KAVA MANAGEMENT REGULATIONS 1998

Licence area. The regulations do not define this term directly but it is the foundational unit of the scheme. Under s 54 of the Act, the Director may declare an area to be a licence area upon application. The boundary of that area determines where kava may lawfully be sold and consumed. Signs must be erected at the entry and exit points of that area, and unauthorised possession of kava outside the area is illegal (as stated on the exit signs). The licence area concept effectively creates a spatial monopoly: only licensed premises within a declared area can engage in retail trade, and consumers are largely confined to purchasing within that area if they want to consume legally.

Director (later Director-General). The regulations consistently refer to "the Director". The amending legislation from 2020 (Act No. 4, 2020) substituted "Director-General" for "Director" in several provisions (r 6, 7, 9, 10, 11, 12). The Director-General holds significant discretionary powers: to require specified information from applicants (r 6), approve the form of newspaper notice (r 7(2)), impose licence conditions deemed necessary or desirable (r 9(1)), determine maximum stock quantities (r 9(3)), fix trading hours (r 9(2)), approve packaging materials (r 11(1)), and approve sign locations (r 12(2)(a)). This is not a ministerial or judicial role; it is an administrative discretion that is reviewable but not lightly challenged.

Revenue unit. The fees in r 4 are denominated in "revenue units". This is an indexed unit under NT legislation (not defined in these regulations but referenced in the Treasury Legislation Amendment (Revenue Units) Regulations 2006 and subsequent amendments). The value is adjusted periodically, meaning the nominal dollar cost of a licence increases over time without requiring amending regulations. An applicant cannot know the exact dollar fee without checking the current revenue unit value, which adds a layer of opacity to the cost of entry.

Associate. Defined by reference to Division 2 of Part 1.2 of the Corporations Act 2001. This captures related entities, including those with control or influence over the applicant. The definition matters because the Director may require information about associates of a company applicant (r 6(b)(ii)), and the concept likely also affects whether an associate's criminal history or interests count towards the applicant's fitness assessment.

Company and incorporated association. The definitions distinguish between for-profit entities registered under the Corporations Act or the Co-operatives (National Uniform Legislation) Act, and not-for-profit or community organisations, including Aboriginal corporations under Commonwealth legislation. This reflects the reality that kava has cultural significance in some Indigenous communities and that community stores might apply for licences. The regulations treat all these entity types similarly in terms of information requirements, but the distinction ensures that the appropriate corporate constitution and registration details are provided.

Harm minimisation plan. Regulation 6(i) requires applicants to provide "a statement or plan of the measures or programs the applicant would support, fund or implement as the holder of the licence for facilitating harm minimisation and other responsible practices". This is not a standalone statutory concept; it is a condition of application that the Director may require. The term is broad and subjective, giving the Director a basis to reject applications where the proposed measures are considered inadequate.

Cash-only retail sales. Regulation 9(1)(f) allows the Director to impose a condition that a retail licensee must not sell kava on credit. This condition was presumably intended to curb the social harms associated with debt-fuelled consumption in Indigenous communities, but it also eliminates a normal commercial practice and imposes a regulatory preference for cash transactions, with implications for reporting and tax compliance.

Maximum stock. Regulation 9(1)(d) allows the Director to specify a maximum quantity of kava that a licensee may hold in stock. The factors in r 9(3) include the number of customers (for wholesale, the number of purchasing licensees; for retail, the number of residents), the supply intervals, and the storage facilities. This is effectively a quantity rationing mechanism that prevents hoarding or over-supply, but also limits a licensee's ability to respond to demand peaks or to hold buffer stock against supply disruptions.

Licence applicants and existing licensees. The most directly affected group is anyone seeking to supply kava commercially in a licence area. This includes natural persons, companies, incorporated associations (including Aboriginal corporations), and partnerships. The regulations impose substantial compliance costs at the application stage: four character references, a curriculum vitae, criminal history details, a certified copy of incorporation and constitution, a business plan, assets and liabilities documentation, and a harm minimisation plan (r 6). For a wholesale licence, the application fee alone is 23,000 revenue units, which at 2023 values would be in the tens of thousands of dollars. Existing licensees face ongoing quarterly reporting, three-year record retention, and compliance with individually-tailored conditions that may include trading hour restrictions and stock caps.

Residents of licence areas. The regulations affect the residents of declared licence areas in multiple ways. They are the putative beneficiaries of the harm minimisation measures. They have a statutory right to express their wishes regarding when kava may be purchased (r 9(2)(c)), though this is only one factor the Director must consider, not a veto. Residents are also the customers who must pay cash (if that condition is imposed) and who are legally limited to possessing no more than 2 kg of kava within the licence area (as stated on the entry signs). For residents who use kava traditionally or recreationally, the regulations restrict their ability to purchase in bulk, to buy on credit, and to consume kava outside the licence area.

Persons outside licence areas. The exit signs warn that possession of kava outside the licence area is illegal unless authorised by a licence, and may result in fine, vehicle seizure or imprisonment. This means that any person who lawfully purchases kava within a licence area must consume it there or risk criminal penalties for taking it out. Visitors, tourists, or temporary workers are similarly constrained. The effect is to confine kava consumption to the designated licence areas, creating a de facto prohibition outside those zones.

Indigenous communities and community organisations. Because kava use has been associated with health and social problems in some remote Aboriginal communities, the regulations are particularly relevant to those communities. An Aboriginal corporation (defined under the Corporations (Aboriginal and Torres Strait Islander) Act 2006) is treated as an "incorporated association" for the purposes of the regulations, and must provide the same level of information as any other applicant, including criminal history of committee members. This imposes a bureaucratic burden on community organisations that may have limited administrative capacity.

Suppliers and transporters. The regulations affect not only retailers but also wholesale licensees and transporters. Regulation 9(1)(c) allows the Director to specify how kava may be transported into and within the Territory, effectively controlling the logistics chain. Transporters who are not themselves licensees may be affected indirectly if they carry kava for someone without a licence.

Creditors and financial institutions. The cash-only condition (r 9(1)(f)) eliminates the possibility of credit sales, which affects any business that might have offered buy-now-pay-later arrangements. This reduces the role of financial intermediaries in the kava market and may increase the demand for physical cash in licence areas.

Newspaper publishers. Regulation 7 requires applicants to publish a notice of their application in a newspaper, with a minimum size of 2 columns by 8 cm. The notice must be approved by the Director. This imposes a cost on applicants (advertising fees) and gives newspaper publishers a small revenue stream, but also means that residents and competitors have an opportunity to object or comment.

Duties of applicants. An applicant under s 60 (new licence) or s 65 (renewal) has no absolute right to a licence; the applicant must first provide information that the Director may require under r 6. The list in r 6 is permissive: the Director "may require" any of the stated items. In practice, an applicant who wants to progress an application will need to supply all relevant information. The duties include: obtaining four written references as to character, providing a curriculum vitae, disclosing criminal history (for individuals and for directors and officers of companies and incorporated associations), producing certified copies of incorporation and constitutions, providing a business plan covering premises, vehicles, employees, transport, and purchasing arrangements, and furnishing a statement of harm minimisation measures. In addition, the applicant must publish a newspaper notice of prescribed size and obtain the Director's approval of the notice before publication (r 7(2)).

Duties of licensees. Once a licence is granted, the holder must comply with all conditions imposed by the Director (r 9(1)(g)), which may include limits on trading hours, vehicles, employees, stock quantities, and cash-only sales. Licensees must keep detailed records (r 10(1)): date and quantity of each supply, date and quantity of each sale (with the name and licence number of the purchasing licensee if applicable), and a daily stock balance. They must lodge quarterly returns within 28 days of the end of each quarter (31 March, 30 June, 30 September, 31 December) and retain records for three years (r 10(2)). Retail licensees must sell kava only in sealed, airtight, non-porous bags of 200 grams or less (r 11). They must erect and maintain entry and exit signs with specified wording, size and colour, at locations approved by the Director (r 12). The signs must be retroreflective, with white lettering on a red background.

Duties associated with packaging. Regulation 11(1) requires kava to be "packaged in sealed airtight bags made of plastic or any other non-porous material that the Director has approved". The Director must approve the material; there is no default approved material, so a licensee must seek specific approval. For retail supply, the package weight must not exceed 200 grams (r 11(2)). This duty is strict and carries no de minimis exception.

Rights of applicants and licensees. The regulations do not create any freestanding commercial rights. However, applicants have the right to have their application processed and determined under the Act. They have the right to be heard on the conditions proposed (though not explicit in the regulations, the Act's procedural fairness obligations would apply). Residents of a licence area have the right to have their wishes regarding kava purchase hours taken into account by the Director when fixing trading hours (r 9(2)(c)). This is a limited participatory right, not a power of decision.

Discretionary powers of the Director. The Director holds the right to determine conditions "necessary or desirable in the circumstances" (r 9(1)), to fix maximum stock quantities "by taking into account" specified factors (r 9(3)), to approve packaging materials (r 11(1)), and to approve sign locations (r 12(2)). These are broad, vaguely bounded discretions that give the regulator substantial control over the scope and intensity of each licensee's operations.

No right to transfer or assign. The regulations are silent on transfer of licences. Under the Act, licences are likely personal to the licensee. This means that a business that involves a licensed kava operation cannot be sold or transferred without a new application, which would trigger the full application process and fees again.

The regulations themselves do not create penalties; penalties are set out in the Kava Management Act 1998. However, the regulations specify numerous obligations that are enforceable through the Act's penalty provisions. Breach of a licence condition imposed under r 9 is likely an offence under the Act. Failure to keep records as required by r 10, failure to lodge returns, failure to comply with packaging requirements (r 11), or failure to erect and maintain signs (r 12) would each constitute a contravention of a regulatory requirement.

The enforcement mechanisms available under the Act include fines, suspension or cancellation of a licence, seizure of kava, and potentially vehicle seizure (as referenced on the exit signs). The exit sign required by r 12(1)(b)(ii) warns that possession of kova outside the licence area "may result in a fine, seizure of a vehicle or imprisonment". This indicates that the Act contains serious criminal penalties for unauthorised possession, and that vehicles used in the commission of an offence may be forfeited.

The practical enforcement burden falls on the Director (or Director-General) who may monitor compliance through the quarterly returns, through inspections of premises and records, and through the sign inspection. The Director may also require information from licensees at any time under the Act. The cash-only condition (r 9(1)(f)) is self-enforcing in the sense that it prohibits a particular payment method, but detection of credit sales would require auditing of licensee records or complaints from purchasers.

The maximum stock condition (r 9(1)(d)) is enforceable through the daily stock balance records that licensees must keep (r 10(1)(c)). If a licensee holds more than the maximum, that would be detectable from the records and also from physical inspection. The 200-gram package limit (r 11(2)) is checkable at point of sale or during transport.

There is no provision in the regulations for compounding of offences, internal review of enforcement decisions, or a defence of reasonable mistake. The Director's decisions on conditions, stock limits, and sign placements are administrative decisions that may be subject to judicial review on traditional grounds (jurisdictional error, unreasonableness, procedural unfairness), but the regulations provide no internal merits review mechanism.

The wide discretion given to the Director to impose conditions "necessary or desirable in the circumstances" (r 9(1)) means that a licensee could be subject to conditions that are not predictable from the face of the regulations. Non-compliance with such conditions is an offence, so the practical effect is that the Director can unilaterally expand the licensee's regulatory obligations after the licence is granted, subject only to the general law constraints on administrative power.

The Kava Management Regulations 1998 do not operate in isolation; they are part of a broader legislative web that includes the Kava Management Act 1998 (the parent Act), the Northern Territory's general regulatory architecture, and several Commonwealth laws.

The Kava Management Act 1998. The regulations are explicitly made under this Act. Sections of the Act are referenced throughout: s 54 (declaration of licence areas), s 60 (application for licence), s 61 (notice of application), ss 64 and 65 (grant and renewal of licences), s 83 (duplicate licence), and s 15(1)(b) (packaging requirements). The regulations flesh out the procedural and substantive details that the Act leaves to subordinate legislation. Any change to the Act would likely require consequential amendments to the regulations.

Corporations Act 2001 (Cth). The definition of "associate" in r 3 incorporates Division 2 of Part 1.2 of the Corporations Act. This is a complex web of provisions defining when persons or entities are associated, based on control, influence, and shareholdings. This means that the quantum and character of an applicant's corporate relationships must be assessed under federal law. Similarly, "company" is defined by reference to a company registered under the Corporations Act, so the regulations rely on the Commonwealth's corporate registration system.

Co-operatives (National Uniform Legislation) Act 2015 (NT). A co-operative registered under this NT Act is treated as a "company" for the purposes of the regulations. This brings co-operatives into the same regulatory category as for-profit corporations, rather than treating them as associations.

Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth). An Aboriginal corporation registered under this Commonwealth Act is defined as an "incorporated association". This places it in the same category as NT incorporated associations, not companies, which affects the information requirements in r 6(c). The distinction matters because Aboriginal corporations may have different governance structures and reporting obligations under their own Act.

Associations Incorporation Act 1963 (NT). The definition of incorporated association includes entities under this Act (now superseded by the Associations Act 2004, but the regulation still references the older Act). The reference to the 1963 Act may be outdated but is still operative until amended.

Business Names Registration Act 2011 (Cth). If a licensee operates under a registered business name, the applicant must provide a copy of the ASIC extract showing the registration (r 6(e)). This ensures consistency with the federal business names register.

Revenue units legislation. The fees in r 4 are expressed in revenue units. The value of a revenue unit is set under separate NT legislation (the Fees and Charges Act or similar). The regulations themselves do not fix the dollar amount. Applicants must consult the current revenue unit value to know the exact fee, which may change annually without amending these regulations. The 2006 and 2009 amending regulations (SL No. 33, 2006 and SL No. 34, 2009) adjusted the fee structure, reflecting changes in the revenue unit system.

Licensing and enforcement framework. Historically, the Northern Territory Licensing Commission had a role under the Act, but the 2014 Licensing (Repeals and Consequential Amendments) Act transferred functions to the Director (and later Director-General). The 2020 Act (No. 4, 2020) substituted "Director-General" for "Director" in several provisions, aligning the regulations with the current administrative structure. The interaction with general criminal law and police powers is implicit: unauthorised possession outside licence areas is an offence under the Act, and police are the likely enforcers.

Health and drug regulation. Kava is not a prohibited substance under Commonwealth law, but the NT has chosen to regulate it heavily through this licensing regime. The regulations may interact with workplace health and safety laws, food safety standards (if kava is sold as a food product), and customs controls on importation. The harm minimisation condition in r 6(i) suggests an expected interaction with public health policy, but the regulations do not specify any coordination with health authorities.

The Kava Management Regulations 1998 were originally made as SL No. 12 of 1998 and notified on 21 May 1998, commencing on the same day. Since then, the regulations have been amended on at least seventeen occasions, reflecting changes in corporate law, administrative structures, and fee regimes.

1999: Statute Law Revision Act (No. 2) 1999 (Act No. 48, 1999). This made a formal amendment, likely updating references in r 6. The amendment was consequential to other legislative changes.

2000: Amendment of Kava Management Regulations (SL No. 6, 2000). This commenced on 14 February 2000 and amended r 10 (records). The explanatory note is not provided, but the timing coincides with the Northern Territory Licensing Commission Act 1999, suggesting a transfer of administrative responsibilities.

2001: Corporations Reform (Consequential Amendments NT) Act 2001 (Act No. 17, 2001). This amended r 3 (definitions) to update the reference to the Corporations Act after the Commonwealth reforms. The definition of "associate" was likely updated.

2002: Two amending instruments. SL No. 18 of 2002 (notified 10 July 2002) and SL No. 58 of 2002 (notified 18 December 2002). The former amended r 12 (signs); the latter amended r 11 (packaging). This suggests a tightening of signage and packaging requirements.

2004: Two amending instruments. SL No. 4 of 2004 (notified 3 March 2004) repealed r 5 entirely, amended r 6, and substituted r 11. Later in 2004, the Statute Law Revision Act 2004 (Act No. 18, 2004) amended r 6 again, likely updating the reference to the Associations Act.

2006: Treasury Legislation Amendment (Revenue Units) Regulations 2006 (SL No. 33, 2006). This amended r 4 to update the fee schedule. The fees were likely adjusted for inflation or indexation changes.

2009: Fees and Charges Amendment Regulations 2009 (SL No. 34, 2009). Further amendment to r 4, again adjusting fees.

2012: Business Names (National Uniform Legislation) Implementation Act 2012 (Act No. 8, 2012). This amended r 6 to include the new business names registration requirements, replacing earlier references to the old NT business names regime.

2014: Licensing (Repeals and Consequential Amendments) Act 2014 (Act No. 44, 2014). This Act amended multiple provisions (rr 3, 6, 7, 8, 9, 10, 11, 12) to replace references to the "Director" with the "Director-General"? Actually, that substitution occurred later in 2020. The 2014 amendments were likely part of a broader restructure of NT licensing laws, abolishing the Licensing Commission and transferring functions.

2015: Co-operatives (National Uniform Legislation) Act 2015 (Act No. 13, 2015). This amended r 3 to include the new co-operatives legislation in the definition of "company", reflecting the adoption of uniform national co-operatives law in the NT.

2019: Statute Law Revision and Repeals Act 2019 (Act No. 33, 2019). This amended r 3, likely making technical corrections or updating statutory references.

2020: Licensing (Director-General) Repeal Act 2020 (Act No. 4, 2020). This was the most recent amendment, substituting "Director-General" for "Director" in rr 6, 7, 9, 10, 11, and 12. The amendment commenced on 14 April 2020, which is the consolidation date of the current version. This reflects a transfer of regulatory authority from the Director (likely a position under the old Licensing Commission) to the Director-General (a senior public servant).

General amendments: The Interpretation Legislation Amendment Act 2018 (Act No. 22, 2018) made general formal amendments to rr 1 and 3, not reflected in the table of specific amendments.

The amendment history shows a pattern of incremental adjustment rather than wholesale reform. Most amendments are technical or consequential, responding to changes in other legislation or administrative structures. The core regulatory approach has remained consistent since 1998: a licensing system with Director discretion, fee-based entry, and operational restrictions.

The regulations themselves are not a judicial decision, and the source text contains no references to any court cases. The regulations are subordinate legislation, and litigation concerning them would likely arise in the context of judicial review of a licensing decision, a prosecution for non-compliance, or a challenge to the validity of the regulations themselves.

No cases are cited in the endnotes or the body of the regulations. That does not mean no litigation has occurred, but the source provided does not disclose any. A practitioner would need to search NT Supreme Court decisions and the Local Court for cases involving the Kava Management Act.

Given the limited geographic scope of the NT kava market (a small number of licence areas in remote communities) and the practical difficulties of obtaining legal representation in those areas, it is plausible that litigation has been rare. The high cost of challenging a licensing decision relative to the value of the licence (particularly for a retail licence) would discourage appeals. The Director's broad discretionary powers are difficult to challenge on merits; a judicial review applicant would need to establish jurisdictional error, unreasonableness in the Wednesbury sense, or procedural unfairness.

Potential grounds for challenge could include: the Director imposing a condition that is not necessary or desirable in the circumstances, failing to take into account a relevant factor (such as the wishes of residents under r 9(2)(c)), taking into account an irrelevant factor, or fettering discretion by applying a policy inflexibly. The requirement to provide four character references and a curriculum vitae (r 6) could be challenged as an unreasonable burden on applicants in small communities where character referees may be scarce.

The cash-only condition (r 9(1)(f)) may raise constitutional or discrimination issues if it disproportionately affects Indigenous purchasers who may have limited access to cash. However, no cases on this point are recorded in the source.

The packaging requirement in r 11 is prescriptive, and a prosecution for selling kava in a package larger than 200 grams would be a strict liability offence under the Act. A defendant could argue that the Director had not approved the material of the bag, but that would not be a defence to the weight breach.

In summary, litigation history is absent from the source. The regulations have been in force for over two decades, so the lack of cited cases suggests either that compliance has been high, enforcement has been minimal, or cases have not been publicly reported in accessible databases. The deep dive cannot speculate beyond stating what is present in the text.

The Kava Management Regulations 1998 contain several features that could catch an unwary applicant or licensee by surprise. These are not drafting errors but deliberate structural choices that impose hidden or underestimated costs.

Fees are in revenue units, not dollars. Regulation 4 sets fees in "revenue units". The current dollar value of a revenue unit is determined under separate legislation and changes periodically. An applicant who assumes the fee will remain static may be undercapitalised. For a wholesale licence, 23,000 revenue units at, say, $1.56 per unit (a hypothetical 2023 figure) would be $35,880. The real cost can change between the date of an application and the date of payment if the revenue unit value is adjusted.

Director can require information, not automatically. Regulation 6 says the Director "may require" any of the listed items. A licensee cannot assume that providing the standard list will suffice; the Director could demand additional items not listed (since the word "including" is not used, but the list might be exhaustive? The wording is "any of the following information", which suggests the items listed are the only ones that can be required. However, the Director may also have power under the Act to require other information. A cautious applicant should be prepared to provide all the listed items even if not explicitly demanded, because the Director might later request them and delay the application.

The harm minimisation condition is not optional. Regulation 6(i) is listed among items the Director may require, but in practice, an applicant who does not provide a harm minimisation statement will likely be asked to do so, and the Director has discretion to deem the application incomplete. The content of the statement is not prescribed; the applicant must decide what measures to "support, fund or implement". This is a subjective and potentially costly obligation that goes beyond mere compliance with the regulations.

The newspaper notice must be approved before publication. Regulation 7(2) requires the applicant to provide the intended notice to the Director for approval. An applicant who publishes the notice without prior approval may have to republish, incurring double advertising costs and delay. The notice must also meet the minimum size (2 columns by 8 cm), which may be larger than standard classified ads.

Conditions can be imposed after the licence is granted. Regulation 9(1) gives the Director power to issue a licence "subject to any of the following conditions that the Director determines necessary or desirable in the circumstances". The power to impose conditions is exercised at the time of grant or renewal. However, the Act may also allow variation of conditions later. A licensee who assumes that conditions are fixed for the duration of the licence may be surprised if the Director varies them after the application process.

Cash-only is not automatic but may be added. Regulation 9(1)(f) allows the Director to impose a condition that kava be sold only for cash. This is not a default rule; it is at the Director's discretion. A retail licensee who plans to accept EFTPOS or credit cards could find that condition imposed, forcing a change in business model.

The 200 gram package limit applies only to retail supply. Regulation 11(2) states: "If kava is being supplied by a retail licensee, the kava is to be contained in packages that weigh not more than 200 grams." Wholesale licensees are not subject to this limit, but they must still use approved packaging material (r 11(1)). A retail licensee who buys from a wholesaler in bulk must repackage into 200 gram packs for sale, adding labour and material costs.

Signs must be retroreflective with specific colour and lettering. Regulation 12 specifies white lettering on a red background, with lettering size of 200 mm for the heading and 50 mm for the subtext. The signs must be erected at points approved by the Director, not merely at any entry or exit point the licensee chooses. The cost of manufacturing and installing compliant retroreflective signs in remote areas could be significant.

Record-keeping is quarterly, not monthly or annually. Licensees must lodge returns every three months, within 28 days of the end of the quarter (r 10(2)(a)). This is a frequent reporting burden compared to many other regulated goods. The records must also be kept for three years, which means storing physical or electronic records for a period well beyond the typical business cycle.

Failure to comply with any condition is an offence. Regulation 9(1)(g) includes as a condition that the licensee must comply with the Act, the regulations, and the licence terms. This means that a breach of any regulatory requirement is also a breach of licence, potentially leading to suspension or cancellation in addition to any fine.

Compliance with the Kava Management Regulations 1998 requires a systematic approach covering application, operations, record-keeping, packaging, and signage. The following steps are derived from the regulations.

Step 1: Determine the licence type and fee. First, decide whether a wholesale or retail licence is needed, or whether an application to declare a licence area under s 54 is required. Calculate the fee by multiplying the revenue unit amount in r 4 by the current value of a revenue unit. The Director may require payment with the application.

Step 2: Prepare the application package. Before lodging an application under s 60 or s 65, gather all information that the Director may require under r 6. For an individual: name, residential and business addresses, four written character references, a curriculum vitae, and criminal history details. For a company: name, directors and officers and associates, registered office and principal place of business, certified certificate of incorporation, certified constitution, certified ASIC search (showing incorporation date, addresses, directors, secretaries, shareholders), curriculum vitae for each director and officer, and criminal history for each. For an incorporated association: public officer, committee members, officers, business address, certified certificate of incorporation, certified constitution, curriculum vitae for each committee member and officer, and criminal history for each. For partnerships: a copy of the partnership agreement. For business names: ASIC extract showing registration.

Also prepare a business plan detailing premises and vehicles to be used, number of employees or agents, transport arrangements for kava into and within the Territory, and the manner of purchasing, supplying, and storing kava. Prepare a statement of harm minimisation measures or programs the applicant would support, fund, or implement. Prepare documentation of current assets and liabilities or existing and future income.

Step 3: Obtain Director's approval of the newspaper notice. Before publishing the s 61 notice, provide a copy of the intended notice to the Director for approval (r 7(2)). The notice must be at least 2 columns wide by 8 cm deep (r 7(1)). Only after approval should the applicant publish the notice.

Step 4: Lodge the application and pay the fee. Submit the completed application with all supporting information and the required fee. The application will be determined by the Director.

Step 5: Comply with licence conditions. Upon grant of a licence, review all conditions imposed by the Director. These may include trading hours and days for retail licences (r 9(1)(a) and (2)), restrictions on premises, vehicles, employees and agents (r 9(1)(b)), transport specifications (r 9(1)(c)), maximum stock quantities (r 9(1)(d) and (3)), cleanliness and sanitation of premises (r 9(1)(e)), cash-only sales (r 9(1)(f)), and any other conditions determined necessary or desirable. The licensee must also comply with the Act and the regulations as a condition (r 9(1)(g)).

Step 6: Set up record-keeping systems. Establish a system to record the date and quantity of all kava supplied (imports or purchases from other licensees), the date and quantity of each sale (including the name and licence number of the purchasing licensee for wholesale sales), and a daily balance of stock held (r 10(1)). The records must be kept in the approved form. Prepare to lodge quarterly returns within 28 days of 31 March, 30 June, 30 September, and 31 December (r 10(2)(a)). Retain all records for at least three years (r 10(2)(b)).

Step 7: Source compliant packaging. Ensure that all kava to be supplied is packaged in sealed airtight bags made of plastic or another non-porous material approved by the Director (r 11(1)). For retail supply, each package must weigh not more than 200 grams (r 11(2)). Obtain Director approval for the packaging material before using it.

Step 8: Erect signs. For a retail licence, erect retroreflective signs at each entry point to the licence area, with white lettering on a red background. The entry sign must read: "KAVA LICENCE AREA" in 200 mm lettering, and "You are entering an area where persons who are 18 years or older may purchase and consume kava in accordance with the Kava Management Plan for the area. It is illegal to possess more than 2 kg of kava in this area." in not less than 50 mm lettering. The exit sign must read: "YOU ARE LEAVING A KAVA LICENCE AREA" in 200 mm lettering, and "Possession of any kava outside this area is illegal unless authorised by a licence and may result in a fine, seizure of a vehicle or imprisonment." in not less than 50 mm lettering. Obtain the Director's approval for the points of entry and exit where signs are to be erected. Ensure signs are clearly visible to persons entering or leaving. Maintain signs in good condition (r 12).

Step 9: Ongoing compliance. Monitor compliance with all conditions, stock limits, and record-keeping obligations. Respond promptly to any direction from the Director. If the Director requests additional information, provide it within any specified timeframe. When renewing the licence under s 65, repeat the application process (including payment of the renewal fee) and be prepared to provide updated information.

Step 10: Be prepared for changes. The regulations give the Director wide discretion to impose and vary conditions. A licensee should maintain a cooperative relationship with the regulator and be ready to adapt operations if conditions are altered.