Liquor Regulation 2018

The Regulation’s reach is broad but targeted.

Licensees and applicants bear the heaviest burden. They must pay application and periodic fees (Schedule 1, cll 4–19A), lodge risk statements for relevant applications (cl 27), notify neighbours and stakeholders (cll 21–22), maintain incident registers (cl 96), ensure staff hold current competency cards (cl 63(2)), and comply with precinct conditions (Part 7). Hotel, club, small bar, on-premises and packaged liquor licensees face different periodic fee loadings (cl 10). Live music venues may obtain fee reductions but must prove sufficient performances (cl 13). Same-day delivery providers must implement age verification using TDIF-accredited or provisionally accepted providers (cll 107DA–107I), deliver training, and report data (cl 107H).

Managers and staff must hold RSA, licensee or advanced licensee endorsements depending on premises tier and trading hours (cll 63–66). Crowd controllers, bouncers and RSA marshals require RSA endorsements (cll 64–65). Failure to produce a card on demand attracts a penalty (cl 75).

Patrons and minors are protected by signage (cll 50–55A), takeaway meal limits (cl 46A), self-exclusion options (cl 107F), and prohibitions on supply to intoxicated persons or minors (Act ss 117–118, enforced via the Regulation’s training and incident regimes). Residents of tourist accommodation enjoy exemptions from precinct lock-outs (cl 100).

Training providers must obtain Secretary approval, employ qualified instructors with three or five years’ managerial experience, collect identity data, and pay per-certificate fees (cll 77–80).

Auctioneers, event organisers and producers benefit from exemptions if they meet notice and professional standards (cl 114, cl 58).

Local councils, police and health agencies receive mandatory notifications for applications (cl 21) and may make submissions (cl 30). The Secretary exercises extensive discretion over waivers, exemptions, approvals, and demerit-point orders (cll 7A, 101, 76).

Live music venues and festival organisers gain fee relief and precinct noise exemptions if they meet performance thresholds or hold approved health plans (cll 10(2)(c), 12(3A)(c), 102, Part 4 Division 7).

Airport operators and Commonwealth licence holders transition to deemed NSW licences with delayed compliance for signage and training (cl 136, Part 7AA).

The Regulation therefore touches licensees, their employees, patrons, trainers, regulators, councils, police, health bodies, cultural organisations and airport entities. Its effects are felt most acutely in the Sydney CBD Entertainment and Kings Cross precincts, where additional lock-out, ID scanner and incident-recording obligations apply (Part 7).

Licensees’ duties include:

• Paying periodic fees calculated under cl 9, with elements determined by cll 10–14. The compliance history element is 47.98 fee units per demerit point after 15 March 2022 (cl 11(1A)). Trading hours loading is 27.05 or 54.05 fee units depending on closing time (cl 12(1)). Patron capacity loading is graduated from 10.82 to 86.57 fee units (cl 14(1)).
• Ensuring all staff selling or serving liquor hold current RSA endorsements (cl 63(2)). Licensees and managers of Tier 2 premises (trading after midnight or providing adult entertainment) require advanced licensee endorsements (cl 63(3)–(4)).
• Maintaining “round the clock” incident registers in prescribed precincts and preserving violent incident scenes (cll 96–97).
• Displaying mandated signage on minors, RSA, and breath testing (cll 50–55).
• Notifying changes in interested persons within 28 days (cl 56) and resumption of trading after six weeks (cl 57).
• Complying with pop-up licence conditions: maximum 100 patrons for bars, 8 am–midnight trading, food availability (cl 48D).
• For same-day delivery providers: age verification via TDIF-accredited providers or AI document authentication, training every five years, biannual data reports, and self-exclusion registers (Part 7B).

Rights include:

• 10% processing fee discount for electronic applications (cl 4(3)).
• 5% or 10% base and trading hours fee reductions for no demerit points over three or five years (cll 10(2)(a)–(b), 12(3A)(a)–(b)).
• Up to 80% fee reduction for listed live music and performance venues that meet performance criteria (cll 10(2)(c), 12(3A)(c)).
• Waiver or refund for financial hardship or special circumstances, including natural disasters (cll 7A, 19).
• Provisional approvals for small bars and restaurants pending full determination (cll 35A–36).
• Exemption from six-hour closure for staff consumption after closing (cl 119) and for certain ETAs (cl 122).

Authority and Secretary powers are extensive: suspension or revocation of competency cards (cl 76), designation of incentivised events (cl 123), exemption from precinct conditions (cl 101), and re-assessment of fees (cl 18).

Patrons’ rights are largely protective: free water (cl 85), age verification before delivery (cl 107E), and self-exclusion (cl 107F). Minors may attend small bars with responsible adults at permitted times if the venue provides meals or holds a minors authorisation (cl 53).

All duties are enforceable by penalty notices (Schedule 6) or prosecution. For example, selling without an RSA endorsement attracts 10 or 20 penalty units depending on precinct (cl 63(1)).

Penalties are graduated. Criminal offences under the Act carry maximum penalties of 1000 penalty units for corporations and 100 for individuals (e.g. s 7 unauthorised sale). The Regulation itself creates offences with lower maxima, e.g. 50 penalty units for failing to ensure staff hold RSA cards (cl 63(2)) and 20 penalty units for failing to display minors notices (cl 50(1)).

Schedule 6 lists penalty notice amounts. Examples:

• Unauthorised sale (Act s 7(1)): $1,100.
• Licensee permitting minor in bar area (Act s 124(1)): $1,100.
• Failure to maintain incident register (cl 96 via Act s 116I): $550.
• RSA training breach (cl 63(3)): $1,100.
• Same-day delivery without age verification (cl 107I via Act s 114HA): $550.

The Authority may suspend or cancel licences (Act Part 9), impose demerit points (Act Part 9A), or make banning orders (Act s 78). The Secretary can revoke interim small bar or restaurant authorisations (cll 35C, 36(8)), suspend competency cards pending disciplinary proceedings (cl 76(4A)), and require evidence of live performances to retain fee reductions (cl 13).

Enforcement is multi-agency. Police and inspectors may demand production of competency cards (cl 75) or incident registers (cl 96(2)). Local councils receive application notifications (cl 21). The Authority hears disciplinary complaints from the Secretary, Commissioner of Police, or local consent authority (cl 125). Administrative review lies to NCAT for most decisions (e.g. cl 76(6)).

Civil penalties are rare; the regime is primarily criminal and administrative. However, licence cancellation for unpaid periodic fees (Act s 58B) followed by reinstatement fees (cl 17) creates a strong financial incentive for compliance.

The Regulation is not standalone. It expressly cross-references the Liquor Act 2007 on almost every page. Key interactions include:

• Environmental Planning and Assessment Act 1979: Development consent is a prerequisite for many applications (cll 24, 34(2)(b), 35A(1)(d)). Small bar exemptions depend on planning approval (cl 24).
• Music Festivals Act 2019: Agreed health and medical plans allow music festivals to use a single incident register (cl 102), bypassing precinct “round the clock” requirements.
• Registered Clubs Act 1976: Club licences are Tier 1 or Tier 2 depending on trading hours (cl 62(1)). Certain club premises with unrestricted hours are exempt from multi-occasion ETA risk statements (cl 27C(1)(b)).
• Gaming Machines Act 2001 and Gaming Machines Regulation 2019: Overlap on responsible gambling officers, incident registers and plans of management; the 2024 amendments render certain licence conditions redundant (cl 135).
• Crown Land Management Act 2016: Crown land applications require notification to the relevant Minister (cl 21(2)(a)(iv)).
• Fines Act 1996: Penalty notice enforcement orders trigger demerit points unless annulled (cl 11(3)–(4)).
• Trusted Digital Identity Framework (TDIF): Governs age verification for same-day deliveries (cll 107CA–107DC, 107I). Accredited identity service providers or provisionally accepted providers must be used.
• Road Transport Act 2013: Digital driver licences are evidence of age (cl 108(b)).
• Crimes Act 1900 and Crimes (Domestic and Personal Violence) Act 2007: Serious indictable offences involving violence on licensed premises can ground competency card revocation (cl 76(2A)).

The Regulation also interacts with local environmental plans via cumulative impact assessments (cl 123B, Schedule 3A) and special entertainment precinct plans that override inconsistent noise conditions (cl 130C).

Commonwealth law appears in airport provisions: Airports Act 1996 (Cth) and Airports (Control of On-Airport Activities) Regulations 2026 (Cth) trigger deemed NSW licences (cl 136).

The Regulation has been amended frequently, reflecting evolving policy priorities.

2018–2019 amendments introduced pop-up licences to activate public spaces (Part 4 Division 2A, inserted by 2019 (125)), interim small bar and restaurant authorisations to speed up entry for compliant operators (cll 35A–36, inserted by 2019 (126) and 2020 No 40), and live music support via fee reductions (cll 10(2)(c), 12(3A)(c)).

2020–2021 amendments responded to COVID-19. Clause 7A and 19 allowed fee waivers for financial hardship or natural disasters. Outdoor dining boundary changes were expedited (cl 130B, inserted by 2020 (610)). Same-day delivery rules were added (Part 7B, inserted by 2020 No 40 Sch 3.2) to support hospitality while protecting minors. Demerit point reforms shifted loading to a per-point basis (cl 11(1A), 2020 No 40 Sch 1.2). Temporary extensions of competency cards occurred during lockdowns (cl 73A).

2022–2023 amendments refined live music definitions (cl 61A, 2026 (8) and 2026 (20)), expanded airport passenger terminal exemptions (Part 7AA, 2026 (115)), and adjusted RSA renewal pathways (cl 74A). The Gaming Machines and Liquor Amendment (Harm Minimisation Measures) Regulation 2024 aligned gambling conditions with the Gaming Machines Regulation 2019, rendering some licence conditions redundant (cl 135).

2024–2026 amendments (2024 (66), 2024 (177), 2024 (254), 2026 (8), 2026 (115)) increased fee unit values via CPI, expanded live music performance thresholds, introduced AI age verification alternatives (cl 107I), and transitioned Commonwealth airport licences into the NSW regime (cl 136). These changes were driven by three policy goals: (1) economic recovery and support for live music after COVID; (2) modernisation of age verification using digital identity; and (3) alignment with planning and gambling harm minimisation regimes.

Each amendment was grounded in the source text: for example, the 80% live music reduction was substituted in 2026 (8) Sch 1[6] to encourage cultural venues.

The Regulation has generated limited reported litigation, but several controversies are discernible from its text and amendment history.

High-risk precinct conditions (Part 7) were controversial when introduced. Lock-out laws and 1.30 am or 3 am cut-offs were challenged politically and in the media as overly blunt. Clause 101 provides a safety valve for individual exemptions, but the Secretary’s satisfaction that an exemption is “unlikely to result in an increase in … alcohol-related violence” involves predictive judgment that could be judicially reviewed on reasonableness grounds (Minister for Immigration and Citizenship v Li (2013) 249 CLR 332 principles would apply). No reported cases have invalidated a precinct condition, but the “round the clock” incident register (cl 96) has been criticised for administrative burden on small bars.

Live music fee reductions have been contentious. Early versions required evidence of performances (former cl 13, repealed 2023 No 53 Sch 3[8]). The 2026 (8) re-insertion of cl 13 with a written notice mechanism suggests ongoing tension between revenue collection and cultural support. Venue operators have argued that the “sufficient live events” test is opaque; the Secretary’s satisfaction is again amenable to review but has not been litigated.

Same-day delivery rules (Part 7B) attracted industry concern about compliance costs. The shift from strict TDIF accreditation to provisionally accepted providers (cl 107DB, inserted 2021 (324)) and later AI alternatives (cl 107I, 2022 (264)) reflects iterative response to practical difficulties. No court challenges are recorded, but the five-yearly knowledge test (cl 107G(3)) and data reporting (cl 107H) impose ongoing obligations that smaller operators find onerous.

Competency card disciplinary regime (cl 76) allows revocation for serious indictable offences involving violence on licensed premises even without conviction (cl 76(2A)). The transitional provision preserving events before 1 January 2021 (cl 11(5A)) was controversial. The Authority’s power to suspend pending determination (cl 76(4A), added 2023 No 53) raises natural justice questions, although the clause requires notice and submissions (cl 76(4)).

Cumulative impact assessments (cll 123A–123B) have been criticised by industry as restricting new entrants in the City of Sydney. The prescription of the entire local government area (Schedule 3A) is broad; challenges could argue that the Authority failed to consider individual merits (Act s 72B).

Overall, the Regulation has survived without major appellate invalidation. Controversies have been resolved administratively or by amendment rather than litigation. The most likely future flashpoints are judicial review of Secretary decisions on live music reductions or precinct exemptions, and NCAT reviews of competency card revocations.

Most practitioners miss several nuances that can prove expensive.

1. Periodic fee “elements” are not all payable every year. Patron capacity loading only applies if a compliance history loading is also payable (cl 9(1)(e)). Many licensees overpay by failing to check cl 9(1) before paying the Secretary’s notice.

2. Live music reduction requires evidence on demand. Even listed venues lose the 80% reduction for the specified period if they cannot satisfy the Secretary that “sufficient live events” occurred (cl 13(5)). The notice can be issued at any time; the onus is on the licensee to keep records or declarations (cl 13(4)).

3. Interim small bar authorisations are fragile. Revocation is possible if planning approval was not subject to public consultation indicating small bar use (cl 35A(1)(e)) or if RSA training lapses (cl 35B(2)(b)). The six-hour closure for these authorisations runs from 4 am to 10 am, not the standard 4 am–10 am for full licences (cl 35B(5)).

4. Same-day delivery age verification is not satisfied by a simple statutory declaration on subsequent orders. After the first order, accredited credentials or AI document authentication is mandatory (cll 107DC, 107I). Using only a signed declaration on a second delivery breaches s 114HA of the Act.

5. Demerit point refunds are not automatic. If a conviction is overturned or a penalty notice withdrawn, the licensee must apply for a refund of the compliance loading attributable to that event (cl 11(4)). The Secretary does not proactively recalculate.

6. Tier 2 premises include karaoke bars and adult entertainment venues even if they close at 11 pm (cl 62(1)(c)). The advanced licensee endorsement is still required for the manager.

7. The “metropolitan area” for prohibiting multi-occasion ETAs is wider than Greater Sydney; it expressly includes Central Coast, Lake Macquarie, Newcastle and Wollongong (cl 128). Operators outside Sydney but within these LGAs are caught.

8. Clause 130B outdoor dining boundary changes are exempt from neighbour notification only while the temporary approval remains in force. If the development consent lapses or the use ceases to be exempt under the Codes SEPP, the exemption evaporates and full cl 21 notification is required.

9. Former community liquor licences still enjoy permanent exemptions from location risk loading, trading hours loading and patron capacity loading (cl 132(5)), but many operators have converted them to ordinary hotel licences and lost the benefit.

10. The Secretary can require evidence of performances for the previous 12 months even after the assessment date (cl 13(3)–(5)). A venue that qualified on 15 March but cannot later prove the prior year’s events may face retrospective claw-back.

These “gotchas” justify specialist advice. The Regulation rewards meticulous record-keeping and early engagement with the Secretary on exemptions.

Step 1 – Know your licence and premises. Identify whether you hold a Tier 1 or Tier 2 licence (cl 62), whether you are in a prescribed precinct (Schedule 2), and whether you qualify as a listed live music venue (cl 61A). Map your trading hours against the general late trading period definition (cl 3).

Step 2 – Maintain current competency cards. All staff who sell, supply or serve liquor, plus managers, crowd controllers and RSA marshals, must hold a recognised competency card with a current RSA endorsement (cll 63–65). Licensees and managers of Tier 2 premises need the advanced endorsement. Renew before expiry; a licensee training course can renew both RSA and licensee endorsements (cl 74). Keep interim certificates for 90 days (cl 71(2)).

Step 3 – Pay fees on time. Diary the assessment date (15 March or grant date for part-year licences). Pay by 29 May (or 60 days after notice for part-year). Late payment incurs 0.55 or 1.1 fee units (cl 16). Apply for waiver or reduction for hardship before the due date (cl 19). Retain the 5–10% good-compliance discount by avoiding demerit points (cll 10(2), 12(3A)).

Step 4 – Implement operational controls. Display all required signage at bars and entrances (cll 50–55). Keep the incident register “round the clock” in precincts and record violence, medical assistance or suspected drugs (cl 96). For same-day deliveries, integrate TDIF or AI age verification before the first order and credential authentication thereafter (cll 107DA–107I). Provide free water (cl 85). Prohibit shots and high-ABV RTDs on pop-up promotions (cl 48D(2B)).

Step 5 – Manage applications and changes. Use the NSW Government portal for notifications. For full notification applications, notify Aboriginal organisations and gambling services (cl 21(1)(b)). Fix the Authority-approved notice to premises within two working days (cl 23). Notify the Authority of changes in interested persons within 28 days (cl 56). For boundary changes to enable outdoor dining, obtain council approval first and consider provisional approval under cl 130.

Step 6 – Prepare for audits. Keep evidence of live performances for at least the period specified in any Secretary notice (cl 13). Retain incident registers for three years (cl 96(3)). Ensure training records and competency cards are available for immediate inspection (cl 75). For live music venues claiming reductions, maintain a declaration or records showing at least 10 performances per month (metropolitan) or 104 per year (regional) after 15 March 2026 (cl 61A(2)(b)).

Step 7 – Seek exemptions or reductions proactively. Apply to the Secretary for precinct exemptions if you can demonstrate alternative harm-minimisation measures (cl 101). Request listing as a live music venue under cl 61B. Apply for fee waiver on hardship grounds before the due date (cl 19(1)(a)). For music festivals, agree with the organiser to use the Music Festivals Act register (cl 102).

Step 8 – Monitor amendments. The Regulation is amended regularly. Subscribe to the NSW legislation website or Liquor & Gaming NSW alerts. Key forthcoming changes include further CPI adjustments to the fee unit (Part 4 Schedule 1) and potential tightening of airport transitional arrangements after the four-month grace period in cl 136(3).

Compliance is not a set-and-forget exercise. Licensees should maintain a compliance calendar that tracks competency card expiry, fee due dates, live performance logs, and incident register reviews. Engaging early with Liquor & Gaming NSW on complex issues (e.g. TDIF integration or live music evidence) avoids costly penalty notices or licence action. For high-risk venues, a dedicated compliance officer familiar with cll 88–102 is advisable. When in doubt, the safest course is to treat the most onerous obligation as the default; the Regulation’s numerous exemptions and discretions exist to be claimed, not assumed.