Council adopts my proposal to reduce contribution fees for small business, families and residential DAs One of the components of the Draft Relief Package was to reconsider the thresholds for developer contributions under the Draft Central City contributions plan and recommended a sliding scale proposal. I had originally suggested this scaling model back in February when the Clover Moore/Labor bloc wanted to triple the contributions tax for small businesses and family homes in central Sydney. Under the proposal, any restaurant, cafe, bookshop, office or small bar as well as residential homes was to be hit with a 3% contributions tax when they submit a DA worth more than $200,000.
I recognised that this was an unreasonable proposal that was going to hit small businesses the most and so I suggested a sliding scale of:
$0-$250k 0% 250k-$500k 1% $500k-$1m 2% $1m+ 3%$
This was voted down by the Clover/Labor bloc.
Although it is a shame that it is under these circumstances, it is great to see that my sliding scale proposal has now been recognized as an effective measure to ease the financial burden on small businesses that want to develop their premises as well as support the recovery of this sector from the COVID-19 crisis.