How to Get a Restaurant Liquor Licence in NSW

Opening a new restaurant or cafe in New South Wales is an exciting journey. Between choosing a menu and finding the perfect location, there is a lot to manage. One of the most important steps for many business owners is securing a liquor licence under the Liquor Act 2007 (NSW), administered by Liquor & Gaming NSW (L&GNSW) and, for some matters, the Independent Liquor & Gaming Authority (ILGA). Whether you want to serve a glass of wine with dinner or offer craft beers, you need the right legal permission. The process can seem complicated, but it is much easier when you understand the steps involved.

In this guide, we will explore the different types of licences available for food businesses to ensure that you choose the category that best fits your vision. We will also cover exactly what you need to prepare before you apply and walk you through the step-by-step application process used in NSW. Finally, we will discuss the common fees you can expect and how to navigate local council requirements to keep your project on track.

Understanding the Right Licence Category

In New South Wales, the type of licence you need depends on your business model. For most food-focused businesses, you will be looking at an On-Premises Licence.

Liquor Licence for a Cafe or Restaurant

An On-Premises Licence is the standard choice for restaurants and cafes. This licence allows you to sell alcohol to customers to drink on your premises. The most important rule for this category is the primary purpose test. This means the main reason people visit your business must be for a meal, not just for drinks. In a restaurant, alcohol is seen as a secondary service that complements the food. Other on‑premises sub‑categories (e.g., catering, function centre) have different primary purpose requirements, so correct categorisation at the outset is important.

Small Bar Licence

If your venue is smaller and you want to focus more on drinks than meals, a Small Bar Licence might be a better fit. This allows for up to 120 patrons. Unlike a restaurant licence, you do not always have to serve a full meal with every drink. However, there are different obligations regarding minors and trading hours for small bars (small bars cannot operate gaming machines).

BYO (Bring Your Own)

Some restaurants choose not to sell alcohol but allow customers to bring their own. You generally do not need a liquor licence for a basic BYO setup in NSW. While RSA training is not mandated for BYO‑only venues (as no liquor is sold or supplied), you must still not permit intoxication or underage consumption and should implement house policies to manage alcohol responsibly on the premises.

The Primary Purpose Test and PSAs

Because the On-Premises Licence is specifically for restaurants, the law requires that the “primary service” remains the provision of meals. This is called the primary purpose test. To meet this test, your venue should have a kitchen that is open while alcohol is served, a menu of genuine meals (not just snacks), and a layout that focuses on dining tables rather than standing room for drinking.

If you want the flexibility to serve a drink to someone who isn’t eating, for example, a customer waiting for a table or someone who just wants a glass of wine after their meal, you may need a Primara yPrimary Service Authorisation (PSA). This is an extra “add-on” and permits limited service of alcohol without a meal in a defined bar area of a restaurant, subject to statutory conditions. The bar area must be clearly identified on your plans and managed in accordance with any licence conditions and the Regulation.

Key Liquor Licence Requirements in NSW

Before you start the application, you need to gather several documents and complete specific training. Being prepared will help avoid delays in your approval.

1. Responsible Service of Alcohol (RSA)

Everyone who sells, supplies, or serves alcohol in NSW must have a valid RSA competency card. As the licensee (the person in charge of the licence), you must also complete Licensee Training. For some high-risk venues, Advanced Licensee Training is also required. These courses ensure you understand how to manage intoxication and keep patrons safe. Licensee/Advanced Licensee Training requirements depend on venue risk profile and authorisations to ensure the proposed licensee has completed the correct course before trading.

2. Development Approval (DA)

Before Liquor & Gaming NSW can grant a licence, your local council must approve the use of the building. You will need a Development Consent or a Complying Development Certificate (and, where relevant, an Occupation Certificate). This document proves that the council allows a restaurant or cafe to operate at your specific address. It is important to check your DA conditions, as they often dictate your maximum patron numbers and trading hours.

3. National Police Check

You will need to provide a recent National Police Check. This helps the authorities confirm that you are a “fit and proper” person in addition to the other L&GNSW probity assessments to hold a liquor licence. This check usually needs to be less than three months old at the time you apply.

4. Floor Plans

You must submit a clear floor plan of your restaurant. This plan needs to show the licensed boundaries. These are the specific areas where alcohol can be sold and consumed. For example, if you have an indoor dining room and a separate balcony, both must be clearly marked. If you have an outdoor seating area on the footpath, it must be included in your plan to be legally covered. Bar areas (for a PSA), any off‑street courtyards and service areas should be clearly delineated; many applications also include a Plan of Management outlining venue practices.

The Step-by-Step Application Process

Getting your licence involves several distinct stages. Following these steps in order can help make the process smoother.

Step 1: Check Your Eligibility

Make sure you are at least 18 years old and have the right to occupy the premises (like a signed lease agreement). Confirm that your business meets the “primary purpose” of serving meals and decide if you need any extra authorisations, like a PSA. If you intend to trade late, consider whether an Extended Trading Authorisation (ETA) will be required and whether your DA permits the proposed hours.

Step 2: Consult with Your Local Council

Check if your council has specific rules for your area. Some zones have restrictions on trading hours or noise levels to protect local residents. It is much better to find this out early rather than after you have already applied. A pre‑DA or pre‑lodgement meeting can help align planning and licensing timeframes.

Step 3: Prepare Your Documents

Gather your RSA and Licensee Training certificates, your National Police Check, and your detailed floor plans. If you are applying as a company, you will also need an ASIC company extract. Having these ready in digital format will make the online application much faster. Include your DA/CDC (and any Occupation Certificate), a Plan of Management and, if applicable, a Statement of Risks and Potential Effects (SoRPE) and PSA/ETA plans. Preparing documents in the formats specified by L&GNSW will reduce requisitions.

Step 4: Notify the Community

For many licences, you must let your neighbours know about your plans. This is often part of a Statement of Risks and Potential Effects (SoRPE). You might need to post a notice at your venue or write to local residents and police. This gives the community a chance to share any concerns about how the licence might affect the area, such as potential noise.

Step 5: Submit the Application Online

Most applications are now done through the Liquor & Gaming NSW online portal (via Service NSW/OneGov). You will fill out the forms (such as the APP600 for On-Premises) and upload your documents. Make sure all names match your identification exactly to avoid processing errors.

Step 6: Pay the Application Fee

You will need to pay a fee when you lodge your application. Application and annual fees change periodically and depend on licence type and authorisations. Always refer to the current L&GNSW fee schedule at the time of lodgement rather than relying on example amounts.

Step 7: The Review Period

Liquor & Gaming NSW will review your application. They may ask for more information or clarification. They will also consider any feedback from the police or the public. This process can take several weeks or even months. During this time, Yyou cannot serve alcohol until you receive your final approval and licence number.

Outdoor Dining and Boundary Changes

Many NSW restaurants now take advantage of “alfresco” dining. If you want to serve alcohol to customers sitting on the footpath or in a designated outdoor area, that space must be part of your licensed boundary.

The NSW government has introduced streamlined processes for outdoor dining. In many cases, you can apply to your local council for an outdoor dining permit, and the liquor licence boundary can be extended to match. This typically involves a linked application to vary the licensed boundary once council consent/permit (e.g., a roads approval) is in place. However, you must ensure that your staff still actively monitor these outdoor areas to ensure alcohol is served responsibly and that patrons remain within the boundaries.

Managing Fees and Ongoing Costs

It is important to budget for more than just the initial application.

• Application Fees: These are one-off costs paid when you first apply.
• Annual Fees: Once you have your licence, you must pay an annual fee to keep it active. Annual base fees and risk loadings (e.g., late‑trading risk loadings) are set by L&GNSW and can increase based on trading hours and compliance history .
• Pro-rata Fees: If your licence is granted part-way through the year, you may only pay a portion of the annual fee for that first year.

Because fees are updated every financial year, we recommend checking the official government fee schedule or seeking professional advice to get an exact figure for your budget.

How We Can Help

Navigating liquor laws can feel overwhelming when you are trying to launch a business. Our team is here to provide calm, practical guidance to help you get your doors open sooner. Our specialist licensing lawyers can assist with reviewing your application, preparing your floor plans, or explaining your legal obligations in plain English.

Would you like to discuss your licence application? Contact SlaterWatts Lawyers today for a friendly chat about your options.

Frequently Asked Questions