New 'bar licence' for Queensland

13 October 2009

During the process of drafting widespread reforms to the Liquor Act 1992, the potential to create a new licence type to allow small 'boutique bars' was raised. One new licence is the new 'Commercial Other – Bar Licence' ('bar licence').

The bar licence varies from other licence types primarily because other licences stipulate that the service of liquor must be ancillary to the provision of another service, matter or activity. However, under a bar licence, no food, entertainment or activity is required to accompany the service of liquor. The only requirement is that the licensed premises seat no more than 60 patrons at any one time.

The objective of this new licence type is to enable similar venues and cultural hotspots as the laneway bars which are popular in Melbourne to develop in Queensland. This is intended to add to Queensland's culture, fostering live music and allowing patrons to enjoy an alternate style of venue, away from the large-sized commercial hotels, taverns and nite-clubs.

The introduction of this new licence type has been somewhat controversial. One of the key issues in the controversy are the perceived advantages of a bar licence, given the low annual licence of $516 (compared to $2,784 for commercial hotel licences) and the absence of any requirement for food, entertainment and toilets to be on-site, which some hoteliers consider unfairly advantageous. It should be noted that bar licences are subject to the same rigorous requirements faced by other proposed licensees. These include having to satisfy council requirements to obtain approval as a licensed venue and paying high fees for trading outside standard hours (10:00am to 12 midnight), which adds considerably to the cost of holding what was intended to be a cost-effective licence.

Another issue that attracts attention is that the premises must have a maximum seating capacity of 60 persons. The Act does not provide a maximum total capacity, only maximum seating capacity, which means a premises could arguably allow 80 persons on-site, as long as there was seating for 60 only. Significantly, the Office of Liquor Gaming and Racing (OLGR) has endorsed a condition on those bar licences issued so far this year to the effect that only 60 persons, seated or otherwise, are permitted on the premises at any one time.

The process of applying for a bar licence is much the same as the procedure for applying for a commercial hotel licence.

The requirements of an application are:

Completion of the relevant application form;
Payment of the application fee ($1,031 which is separate to the $516 annual fee);
Appointment of an approved manager (which replaces the old concept of a nominee). The application fee to be endorsed as an approved manager is $365;
Criminal history checks on relevant parties, for example on the individual licensees, or directors of the proposed licensee if it will be a company, and the approved manager (currently $35.50);
Evidence that the person/s who will be in control of and operating the licence (which includes the licensee if it is an individual, and approved managers) have completed the Responsible Management of Licensed Venues course;
Evidencing the premises has town planning approval to be a licensed venue;
Lodgement of a Community Impact Statement (CIS), focusing on harm minimisation (this replaces the previous 'Public Interest Submission', and would involve drafting submissions to evidence that the premises would not adversely impact on the surrounding locality);
Lodgement of a proposed Risk-Assessed Management Plan (RAMP), which requires a licensee to identify local conditions and risks and demonstrate what practices and procedures will be/are implemented at their premises to meet the Liquor Act's objective of harm minimisation;
Advertising the proposed use of the premises;
Lodgement of ancillary documents including layout plan, location plan, proof of tenure in the premises etc.

The preparation of the application and its ancillary items, in particular the RAMP and CIS, can be difficult. It is also necessary to ensure the proposed premises has council approval to be a licensed venue. If you are considering opening a new premises and consider a bar licence may suit your needs, it is recommended that you contact Mullins Lawyers or the OLGR for assistance.

Holly Whitcroft | Solicitor
Mullins Lawyers
t +61 7 3224 0254
f +61 7 3224 0333
hwhitcroft@mullinslaw.com.au