The owners of property can decide the terms of entry onto the property. If the Council owns the aerodrome....
It doesn’t seem the Council is under some ongoing obligation to use the site as an aerodrome or not impose PPR:
The aerodrome is the property of the council so they can impose conditions on access. It was built by the council with government assistance. Under ALOP they were given $40,000, 26 years ago. Not a lot for continuing maintenance.
Nonetheless, it would be interesting to see the precise terms on which the $40,000 was granted.
All of that said, I don’t see the point of the PPR system if I can apply for and be granted a 12 month permission. So every pilot in Australia applies for a 12 month permission. How does that assist the council “keep track of who’s coming to the airfield”?
Whatever the rights and wrongs, this kind of stuff does drive pilots away. I reckon a better system would be ‘free’ landing and parking but some cents-per-litre levy for uploaded fuel, that goes to the upkeep of the aerodrome. Not sure if that’s technically feasible.