Port Stephens Council personal tax benefit debate: councillor Giacomo Arnott moves to kick Port Stephens mayor Ryan Palmer off Newcastle Airport board

The money has historically been paid into the Mayoral Fund, used to help support community programs and initiatives in the region that don't meet the criteria for other grant initiatives.

Donations made out of the council account are not tax deductible, but they are if the payments are made from Cr Palmer's account.

Cr Palmer said he didn't feel he was obligated to raise the changes he made with the councillors, and argued he doesn't have to donate the money he is paid for his role on the board - but despite that, he chooses to support community programs.

"I've only ever tried to do the best by the community and that's exactly what I will do," he said.

"I am seriously considering my role on the airport board due to derogatory and ill-informed comments made on Tuesday night - and I hope that if I step down from the board the next councillor that is appointed donates every cent that they receive in-line with what's happened in the past."

He said he plans to use the funds to support Caring for Our Port Stephens Youth's (COPSY) early intervention program Jupiter - to assist with rent.

The issue was raised by Cr Giacomo Arnott, who called the accounting "completely ridiculous, completely unfair and completely outrageous".

"Honestly, the community deserves better from someone who sits up there, appointed to the board by the council, to serve the community who has done that," he said.

The mayor did not disclose the accounting changes to his fellow elected representatives until Cr Arnott picked up on reporting changes in the council newsletter.

"Every month or two months the income column didn't say money went into it, and I thought, 'that's weird, it must be an accounting or administrative error on behalf of the general manager's office potentially leading to that table not being updated properly,' so I thought I'll ask tonight, be corrected and move on my merry way to talk about this motion," Cr Arnott said at the meeting.

"Then we get this stunning admission that the mayor is using that $50,000 he gets out of this council putting him on that board as a personal tax benefit.

"Can you believe it? Just think about that."

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The raucous debate was brought to an end without resolution, after Cr Palmer removed himself from the chambers due to his percuniary interest in the matter and Cr Chris Doohan abandoned the meeting - leaving the council without enough members to put Cr Palmer's removal to a vote.

Members of the Newcastle Airport board do not have to donate the money they are paid - in fact, Newcastle City Council (NCC) lord mayor Nuatali Nelmes receives the same payment.

An NCC spokeswoman said Cr Nelmes is paid the same as any other director.

"There is no direct or indirect cost to Newcastle ratepayers associated with the lord mayor's role as a director of the Newcastle Airport," she said.

"The city continues to benefit from the high level of governance of the Newcastle Airport board, including the payments of dividends from the business when appropriate."

Port Stephens councillor Peter Francis also receives a stipend for his role with Hunter Water, he said his payment goes straight to a nominated charity without him seeing it.

"That should be the arrangement of any councillor who offers themselves for a community service," he said.

"If you serve your community, you serve it completely - you don't serve it partly."

The matter is expected to return at the next council meeting.

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