Application Process
An application that fails to meet the requirements for validity will likely be refused.
All applications must meet certain legislative requirements and standards issued by the Authority. Some applications require additional procedural and administrative steps.
- Don't risk your business -
A non-compliant or insufficient application may result in
Refusal of the licence
Refusal of the entire liquor licence or an aspect of the desired licence may detrimentally affect your business model
The NSW government application processing fee is non-refundable in the event the application is withdrawn or refused
Delays in processing
Some applications remain in assessment and review for more than a year after lodgement
Additional licence conditions may be imposed where an application fails to adequately respond to risk or stakeholder objections
Loss of your application fee
Extra licence conditions
What are the requirements for a liquor licence application?
The easy requirements you can do yourself
1. Obtain the necessary RSA and licensee training qualifications. Approved training providers can be found via the Liquor & Gaming NSW portal here.
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2. Obtain a recent National Police Check. This can be done here.
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3. Obtain ASIC company extracts for all relevant entities. This may include the corporate licensee, business owner, premises owner and any related holding companies or financially interested parties. ASIC extracts can be obtained here.
Standard steps for all licence applications
The requirements for each liquor licence application will vary, but almost all applications require the following baseline steps.
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1. Prepare a plan of the licensed boundary of the proposed premises. This plan must be in accordance with the standards set by the Authority. Care should be taken to ensure only appropriate areas are defined and that any additional outdoor area or area subject to an authorisation are also correctly marked.
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2. Ensure the council approval to use the premises (often development consent or CDC) aligns with the business model under the liquor licence. It is essential that any operative approval is reviewed to ensure:
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the use is permitted
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the proposed licensed hours align within the permitted trading hours
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the conditions within the approval do not conflict with obligations under the liquor licensing laws (for example prohibiting food on the premises) or impose other restrictions to the intended business model (for example restrictions on capacity or liquor sold)
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3. Ensure council approval for any outdoor public areas. If your premises intends to offer footpath or other outdoor dining, you must have appropriate approval.
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4. Prepare a written statement specifying whether there are any persons or entities (other than financial institutions) 'interested' in the business to be conducted under the licence, or the profits of the business. Note that an 'interested' person or entity, can be quite broad, and includes one that is entitled to receive:
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any income derived from the business, or any other financial benefit or financial advantage (whether the entitlement arises at law or in equity or otherwise), or
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any rent, profit or other income in connection with the use or occupation of the premises on which the business is to be carried on.
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5. Determine whether your business model requires a modification to the standard 6-hour trading shutdown. New liquor licences are subject to a standard shutdown period of 4am to 10am each day. Under this standard arrangement, new liquor licences will be granted licensed hours commencing at 10am each day. If your business intends to sell or supply liquor before 10am then the 6-hour shutdown period must be modified - and this requires an additional process with submissions on why such a modification should be granted. Note, the licence must still have a 6-hour shutdown period, it can just be modified to another period, for example 2am to 8am each day.
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6. Have plans in place so that the Authority can be satisfied that the statutory test within s45(3)(b) is met. This test requires practices to be in place to ensure that liquor is sold, supplied and served responsibly and that all reasonable steps are taken to prevent intoxication on the premises, and that those practices will remain in place. This is commonly done via an Alcohol Plan of Management.
Alcohol Plan of Management
Most liquor licence applications will require the inclusion of an Alcohol Plan of Management.
Compliance with the contents of the Alcohol Plan of Management will often be a condition of the liquor licence so it is very important that the terms of the plan accurately reflect the business model and do not expose the licence to unnecessary compliance risk.
A poorly drafted Alcohol Plan of Management may not satisfy the Authority that appropriate practices are in place. What is deemed to be appropriate will vary depending on the type of licence, the kinds of authorisations, the proposed business model and a number of other risk factors.
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Depending on the type of liquor licence and overall risk profile of the application, it may be necessary to include an additional Security Management Plan or House Policy.
Community Impact Statements
Preparation of a Community Impact Statement is a mandatory requirement for a number of liquor licence applications and some special authorisation applications.
There are two types of Community Impact Statements (a category A and a category B), the correct type of statement will depend on the type of application made. Both categories of Community Impact Statement impose additional procedural and administrative requirements on the applicant, however a category B statement is far more onerous.
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A Community Impact Statement must be prepared in accordance with the Liquor Regulations and be in the form approved by the Authority.
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A Community Impact Statement includes a stakeholder consultation phase that must last for at least 30 days.
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Most importantly, the Authority must not grant a licence or authorisation unless satisfied, having regard to the Community Impact Statement, that the overall social impact of the licence or authorisation will not be detrimental to the well-being of the local or broader community. It is very important that the Community Impact Statement satisfies the Authority accordingly or your application will not be granted.
Cumulative Impact Assessments
The concept behind the Cumulative Impact Assessment is similar to the former liquor licence freeze framework, which prohibited the grant of certain high risk liquor licences within designated precincts.
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The Cumulative Impact Assessment is relevant to certain high risk applications within the following areas of Sydney only:
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South CBD
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Darlinghurst/Oxford street
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Wynyard Station and surrounds
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Kings Cross precinct
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High risk applications include:
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new hotel liquor licence (or a removal)
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new registered club liquor licence (or a removal)
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new on-premises liquor licence (or a removal) that relates to an entertainment venue
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new packaged liquor licence (or a removal)
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an extended trading authorisation for a relevant licence
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seeking to increase the licensed area or patron capacity for a relevant licence
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In these instances, the Authority will generally not grant the application unless there is a compelling case for community benefit and assurances that appropriate harm reduction measures are in place. The onus is on the applicant to convince the Authority to depart from its usual position to refuse the application - this is not an easy process.
Any application that falls within the scope of the Community Impact Assessment should be handled by an experienced professional.
Stakeholder Consultation
An important part of the application process is consulting with stakeholders.
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Local police, local council and residents of the proposed licensed premises are key stakeholders that should always be consulted. Early consultation can assist in managing and remediating objections before they harm your application. Unmanaged objections may result in:
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refusal of the application
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delays in the grant of the application
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the imposition of extra licence conditions
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reductions in permitted trading hours and capacity
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Establishing a good working relationship with these stakeholders can be critical, especially for applications with a high risk profile or high potential social impact.
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If your application requires a Community Impact Statement then there are additional stakeholders who you must consult with, these include:
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the Ministry of Health
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the Department of Communities and Justice
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Transport NSW
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recognised leaders or representatives of the local Aboriginal community
Ready to lodge? Notification requirements
Once the application bundle is ready for lodgement, certain stakeholders must be notified within two business days of lodgement. These stakeholders are essentially the same as listed above.
Note this process is different to the stakeholder consultation phase, so often the applicant will need undertake two phases:
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consultation prior to lodgement, and
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notification after lodgement.
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Under these processes, the applicant will need to provide the stakeholder will a notice in the form approved by the Authority. It is very important that these notices comply with the requirements set out by the Authority - any failure to do so is grounds to refuse the application.
Depending on the application, the consultation and notification steps will require a 'mail-out' or 'letter box drop' of all premises within either a 50m or 100m radius of the proposed licence. All applications will require the posting of an approved notice at the premises (in accordance with the requirements of the Authority) for the duration that the application is under assessment.
After lodgement - public consultation
Once the application is lodged, the public consultation period commences. Depending on the type of application, this period lasts for either 14 or 30 days.
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During this period, details of your application will appear on the Liquor & Gaming NSW public noticeboard. Key stakeholders and members of the public can provide written submissions in relation to your application. Often submissions will come in the form of objections, complaints or other perceived issues in relation to the application.
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It is very important to engage with any adverse submissions. Failing to do so may result in the refusal or delay of your application, or the imposition of additional licence conditions or other restrictions of the use of your licence.
Negotiation of licence conditions
Many liquor licences come with standard additional licence conditions, these are almost always non-contentious and consented by the applicant.
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However, there are other times where additional licence conditions may be sought which are not in the best interests of the applicant. These conditions can be raised:
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in response to public or key stakeholder objections or concerns
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due to the risk profile of the application as perceived by the assessment officer
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on behalf of the Authority
Any additional licence conditions will expose your licence to additional compliance risk and regulatory burden. Sometimes the imposition of such conditions are unavoidable or a sensible response to proper evidence-based objections, but it is very important that the applicant fully understands the implications of the conditions and that they have the ability to resist such additional conditions.
Obviously, if an applicant wishes to resist additional conditions then they must present a compelling, logical and evidence-based reason. Even if a condition can not be resisted completely, it may be prudent to negotiate special wording of the condition so it is more acceptable to the applicant. In these cases, engaging a professional with a strong understanding of the various options and acceptable wordings of conditions can help your business avoid unnecessary compliance risk.
Assessment and grant of licence
Once the application has undergone the above processes it will be formally assessed and referred to the Authority (or delegate) for determination.
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If the application is granted, the new licence or authorisation will come into effect that same day (unless a special condition dictates otherwise).
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From this time, the licensee will be subject to all the compliance requirements imposed by the liquor legislation. This includes requirements on signage and RSA training, maintaining incident registers, copies of the liquor licence, etc. A failure to comply with these requirements can result in heavy fines (up to $11,000 for a breach of licence condition) or imprisonment (up to 12 months) or administrative action (suspension or cancellation of licence, revocation of authorisations, additional licence conditions, etc).
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For significant or high-risk licences or authorisations it is recommended to engage a specialist liquor consultant to conduct a compliance audit.