Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.

Overview of Bill

The object of this Bill is to amend the Liquor Act 1982:

(a) to enable a new class of on-licence (referred to as a small bar licence) to be
granted for premises where the predominant activity carried out is the sale or
supply of liquor for consumption on the premises and where the number of
patrons is limited to 120, and

(b) to replace the primary purpose test in relation to a licensed restaurant (namely
that the premises must operate at all times as a restaurant) with a requirement
that a licensed restaurant operates predominantly (but not exclusively) as a
restaurant and tables and chairs are provided for at least 70% of its patrons.

The amendments relating to the granting of small bar licences are designed to allow
low-impact venues to operate as licensed bars without having to operate as a business
in respect of which the sale of liquor is ancillary to some other purpose or activity
(which is the requirement that currently applies to other classes of on-licences).

The amendments relating to the basis on which restaurants can operate as licensed
premises will allow liquor to be sold and consumed in a restaurant without patrons
necessarily having to consume a meal. As a consequence, it will no longer be
necessary for restaurants to have a dine-or-drink authority to be able to sell liquor to
patrons who are not actually consuming (or intending to consume) a meal.

Outline of provisions

Clause 1 sets out the name (also called the short title) of the proposed Act.

Clause 2 provides for the commencement of the proposed Act on the date of assent
to the proposed Act.

Clause 3 is a formal provision that gives effect to the amendments to the Liquor Act
1982 set out in Schedule 1.

Clause 4 provides for the repeal of the proposed Act after the amendments made by
the proposed Act have commenced. Once the amendments have commenced the
proposed Act will be spent and section 30 of the Interpretation Act 1987 provides
that the repeal of an amending Act does not affect the amendments made by that Act.

Schedule 1 Amendments
Amendments relating to small bars
Schedule 1 [3] enables the Licensing Court to grant a small bar licence that
authorises the licensee to sell liquor for consumption on the premises only. Schedule
1 [2] defines the new class of on-licence and Schedule 1 [4] distinguishes small bar
licences from other existing classes of on-licences (eg those that relate to restaurants,
theatres or cinemas or that authorise the sale of liquor at functions).

Schedule 1 [6] specifies certain requirements that will apply to small bar licences.

The predominant activity carried out on the licensed premises must be the sale or
supply of liquor for consumption on the premises. This requirement does not prevent
other activities from being carried out on the premises, such as the provision of
entertainment or food, so long as the premises operate predominantly as a place
where people go to have a drink. Another special requirement for small bars is that
they are restricted to a maximum of 120 patrons. Schedule 1 [5] provides that a
contravention of these requirements is a breach of the conditions of the small bar
licence.

Schedule 1 [14] specifies the general trading hours for small bars and enables these
trading hours to be varied by the court in any particular case. An application for
variation of trading hours for a small bar will need to be advertised under the
regulations and local councils and the police will be able to apply for the revocation
of any variation of trading hours that has been granted by the court. Schedule 1 [20]
provides that the fee for a variation of the trading hours for a small bar is $100.

Schedule 1 [18] provides that the court must not grant an application for a small bar
licence unless the premises have proper facilities to operate as a licensed bar and
have sufficient sanitary facilities (eg toilets). The sanitary facilities may be located
away from the licensed premises in certain circumstances. Schedule 1 [24] makes it
clear that any sanitary facilities for a small bar that are located away from the licensed
premises are, when it comes to law enforcement officers exercising their power to
enter and inspect licensed premises, taken to be part of the licensed premises
concerned. Schedule 1 [30] enables regulations to be made in relation to the sanitary
facilities that are required to be provided for small bars.

Schedule 1 [19] provides that the fee for the grant of a small bar licence by the court
is $500.

Amendments relating to licensed restaurants
At present under the Act, it is a condition of a restaurant licence that the primary
purpose of the premises is to be a restaurant. Accordingly, licensed restaurants (even
those with a dine-or-drink authority) must at all times be operated consistently with
this primary purpose. As a result, licensed restaurants generally cannot sell or supply
liquor except with, or ancillary to, a meal consumed at a table.

Schedule 1 [7] replaces the primary purpose test for restaurants with a requirement
that the predominant activity carried out on the licensed premises must be the
preparation and serving of meals. Another new requirement for licensed restaurants
will be that tables and chairs must be provided for at least 70% of the restaurant’s
patrons. As a result of these changes, licensed restaurants will no longer require the
authority conferred by a dine-or-drink authority in order to sell or supply liquor to
patrons who are not eating (or intending to eat) a meal. Accordingly, the amendments
made by Schedule 1 [8]–[12], [15]–[17], [21], [22], [25]–[29] and [31] remove any
connection under the Act between restaurant licences and dine-or-drink authorities,
as well as removing various provisions relating to the primary purpose test for
restaurants. Dine-or-drink authorities will continue to be relevant only in the case of
nightclub licences.

Schedule 1 [13] repeals section 23AE of the Act which currently allows a person in
a restaurant to consume liquor away from a table so long as there is a seat at a table
for the person. The section will be redundant once licensed restaurants are no longer
required to operate exclusively as places where people are required to eat. For the
same reason, Schedule 1 [23] repeals section 88 of the Act which currently provides
for an authorisation to sell or supply liquor in the reception area of a licensed
restaurant.

Schedule 1 [1] removes definitions that are no longer required as a result of the above
amendments.

Schedule 1 [32] makes it clear that the amendments made by the proposed Act
extend to existing restaurant licences and to pending restaurant licence applications.

Note: If this Bill is not modified, these Explanatory Notes would reflect the Bill as passed in the House. If the Bill has been amended by Committee, these Explanatory Notes may not necessarily reflect the Bill as passed.

 

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