Community Improvement Districts Act 2025

This Act is the Community Improvement Districts Act 2025.

This Act commences on a day or days to be appointed by proclamation.

This Act does not apply in relation to land within a local government area until the Minister, by order published in the Gazette, declares the area to be an area subject to this Act.

The objects of this Act are as follows—

to provide for the establishment and operation of community improvement districts to stimulate economic growth and community development,

to facilitate and assist in the delivery of services, projects and activities by CID entities in community improvement districts funded by CID levies,

to support the NSW Government’s and local councils’ placemaking and economic development policies,

to regulate CID entities, CID proposals and CID proposal ballots.

The dictionary in Schedule 4 defines certain words and expressions used in this Act.

Note—

The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.

Nothing in this Act alters the rights, liabilities or obligations of a council under the Local Government Act 1993.

Nothing in this Act affects the operation of the Environmental Planning and Assessment Act 1979.

To avoid doubt, a levy under this Act is a levy for the purposes of the Retail Leases Act 1994, section 12A(3).

The functions of the Authority are as follows—

to accept or reject CID proposals,

to determine whether a CID proposal has met the requirements under this Act for a CID proposal ballot to take place,

to conduct CID proposal ballots or cause CID proposal ballots to be conducted,

to determine whether to approve or reject CID proposals after a CID ballot has taken place,

to regulate and oversee the operation of CID entities,

to impose, collect and distribute CID levies,

to enter into contracts and other arrangements with CID entities and other persons,

to terminate CID levies or to prohibit services, projects and activities under an approved CID proposal in accordance with the regulations,

to report to the Minister on matters related to CIDs as prescribed by the regulations,

with the approval of the Minister, to make and administer grants to support the development and operation of CIDs in the State,

to support the development of CIDs in the State through education and training and other information sharing and capacity building activities,

other related functions as necessary to give effect to the objects of this Act.

The Authority must establish a Small Business Advisory Panel.

The membership of the panel must be determined by the Authority, but must include the following persons—

the Small Business Commissioner,

at least one member nominated by the Council of Small Business Organisations Australia Ltd.

The function of the panel is to advise the Authority on matters concerning small businesses’ relationship with CIDs.

The procedure of the panel is to be determined by the Authority or, subject to the determination by the Authority, by the panel itself.

A CID proponent may make a CID proposal to the Authority for the CID.

A CID proposal is a proposal to impose a levy on certain business land owners within a CID to fund specified services, activities or projects in the CID.

A CID proposal must specify the following—

the proposed boundaries of the CID,

details about the proposed CID entity for the CID, and if not currently incorporated, details about when the proposed CID entity will be incorporated,

details about the proposed levy to fund the services, activities or projects in the CID proposal,

information about how the proposed levy is to be calculated,

Note—

A levy must not be calculated by reference to the production, manufacture, sale, distribution or consumption of goods—see section 22(2).

the businesses, or classes of businesses, if any, proposed to be levy exempt,

whether there is to be a levy-free threshold amount and, if so, the gross land value amount of the threshold,

details about the expected budget of the proposed CID entity,

information about proposed or possible services, activities or projects that could be undertaken in the CID by the CID entity,

a list of the persons who are likely to be entitled to vote in the CID proposal ballot required under Division 2, prepared to the best of the CID proponent’s knowledge, information and belief.

A CID proposal may specify the services, activities or projects proposed to be undertaken in the CID including the following—

events, marketing and promotions services and activities to activate and revitalise places,

safety and security services, cleaning services and environmental and amenity improvements,

data analysis and market research,

activities and projects to improve access, mobility and connectivity within a CID,

activities to help attract new businesses into the CID, including activities to fill vacant business premises,

services, activities and projects to support businesses and residents of the CID in achieving net zero outcomes and participating in circular economy activities and projects,

community wealth building activities,

other similar services, activities or projects.

A CID proposal must—

include other documents and information prescribed by the regulations, and

comply with other requirements of the Authority published in the Gazette from time to time, and

comply with this section and other requirements set out by the regulations.

To avoid doubt, the services, activities or projects proposed to be undertaken in the CID may be undertaken in or in relation to public or private land within the proposed CID.

The regulations may specify matters that must not be included in a CID proposal.

Before a CID proposal is accepted by the Authority, the CID proponent must consult with the following about the CID proponent’s plan to make a CID proposal—

each local council whose area is within the boundaries of the CID,

the community of the CID, including—

residents of the CID, and

business land owners in the CID, and

CID businesses in the CID,

other persons or bodies prescribed by the regulations.

The CID proponent must prepare a draft CID proposal as part of the consultation.

The CID proponent must prepare a report on the outcome of the consultation and give the report to the Authority at the time the CID proponent makes the CID proposal to the Authority.

The Authority must make the report publicly available in the way prescribed by the regulations.

To avoid doubt, the CID proponent may, after undertaking consultation, modify a CID proposal before the CID proposal is made to the Authority.

The regulations may deal with matters relating to the consultation.

The Authority must, if satisfied that a CID proposal has been properly made under Division 1, accept the CID proposal.

Despite subsection (1), the Authority may reject a CID proposal—

if, in the Authority’s opinion, the CID proposal may unreasonably exclude members of the public from spaces or areas where the public otherwise have a right of access, or

if, having considered the report referred to in section 10(3), the Authority believes—

there has been inadequate consultation on the CID proposal, or

there is no reasonable prospect that each local council whose area is within the boundaries of the CID will support the CID proposal, as referred to in section 14, or

if, in the Authority’s opinion, there is not a reasonable prospect of the CID proposal achieving the required support in a CID proposal ballot,

Example—

The Authority believes there is insufficient evidence provided of community or council support for the CID proposal.

in circumstances prescribed by the regulations.

The Authority must conduct a ballot, or cause a ballot to be conducted on its behalf, (a CID proposal ballot) to ascertain if the CID proposal is supported by—

the business land owners in the CID, and

the CID businesses in the CID.

For subsection (1), the Authority may enter an agreement or other arrangement with a person, including the New South Wales Electoral Commissioner, to conduct a CID proposal ballot on the Authority’s behalf.

To avoid doubt, the New South Wales Electoral Commissioner may conduct a CID proposal ballot on the Authority’s behalf under the Electoral Act 2017, section 13 as if the reference in the section to an election were a reference to a CID proposal ballot under this section.