Updated 4 February 2020

With the introduction on 1 January 2009 of the position of approved manager for licensed premises the position of nominee for a liquor licence will cease to exist.

Who Can Be An Approved Manager?

Current liquor nominees will be deemed to be approved managers from 1 January 2009 and the deemed approval will continue until 30 June 2010. If the individual wishes to continue to be an approved manager after this date, he or she must complete the mandatory training courses, Responsible Management of Licensed Venues and Responsible Service of Alcohol, and submit the relevant application form with supporting documents and approved fee to the Licensing Division before 30 April 2010.

An individual who is currently a Liquor Licence Nominee, Casino Employee, Casino Key Employee, Gaming Employee, Gaming Nominee, Gaming Repairer, Keno Employee Wagering, Key Lottery Employee or Key Monitoring Employee and holds current RMLV and RSA certificates may become an approved manager by applying for a fast-track upgrade.

Any person over the age of 18 who does not fall into the above categories and wishes to gain approval as a manager must complete the mandatory training courses and submit the application form with supporting documents and the prescribed fee to the Licensing Division.

What Are The Requirements Relating To Approved Managers?

While the licensed premises is open during standard trading hours, 10 am to 12 midnight, an approved manager must be on site or reasonably available. Reasonably available is defined as being able to be contacted by the staff on the premises and being able to be at the premises within one hour of being contacted. If the premises is trading outside of standard hours an approved manager must be on site at all times. Some exemptions apply for individual licensees who can be on site or reasonably available at all times the premises is open. Premises classified as low risk do not need to have an approved manager unless they have approval to trade past midnight.

There is no longer a need to maintain an approved manager register. However, the licensee must have a copy of the approved manager’s current RMLV certificate on the premises.

Where Can You Find More Information?

The application forms for approved managers are now available from the OLGR website. Whilst the Licensing Division has indicated it is now able to accept applications for approval as a manager, the application fee has not yet been prescribed. However, we have been told that the fee will be $366 ($521.70 in 2020) or a figure very close to this amount. The OLGR website also outlines the requirements relating to approved managers and the transitional arrangements dealing with nominees.

If you have any specific queries relating to your obligations under the new legislation, please call us on 07 3252 4066 or contact us by email.

Update 8 July 2015 – current application fees and an online form are available on the OLGR Website.

Update 4 February 2020 – removal of reference to Approved Manager Register and addition of information on low risk premises.

Perhaps the most contentious amendment to the liquor act is the reintroduction of annual licence fees. The new fee structure is built on a model of perceived risk with annual fees varying in line with certain trading conditions: licence type, trading hours, provision of meals, etc.

However, notable by its absence is any reference to risk based on the size or capacity of a venue. Whilst licensed clubs will pay a higher fee if the membership exceeds 2,000, no similar threshold has been applied to commercial licence holders. This creates a situation where the owner of a 40 seat restaurant, who wants the flexibility to remain open until 1 am on a Friday night, may be paying the same amount in annual fees as a 1,000 patron capacity nightclub open until 3 am every Friday and Saturday.

Several smaller operators are now weighing up the advantages and disadvantages of offering a liquor service and it is likely some marginal venues will elect to surrender the liquor licence rather than pay the additional fees.

Unfortunately, any submissions made to the government in an attempt to change this fee structure were unsuccessful and from 1 January 2009 all licensees will be forced to pay up or face immediate suspension and possible cancellation of the liquor licence.

To give licensees a clearer idea of the implications of this aspect of the amendments, the following paragraphs expand on some of the key points. Please contact us if you have any questions in relation to this important matter.

Compliance History

One of the perceived risk factors affecting annual fees is compliance history. A licensee who receives infringement notices or disciplinary action will face increased annual fees the following year. The maximum penalty, in addition to any fines received following disciplinary action, is $20,000 for ‘major trauma’ which is taken to mean death or a severe assault on the premises.

The good news for all current licensees is that when the new fee structure is introduced in 2009, all licensees will be given a clean slate for the purposes of calculating fees based on compliance history. The earliest anyone will have to pay this component of the annual fee will be in the period commencing 1 July 2010, at which time the fee will be assessed on compliance history for the preceding 12 months.

Although the licensee, approved manager or staff member is responsible for any non compliance, the fee is applied to the licence and is not affected by transfer. In other words, an incoming licensee will be assessed on the compliance record of the previous business owner.

Therefore, anyone buying licensed premises will need to carry out a search on the compliance history of the business vendor to ensure the annual fees will not increase in the following year. This search can only be completed with the consent of the current licensee.

Non Payment of Fees

The first annual fee will be due at the end of January 2009 and subsequent fees will be due at the end of July each year. If the fee is unpaid the licence will be suspended immediately and may be cancelled if the fee remains unpaid.

Grant Fee

In the earlier stages of the liquor review there was reference to an application fee and a grant fee. The grant fee was not carried forward to the final version of amendments. However, new licensees will pay an annual fee on a pro rata basis calculated on the period from the first day of the month following approval of the licence to the end of the financial year.

At the time of writing this article the revised application fees have not been published.

Extended Trading

The Liquor Act now defines four periods of extended trading hours.

Two periods before 10 am: from 7 to 9am and from 9 to 10 am, and
Two periods after Midnight: from midnight to 3 am and from 3 to 5 am.

Licensees will be required to pay a fee for trading in each of the additional periods.

Licensees may reduce the fees for extended trading periods by 25% if trading on weekends only. Weekends are defined as Saturday and Sunday. Therefore, approval to trade after Midnight on a Sunday (that is into the early hours of Monday morning) will require payment of the full fee.

A licensee may apply for a limited number of one-off permits each year: four permits to allow trading before 10 am and twelve permits to allow trading after midnight. An application fee will be required for each permit but this will not affect the annual licence fees.

The Office of Liquor & Gaming Regulation released Final Outcomes – Review of the Liquor Act 1992 on 14th October 2008. This is the first official publication since the amendments to the Liquor Act were passed by the Queensland Parliament in September.

The report describes in plain English many of the ways in which licensees will be affected by the changes to the Liquor Act when they come into force on 1st January 2009. The final version of the annual fee self-assessment table is included in the document and licensees will now be able to calculate the fees payable in January.

How much will you have to pay?

To calculate the amount you will be required to pay when the fees are introduced in January:

1. Tick all of the boxes in the self-assessment table, except the Compliance section*, which apply to your business.
2. Add the amounts together – remember the fees are payable for each bottleshop and each late trading period.
3. Divide the total by two.

The final figure is the amount you will have to pay in January 2009 for the six month period to 30th June. The full annual fee will be payable in July 2009.

*For the purposes of calculating annual fees OLGR will not consider a licensee’s compliance history until the assessment for the year beginning 1st July 2010. However, the full fee will be payable for that period based on the licensees compliance history since the introduction of fees. Additionally, the fees are attached to the licence and if the licence is transferred before the assessment the new licensee will be liable for all fees.

The planned reform of the Liquor Act moved a step closer to enactment when the Liquor and Other Acts Amendment Bill 2008 was tabled in the Queensland Parliament on 26 August. The details of the Bill do not differ greatly from the most recent press releases and comments made by the Queensland State Government and we have updated details from our previous article on the reform process below.

a) Ministerial banning power

The Minister will have the power to ban certain liquor products permanently.. The banning power will be directed at products which: specifically target and encourage the consumption of liquor by minors or young people or are likely to be confused with soft drinks or confectionery or are likely to have an appeal to young people.

The introduction of a power of this kind is largely uncontroversial, and brings Queensland into line with other jurisdictions.  However, there is no apparent right of appeal nor can the manufacturer show cause why the product ought not to be banned.

b) Mandatory RSA and RMLV training

As expected, RSA training will be mandatory for all staff involved in the service of alcohol. This includes bartenders, glass collectors, floor hostesses, security providers, room service staff and bottle shop staff.

RMLV training will be mandatory for all licensees, nominees and managers and will need to be renewed every three years, in line with the renewal period for RSA.

c) Standard trading hours

The move to standard trading hours will see the cancellation of all existing Extended Hours Permits which allow trading between 5 am and 7 am or between 7 am and 10 am.

Licensees may apply for an extended hours permit to include trading between 9 am and 10 am if it can be demonstrated that there is a community need for the permit.

Commercial licence holders may apply for a permit to trade between 7 am and 9 am only for the purpose of selling and supplying liquor to or for persons genuinely attending a function held on the licensed premises during those hours

Community club licence holders may apply for approval to trade between 7 am and 10 am provided there is a community need for the approval and the club is a sporting club.

d) Manager’s licence

The introduction of a manager’s licence is intended to ensure that managers of licensed venues are responsible for ensuring compliance with the Act and conditions of the licence.

An approved manager must be on the premises or readily available at all times the business is open between 7 am and 12 midnight. A manager must be on the premises at all times the business is open between 12 midnight and 5 am. Licensees who are individuals may apply for an exemption from this requirement for a period of up to three months under certain circumstances.

The manager must have completed the RMLV and RSA courses and must be of good character. In the event a licensed manager is found to have a poor management record, such as frequent infringement notices or documented complaints, the licence may be refused or cancelled.

The manager’s approval will be for a period of five years, which is at odds with the validity period of RMLV and RSA – three years.

e) Licence type restructure

The licence type restructure has followed the proposed outline. The table below contains the pre amended and post amended licence types.

A new bar licence type will be created for businesses with the principal activity of supplying liquor for consumption on the premises and with a maximum seating capacity of 60 persons. This is despite strong opposition to this move from certain sections of the industry and the questions over the success of a similar initiative in Victoria.

(g) Liquor accord legislation

Liquor accords will be formally recognised in the amended legislation and are defined as:

liquor accord, for a locality, means an agreement, memorandum of understanding or other arrangement entered into for the purposes of—
(a) promoting responsible practices in relation to the sale and supply of liquor at licensed premises situated in the locality; and
(b) minimising harm caused by alcohol abuse and misuse and associated violence in the locality; and
(c) minimising alcohol-related disturbances, or public disorder, in the locality.

Risk Assessed Management Plan

Another significant development is the replacement of the House Policy by the Risk Assessed Management Plan (RAMP) and the extension of this requirement to all licensed premises other than those trading under the authority of a licence or restricted club permit of less than one year’s duration.

Any changes to the RAMP must be approved by the Chief Executive and an amended plan must accompany any applications for transfer, variation, change in trading hours, alterations or approval for a change in the principal activity of a business conducted under a licence.

Whilst it’s impossible to put an exact figure on this, our example restaurant below increased annual profit by between $39,000 and $74,000.

To arrive at this figure we made a conservative calculation for a typical mainstream restaurant.
The restaurant is open six nights a week for dinner only and has 40 seats with an average occupancy of 70%. Main meals are priced between $15 and $30 and, before obtaining a liquor licence, the average spend per person is $30.

In Queensland the average mark up on liquor is 255%, delivering 71% gross profit to the business owner.

If you want to find out how Liquor & Gaming Specialists can help you add a new revenue stream to your business, call our office on 07 3252 4066. Our initial consultation is free and at that time we will give you an appraisal of the suitability of your premises.

Where do these figures come from?

The figures used above to calculate profit for a fictional restaurant in the Greater Brisbane area are based on research carried out by the Liquor Licensing Division in 2004. We have received a copy of the summary report of a Statutory Records Compliance Audit of On Premises (Meals) Licences. The report contains data on trading figures from 786 licensed restaurants Statewide. The aim of the audit was to identify any restaurants potentially not meeting the primary purpose of the business: the supply of meals.

Of the premises surveyed, 16 respondents, or approximately 2% of the total, had liquor sales in excess of the 50% benchmark. These premises were identified as popular bar/nightclub style restaurants and in the intervening period a number of the businesses have obtained a liquor licence better suited to their style of operation, such as a General or On Premises (Cabaret) Licence.

Of the remainder:

29 restaurants, or less than 4%, had liquor sales in the 41-50% category. Many premises in this category were well known for a significant bar trade but also enjoyed an excellent reputation for quality dining.

Approximately 30% of restaurants, 250 in total, reported liquor sales in the 21-40% category, and were described as ‘typical mainstream restaurants’ where many diners purchase a bottle of wine with a meal.

The majority of respondents, 491 restaurants or 62% of the total number, reported liquor sales in the 1-20% category. This category was predominantly made up of Asian and Italian restaurants but included Sizzler (average 7%), Aromas and other restaurants specialising in coffee.

Therefore,  a typical mainstream restaurant will account for 21-40% of turnover through liquor sales, while restaurants with a focus on coffee, take away food or basic Asian style cuisine can expect to account for 1-20% of turnover through liquor.

The data we have does not include a detailed breakdown of sales. However, the report includes an analysis which tells us that across all premises to respond, liquor represented 17% of total sales.

The details in this article are intended for information only, and are not intended to provide formal advice. For this reason, Liquor & Gaming Specialists Pty Ltd cannot accept liability for any loss or consequential loss, however arising,brought about as a result of a person acting, or refraining from acting, on material contained in this article. For formal advice on any matter, please contact our office by clicking here.