Is the balance shifting in alcohol regulation?

Last week, the Government introduced the Sale and Supply of Alcohol (improving Alcohol Regulation) Amendment Bill (Bill). While much of the commentary has focused on the hospitality sector, the changes will be just as significant for local government and District Licensing Committees (DLCs).

What the bill does:

  1. Narrows the scope for who can object to licence applications or renewals to those who live or work in district, or within 1 kilometre of the proposed licenced premises. This is an attempt to ensure that public objections address genuine local impacts.
  2. Gives applicants for licences a formal right of reply to objections, so that responses to those objections can be considered and responded to in advance of DLC hearings, and solutions put forward.
  3. Prevents licence renewals from being declined purely on the basis that it is inconsistent with a Local Alcohol Policy (LAP). Instead, DLCs are expected to adjust conditions.
  4. Streamlines special licence requirements in an attempt to make it more straightforward to hold events, and establishes a nationally consistent approach to assessing events. For a series of interconnected events in different locations (concerts, festivals), DLCs in each district will be expected to consult on the application.
  5. Enables clubs to apply for on licences to serve the wider public, meaning clubs can pivot to an on-licence rather than applying for large numbers of special licences where they regularly host functions.
  6. Allows restaurants with on-site retail areas to sell take-home alcohol.
  7. Creates a mechanism for extended hours where premises’ televise significant events.
  8. Exempts hairdressers and barbers from needing an on-licence to serve small amounts of alcohol.
  9. Extends cellar-door style tasting to breweries and distilleries.
  10. Allows licensed premises to meet their legal obligations by stocking either low-alcohol or zero alcohol drinks.
  11. Clarifies the responsibilities for rapid alcohol delivery services to prevent the supply to minors or intoxicated persons.

For inspectors and DLCs, licensing work will focus more on local impacts and statutory criteria, potentially with fewer objectors. Inspector’s reports and DLC hearings will need to incorporate and address applicants’ rights of reply. In respect of licensing renewals where LAPs have taken effect, inspectors and DLC’s will need to focus on tailored conditions that address LAP inconsistencies.

The Bill also modernises the framework around special licenses (including major events), zero-alcohol products and delivery services, where councils have long grappled with inconsistency, administrative burden and short timeframes. The streamlined special licence and major-event provisions should reduce administration work for both inspectors and DLCs while still requiring careful risk assessments, and adding a requirement for communication between districts. Exemptions and expansions for “low-risk” settings (hairdressers, cellar-door style tastings) and televised major events may add to inspectors’ work in terms of education, monitoring and potential enforcement.

Whether or not you agree with the Government that the Bill will “cut red tape”, there is a focus on process and predictability within alcohol regulation, and an apparent intent to “free things up” for business. For local government, now is the time to think carefully about how these changes translate to policy, delegation, and decision-making practice.

Please get in touch if you have any queries on the Bill, or would like to discuss making a submission.

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