5 days ago
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.
