say on the future of the scheme. Cr Pull said the independent review reinforced the need for better engagement with businesses about the SBR. "Council will now oversee annual consultation with business owners in the SBR precincts, with much broader consultation occurring with the whole community each council term," he said. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. The Davidson Business Advisory review of the council recommended that it require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. As part of the council's decision this week, business owners will be asked annually whether they feel the scheme provides value for money and whether they think it should continue. A broad survey will poll community members, grant recipients, property owners, rate-paying residents and tenants on the value of retaining the SBR. Cr Pull said the survey should give the council a clear picture of the position of business owners on the scheme. "These won't be the only questions the council asks in their consultation, but they will be a crucial part of deciding the future of the scheme," he said. Reports were made to the Davidson review of SBR money being redirected to unrelated council promotions that do not directly benefit businesses. The funds, according to Newcastle council, are reserved exclusively for the promotion, beautification and development of those business precincts. BUSINESS owners who fork out to pay City of Newcastle business rates will have the chance to offer their two cents on a controversial scheme. Several submissions to a recent independent probe into the council raised concerns about the transparency of how Special Business Rate (SBR) funds are levied, allocated and spent. Some argued Business Improvement Associations (BIA) may not be the most appropriate bodies to oversee funds intended for local benefit. The BIAs are independent organisations responsible for the disbursement of up to $100,000 a year. That money can be used for strategic directions to promote local business, marketing and promotions, prioritising and managing beautification projects and coordinating community events aimed at encouraging business demand. Business owners have long questioned the value they receive and the costs of administering the scheme. Liberal councillors Callum Pull and Jenny Barrie at this week's council meeting moved a motion that will give business owners in SBR precincts in the city centre and Darby Street, Hamilton, Mayfield, New Lambton and Wallsend a chance to have their say on the future of the scheme. Cr Pull said the independent review reinforced the need for better engagement with businesses about the SBR. "Council will now oversee annual consultation with business owners in the SBR precincts, with much broader consultation occurring with the whole community each council term," he said. The SBR is an additional charge levied on businesses in the precincts on top of their standard commercial rates. The scheme has long been a point of contention, with some business owners questioning its necessity and others calling for it to be axed entirely. City of Newcastle made $65.9 million in business rates in 2023/24 from 15,489 active businesses, the second-highest sum of any NSW council. In 2024/25, the council said the cost to administer the scheme, including BIA governance and support, is $152,700. That figure is 10 per cent of total funds levied. The Davidson Business Advisory review of the council recommended that it require BIAs to undertake research with membership and the community annually, or at agreed regular intervals, to assess satisfaction, impact and present the findings to the council for consideration. As part of the council's decision this week, business owners will be asked annually whether they feel the scheme provides value for money and whether they think it should continue. A broad survey will poll community members, grant recipients, property owners, rate-paying residents and tenants on the value of retaining the SBR. Cr Pull said the survey should give the council a clear picture of the position of business owners on the scheme. "These won't be the only questions the council asks in their consultation, but they will be a crucial part of deciding the future of the scheme," he said. Reports were made to the Davidson review of SBR money being redirected to unrelated council promotions that do not directly benefit businesses. The funds, according to Newcastle council, are reserved exclusively for the promotion, beautification and development of those business precincts.
