The City of Stonnington welcomes the withdrawal of a legal challenge to the Chapel Street Special Rate Scheme, which was launched at the Victorian Civil and Administrative Tribunal (VCAT) by a small number of Chapel Street traders.
The traders involved in the challenge have now issued the following statement:
In late 2025 we filed an application at VCAT to challenge the validity of the Chapel Street Special Rate and Charge Scheme. Our application was made without legal advice. We are now withdrawing that challenge. Having considered Council's position in response to the application, and the tribunal's observations, we have formed the view that it is not appropriate to pursue the proceeding further.
We acknowledge that the City of Stonnington administers the Scheme appropriately and in accordance with its declared purpose.
We recognise that Council's investment in Chapel Street via its Chapel Street Precinct Improvement Plan is directed toward supporting the precinct's long-term activity, and we look forward to engaging constructively with Council and the broader trader community going forward.
Stonnington Chief Executive Officer Dale Dickson welcomed the traders' decision to withdraw the challenge, which will end VCAT proceedings.
"This outcome affirms that Council has always acted lawfully and prudently when administering the Chapel Street Special Rate Scheme," Mr Dickson said.
In the 2025/26 financial year alone Council is investing $4.38 million to revitalise this important precinct via our Chapel Street Precinct Improvement Plan. The Special Rate Scheme contributes $1.1 million towards this effort.
"Council recognises there are ongoing challenges within the Chapel Street Precinct, which is why we are deeply engaged with the 1600 Chapel Street businesses and property owners, with whom we have a positive and constructive working relationship," Mr Dickson said.
"With our dedicated street-based precinct team we are going from strength to strength with our engagement, which includes regular monthly emails to businesses, trader forums, and on street/in person support."
"We have already had great success in the first six months of the Chapel Street Precinct Improvement Plan, and the precinct is showing signs of great progress. More than 7.4 million people visited the precinct, spending over $1 billion at local business in 2025 alone."
"We're proud of the work we are doing in partnership with the Chapel Street businesses to uplift the precinct, and we look forward to continuing these efforts."
