Help ATET fight their unlawful closure by Melbourne Council

“Council intentionally bet on the business not having the resources to fight back against their decisions.” - Melbourne City Council Whistleblower - Herald Sun 28 January 2025

INTRO

ATET was a floating event space located in Docklands that operated from October 2022 until its licence was abruptly and unlawfully terminated by the City of Melbourne just eight months later.

ATET obeyed every law, rule, and regulation, followed every instruction given by Council, and Council repeatedly confirmed ATET was compliant with the noise limits. Despite this, the City of Melbourne terminated ATET’s licence without due process and without a fair hearing. The decision was made unilaterally, with no oversight and no avenue to appeal. The actions of the Council represent a severe overreach of power, setting an alarming precedent for all businesses across Victoria.

DETAILS

ATET was a unique waterfront venue, catering to a broad range of events, including music events, corporate events and private functions. ATET quickly became an integral part of Melbourne's music scene and cultural landscape. It was cherished by thousands of Melburnians, with a petition to save the venue gathering over 10,000 signatures within days of its closure.

ATET was a family business, owned and operated by Jake Hughes, alongside his parents Rob and Karen. It was a passion project that they worked on for over 6 years, investing over $2m and putting everything on the line, including their family home. The forced closure of their business has resulted in devastating financial and emotional consequences. It has left the family at a constant risk of bankruptcy, as they try to manage ongoing debts and expenses of a business that is unable to operate and fund a costly legal battle.

The ATET project had the full support of Council since it was first proposed in May 2020, and they approved the venue’s permits and licences in the exact form that it operated. Council confirmed that ATET was the right fit for Docklands, stating; “it's a tourism and leisure destination with events, festivals and uses that promote maximum activity.”

Throughout its time in operation, ATET acted lawfully and in good faith at all times. The venue consistently followed Council’s instructions and took every measure to ensure compliance. Crucially, Council itself repeatedly confirmed the venue was indeed compliant, stating this publicly on numerous occasions. Yet, despite this, Council began moving to terminate ATET’s licence without any allegation of breach or misconduct whatsoever.

ATET submitted a 26-page document providing unequivocal evidence of compliance from an acoustic expert and it was blatantly ignored. Just 24 hours later, Council terminated ATET’s licence without responding to a single point made in their submission. ATET also proposed numerous long-term solutions that would have resolved any remaining noise issues entirely, including relocating and enclosing the venue entirely in acoustic glazing. This would make the venue inaudible at the nearest residences, going far beyond compliance. These solutions were also ignored.

As a final concession, ATET even offered to cease music events altogether and operate solely at background music levels, yet incredibly, even this was rejected by Council. Council’s refusal to negotiate or engage in any discussions to resolve the issues left ATET with no option but to pursue legal action, which the family has been enduring since December 2023.

WHISTLEBLOWER

A whistleblower recently spoke out against the unjust closure of ATET, disclosing that Council was determined to shut down the venue, stating that “the council had no desire, at all, to find a resolution” and “it felt like a coordinated effort by those in council to avoid finding a solution.”

The insider also stated that Council “intentionally bet on the business not having the resources to fight back against their decisions.” This highlights a deeply concerning imbalance of power, where Council has the ability to unilaterally shut down a business before any dispute is properly heard. In doing so, Council has destroyed our livelihood, and with it, our means to defend ourselves, rendering any legal recourse near impossible. This makes it far too easy for any Council to get away with the unlawful closure of a business.

The whistleblower described ATET’s legal battle as “a modern-day David and Goliath.” And that is exactly what it is.

THE LEGAL FIGHT

While the Hughes family are fighting for their survival, this fight is much bigger than them and much bigger than ATET. They are fighting this on behalf of all Victorians, to protect the rights of all businesses in the state. By exposing Council’s actions and the inherent flaws in the legal system, they are hoping to prevent this from happening to anyone else.

Their experience has exposed a major deficiency in the current legal framework. It has shown that a local council can arbitrarily shut down a compliant business, without due process, without procedural fairness, and without a fair hearing. There is no oversight and the business has no opportunity to defend itself or have its evidence heard. The business is treated as guilty until proven innocent, with the burden of proof unfairly placed upon them.

We simply cannot allow this to be accepted as precedent. In this hostile environment, no one can invest in a business in Victoria with any confidence. There are simply no protections, and the risks are far too great.

We are campaigning for urgent legal reform. No Council should have the unilateral power to shut down a business that they have already approved. Instead, they should be required to apply to a court or tribunal, ensuring businesses have a fair hearing and the right to defend themselves. The burden of proof must rest with the Council—not the business. This is the only way businesses can have adequate protection from misconduct and abuse of power by local councils.

Now, we are asking for your help to achieve this. Together, we can ensure Melbourne City Council are held accountable for their actions and ensure this cannot happen again.