Liquor Control Reform (Prohibited Supply) Regulations 2025

The Regulations introduce a regulatory approach based on defining prohibited product attributes and packaging forms rather than creating licensing conditions or administrative standards. Core concepts in the instrument are these:

• Prohibition-by-attribute: Several bans are triggered by specific product attributes. For milk-containing products the trigger is milk fat content less than 2% (regulation 5). For vapour products the trigger is an equivalence test to a liquid beverage with alcohol content > 0.5% ABV at 20° C (regulation 6). For dry concentrated products the trigger is the product form (dry, soluble, concentrated substance) with examples (regulation 8(1)-(2)).

• Prohibition-by-packaging: Two prohibitions target packaging. One bans supply of liquor in "flexible tubes", which the instrument defines narrowly (regulation 7(2)). Another bans supply of liquor packaged so that the container's appearance could reasonably be mistaken for a children's toy (regulation 9). The toy‑appearance ban is fact-specific and draws on a reasonableness standard.

• Scope words: The operative phrase in most provisions is "A person must not supply" (regs 5-9). The Regulations use supply-related qualifiers in some provisions: "for consumption off licensed premises" (reg 5(1)); "for consumption on licensed premises ... in a sealed container" (reg 5(2)); and "by retail" (reg 8(1)). Other prohibitions (regs 6, 7, 9) have no further qualifiers attached to "supply".

• Penalty unit framework: Each prohibition attracts a penalty of 30 penalty units (regs 5-9). The Explanatory details explain the legislative mechanism for translating penalty units to dollar amounts under the Sentencing Act 1991 and Monetary Units Act 2004, noting the 2025-26 penalty unit value of $203.51 and that amounts may be rounded to the nearest dollar (Explanatory details).

• Interaction with interpretation rules: The Endnotes reproduce aspects of the Interpretation of Legislation Act 1984 (ILA) about style, headings, and the legal status of examples, diagrams and notes. That material makes clear that, for instruments made after 1 January 2001, headings and examples are part of the Statutory Rule (Endnotes, Interpretation section). At the same time the Endnotes reiterate that explanatory memoranda and other post-text material do not form part of the Statutory Rule (Endnotes, "Other material").

• Temporal limits: The Regulations commence on 14 December 2025 and will sunset on 2 December 2035 (regulation 3; Endnotes).

Taken together, the Regulations are a product-form and packaging-focused prohibition regime with criminal penalties (monetary) tied to the penalty unit regime, limited definitional material, and no express administrative enforcement or compliance regime in the text of the instrument.

The Regulations use broad language,"A person must not supply",so the immediate legal duty falls on any person who supplies the forbidden items (regs 5-9). That language captures a broad set of actors in the alcoholic beverages supply chain. From the instrument itself, affected actors include, concretely:

• Retailers and persons who supply liquor "by retail" (explicitly referenced in regulation 8(1)), who are directly prohibited from retailing dry, soluble, concentrated substances containing liquor.
• Suppliers who sell liquor "for consumption off licensed premises" (regulation 5(1)), which will include off‑premises retailers, bottle shops, packaged liquor sellers, and any person who supplies take-away alcohol.
• Persons supplying liquor "for consumption on licensed premises" in sealed containers (regulation 5(2)), which applies to suppliers to hospitality venues, bars and other licensed premises if the supply involves a sealed container of low‑fat milk product liquor.
• Manufacturers, importers and packagers involved in producing or packaging the defined product types or using the banned container forms (regs 6-9). The prohibition on flexible tubes (regulation 7) and toy‑like packaging (regulation 9) reaches manufacturers and brand owners who choose packaging formats.
• Distributors, wholesalers and logistic operators: where the prohibition uses general "supply" language without a retail qualifier (regulations 6, 7 and 9), those who supply or move products through the supply chain could be within scope depending on their commercial role.
• Licence-holders and venue operators: the prohibition in reg 5(2) addresses supply on licensed premises in sealed containers, so venue operators and their suppliers must attend to the container form of alcoholic low-fat milk products supplied on site.
• Product developers and formulators: the rule on milk fat percentage (regulation 5) and the prohibition on dry soluble concentrated forms (regulation 8) affect product formulation choices, particularly for novel or hybrid beverage products.

The instrument is not framed as limited to persons who hold a liquor licence; its language is universal ("a person must not supply"). The text of the Regulations therefore treats "supply" as the operative act, and any person who undertakes that act in relation to the named products is the object of the prohibition. The Regulations do not state exclusions, exemptions, or carve-outs within their text, nor do they set out any administrative exemption application process.

Consequently, practical affected categories derive from the regulated acts and qualifiers in the text: off-premises suppliers, on-premises suppliers (for sealed containers of specified milk‑fat products), retail suppliers of dry concentrates, packagers using flexible tubes or toy‑like containers, and any person handling or presenting liquor as a vapour that would convert to >0.5% ABV liquid equivalent at 20° C.

Key statutory duties in the Regulations are categorical and negative: persons must not supply the enumerated classes of product. The duties are located in regulations 5 through 9. Specific statutory duties include:

• Do not supply off-premises liquor containing milk products with less than 2% milk fat (regulation 5(1)). This places a duty on suppliers to ensure products sold for off-premises consumption meet or exceed a 2% milk fat threshold, or else not be supplied.
• Do not supply on-premises liquor that contains milk products with less than 2% milk fat if supplied in a sealed container (regulation 5(2)). The duty here is narrower (applies to sealed-container supplies on licensed premises).
• Do not supply liquor that is a vapour which, if considered as a liquid, would have alcohol content greater than 0.5% by volume at 20° C (regulation 6). The duty requires assessing vapour products against an equivalence test.
• Do not supply liquor in a flexible tube (regulation 7(1)). The instrument defines "flexible tube" as a flexible metal, plastic or laminate cylindrical container sealed permanently at one end and having a cap at the other (regulation 7(2)). Duty: avoid using that packaging format for supplying liquor.
• Do not supply by retail liquor that is a dry, soluble, concentrated substance (regulation 8(1)). The Regulation expressly lists inclusive examples,powders, crystals, capsules and tablets (regulation 8(2)),to indicate scope.
• Do not supply liquor packaged so that the container's appearance could reasonably be mistaken for a children's toy (regulation 9). Duty: avoid toy-like container designs.

Rights: the Regulations do not articulate express statutory rights (for example, rights to appeal, rights to administrative review, or rights to seek exemptions) within their text. They do not set out procedural protections or remediation processes. Because the instrument is silent on those procedural mechanisms, any rights to challenge enforcement or seek relief would be governed by the broader statutory framework under which the Regulations sit,the parent Liquor Control Reform Act 1998 and general administrative law,none of which are detailed in the text of the Regulations themselves.

Compliance duties are framed as absolute prohibitions, and each contravention attracts a fixed monetary penalty (30 penalty units) (regs 5-9). The explanatory material shows how penalty units convert to dollar amounts under the Monetary Units Act 2004 and notes the Sentencing Act 1991 as the source for the meaning of "penalty unit" (Explanatory details). The text does not create tiered penalties, warning notices, or administrative penalties within the Regulations themselves.

Operational consequences for duty‑holders derive from the specific qualifiers in the duties: for example, reg 8 targets retail supply of dry concentrates, so a supplier that sells such goods wholesale but does not sell them by retail may be outside the literal wording of reg 8 while remaining inside other provisions; reg 5 separately distinguishes on‑premises sealed container supplies from off‑premises supply. Those textual distinctions create different compliance obligations for different supply modes.

Penalty structure

• Each prohibition (regs 5-9) carries the same monetary penalty: 30 penalty units (see each regulation’s penalty statement). The Explanatory details direct that penalty units are to be interpreted under the Sentencing Act 1991 and converted to dollar amounts under the Monetary Units Act 2004 (Explanatory details). The explanatory text lists the penalty unit value for the financial year starting 1 July 2025 as $203.51 and notes rounding to the nearest dollar and the Treasurer’s role in fixing future values (Explanatory details).

Calculation mechanism and public notice

• The Monetary Units Act s 7 is cited for the method of calculation, and the explanatory notes state that the Treasurer must publish the value of a penalty unit for each financial year in the Government Gazette and a Victorian newspaper before 1 June in the preceding financial year (Explanatory details). That is the statutorily anticipated method for converting the 30 units into an enforceable dollar amount each year.

What the Regulations do not set out

• The Regulations do not specify enforcement mechanisms, investigative powers, seizure or forfeiture processes, injunctive remedies, suspension of sale powers, administrative expiation options, or prosecution procedures within their text. They also do not name an enforcement agency, inspectorate, or prosecuting authority. The instrument therefore provides the offence and the penalty quantum but leaves the specifics of enforcement procedure to the broader statutory framework (for example, the parent Act or other enforcement laws), none of which are contained in the Regulations themselves.

Implications of silence on enforcement procedure

• Practically, enforcement will require an agency to interpret and apply the prohibitions, choose whether to prosecute, and prove the elements of the particular offence. The Regulations’ text does not set evidentiary standards, nor does it prescribe technical testing methodologies for, for example, measuring milk fat percentage or the liquid-equivalent alcohol content of a vapour. Those evidential and procedural matters therefore must be supplied from the parent Act, relevant enforcement regulations, or prosecutorial practice.

Monetary exposure and calculation example

• Using the explanatory note figure, a contravention in the 2025-26 financial year would attract a 30 unit penalty calculated at $203.51 per unit, before rounding (30 × $203.51 = $6,105.30, rounded per the explanatory note rules). The explanatory material is explicit about this conversion mechanism (Explanatory details).

Criminal or regulatory character

• The Regulations use the phrase "Penalty: 30 penalty units" at the foot of each prohibition. The instrument does not label the offences as summary, indictable, or regulatory with a particular enforcement regime; those characterisations are matters for the parent Act and relevant prosecutorial frameworks.

Careful reading of the text is essential for enforcement practitioners: the instrument’s differing qualifiers (for example, "by retail" in regulation 8 and the sealed-container/ licensed-premises distinction in regulation 5) will affect who may be prosecutable and under which provision. Because the Regulations do not set out enforcement or evidential rules, practitioners will need to locate those mechanisms in the Liquor Control Reform Act 1998 and ancillary enforcement legislation and policies.

The Regulations identify several primary statutory touchpoints directly in their text and endnotes. Those interactions and structural relationships, as stated in the instrument, are:

• Authorising Act: The Regulations are made under s 118B of the Liquor Control Reform Act 1998 (regulation 2). Consequently, the validity, scope and operation of the Regulations depend on the powers granted by that provision of the Liquor Control Reform Act.

• Penalty units and sentencing law: The Regulations impose penalties by reference to penalty units, and the Explanatory details direct users to the Sentencing Act 1991 for the meaning of "penalty unit" (Explanatory details). Therefore the dollar value of the penalties is a function of sentencing and monetary‑unit law.

• Monetary Units Act 2004: The Explanatory details state that the amount of the penalty is to be calculated in accordance with section 7 of the Monetary Units Act 2004, and the Treasurer sets the value for future years under section 5 of that Act (Explanatory details). The Explanatory details also note publication requirements for the penalty unit value.

• Subordinate Legislation Act 1994 (sunsetting): The Endnotes state that these Regulations will sunset ten years after the day of making (2 December 2035) under s 5 of the Subordinate Legislation Act 1994 (Endnotes). That sets an automatic temporal limit unless the sunset date is altered under the Subordinate Legislation Act processes.

• Interpretation of Legislation Act 1984 (ILA): The Endnotes reproduce rules from the ILA about the legal status of headings, examples, diagrams and notes in statutory rules made after 1 January 2001 (Endnotes, Interpretation). That matters for statutory construction: headings and the listed examples/diagrams in the Regulations are part of the legislative text, while explanatory memoranda and other endmatter are not (Endnotes).

Material expressly stated not to form part of the rule

• The Endnotes state that explanatory memoranda, tables of provisions, endnotes, indexes and other printed material after the Endnotes do not form part of the Statutory Rule (Endnotes). That distinction is important for lawyers: the Explanatory details and other post-text material may assist interpretation, but they are not part of the operative statutory language.

Consequences of the document’s interactions

• Because the Regulations rely on external statutes for penalty definition and monetary conversion, enforcement and penalty quantum are governed by those statutes' procedures and publication regimes. Because the parent Liquor Control Reform Act is the authorising instrument, definitions and enforcement mechanisms not present in the Regulations (for instance, the meaning of "supply", or inspector powers and prosecutorial procedure) must be sought in that Act or other enforcement legislation.

Limitations on interplay asserted in the Regulations

• The Regulations do not themselves modify licensing conditions or grant administrative powers; they are narrow subordinate legislation focused on product- and packaging-based prohibitions. Where cross-cutting enforcement, licensing consequences, or administrative sanctions are required, they will be mediated by the parent Act and other enforcement instruments.

In sum, the Regulations are a subordinate instrument that sets out offences and penalties that operate in the legal ecosystem composed of the Liquor Control Reform Act 1998, the Sentencing Act 1991, the Monetary Units Act 2004, the Subordinate Legislation Act 1994, and the Interpretation of Legislation Act 1984; the Regulations rely on those statutes for authorisation, penalty meaning and unit valuation, and for interpretation rules such as whether examples form part of the rule.

The Regulations include two short, explicit historical statements:

• Revocation of the 2015 Regulations: Regulation 4 expressly revokes the Liquor Control Reform (Prohibited Supply) Regulations 2015. The Endnotes confirm the 2025 instrument was made on 2 December 2025 and came into operation on 14 December 2025 (Endnotes).

• No subsequent amendments: The Table of Amendments section states there are no amendments made to the 2025 Regulations by statutory rules, subordinate instruments or Acts (Endnotes, Table of Amendments). That indicates Version No. 001 is the current and sole version at the time of this document.

Sunset and duration

• The Endnotes note the Regulations will sunset ten years after making (2 December 2035) under s 5 of the Subordinate Legislation Act 1994 (Endnotes). That establishes a legislated end date unless the Subordinate Legislation Act procedures are used to extend, remake, or replace the instrument.

Style and interpretation amendments

• The Endnotes reproduce authorised style changes under the ILA and set out that headings, examples, diagrams and notes included in a Statutory Rule made after 1 January 2001 form part of that Statutory Rule (Endnotes). That is not an amendment history per se, but it is historical to the legislative drafting framework that applies to the instrument. The Endnotes also specify that other material printed after the Endnotes does not form part of the Statutory Rule.

No recorded incremental changes or schedules

• The Table of Amendments explicitly records there are no amendments to the Regulations. There are no schedules, transitional provisions or amendment notes inside the body of the instrument. Any future amendment would be recorded as a statutory rule or subordinate instrument in the usual way.

For practitioners tracking versioning or preparing compliance roadmaps, the document is new regulatory material that replaced an earlier 2015 instrument, carries no subsequent amendments, and contains a sunset date requiring legislative attention or renewal before 2 December 2035 if the prohibitions are to be kept beyond that date.

The Regulations include no litigation history, and no cases are cited in the instrument. The Table of Amendments and Endnotes do not list any judicial decisions or constitutional challenges. The text does not record any declaratory statements about prior interpretation by courts or tribunal decisions.

Because the Regulations are a new subordinate instrument (Version No. 001) revoking the 2015 Regulations, there is no internal record in the instrument of any judicial review, prosecution, or administrative determination under these exact provisions. The Endnotes also do not provide any enforcement or prosecution statistics.

Practitioners should therefore treat these Regulations as untested in litigation on their face. That has practical consequences:

• The concept-based and packaging-based prohibitions (for example, "could reasonably be mistaken for a children's toy" in regulation 9 and the milk-fat percentage threshold in regulation 5) are likely to generate fact‑based disputes if enforcement action is taken. The Regulations themselves do not contain technical testing or evidentiary standards for determination.
• Because the text sets out no administrative enforcement mechanism, litigation could arise on jurisdictional or procedural grounds, for example, about which body has authority to enforce, the standard of proof required, or the admissibility of particular technical tests used to measure milk fat or liquid-equivalent alcohol content of a vapour.

No cases are named in the instrument; practitioners must therefore look to future enforcement practice and case law under the parent Liquor Control Reform Act 1998 and the prosecutions that may follow to see how courts interpret the product and packaging phrases used here.

The Regulations contain several drafting features and evidentially sensitive points that create practical compliance and enforcement risks. These are matters to watch, grounded in the text:

• Undefined key terms in the Regulations themselves: The instrument does not define "supply", "milk products", "sealed container", "liquor" (beyond its own use), or "children's toy". As a result, determining the perimeter of the prohibitions will require reference to definitions in the parent Liquor Control Reform Act 1998 or other statutes, which the Regulations do not reproduce. The absence of local definitions in the instrument means parties must check the parent Act for statutory definitions.

• Different qualifiers produce different scopes: The legislative text uses supply qualifiers inconsistently. For example:

  • Regulation 5(1) prohibits supply for consumption off licensed premises (targeting off-premises sales).
  • Regulation 5(2) prohibits supply for consumption on licensed premises only if the liquor is in a sealed container.
  • Regulation 8 prohibits retail supply of dry, soluble concentrated substances, not wholesale supply. These textual differences create compliance distinctions. For example, a wholesale supplier of dry alcohol concentrates might not be caught by reg 8's "by retail" wording, though they could be impacted by other provisions, depending on the facts.

• Subjective standard for toy‑like packaging: Regulation 9 uses the standard "the appearance of which could reasonably be mistaken for a children's toy." The reasonableness test is fact-dependent. Neither objective criteria nor a prescriptive list of toy characteristics is provided. That invites disputes about what is "reasonably" mistaken and could produce inconsistent enforcement until courts or administrative bodies provide guidance.

• Measurement and testing gaps:

  • Regulation 5 turns on milk fat percentage ("less than 2% milk fat") but provides no testing protocol, sample size, or chain-of-custody requirements.
  • Regulation 6 uses an equivalence test for vapour products ("that would as a liquid be a beverage with an alcohol content greater than 0.5% by volume at a temperature of 20° Celsius") but does not specify laboratory methods for converting vapour formulations to liquid-equivalent ABV. The absence of testing methodology is a practical gap for prosecutions and for suppliers seeking to verify compliance.
  • There is no express tolerance band or permitted labelling regime for borderline products.

• Narrow definition of "flexible tube" could be litigated: Regulation 7(2) defines "flexible tube" narrowly as a flexible metal, plastic or laminate cylindrical container sealed permanently at one end and having a cap at the other. Packaging that is visually similar but structurally different (for example, soft pouches, squeezable bottles with a sealed nozzle) might fall into grey areas, and enforcement depends on literal characterisation.

• Explanatory material is not part of the rule: The Endnotes remind that explanatory memoranda and other post-text material do not form part of the Statutory Rule (Endnotes). Practitioners should not rely on the Explanatory details as operative law; they can assist interpretation but are not itself statutory language.

• Lack of exemption or transitional relief: The instrument contains no transitional provisions or exemptions. Products already in the market, shipped in, or contracted for before commencement are not addressed in the Regulations; parties must manage stock and contractual obligations with that silence in mind.

• Enforcement agency and procedure not specified: The Regulations do not name an inspectorate, nor do they set out powers to seize, recall or require modification of packaging or labels. That leaves open questions about how and by whom the prohibitions will be policed and whether administrative remedial options exist. The Explanatory details do not cure that silence.

• Sunset clause: The instrument will sunset on 2 December 2035 (Endnotes). That creates a planning horizon for affected businesses; however, the Regulations do not indicate whether renewal is likely, what review evidence will be considered, or whether a compliance transition is anticipated.

These points are operationally significant for suppliers, packagers and retailers. They also indicate where legal argument is most likely to arise: definition and scope of "supply", the interpretation of packaging appearance standards, the admissibility and method of technical testing, and the boundary between retail and non-retail supply activity.

The Regulations create strict prohibitions and very limited in‑instrument procedural detail. A compliance programme should therefore be concrete, documentable and precautionary. Practical steps grounded in the text include:

1. Product audit and classification

   • Compile an inventory of all alcoholic products supplied, manufactured, imported, distributed or retailed.
   • For each product, record whether it:
     • Contains milk products and, if so, the milk fat percentage (regulation 5).
     • Is supplied in sealed containers on licensed premises (regulation 5(2)).
     • Is a vapour product (regulation 6) and, if so, whether it would be equivalent to a liquid beverage >0.5% ABV at 20° C.
     • Is packaged in a "flexible tube" as defined (regulation 7(2)).
     • Is a dry, soluble, concentrated substance supplied by retail (regulation 8(1)-(2)).
     • Is packaged so that the container appearance could be reasonably mistaken for a children's toy (regulation 9).

2. Technical testing and supplier declarations

   • Obtain independent laboratory analysis for milk fat percentage for milk-containing products. Document the testing methodology, date, sample provenance and chain of custody. The Regulations specify the threshold (<2% milk fat) but not the test method; use industry-standard testing methods and retain certificates.
   • For vapour products, obtain technical advice and laboratory analysis on liquid-equivalent alcohol content at 20° C. Document the conversion method used and any assumptions; retain lab reports and method statements.
   • For dry concentrates, confirm product form and solubility characteristics; secure manufacturer declarations that products are not intended or marketed as dry, soluble, concentrated liquor when sold by retail.

3. Packaging and labelling controls

   • Remove or redesign any packaging that fits the "flexible tube" definition (flexible metal, plastic or laminate cylindrical container sealed permanently at one end with a cap at the other) or that might be arguable as such. Use rigid bottles or other clearly non-flexible designs where necessary.
   • Review packaging aesthetics and engage consumer testing or design reviews to reduce risk of a "reasonable person" mistaking the container for a children's toy. Avoid bright colours, toy-like shapes, cartoon characters or play-appeal devices on containers intended for alcohol.
   • For sealed-container supplies to licensed premises, review how products are supplied and consider supplying unsealed formats on premises or altering product formats to avoid the prohibition in regulation 5(2).

4. Supply‑chain contracting and sales-channel controls

   • Amend supplier and distribution agreements to require compliance with the Regulations and to obtain indemnities or warranties that products supplied are not prohibited by regs 5-9.
   • Include representations and warranties from manufacturers and importers on formulation, packaging, and lab test results.
   • For platforms and retailers, put criteria into listing policies to refuse listings of products that appear to fall within the prohibitions.

5. Staff training and point‑of‑sale controls

   • Train purchasing, compliance and store managers on the prohibited classes, emphasising the supply qualifiers (retail vs wholesale; on-premises sealed container distinctions).
   • Implement point-of-sale alerts and shelf labels that flag products under review or subject to voluntary withdrawal pending confirmation.

6. Record-keeping and evidence retention

   • Keep testing records, supplier declarations, labelling proofs, packaging mock-ups, sales records and correspondence demonstrating proactive compliance steps. The Regulations themselves provide only an offence and penalty, not specified defences; documented due diligence supports mitigation and defence in enforcement proceedings.

7. Remediation and stock management

   • Identify stock on hand at the date of commencement (14 December 2025) and decide whether to destroy, export, convert or retask prohibited products. The Regulations offer no transition; plan to avoid supply of prohibited items from the commencement date.
   • Where contractual obligations exist to supply products that will become prohibited, seek commercial renegotiation with counterparties; consider inventory buy-back arrangements.

8. Legal and regulatory liaison

   • Consult the Liquor Control Reform Act 1998 and other relevant statutes to understand definitions (for example, the legal meaning of "supply" and "liquor") and enforcement powers not in the Regulations.
   • Consider early contact with local regulatory agencies (where known) for guidance on acceptable testing methods or design guidelines if available, though the Regulations themselves do not provide such guidance.

9. Risk allocation and insurance

   • Review product liability and regulatory insurance policies to ensure coverage for enforcement fines, recalls, and defence costs. Update contractual indemnities with suppliers and customers.

10. Pre-market review for new products

• For new formulations or packaging concepts, require pre-market legal and technical sign-off including lab tests, packaging reviews and confirmation that the proposed product does not fall within regs 5-9. Maintain contemporaneous records of risk assessment.

These compliance steps are precautionary measures responding to statutory prohibitions in the Regulations. Because the Regulations do not set out technical testing protocols, enforcement procedures, or administrative remedial mechanisms, those subject to the prohibitions should adopt conservative, well-documented approaches and seek specialist legal and scientific advice where factual questions are complex (for example, conversion of vapour formulations to liquid-equivalent ABV). Documentation of due diligence is the primary practical protection against monetary penalties in this statutory context.