Stonnington Council wants to bring back trader tax
Less than a year after axing a trader levy that helps fund some of Melbourne’s ritziest shopping precincts, an inner city council has made a surprising about face.
South East
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A Melbourne council that spent more than $600,000 on scrapping a trader levy now wants to bring back the tax.
About eight months ago Stonnington Council voted to axe the special rates scheme that funded trader groups in Toorak, South Yarra and Armadale, and on Glenferrie Rd Malvern and the Chapel Street Precinct,
After spending more than $600,000 on external experts, including $320,000 on the report and audit that led to the original decision, councillors have unanimously voted to start work on reintroducing a levy.
A council report revealed it would take at least 12 months for the new scheme to be prepared and approved, meaning trader groups would not be funded via the scheme until the 2024/25 financial year.
However, some councillors called for the levy, which was expected to average $500 per business, to be implemented sooner.
Cr Joe Gianfriddo said it would be unfair to ask businesses to “tread water for the rest of this year and into the next”.
“Our businesses need leadership and support not more red tape and hoops to jump through,” he said.
Cr Marcia Griffin said businesses needed certainty as they faced the “most challenging economic times”.
She was also critical of the council’s earlier decision to axe the 34 year old special rates scheme and then spend hundreds of thousands of dollars more to “come full circle”.
“I believe this money could have been better spent improving the (precinct) environments and marketing of our activity centres,” Cr Griffin said.
The delay in applying the new tax was also a concern for traders.
Chapel Street Traders Precinct Association president Matt Lanigan said associations needed the scheme up and running again “in time for Christmas”.
Funding from the old levy ceased on June 30 and it would be difficult for trader groups to continue without it, he said.
Some associations, including Chapel Street Precinct, also had paid co-ordinators who could be forced to move on.
“When they go, they take their knowledge with them and the groups lose all momentum,” Mr Lanigan said.
The cost of living crisis, rising energy bills and increased rates and taxes made the marketing and support provided to small businesses by the trader associations more important than ever, he said.
Mr Lanigan added: “We’re competing with places like Chadstone which has a $30m marketing spend.”
Toorak Road South Yarra Business Association co-ordinator Ruth Speedy said the original special rates scheme should not have been removed without a replacement “ ready to roll out”.
“I think everyone accepts that improvements can be made to the levy; that things have changed since it was first introduced all those years ago,” she said.
“What should have been done, and what was recommended in the original report, was to apply a short term special rate scheme for two years, while the ‘gold standard’ model was developed in the background.”
Ms Speedy said the trader groups helped ensure precincts remained “vibrant and appealing” for residents and visitors.
“They add significant value to their neighbourhoods and the city in general,” she said.
Mayor Jami Klisaris was disappointed councillors kept referring to the “old scheme being wound up” and said it was time to move on.
Cr Klisaris said councillors should also accept the advice of officers on the timeline required for the process.
“The reality is the special rates scheme is an additional tax that businesses will pay, so we need to make sure that we’re getting it right,” she said.
She also wanted to give other precincts that had not previously been subject to a levy the chance to “put up their hands” to join the scheme.