Emerging Risks for Australian LGAs

Local Governments in Australia face an emerging risk space that many seem unaware of.
Brought on by rising costs, especially in business premises rentals, compliance needs and registration costs, research we’ve identified as part of work with a Local Government client is indicating a significant increase in businesses popping up in residential areas.

What seems innocuous is in fact a high risk issue. Planning permits often cross-over use, parking, hours of operation and health.

The rise of ‘dark kitchens’ a few years ago wherein high end restaurants opened kitchens in industrial areas to take advantage of the demand generated by the availability of delivery services is now being copied. With a significant difference: dark kitchens in domestic centres like home garages operating WITHOUT planning or health approvals

And it’s not just cookeries – health sector offerings from hair & nail salons to dental work and tattooists among others, fill the lists.

Aside from traffic problems of pick up drivers, safety plans etc, the lack of compliance to health requirements expose the business owner, residential landlords and customers.. And if a Council is aware of the business operating and done nothing…

Additionally, attempts to revitalise business and shopping precincts are impeded – if anyone can open ‘any business’ they like from home, (with an over-run or inattentive Council missing its emergence), and with Commercial Property rents staying high despite vacancies, the lower costs and easier start up process could soon see ‘ghost-towns’ of commercial districts greater than already exists.

This seemingly innocuous emergence/shift of businesses into residential areas is not small beans. The rate revenue being forgone could add up to Millions of dollars across an LGA. Think it’s time some councils paid a LOT more attention
#LocalGovernment #DarkKitchens #ResidentialBusinesses #Rates #Risk #Permits #PersonalServices