ADVERSE COMPLIANCE HISTORY
HOW WILL THIS AFFECT YOUR FUTURE LIQUOR LICENCE ANNUAL FEES?
Licensees now live in an environment where annual fees are payable for a liquor licence. These fees are calculated according to the licence type, any additional permits endorsed on the liquor licence and certain risk factors including extended trading hours and the provision of food.
The purpose of this update is to let you know that an additional risk factor took effect from 1 July 2009 based on a licensee's adverse compliance history. The amendments to the Liquor Regulation 2002 came into force on 19 June 2009 setting out what risk types will result in an adverse licence history and increased annual fees payable by a licensee should the licensee trigger any of the risk types each year between 1 July and 30 June .
The three risk types which result in adverse compliance history, and their associated fees, are:
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RISK TYPE
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EXAMPLES OF ADVERSE COMPLIANCE HISTORY
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FEE
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Infringement Notice (Medium Risk)
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An infringement notice served on a licensee and the fine paid for:
§ the supply of liquor:
§ at an unauthorised time; or
§ in an unauthorised quantity; or
§ in an unauthorised way; or
§ for an authorised purpose.
§ allowing a minor to be in an approved area when adult entertainment is being provided
§ allowing liquor to be supplied or consumed by a person who is a minor or is unduly intoxicated or disorderly
§ a person on a street or place adjacent to a licensed premises or public place, supplying or causing or permitting liquor to be supplied to a minor
§ a person sending, causing or permitting a minor to be sent to a licensed premises with a view to the minor or another person being supplied with liquor
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$5,000
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Disciplinary action (High Risk)
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A licensee is convicted of an offence against the Liquor Act OR the Chief Executive takes disciplinary action against a licensee and the licensee does not appeal the decision or does appeal the decision and the decision is either confirmed or set aside and replaced with other disciplinary action. Disciplinary action includes:
§ the cancellation or suspension of a licence; or
§ the closing of a licensed premises; or
§ varying a licence; or
§ reducing the licensed hours.
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$10,000
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Major trauma (Encumbrance)
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A licensee is convicted of supplying liquor to a minor or allowing liquor to be supplied or consumed by a person who is a minor or is unduly intoxicated or disorderly (known as a "supply offence") and this supply offence was taken to have contributed to the death of a person or a serious assault (which includes grievous bodily harm, wounding, rape and sexual assaults), whether it occurred on or near the licensed premises.
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$20,000
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If a licensee triggers one or more of the risk types between 1 July 2009 and 30 June 2010, then the annual fees for the next year will increase. However, fees will only increase by the amount of the highest fee that applies. For example, if during 1 July 2009 and 30 June 2010, a licensee is served with an infringement notice and there is a major trauma at the licensee's premises, then the annual fees for 2010-2011 will increase by $20,000 for the major trauma, not $25,000 for both the major trauma and the infringement notice.
Apart from any penalties that may arise from these risk types, it is important that a licensee be proactive and immediately seek legal advice to try and avert, where possible, an adverse compliance history and increased annual fees.
It is important to be aware that an adverse compliance history stays with a licensed premise upon the transfer of a liquor licence. For that reason, if you are looking to buy a licensed business it is important to seek legal advice to ensure that the appropriate investigations are made and the necessary protection is in place so that you are not penalised by the previous owners' poor compliance history.
