Incurring costs is a part of doing business. Whether it is buying new premises or hiring new staff, starting your own small business is an enterprise that requires a good source of capital and knowledge of your cash flow. Many businesses spend a great deal of money on their marketing, with brand recognition being more important than ever in a connected world.
However, at what point do marketing costs go too far? The Geelong council have chosen to incur a marketing levy on local businesses, and many of them are not happy about it.
The dissenting masses
Introduced in 2011, the Central Geelong Marketing levy has been a controversial addition to the local business landscape. The Geelong Advertiser describes how almost 1,500 CBD businesses will be paying an average of $700 a year for a promotional marketing campaign spruiking the merits of Geelong through a series of events, adverts and other activities.
A number of local businesses have taken offence to this additional fee, even going so far as to address it with the Victorian Civil and Administrative Tribunal.
The greater good
However, Central Geelong Marketing defended their original decision by saying that the majority of local businesses understood the importance of this new measure.
"Central Geelong Marketing has been hugely successful over the past four years, delivering 2,046 activities to more than 328,000 people," said Councillor Michelle Heagney in a recent statement.
"This has brought in $53.45 million of total economic output with the Geelong region and an average $13.36 million each year."
The new levy will increase by an additional $3 per week next year, though Ms Heagney told the Geelong Advertiser that the scheme was "excellent value for money" and was extremely beneficial to the business landscape of Geelong.
Whether you're against the levy or not, it pays to ensure your business is up to date. Speak to the business planning and tax accounting experts at WMC Accounting for more information on how we can help your business.