Liquor & Gaming Specialists

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Updates to Approved Manager Requirements

The Liquor and Gaming (Red Tape Reduction) and Other Legislation Amendment Bill 2013 will, among other things, make certain adjustmentsto the requirements with respect to approved managers. Most of the changes are achieved by adding to the existing approved manager provisions a requirement that in addition to being an approved manager the relevant person must also be an employee of the licensee. This is of significance when one considers that compliance with the approved manager requirements for many venues is often achieved using a director of the licensee company, or contracted third parties.

According to the explanatory notes, the intention of the amendment is "to ensure that an approved manager who is present at the premises must be employed in the capacity of an approved manager, not just performing other duties or present (sic) on the premises for social purposes". The amendment has broader implications however. The use of the term "employee" in the legislation has specific legal consequences, potentially excluding company directors who are not employed, as well as contractors. Some licensees use labour hire companies for the provision of personnel, including managers. Others have approved management agreements
with third party service providers. These arrangements are unlikely to achieve compliance with the amended requirements.

Interestingly, the proposed amendments to the closure for unlawful trading provisions in Section 141 include an express reference to the conduct of the business by an approved manager employed not by the licensee, but by a third party with an approved management agreement. In these circumstances there will be no basis for the premises to be closed, but the licensee will still be non-compliant with the Section 155AD requirement that an approved manager employed by the licensee be present or reasonably available.

The approved manager register which has long been considered overly bureaucratic and unnecessary will be scrapped. The explanatory notes to the Bill very accurately describe the register as "simply an unnecessary administrative burden and duplication of existing employment records kept by licensees". However, it’s unlikely that any of the fines handed out to approved managers forgetting to sign off after their shift will be refunded.

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Low Risk Licence Applications Made Easier

In what is likely to be seen by several industry groups a s controversial change the Newman government’s red tape reduction bill will amend the Liquor Act to remove much of the expense and time constraints associated with the licensing process for restaurants and cafes.

Many existing licence holders will recall the standard process to apply for a liquor licence in Queensland included:

  • The preparation of a Community Impact Statement
  • The preparation of a Risk Assessed Management Plan
  • Seeking the consent of the owner of the freehold property
  • Advertising the liquor licence application: in a local newspaper, the Queensland Government Gazette and by way of a sign on the premises, to call for community comment or objection.
  • The completion of police criminal history checks on individuals involved in the application: company directors, major shareholders and individual applicants.

The proposed amendments, likely to pass unchanged from their present form given the Government’s overwhelming majority, will remove all five of these requirements for restaurant and cafe licence applicants under the following circumstances:

  • The premises is located in a commercial centre
  • The proposed trading hours do not extend beyond midnight
  • There is no amplified entertainment on the premises

These changes follow changes to liquor licence application procedures introduced in late 2012 which did away with the need for a successful applicant to provide documentary evidence of compliance with fire, health and building regulations. The combined effect of these changes should see a properly prepared liquor licence application approved in as little as four weeks. Although the application will still involve a range of matters, including Police and Council consultation, town planning and physical inspections, the changes will still considerably reduce the professional costs associated with the preparation and management of the process.

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Fast Track Liquor Licence Transfers

We regularly receive enquiries from both vendors and purchasers of licensed businesses anxious to finalise the sale before the licence has been transferred.

We have a strong appreciation for the damage which often occurs to the business during the period between contract and settlement. If your contract is subject to a licence transfer, settlement can be delayed by up to 12 weeks, during which the goodwill, staffing arrangement and general wellbeing of the business can suffer sometimes irreparable damage.

Accordingly, we are routinely asked how the purchaser can take over the conduct of the business before the transfer has been approved, without unlawfully selling and supplying liquor. In the past we have developed a range of strategies for clients, such as devising ways for the purchaser to take on a caretaker role in the business prior to settlement. Caution has always been paramount given the risk, not only of severe penalties for unlicensed liquor sales, but closure of the business and potentially adverse findings in relation to the suitability of the purchaser to hold the liquor licence.

On a number of occasions we have succeeded in using the mechanism of the interim authority, which, if granted, authorises the holder to lawfully conduct the business in advance of the licence transfer.

Off the back of these issues we have suggested to OLGR that they consider adopting the system of an optional fast track process used in NSW where a purchaser has the option of taking the risk that the application for transfer will ultimately be refused. As the basis for refusal is largely specific to the history and character of the applicant, those opting for the fast track are rarely taking any genuine risk at all.

Recently we have been given reason to believe there may be a willingness within OLGR management to favourably consider the use of an interim authority as a de facto fast track option. As the process of granting interim authorities, under other circumstances, is well entrenched and requires no legislative amendment, we intend making more frequent use of this strategy in future to avoid the potentially significant damage to the business asset occasioned by the lengthy transfer process.

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Low Risk Liquor Licence Applications

Hot on the heels of last year’s cost and red tape reduction initiatives arrive a couple more very significant changes to the liquor licensing laws in Queensland. The first one has emerged without any fanfare (so far) and is in fact a brand new licence category: the cafe licence.

Since its inception in 1992 the Liquor Act has stipulated that food in licensed restaurants has to be prepared on premises, and must satisfy the meal definition, specifically, food that:

  1. is eaten by a person sitting at a table, or fixed structure
    used as a table, with cutlery provided for the purpose of
    eating the food; and
  2. is of sufficient substance as to be ordinarily accepted as
    a meal.

What this has meant is that businesses offering other kinds of food – perhaps prepared off site, or less substantial than a traditional meal – have been unable to obtain a liquor licence.

This situation has been resolved now with the acceptance of the provision of ?prepared food? as a principal activity within the Subsidiary On Premises licence class. Cleverly, the OLGR policy-makers have co-opted the prepared food references which appear in the licence fee sections in the Liquor Regulation to create the new class of liquor licence.

The new cafe licence now offers a range of options to food venues, especially those smaller venues unable to obtain a Small Bar Licence due to town planning restrictions.

The second and more recent change is the announcement this week of adjustments to procedural requirements for low risk applicants – namely restaurants and the new cafe licence.

Provided the licence has standard hours (10am to Midnight), there is no longer a need to produce a Risk Assessed Management Plan, no need to chase the consent of the land lord, and a more streamlined approach to criminal history checks! These changes will benefit both applicants for new licences and licence transfers in the relevant category.

What’s next? Watch this space.

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Red Tape Reduction Creates Cost Savings

For the first time in the history of liquor licensing law and practice in Queensland, Government initiatives have delivered actual cost savings to new industry entrants.

These come in the form of changes to the advertising requirements for a range of application types, including new licences and variations to trading hours and licence conditions. Along with the anachronistic Government Gazette notices, the requirement to publish liquor licence application details in local newspapers has been abolished, confining the public notification of applications to property signs on the road frontages of the relevant premises. These measures will reduce outlays for applications by up to $1,800.

The other significant change is the removal of the need to provide a letter of clearance from Queensland Fire & Rescue Services to OLGR before the grant of the licence. Government officers are quick to point out that this change does not in any way remove the burden of complying with fire safety requirements. However, individual licensees will now have the flexibility to develop compliance strategies which are adequate and cost effective for their businesses, at a saving of at least $990.

Additionally, although a final inspection of new licensed premises will still be undertake by OLGR officers, licensees will no longer have to produce food licences and certificates of classification in order to secure the issue of the licence. This simple, and obvious, reduction in red tape will add considerable flexibility to the end of the process of establishing a new licensed business in Queensland.

Overall, this red tape reduction equates to a more streamlined process, which in turn means lower professional fees and quicker turnaround times. If you are thinking of making an application, or have considered one in the past but postponed it due to costs, contact us now for detailed costings for your new licence.

Combined with the recent changes to occupancy limits for small bars, the viability equation for businesses in this sector has never looked better.

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Liquor & Gaming Specialists
30 Prospect Street
Fortitude Valley QLD 4006 AU
T: 07 3252 4066
F: 07 3252 1466