A new Liquor Act
On 5 December 2007 the NSW Parliament passed the Liquor Act 2007. The new Act contains extensive law reforms and came into effect on 1 July 2008.
The new laws are intended to be much simpler and more flexible than existing liquor laws. It is intended that the Liquor Act will regulate all liquor sales including sales in registered clubs. The Registered Clubs Act 1976 has been retained but will focus on club management and governance issues.
The objects of the new laws recognise the importance of minimising alcohol related harm whilst understanding the social and cultural role played by responsible alcohol use. All persons exercising functions under the new act must have regard to the Act’s objects. These are to:
- Regulate the control and sale, supply and consumption of liquor in a way that is consistent with the expectations, needs and aspirations of the community
- Facilitate the balanced development, in the public interest, of the liquor industry through flexible and practical system of regulation with minimal formality and technicality, and
- Contribute to the responsible development of related industries such as the live music, entertainment, tourism and hospitality industries.
The new regime
Liquor and gaming licence applications (including applications to extend trading hours) and disciplinary matters will be considered by a new Casino, Liquor and Gaming Control Authority (the CLGCA).
The CLGCA will replace the Liquor Licensing Court and Liquor Administration Board which previously dealt with those applications.
The CLGCA will be responsible for the imposition of penalties, including the suspension or cancellation of licences arising from breaches of licence conditions.
The Director of Liquor and Gaming's enforcement role under the new regime will also be expanded. The Director will be able to determine noise and disturbance complaints against venues, have the power to impose or vary licence conditions, issue directions to licensees and also impose late hour declarations (lockouts or curfews) to reduce alcohol related anti-social behaviour.
New types of licences – small bars and restaurants
The much publicised reform of bar licences includes provisions relating to bars that do not provide gaming or sell take away alcohol. Those bars will be able to obtain a new type of hotel licence called a "general bar" hotel licence for a $500.00 fee.
Venues will be able to obtain an on premises licence where the primary product or service is the provision of entertainment to patrons. Community Impact Statements will be required to guarantee stakeholder input for such applications.
The existing dine-or-drink authority with its high fees will be abolished under the regime. Restaurants will be able to seek approval to allow liquor sales without a meal, with conditions to be determined by the CLGCA for no fee. The provision of such a licence to a restaurant is conditional on the sale of alcohol not being the primary purpose of the business. The new laws do not permit restaurants to trade as bars.
Hotel licences
Hotel licences will apply to premises where the primary purpose is the sale and supply of alcohol. This includes a variety of hotel venues (including accommodation hotels), as well as small bars.
New hotels will be required to prepare Community Impact Statements to ensure that community consultation is undertaken before the granting of a new licence. Trading hours will remain unchanged, (i.e. from 5am to midnight Monday to Saturday and 10am to 10pm Sunday). Applications for extension of trading hours will also require a Community Impact Statement.
Many of the safeguards that existed in the old act for breaches of licence conditions have been carried over in the new act. Section 104 (Quiet and Good Order of Neighbourhood) has been replaced with similar provisions in section 79 of the new Act. This allows for the making of complaints by Councils or local residents to the Director and for sanctions to be imposed. The provision allowing for short term closure to be enforced has also been carried through to the new act.
Registered clubs
Club licences will apply to registered clubs. Existing clubs will continue to have unrestricted trading hours, and other registered club privileges will be maintained for all existing clubs. Newly licenced clubs will be subject to Community Impact Statements to ensure local stakeholders have their say during the application process.
Newly licensed clubs will also be subject to the standard trading period for hotels mentioned above.
New tools to minimise alcohol related harm
New offences for antisocial behaviour have been created. It will now be an offence for a drunk, violent or quarrelsome person who has been refused entry or ejected from a licensed venue to attempt to re-enter the premises or remain in the vicinity of the premises. On the spot fines of $550 apply for each offence.
A modern system
The new liquor laws are said to be based on a modern administrative licensing system with the object of reducing the complexities and costs that have long been associated with the regime. Community Impact Statements required for most new applications are aimed at ensuring that community consultation is undertaken and properly weighed when licensing decisions are formulated.
Law reform of this scale never comes without uncertainty. The grant of a liquor licence will now be almost unrecognisable from the former system. Issues such as processing times for assessments and total application times have not yet been commented on by the Office of Liquor Gaming and Racing. It remains to be seen whether the new reforms will result in a fairer and more cost effective system.
If you have any questions about the proposed changes or how the new reforms will affect your business, please contact Jane Hewitt on (02) 9334 8639 or Emma Adams on (02) 9334 8653.
Author – Tim Davis
