AEDA Funding Formula: Is Now the Right Time for Another Business Levy?

I am deeply concerned about imposing yet another financial burden on businesses. The proposed levy would allocate a percentage of council rates directly to AEDA, despite businesses already contributing significantly—75% of total rates and approximately 80% of the Council’s overall income.

Businesses, particularly those in hospitality and food services, are already struggling with:

• Persistent reduced foot traffic due to post-COVID work-from-home arrangements.
• Ongoing inflationary pressures, diminishing consumer spending power and reducing business revenues.
• Growing competition from suburban shopping precincts, making Adelaide’s CBD less attractive and economically viable for businesses.
• Further, the council’s gradual reduction in direct funding to AEDA has resulted in fewer grants and diminished support for events and activities critical to precinct vibrancy. Now, the proposed solution seems to shift this financial responsibility directly onto businesses.

The Adelaide Economic Development Agency (AEDA) was set up as a statutory authority during the last term of council, so it can operate as a semi-independent organisation led by business leader to guide the business development activity in a more accountable and responsive way for the business community.

The current proposed change threatens to reverse that decision, returning control of funding decisions, including determining the levy percentage and funding mix, back into the hands of councillors rather than focus on business stakeholders.

Before any levy is considered, it is essential to carefully weigh:

The quantum and justification of the proposed percentage of rates allocated to AEDA.
Whether any such levy—if it moves forward—should be introduced gradually to minimise disruption and financial strain.
The inclusivity of precincts like Rundle Mall and others within this new funding mechanism.
Alternative, equitable funding models, including identifying cost savings in existing council expenditures, rather than imposing further costs on already-stressed businesses.
Greater transparency and accountability regarding how additional funding to AEDA would be allocated and managed.
Adelaide businesses are the backbone of our city's economy and community life. While supporting economic development initiatives remains vital, we must ensure that any new funding mechanisms do not further burden those already struggling. Let's focus instead on sustainable, transparent, and equitable solutions that support businesses, not penalise them.

I encourage all business owners and ratepayers to engage with this issue actively. Your voice matters in shaping a fair and economically viable future for Adelaide’s CBD.