Newcastle council keeps outdoor dining fees despite business pleas for relief
Newcastle council voted to keep outdoor dining fees of $4,000 to $7,000 yearly. Businesses had asked them to remove the charges.
Newcastle City Council voted against scrapping outdoor dining fees, which cost businesses between $4,000 and $7,000 each year. The charges started in 2023 and apply to anyone with outdoor furniture.
One cafe owner said he needs to sell about 666 cappuccinos yearly just to cover his fee. Liberal councillors wanted relief.
They said businesses face worse margins than three years ago. One cafe owner said the fees were outrageous.
Rising wages, power costs and rent made things harder. Instead of scrapping the charges, councillors voted to create a dedicated fund.
The fund will pay for streetscape improvements and community safety measures. The council collects about $49,000 yearly from seven businesses with permanent outdoor furniture.
A Greens councillor opposed scrapping the fees. He said the $4,000 to $7,000 yearly is a fair deal.
Market commercial rents can run $20,000 or more. He added the fund will help the whole business community.
- US$4,000 yearly
- Small furniture fee
- US$7,000 yearly
- Longer furniture fee
- US$49,000 from 7 businesses
- Annual council revenue
- 666 per year
- Cappuccinos needed to cover fee
Why it mattersSmall hospitality businesses work with very thin profit margins. A $7,000 annual fee is a real hardship. They cannot charge customers more to cover this cost.
AustraliaNewcastle's decision stands out because most other NSW councils do not charge such fees, putting Newcastle cafes and bars at a financial disadvantage.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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