Recent changes to Liquor Act 2007 regarding restaurants, bars and bottle shops in NSW airports

Air travel has well and truly returned and the state’s airports are once again enjoying strong patronage. The rebound is seeing airports ascend as retail and hospitality hotspots. Sydney Airport itself will see a range of new upgrades, and has announced a number of new hospitality tenants to significantly raise the profile of its food, drink and shopping. Its major developments can be viewed here. Similarly, the new Western Sydney Airport and Aerotropolis promise state-of-the-art facilities for both air travel and customer experience.

To support the Commonwealth Government’s transition of the responsibility for liquor licensing and regulation at leased Federal airports in NSW to the State Government, there have been a number of changes to the regulation of licensed premises located there. While the amendments to the Liquor Act 2007 (‘the Act’) are mechanical, their practical effect is that restaurants, bars and bottle shops inside airports will continue to operate as normal while being regulated at the state level, rather than federally.

For Licensed Premises inside Passenger Terminals

The changes define ‘passenger terminals’ as check-in, arrival or departure areas, and areas where passengers wait after screening and before boarding. So that business licensed premises inside passenger terminals may continue to trade as normal, the Act has made small and specific carve-outs. They are:-

• the opening hours of the airport being the liquor licence’s trading hours.
• no 6-hour closure period typically imposed on liquor licences,
• no restricted trading days, meaning liquor can be sold on every day of the year,
• no usually requirement of being ‘open to the public’,
• a licence authorising on-premises consumption also authorises consumption in a food court inside a passenger terminal, or in a seating area associated with the licensed premises whether inside or outside the passenger terminal.

Licensees should, however, be aware that such carve-outs do not absolve them of stringent compliance and supervision requirements which remain under the Act. Accordingly, these changes provide that:-

• under a licensee’s obligation to prevent excessive consumption of alcohol and intoxication on a licensed premises, the licensed premises itself is taken to include the food court and seating areas.
• the same areas are also treated as licensed premises under the licensee’s supervision in relation to offences relating to the sale or supply of liquor to minors.

Additionally, in order to sell liquor in a food court or seating area there is also a requirement to display a notice on the licensed premises in a conspicuous position specifying where the liquor maybe consumed.

In terms of ensuring safe sale and supply of liquor, the Act treats food courts or seating areas in airports and passenger terminals as if they are part of the licensed premises itself.

For Packaged Liquor Licences and Duty-Free Bottle Shops

Unlike bottle shops or outlets for takeaway packaged liquor outside of airports, there is not a requirement for packaged liquor licences inside airports to have a separate liquor sales area. The requirement for a minor to be removed from the premises if not in the company of a responsible adult is also not imposed. These amendments to the Act aim to ensure the current business model of duty-free bottle shops and similar stores continue.

Secretary’s Powers to Regulate these Premises

The Secretary of the Department of Creative Industries, Tourism, Hospitality and Sport (‘the Secretary’) is given the power under these changes to reduce trading hours, remove or reduce the minors exemptions, or remove or reduce the ability to sell for food court or seating area consumption.

The Secretary can do this only if there has been a contravention of the law, and if the modification is a reasonable response to the contravention.

Certain Licensed Premises surrounding the Western Sydney Aerotropolis

In step with the broader Vibrancy Reforms being rolled out by the NSW Government, the changes empower the Secretary to make decisions on certain matters regarding licensed premises in the Western Sydney Aerotropolis precinct. The rationale for doing so is to support a 24-hour, 7-day-per-week economic hub by creating capacity for round-the-clock trading at licensed premises outside the Western Sydney airport passenger terminal and within that surrounding precinct. The Secretary is empowered to determine on a case‑by‑case basis the trading hours, restricted trading days (if any) and 6-hour closure period for either a particular licensed premises or all or a class of licensed premises that sit outside the passenger terminal or in the Western Sydney Aerotropolis area.

While the amendments are largely mechanical in nature, the represent another frontier of economic vibrancy upon which hospitality and retail operators can capitalise. To learn more about what the changes mean for you, or to discuss liquor licensing options for your own business in or around NSW’s airports, don’t hesitate to contact our team at licensing@bsvliquorlicence.com.au, or on (02) 8530 0333. Alternatively, click the orange ‘contact us’ button at the top-right corner of the page to reach us directly.

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