NSW Liquor Laws

While the majority of people consume alcohol responsibly, Governments have always recognised the negative impact that alcohol can have on the community. As a result, the sale and supply of liquor is appropriately controlled, and sanctions apply where licensed venues are poorly run and irresponsible liquor serving occurs – such as intoxication (i.e. drunkenness) and minors obtaining liquor.

NSW Governing Bodies

Liquor & Gaming NSW

Liquor & Gaming NSW is responsible for the regulation and integrity of the NSW liquor industry. Through various functions, they provide leadership and strategic direction to the liquor industry through rigorous enforcement, compliance, investigative, monitoring and field education programs.

Liquor & Gaming NSW is also responsible for implementing the NSW Government’s liquor reform process and provides policy direction and advice on legislative changes to the NSW liquor laws.

Liquor & Gaming NSW works with other agencies, such as the NSW Police Force, to promote practices to help minimise alcohol-related harm. This includes the regulation and monitoring of over 15,000 licensed venues in NSW, such as registered clubs, hotels, small bars, bottle shops, restaurants, and liquor producers and wholesalers.

The Independent Liquor & Gaming Authority (ILGA)

The role of ILGA is to promote fair and transparent decision making under the Gaming and Liquor Administration Act 2007.

ILGA has functions under the gaming and liquor legislation relating to:

• Determining contentious licensing proposals,
• Determining disciplinary action taken against licensees and others, and
• Reviewing certain delegated decisions made on its behalf by liquor & gaming NSW.

In undertaking its statutory functions, ILGA must:

• Ensure it is accessible and responsive to persons it deals with,
• Promote fair and transparent decision making,
• Deal with matters in an informal and expeditious manner, and
• Promote public confidence in its decision making and the conduct of its members.

Liquor Act 2007

The Liquor Act 2007 is the primary legislation regulating the sale and supply of alcohol in NSW.

The Liquor Act has three primary objectives:

1. to regulate and control the sale and supply and consumption of alcohol in a way that is consistent with the expectations, needs and aspirations of the community;
2. to facilitate the balanced development, in the public interest, of the liquor industry, through a flexible and practical regulatory system with minimal formality and technicality; and
3. to contribute to the responsible development of related industries such as the live music, entertainment, tourism and hospitality industries. 

The law requires that each person who exercises functions under the Liquor Act (including a licensee) must have regard to the need to:

• minimise harm associated with misuse and abuse of alcohol (including harm arising from violence and other anti-social behaviour);
• encourage responsible attitudes and practices towards the promotion, sale, supply, service and consumption of alcohol; and
• ensure that the sale, supply and consumption of alcohol contributes to, and does not detract from, the amenity of community life.

The Act regulates where, when and how alcohol can be sold on licensed premises, and who can serve and consume it. It allows additional measures and controls to be applied to licensed premises on a case-by-case or precinct basis to address specific risks.

Liquor Regulation 2008

The Liquor Regulation 2008 supports the operation of the Liquor Act. The Regulation prescribes licence conditions and other requirements applying to licensed premises, including mandatory RSA training requirements.

Kings Cross and Sydney CBD

Special licence conditions apply to licensed premises in both the Sydney CBD Entertainment and the Kings Cross precinct.

The restrictions that apply to licensed premises in these precincts include:

• Lock outs and last drinks: a 1.30am lock out and the cessation of alcohol sales at 3am applies at hotels, registered clubs, nightclubs and licensed karaoke bars. Small bars (maximum 100 people), most restaurants and tourism accommodation establishments are exempt. There are also exemptions for venues offering live entertainment (to 2am and 3.30am respectively).
• Drink restrictions: Certain types of drinks must not be sold or supplied after midnight until closing, or for premises authorised to trade for 24 hours, until 7am. These include shots, drinks containing more than 50% spirits or liqueur, any ‘ready to drink’ beverage containing more than 5% alcohol, and any drink prepared on the premises containing more than 30ml of spirits or liqueur. This does not apply to small bars.

Responsibilities Under the Legislation

The responsible service of alcohol means: complying with the law by serving liquor responsibly and legally; by looking after patrons; and, by being aware of the rights of neighbours and the general community to remain undisturbed by the operation of the venue.

Licensees have an obligation under the liquor laws to:

• Minimise the harm associated with liquor abuse;
• Encourage responsible attitudes towards the sale and consumption of liquor; and
• Ensure the sale and consumption of liquor contributes to, and does not detract from, the amenity of community life.

Working in the hospitality industry carries responsibilities. Responsibility for the general public is not just the concern of the licensee. Staff can also be held accountable for their actions. This statutory training course is designed to ensure that you are aware of your role and responsibilities as well as the penalties that can arise from irresponsible service.

Knowledge of the liquor laws will help you avoid situations caused by alcohol abuse and misuse. It will also help you identify potential compliance risks at your venue, and how to take action to prevent abuses occurring.

The following individuals have responsibilities under the legislation and can face fines if they do not comply with the requirements.

• Licensee
• Manager
• Bar staff
• Security
• Hosts/Hostesses
• Glassies
• Any staff in involved in the sale of supply of Alcohol

NSW Liquor Law Updates

There have been many significant amendments made to the liquor laws over the past 20 years in response to changing community attitudes and government policy regarding the sale and supply of alcohol.

Some of the most significant changes occurred in 1996 when the liquor laws were changed to introduce ‘harm minimisation’ (i.e. minimising the harm associated with the misuse and abuse of alcohol) as one of the key purposes of the liquor laws. The move to a harm minimisation approach in the liquor laws followed increasing concern about the extent of alcohol-related crime and violence – particularly in and around licensed premises.

In 2008, a new Liquor Act commenced, further strengthening harm minimisation controls applying to the sale and consumption of alcohol.

In 2009, a new scheme was introduced that applies special conditions and restrictions on licensed premises that have high levels of alcohol-related violent incidents.

In 2012, the Three Strikes disciplinary scheme commenced to impose strikes where serious liquor law offences are committed, such as permitting intoxication and underage alcohol supply on licensed premises. Three strikes can result in loss of licence or disqualification from the industry. In late 2017, these laws were amended so that it is the licensee or approved manager that incurs a strike, not the venue.

Amendments to the liquor laws in 2012 and 2014 established a regulatory framework that imposes special conditions on licensed premises in the Sydney CBD and Kings Cross precincts. The 2014 reforms included a 1.30am lockout and 3am last drinks restriction on hotels, clubs, nightclubs and karaoke bars.

This changed in 2016 to 11pm. In late 2014, further harm minimisation reforms were introduced, including an escalating sanctions regime for selling alcohol to minors, and enabling the Independent Liquor & Gaming Authority to suspend or revoke a person’s RSA certification where a person has not met their responsible serving obligations.

In March 2015, Prevention of Intoxication on Licensed Premises guidelines were issued to assist licensees comply with the liquor laws and better manage the risk of intoxication.

A risk-based licence fee scheme was also introduced from 2015, requiring all licensees to pay an annual liquor licence fee. Venues that trade late (e.g. after midnight) or commit serious liquor law offences are required to pay additional fees to reflects the increased risk they pose to the community.

In June 2016, online refresher training was introduced so licensees and staff could refresh their RSA knowledge and skills every five years and obtain a new RSA competency card.

In December 2016, the Government responded to an independent review of the 1.30am lockout, 3am last drinks and 10pm restriction on take-away liquor sales. This resulted in a two-year trial of 2am lockouts and 3.30am last drinks times for live entertainment venues in the Sydney CBD and Kings Cross precincts, and a one-hour extension of take-away liquor sales and home deliveries until 11pm.

Further to this review additional changes were implemented from 1 October 2017, including: changes to the Three Strikes disciplinary scheme to target those that repeatedly commit the most serious offences; refreshed liquor licence conditions and an extended liquor licence freeze in the Sydney CBD and Kings Cross until 1 June 2018; certain special licence conditions for Kings Cross venues will also be removed to further reduce red tape; improved effectiveness of the Minors Sanction Scheme for venues that sell alcohol to under-18s; enhanced business flexibility for small bars in the Sydney CBD and Kings Cross precincts trading after midnight.

As liquor laws address areas of risk, there are often changes made to ensure the harm minimisation approach is relevant. These reforms support a harm minimisation approach – which emphasises responsible service and consumption of alcohol and the responsible operation of licensed premises. Harm minimisation is justified on public health and safety grounds, given the impact irresponsible alcohol consumption can have on local communities, road safety and public health.

The protection of local amenity and the probity of industry participants have been identified as important considerations associated with the sale and supply of liquor. For example, alcohol-related nuisance, violence, crime and noise disturbances could erode the quality of life for people living or working in the vicinity of venues serving alcohol.

The liquor laws therefore seek to protect the interests of local communities by protecting and improving local amenity. As a result, the laws include various public interest provisions that allow local communities, local councils, police and other stakeholders to have a say about the conduct of licensed venues.

Today, RSA training is mandatory for everyone in NSW involved in the sale and supply of liquor to the public. This includes licensees, club secretaries, serving staff and security staff working at licensed venues. There are no exemptions from undertaking the course.

This mandatory training regime also includes volunteers, promotional staff and contract employees as well as directors of registered clubs who have liquor service responsibilities.

Sanctions apply to licensees and staff in cases where RSA training has not been undertaken.

Drink Drive Limits

Under the New South Wales legislation, the limits include:

• No alcohol limit which is a BAC of below 0.05
• Low alcohol limit which is a BAC of 0.05 to 0.08
• Middle alcohol limit which is a BAC of 0.08 to 0.15, and
• High alcohol limit which is a BAC of equal to or more than 0.15

Intoxication Defined

Intoxication is defined to assist industry comply with their responsible serving obligations and enhance enforcement efforts by police and inspectors. A person is considered to be intoxicated if:

• The person’s speech, balance, coordination or behaviour is noticeably affected; and
• It is reasonable, in the circumstances, to believe that the affected speech, balance, coordination or behaviour is the result of the consumption of alcohol.

The noticeable signs of intoxication include:

• Speech – The person is slurring words, talking in rambling or unintelligible sentences, incoherent or muddled speech.
• Balance – The person is unsteady on their feet, is stumbling or bumping into people or objects, is swaying uncontrollably or cannot stand or walk straight.
• Coordination – The person may be (for example) fumbling to light a cigarette, having difficulty in counting money or paying, spilling or dropping drinks, having difficulty in opening or closing doors.
• Behaviour – The person is rude, aggressive, or offensive, is unable to concentrate or follow instructions, is boisterous or is pestering other patrons.

These guidelines recognise the need to form a reasonable belief that the person is intoxicated as a result of alcohol consumption. The guidelines also recognise that some medical conditions, disabilities or the use of drugs may cause similar behaviours without the person being intoxicated as a result of consuming alcohol.

Evidence of Age

All licensed premises must check evidence of age documentation to ensure that patrons being served or supplied alcohol are over 18 years of age. Evidence-of-age documents must be current and include a photograph of the person as well as the person’s date of birth. The acceptable evidence of age documents is:

• a NSW motor vehicle driver or rider’s licence or permit, or a licence or permit issued by another state or territory or under the law of another country;
• a NSW Photo Card;
• a proof of age card issued by a public authority of the Commonwealth or of another state or territory; or
• an Australian or foreign passport.

Checklist for evidence of age:

• Check the photo does it match the person?
• Check the birth date does it confirm the person is over 18 years?
• Check for any alterations have any numbers been altered particularly the last digit of the date of birth?
• Check the hologram for the NSW driver licence and photo card.

Staff should refuse admission to anyone if they are suspected of using false evidence of age documents. If in doubt, ask for a secondary form of ID which could include a:

• Corporate ID card;
• Current credit card; or
• Current entitlement card issued by a state or commonwealth government department – e.g. Medicare Card.

NSW License Types

liquor licence is generally required where alcohol is sold. Limited exemptions apply, including where alcohol is sold by non-profit organisations at certain fundraising events. However, RSA requirements still apply to these events, including the need for persons serving alcohol to be RSA trained.

Liquor licence applications are determined by both the Independent Liquor & Gaming Authority board and Liquor & Gaming NSW.

Liquor licences are issued in the following categories:

Trading Hours

Alcohol can only be sold and supplied at times authorised by law. See table below.