The fast food chain was seeking approval to trade from 5am to 1pm - adding an hour either side of its current approved trading hours.

The restaurant has been trading from 5am to midnight, seven days a week since May 18, 2020, under the Environmental Planning and Assessment (COVID-19 Development - Extended Operation) Order 2020. The order allowed the store to open an hour earlier than its formally-approved 6am start, until March 2022.

The application was dealt with at last Wednesday's meeting - the first of the newly-elected council - having been deferred from the last meeting of the previous council due to its controversial nature.

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Council staff had recommended the application be approved as it included "appropriate mitigation measures" to address community concerns, but it was unanimously rejected by the councillors.

Ferguson Street resident Deliece Robbs spoke against the recommendation, raising concerns about noise and traffic.

"When council approved McDonalds alongside residential homes, I don't think the council at the time envisaged a family restaurant being open after midnight and being staffed 24 hours," Ms Robbs said.

"If council passes this, I feel they are setting a precedent for other businesses to follow suit.

"I feel this change could be a stepping stone for 24 hours, as it will only then be another four hours of trading, but to us residents would be a whole night's sleep."

Labor councillor Anthony Burke moved council refuse the application, saying it would be likely to have a significant impact on the amenity of adjoining residential properties with respect to acoustic privacy, traffic, security and safety.

Cr Burke said the application did not address potential adverse social impact; that the subject land is not suitable for extension of hours, and that refusal is "consistent with community concerns".

McDonald's currently has another development application with Cessnock council, having submitted a proposal for a new 24/7 restaurant at 217-219 Vincent Street (the former Eaton's Mitre 10 site) in November 2021.

The application remains under assessment by council staff, following a period of public notification during December and January.

Another item that had been deferred from the previous council - a lawn cemetery on Wine Country Drive, Nulkaba - was approved at last Wednesday's meeting.

The plans for the 2135-plot cemetery were lodged by the Palmdale Group, which owns St Patrick's chapel across the road from the proposed site.

Councillors supported the application 12 votes to one (with independent councillor Jessica Jurd the sole opponent); however, some expressed their reservations.

"It doesn't sit comfortably with me that it's so close to a flood-prone area, but given the report that's put before us, I can't see a reason to refuse this," Liberal councillor Paul Dunn said.

"It seems all of the issues have been engineered out. I can't find a planning issue that I can fault it on."

Labor councillor Anne Sander also said she had "major concerns" in regards to the displacement of water, but as the cemetery is "permitted land use" and the report met the planning criteria, she could not vote against it.

The council report said site constraints including flooding, along with geotechnical and groundwater considerations, have been assessed.

"The proposed development has been designed in such a way to ensure that any structures and burial sites have been wholly located outside the flood affected portion of the site. In addition, the results of the geotechnical and groundwater investigation concluded that there is a low likelihood of contaminant impact on groundwater at the site as a result of the proposed development," the report said.

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