Overview

The Tamworth Region has a strong reputation for hosting outstanding events and is home to a large range of high quality event facilities. With this in mind, Tamworth Regional Council would like to talk to the business community about the possibility of introducing a New Events Levy to help attract and create even more event opportunities for the Region.

Our region has the facilities and the tourism network to attract major conferences, state and national sporting championships, and even international acts. The challenge however, is that to secure these events we are often required to offer subsidies, so we need a robust event attraction strategy with funding behind it.

We know from our own event impact assessment methodology and other reputable data sources like the National Institute of Economic and Industry Research, that events build capacity in our Region. We also know that the impact of those events is not just enjoyed by the hospitality sector as there is a ripple effect of spending felt through the entire business community over time.

As an example, the event impact of the Tamworth Country Music Festival is shown below.

The introduction of a Special Rate, specifically aimed at attracting and creating new events, and levied on an equitable basis across all business rated properties, would put us in strong position to compete with destinations like Coffs Harbour who are already pulling large scale sporting events from Tamworth.

FAQ

Understanding the Administration

Understanding the need

Understanding the impact

Calculate your business rate

Click here to access a tool that will give you an indicative amount your total rate could be.

Community Discussion Board

Join our forum to ask further questions, provide your thoughts and hear from others in the community and Council.

What new events do you think would bring great benefit to our community?

Tell us what you believe would bring economic opportunities to the Tamworth Regional Council region.

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Contact Us

Have questions or want to learn more about a project? Contact us below:

  Name
Caroline Lumley
  Phone
(02) 6767 5555
  In writing

PO Box 555, Tamworth NSW 2340

What is proposed

What is a Special Rate Variation?

Tamworth Regional Council is proposing add a 3% increase to the annual rate peg increase over a three year period. This will amount to a cumulative total special variation of 17.6% over the phase in period, compared to 7.9% if the estimated rate peg only was applied.

There are currently 1,828 properties rated as business across the region and the average annual rate paid is approximately $3,500.

The following table shows the additional revenue the proposal will raise over the phase in period for the events levy.

Year 1

Year 2

Year 3

Increased revenue

184,680

384,135

599,292

Cumulative % increase

3.0%

6.2%

9.7%

above rate peg


Understanding the rate peg and the actual costs.

The annual increase is known for 2019-20 and the assumed rate peg for future years provided by IPART is 2.5%. The Special Rate Variation of 3% cumulative increase would result in a total of 5.7% increase in the first year. The figures in the table below are based on a rate of $3,500 for 2018/19. For the 3 year period that the Special Rate Variation will be rolled out, the annual IPART rate increase combined with the Special Rate Variation would result in a 17.6% increase.

2018-19

2019-20

2020-21

2021-22

Cumulative increase

Average business rate under rate peg only

$ 3,500

$ 3,595

$ 3,685

$ 3,777

7.9%

Annual increase (%)

2.7

*2.5

*2.5

Average business rate with SV

$ 3,500

$ 3,700

$ 3,904

$ 4,119

17.6%

Annual increase (%)

5.7

5.5

5.5

Cumulative impact of SV above base year levels

$ 200

$ 404

$ 619

Cumulative impact of SV above rate peg

$ 105

$ 219

$ 342

9.7%

*2.5% is the assumed rate peg for future years provided by IPART.

Who will be levied?

The special rate variation will be applied to all ordinary rates across the region that have the Business category. It will not apply to the ordinary rate categories of Residential and Farmland.

Are there other options for raising the required revenue?

Council explored a number of opportunities to establish a permanent revenue stream for the ongoing management and attraction of major events in the Tamworth Regional Council area. This involved looking at alternate revenue sources to deliver what’s needed including a tourism accommodation levy, government grants and subsidies, sponsorship and existing Council revenue streams.

The special rate variation was deemed the most valid and suitable option to ensure the objectives of the Event Attraction Strategy are met. More information as to why these options weren’t suitable can be found in the Council reports published on this portal.

Rates Comparison

How do our rates compared?

Each year the Department of Local Government release a comparison of rates between councils of a similar size and location. Even with the proposed levy applied, Tamworth’s business rates would remain 20% lower than similar local government areas.

Event Attraction

Where will the extra income be spent?

Revenue raised through the special rate variation will be used to attract and create NEW events, conferences and sporting opportunities for the Region.

A dedicated Event Attraction Strategy and an Event Impact Assessment Model has been developed to guide the process of valuing events to ensure a fair and equitable distribution of funds. A secondary assessment framework will measure marketing, seasonal and community impacts.

The focus on the Event Attraction Strategy is to consider:

Off Peak and shoulder season events

New events that compliment the existing calendar of events around the region

Attract intrastate, interstate and international visitors

Maximise the utilisation of venue infrastructure

Reporting

How will we know this revenue is being spent properly?

Council is obligated by the Independent Pricing and Regulatory Tribunal (IPART) to demonstrate and report annual on special rate variation income expenditure. Revenue raised through the variation must only be used for the purpose it is intended for. Council will also report to the community on a regular basis through its quarterly and annual reporting.

An independent panel of experts will be sourced from the community to oversee the assessment process for events. The Tamworth Business Chamber will be an automatic appointment to this panel, and we will open a nomination process to find other suitable members.