The NSW Treasurer is consulting on how best to resume Sydney’s eating out culture
People of Sydney could finally be allowed to dine outside again as the state government looks at ways to push the economy along while maintaining social distancing.
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Businesses would be given more freedom to spill into public outdoor space, including on to footpaths, into parks and converting streets into marketplaces in a government-driven bid to allow customer growth while maintaining 1.5m distances.
It comes as Treasurer Dominic Perrottet has thrown his support behind a push to review Canberra’s fringe benefits tax which stings businesses for corporate lunches, in a bid to revive the hospitality sector.
“This is not just an opportunity but an obligation on all governments to reform the tax system to lower the burden and allow business to thrive,” Mr Perrottet said in an interview.
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The NSW Treasurer revealed he has discussed a plan to allow businesses to spill outdoors with planning Minister Rob Stokes, allowing them to “thrive in a 1.5 metre economy”, with more work to be done on “minimising bureaucracy” on the matter.
“Lifting restrictions on businesses could be in the form of giving them more space on footpaths, allowing pop up shops or markets to operate in public spaces (such as parks) – we’ve got to move on from a nimby approach that strangles economic growth,” Mr Perrottet said.
“We want to work with businesses so they have the ability to flourish.”
He said all levels of government needed to work together on the plan, calling on councils to do more to encourage businesses to operate in public outdoor spaces.
“Their premises will be under greater pressure with social distancing – we need to be more flexible with allowing the use of public space in this environment.”
Asked if this included turning streets into outdoor markets he said “correct – this is stuff we should be doing anyway to create a great vibe and culture”.
Some councils have already taken some steps – including Sydney Lord Mayor Clover Moore who announced in March businesses would not be charged for footpath use – but the government believes more can be done.
Mr Perrottet said the same concept could also apply to making it easier for gyms to use park spaces.
The Treasurer, who has championed tax reform at a state level and is pushing a wind back of payroll and stamp duty taxes, said fringe benefit tax must be on the table for reform at a federal level.
The hospitality sector has already been lobbying the Federal government on the matter.
“Every tax should be on the table for consideration,” Mr Perrottet said, noting government’s had an obligation to reform now.
“A removal of (FBT) could very well drive business and jobs growth in the hospitality industry and that’s an industry that needs great support now and into the future,” he said.
Restaurateurs including Luke Mangan and hospitality tsar Justin Hemmes are actively pushing FBT reform, arguing it would provide a massive boost to both the industry and the economy more widely.
Mr Hemmes said it would have a “huge multiplier effect” on the economy.
“Hospitality will be at the core of getting the economy back on track,” he said, adding that “the best and most impressive deals are done over lunch and dinner”.
Removing corporate taxes on lunches would not just support the hospitality industry, he said, but it would support the wider economy boosting jobs and economic activity simply by incentivising corporate dining.
Mr Mangan said pushing councils to remove financial burdens on outdoor dining would be a “huge help”.
“Fundamentally we want to get people back into work and we want to employ more people,” he said.
On FBT, federal Treasurer Josh Frydenberg has previously said he is willing to look at “new and old reform proposals with fresh eyes”.