Liquor Licence Freeze – Bill Introduced Into Parliament

Long-awaited details on freeze released

Shortly before midnight on Thursday 3 September 2009 the Liquor Amendment (Temporary Licence Freeze) Bill 2009 was introduced into the lower house and agreed in principle.

The Bill provides important details that have been eagerly anticipated since the announcement of the freeze on the grant of new liquor licences was made in June.

As predicted in our June update ( click here) the freeze is retrospective, and will apply to applications made on or after 25 June 2009. At this stage, the freeze will end on 24 June 2010 (but may be extended). The freeze will also extend beyond preventing merely the grant of new licences and will also prevent the grant of other types of licence applications for existing approved premises, and development applications, as explained below.

The introduction of the Bill now provides some certainty in terms of the areas and types of licence applications affected by the freeze. The affected areas are listed further below.

Operators located close to any of the affected areas should be careful to check that their premises are not caught – for example a premises may be within an affected area even if it merely backs onto or abuts an affected street. Importantly, a premises may be within an affected area if the regulations provide that the premises are in the immediate vicinity of an affected street. The Bill therefore reserves a broad power for the regulations to extend the application of the freeze.

The Bill introduces the concept of an application being "likely to result in an increase in the number of persons who enter the freeze precinct in which the premises is situated principally to consume alcohol" ("Likelihood Test"). This test broadens the range of licence types and licence applications that may be affected by the freeze.

The primary applications affected will be applications for the grant of new hotel, on premises public entertainment (other than cinema or theatre), club, packaged liquor, and producer/wholesaler licences. The grant of such licences within affected areas is absolutely prohibited during the freeze period.

Applications for other on-premises licences will be affected to the extent that the Authority believes that the grant of the application would fail the Likelihood Test.

The Likelihood Test will also apply to extend the reach of the freeze to cover other types of licensing applications, such as primary service authorisations, removal of licences into freeze areas, and redefinition of boundaries. Unless an applicant is able to convince the Authority that the application will not result in an increase of patrons to the area principally to consume alcohol, these applications will be refused. In practice most of these applications will fail the Likelihood Test. For example, an approval to serve alcohol without another product or service, to open a new licensed premises under an existing licence removed to the area, or to expand a premises, will almost certainly fail the Likelihood Test. The critical issue is whether the application will result in more people in the area drinking.

In an unexpected twist, the freeze will also apply to prevent development consents from being granted in the affected areas (ie. council approvals).

All proposals for new or refurbished premises located close to these affected areas should carefully consider the application and impact of the freeze provisions and obtain appropriate advice at an early stage.

Affected areas

The city is affected along George Street between Park Street and Hay Street, and on Goulburn Street and Liverpool Streets between George and Castlereagh Streets.

Darlinghurst and Surry Hills are affected along Oxford Street from College Street to Flinders Street, along Flinders Street to Short Street and generally in the triangle bounded by Campbell Street, Crown Street and Oxford Street (including Bourke Street from Patterson Lane).

Kings Cross is affected along Darlinghurst Road from William Street to Macleay Street and along Bayswater Road from Darlinghurst Road to Ward Avenue.

For more information, please contact:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.