30-05-2025
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.
