But in the draft agreement TRC does not plan to slash rates for businesses forced to shut their doors by the Commonwealth's coronavirus shutdown, according to Business Chamber president Jye Segboer.

NSW councils are not legally entitled to choose to selectively not issue a rate notice to businesses even on hardship grounds.

But other councils including bushfire-affected Shoalhaven City Council have slashed headline rates as a form of support.

READ MORE:

The stimulus package was developed in a meeting with Council leadership, Tamworth MP Kevin Anderson and the Business Chamber on Friday.

Landlords will be allowed to defer rates for 18 months under the draft deal, in order to allow business rent reduction.

Monthly waste fees may be completely waved for businesses that can't open their doors, according to Mr Segboer.

Waving street dining costs for a 12 month period to cut costs for businesses is also on the table.

Businesses that have been forced to close their doors will also no longer be legally obligated to clean grease traps they aren't using.

TRC will also implement no new debt recovery action until the end of the COVID-19 crisis.

The scheme is due to be finalised, signed off and announced early next week, potentially on Monday.

Business Chamber President Jye Segboer described the agreement as a "work in progress" but said Council was keen to do all it could to help struggling businesses to keep going.

"They're all small measures, but I think they're measures that we can look to continue to pass on some savings to our businesses in our region."

But a council delegation which met with the Tamworth Business Chamber did not agree to slash headline rates.

Mayor Col Murray was asked about potential rate relief in a press conference earlier this week.

"The reality is that level of support needs to come from the Federal government," he said on Wednesday.

"Local government collects 3 per cent of revenue in Australia, state governments collect around 27 per cent, federal government collects around 70 per cent and I think that demonstrates where the capacity might be."

Shoalhaven City Council cut rates by 25 per cent for all rate categories in a meeting earlier this week.

The rate cut will cost the bushfire-affected council a breathtaking $20 million.

Hundreds of Tamworth residents lined up to sign up for Centrelink this week, with iconic local businesses like the Family Hotel forced to shut up shop.

But those businesses will still have to pay rates and charges despite earning no income thanks to a government order designed to help stem the tide of the coronavirus pandemic.

As many as a million Australians are jobless.