CONTROVERSIAL plans to lift residential and business rates in Newcastle by almost 47per cent over the next five years are expected to clear their final hurdle on Tuesday night.

Approved by the state’s independent pricing watchdog last month, the first stage of the 46.9per cent increase will take effect in just two weeks if given the final nod by Newcastle council.

A report prepared for its Tuesday night meeting shows the council will raise almost $115.7million from rates next financial year, rising a further 8per cent for each of the following four years.

It will lift the average residential rate by more than $500 a year by 2019, and add a huge $4000 a year to the average business rate over the same period.

The report also shows that Westfield Kotara remains the city’s biggest ratepaying retailer. The shopping centre will pay $1,131,885 in rates next year. By comparison, the council expects to raise just $119,365 from retailers in Hunter Street Mall, on top of the $85,240 it expects to raise through a special rates levy.

It also expects to raise $2,211,795 from businesses in the Kooragang industrial centre and $1,795,951 from those in the Carrington industry centre.

Residential rates will raise the council an estimated $71,359,229 in total next financial year if the rise is approved.

Despite the rates rise, an accompanying report shows the council will likely record another operating deficit in 2015-16 of $9.5million as it starts spending its extra income on asset renewal.

At the top of the council’s shopping list is the ongoing revitalisation of Hunter Street, the completion of the Bather’s Way coastal walk, the restoration of City Hall and further improvements to Blackbutt Reserve.

Of the $68.3million the council is expecting to spend on capital works next year, $32.8million will be spent on asset renewal and the backlog of infrastructure works. Councillors will cast a final vote on the proposal at their meeting tonight.