Fees and charges !

It seems that all levels of government - and that includes local government - automatically assume that anybody who owns a business is rich - and levy fees and charges accordingly.

Wollongong council inspects all food outlets on an annual basis - and charges a $ 400 fee for this service.  This breaks down to a $ 250 " Administration component " and $ 152 for the actual visit by inspectors.
It is certainly important that food preparation and serving be safe and hygienic, but the return to council coffers is exceptional.     Last year they carried out 1721 inspections - for a return of $ 688,400.    These inspections resulted in 19 fines - for a penalty count of $ 12, 980.

It could be argued that food premises safety inspections are a normal council duty which should be paid for from rates returns.   This sort of fee gouging is a positive disincentive for those thinking of opening a business - and could explain why we have a plethora of vacant retail shops in upper Crown street - and scattered throughout the CBD.

But - this "soak the rich " mentality doesn't stop with food inspections.   The price of electricity for other than domestic customers is way higher - and the water bill for retail premises is plainly exorbitant.   It can run to thousands of dollars for a small shop with just a single toilet to flush - and one tap to provide water to make a cup of tea for the staff.

Big business absorbs these imposts and simply passes them on to the retail customer by allowing for them in profit mark-ups, but they can be " make or break " for the little people struggling to establish a service and make a living.

Every necessity is loaded against small business - from the charge to register a business name to the stamp duties that apply to insurance cover and vehicle registrations.

We are experiencing difficult times in both a local and international context.   If we want to encourage business investment perhaps we would be wise to scale these charges on a more gradual basis.   It would help if they were sharply reduced in the first year of business, and then increased proportionally each year over a five year scale.

One thing is definitely certain.   The present fee and charge regime is hindering new business development !