Mr Ward, chair of a state parliamentary committee that flagged reforms to Sydney council elections such as compulsory voting for non-residential landowners, slammed much of the rhetoric around the changes.

Wollongong councillors labelled the plans "undemocratic", a criticism Mr Ward dismissed as "scaremongering".

"This bill is in relation to the City of Sydney. We are not pushing this to change in Wollongong," he said.

"This has been an unjustifiably generated panic attack by Wollongong council. The commentary has been misinformed, and sought to deliberately mislead. The bill, as proposed, does not mention Wollongong."

Mr Ward said business owners already had the right to vote in council elections if they wished. He said the bill, first proposed by the Shooters And Fishers Party, would simply further solidify that right.

"In the review I chaired, evidence came forward that we needed to make changes so businesses in the City of Sydney could have a stronger say," Mr Ward said.

"Councillors are whipping up this debate in a deliberate attempt to seek publicity on fraudulent terms. The bill has no mention of Wollongong."

The bill was pulled from debate in Parliament on Wednesday. Mr Ward confirmed there would be amendments made to the bill before it was put up before the chamber for debate and vote.