Cessnock business owners are being urged to involve themselves in any consultation process moving forward after council’s decision to apply for a hefty rate rise.
Many proprietors took to social media at the weekend, concerned the controversial increase, almost 40%, would place more pressure on their respective small-to-medium local ventures and, possibly, force them to close.
Others indicated lifting the price of products/services to absorb the higher charges, which could be a further blow to consumers.
It seems an incredulous situation for the commercial sector, given the Coalfields region is touted as one of the fastest-growing LGAs in NSW.
However, Cessnock City Council’s resolution to seek approval from the Independent Pricing and Regulatory Tribunal (IPART) for a permanent one-year Special Variation (SV) of 39.95%, inclusive of the applicable peg, has only heightened their fears.
Ironically, an emergent population, as well as road repairs, were among the reasons for the projected hike.
Also joining the chorus of trepidation is Business Hunter CEO Bob Hawes.
“The proposed rate increase does represent a significant hit to business,” he said.
“Council’s own figures indicate that the average rate will rise by more than $2,000 to $7,258, compared with an upsurge of just under $600 to $2,090 for the average residential property.
“But, what we also know is that the 40% increase won’t be across the board.
“Some may pay less; however, some will pay more, too.
“The rate assessment is impacted by land values and the rate in the dollar assessed against that component.
“Council has discretion to determine that in the dollar amount… and it is not legislated or governed by IPART.
“Business Hunter is concerned that in this assessment, business rates and other non-residential categories are treated differently to residential rates, where the bulk of the assessments lie.
“We don’t want to see the burden of the increase placed unfairly on business ratepayers, who are already paying significantly more.
“It could also affect council’s ability to attract and retain business investment.
“If the rate rise is approved, it will change the benchmark rating base for the Cessnock LGA, which may affect its competitiveness with other nearby LGAs and act as a disincentive to businesses considering whether to locate there.”
One ray of hope exists… IPART’s verdict isn’t set in stone either.
“Just because it goes to them doesn’t mean they automatically authorise it,” Mr Hawes said.
“The rate increase is still subject to IPART approval and ratepayers will have an opportunity to put their comments to it as part of their review of Cessnock council’s application.
“So, we encourage businesses who have concerns about Cessnock City’s justification [for the rise], or their ability to pay more, to provide that feedback to IPART.
“We also note council is going to separately undertake a review of the equity of the rate structure, with a view to potentially implementing changes from 2027/28.
“We’d urge concerned business owners to participate in consultation for that process, too.”
To make an online submission to IPART, go to https://www.ipart.nsw.gov.au/ and follow the prompts.
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