New South Wales - The Major Licence Types
Starting a hospitality business in NSW can be quite overwhelming. Among the many hoops that new hospitality business owners need to jump through, obtaining a liquor licence is one of the most important steps.
What follows is a list of the main licence types one can apply for.
Small Bar Liquor Licence
If a cosy corner bar is what you’re looking to create, a Small Bar Licence might be just what you’re looking for. It’s designed for venues that place a heavy focus on atmosphere, conversation, and good drinks. The most notable restriction for this type of licence is that it is for bars that hold a maximum of 120 patrons without gaming machines.
A Small Bar Licence allows you to:
- Serve alcohol for consumption on your premises
- Allow up to 120 patrons through the door at a time
- Sell alcohol for both on-site and off-site consumption (in certain circumstances)
- Offer entertainment to your patrons
- Trade during standard trading hours (10am-12am, Monday to Sunday). You can even apply for a two-hour extension
Hotel Liquor Licence
If a pub, hotel, or large bar is more your style, a Hotel Liquor Licence would likely be right for you. This type of licence offers some of the most flexible permissions in NSW. Under this licence you’ll be able to sell alcohol for consumption on and off the premises, operate gaming machines, and host functions.
A Hotel Liquor Licence allows you to:
- Sell alcohol to the public for consumption on your premises
- Offer takeaway alcohol sales
- Operate gaming machines
- Sell alcohol at functions held away from your premises (with additional approval)
- Provide entertainment
This licence type is subject to the submission of a Statement of Risks and Potential Effects. The flexibility and style of trade afforded by this licence type invites further assessment from Liquor & Gaming New South Wales. While certainly attainable, an application for this licence is more complex, will take longer and requires well written submissions.
General Bar Liquor Licence
If you want a “no-frills” bar focused on serving drinks on-site, without the extra features such as takeaway sales or gaming machines, a General Bar Licence could be the one. This type of licence keeps the focus centred on your patrons enjoying drinks at your venue.
A General Bar Liquor Licence allows you to:
- Sell alcohol to the public for consumption on the premises. This is the main purpose of a General Bar Licence.
General Bar Licence restrictions:
- No takeaway alcohol sales
- No gaming machines
- Your venue must be open to the public, not run as a private club
- Free drinking water must be available when alcohol is served
- Food must be available whenever alcohol is being sold on the premises
On-Premises Liquor Licence
If the main focus of your business is not alcohol, and your primary service is food, entertainment, or accommodation, an On-Premises Liquor Licence might be what you’re looking for. This licence allows you to serve alcohol as a complement to your main offering.
This style of licence is best suited to business such as:
- Restaurants and cafes
- Live music, arts, or cultural event venues
- Cinemas, theatres, and art galleries
- Accommodation venues, including motels or B&Bs with more than eight guests
- Catering services
An On-Premises Licence allows you to:
- Sell alcohol for consumption on your premises, as long as another product or service (such as food, entertainment, or accommodation) is also being provided to patrons
- Allow under-18s on the premises, provided all rules regarding minors are strictly followed
Club Liquor Licence
Running a registered club makes you eligible for a Club Liquor Licence and will allow you to serve alcohol to your members and their guests, both on your premises and, on occasion, off-site. This licence is commonly used by RSL clubs, bowling clubs, and golf clubs
A Club Licence allows you to:
- Sell alcohol to members and their guests fore consumption on the premises and, where applicable, off-site
- Operate gaming machines (with separate approval)
Producer / Wholesaler Liquor Licence
If you intend on making or distributing alcohol, a Producer / Wholesaler Licence allows you to sell liquor wholesale to other licence holders. This licence also allows producers, such as breweries and distilleries, to conduct tastings, sell their products by retail at industry shows and farmers’ markets, and sell the product by retail to the public.
On the other hand, wholesalers don’t qualify as producers and are only permitted to sell liquor wholesale to businesses or individuals with a liquor licence, such as restaurants, bottle shops and pubs.
Producer / Wholesaler Liquor Licence allows:
- Liquor producers to sell wholesale to other licence holders, conduct tastings, sell their product at industry shows and farmers’ markets, and even sell directly to the public online or from their licensed premises
- Wholesalers who don’t produce liquor can only sell wholesale to businesses or individuals with a liquor licence, such as restaurants, bottle shops, or pubs.
Packaged Liquor Licence
If you plan to open a business that focuses on selling alcohol for customers to enjoy off-site like a bottle shop or an online liquor store, a Packaged Liquor Licence is what you need.
A Packaged Liquor Licence allows you to:
- Sell alcohol to the public for consumption away from your premises
- Sell alcohol to your employees for off-premises consumption
- Hold tastings on your premises, either free or for a fee
- Sell alcohol both to the public and to wholesale customers who hold a liquor licence
Businesses that aren’t eligible for this licence include:
- Service stations
- Takeaway goods shops
- General stores (including convenience stores, mixed businesses, or milk bars) that primarily sell groceries
- Storage units or self-storage facilities
This licence type is subject to the submission of a Statement of Risks and Potential Effects. The flexibility and style of trade afforded by this licence type invites further assessment from Liquor & Gaming New South Wales. Whilst certainly attainable, an application for this licence is more complex, will take longer and requires well written submissions.
Microbreweries & Small Distilleries Liquor Licence
If you run a small brewery or distillery and want your customers to enjoy your drinks on-site, you may be eligible for a “drink on-premises” authorisation. This licence is designed for small-scale producers of beer, cider, and spirits
A Microbreweries & Small Distilleries Liquor Licence allows you to:
- Serve your products in full, not just tastings
- Sell wine produced elsewhere for consumption on site (subject to conditions)
- Application fees are reduced, reflecting the smaller scale of these businesses
It must be noted that the requirement for a Statement of RIsks and Potential Effects can be asked for in any of the above liquor licence applications. We have highlighted a couple, but LGNSW can ask for further submissions on a case by case basis.
Aside from these licences that we’ve outlined, there are other less mainstream licences that could be applicable to your hospitality business. If you are unsure of whether these licence are the right fit for the business you’re looking to run, reach out to us. We’re here to help guide you in the right direction.