Opening a new restaurant or cafe in New South Wales is an exciting journey. Between choosing a menu and finding the perfect location, business owners manage many moving parts. One of the most important steps for many operators 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 becomes much easier when you understand the steps involved. In this guide, we will explore the different licence categories available for food businesses to help you choose the option that best fits your vision.
We will also explain what you need to prepare before applying and walk you through the step-by-step application process used in NSW. Finally, we will discuss the common fees you can expect and explain how to navigate local council requirements to help keep your project on track.
Understanding the Right Licence Category
In New South Wales, the licence you need depends on your business model. For most food-focused businesses, an On-Premises Licence is the most suitable option.
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 for consumption 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 acts as a secondary service that complements the food. Other on-premises sub-categories (e.g., catering, function centre) have different primary purpose requirements, so choosing the correct category from 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 may better suit your business. This licence allows up to 120 patrons. Unlike a restaurant licence, operators do not always need to serve a full meal with every drink.
However, small bars have different obligations regarding minors and trading hours. Small bars also cannot operate gaming machines.
BYO (Bring Your Own)
Some restaurants choose not to sell alcohol and instead 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 mandatory for BYO-only venues because no liquor is sold or supplied, operators must still prevent intoxication and underage drinking. Businesses should also implement house policies to manage alcohol responsibly on the premises.
The Primary Purpose Test and PSAs
Because the On-Premises Licence specifically applies to restaurants, the law requires the primary service to remain the provision of meals. This requirement is known as the primary purpose test.
To satisfy this test, your venue should include a kitchen that operates while alcohol is served, a menu with genuine meals rather than only snacks, and a layout focused on dining tables instead of standing room for drinking.
If you want flexibility to serve alcohol to customers who are not eating, such as guests waiting for a table or patrons wanting a drink after their meal, you may need a Primary Service Authorisation (PSA). This add-on permits limited alcohol service without a meal in a defined bar area of a restaurant, subject to statutory conditions.
The bar area must appear clearly on your plans and operators must manage it in accordance with any licence conditions and the Regulation.
Key Liquor Licence Requirements in NSW
Before starting your application, you should gather several documents and complete specific training requirements. Preparing these items early can help reduce delays during the approval process.
1. Responsible Service of Alcohol (RSA)
Everyone who sells, supplies, or serves alcohol in NSW must hold a valid RSA competency card. As the licensee, meaning the person responsible for the licence, you must also complete Licensee Training.
Some high-risk venues also require Advanced Licensee Training. These courses help operators understand how to manage intoxication and maintain patron safety. Licensee and Advanced Licensee Training requirements depend on the venue’s risk profile and authorisations, so applicants should confirm they have completed the correct course before trading.
2. Development Approval (DA)
Before Liquor & Gaming NSW grants a licence, your local council must approve the use of the building. You will need either a Development Consent or a Complying Development Certificate and, where relevant, an Occupation Certificate.
These documents confirm that the council permits a restaurant or cafe to operate at your address. Applicants should carefully review DA conditions because they often determine maximum patron numbers and trading hours.
3. National Police Check
You must provide a recent National Police Check. Authorities use this document, together with other L&GNSW probity assessments, to determine whether you are a fit and proper person to hold a liquor licence.
In most cases, the police check must be less than three months old at the time of application.
4. Floor Plans
You must submit a clear floor plan of your restaurant. The plan needs to identify the licensed boundaries, meaning the specific areas where alcohol may be sold and consumed.
For example, if your venue includes an indoor dining room and a separate balcony, both areas must appear clearly on the plan. Outdoor seating areas on footpaths must also be included to ensure they are legally covered.
Applicants should clearly mark bar areas for PSAs, off-street courtyards, and service areas. Many applications also include a Plan of Management outlining how the venue will operate.
The Step-by-Step Application Process
Obtaining a liquor licence involves several distinct stages. Following the process carefully can help applications progress more smoothly.
Step 1: Check Your Eligibility
Make sure you are at least 18 years old and have the legal right to occupy the premises, such as through a signed lease agreement. Confirm that your business satisfies the primary purpose requirement of serving meals and decide whether you need additional authorisations, such as a PSA.
If you intend to trade late, you should also consider whether you require an Extended Trading Authorisation (ETA) and whether your DA permits the proposed trading hours.
Step 2: Consult with Your Local Council
Check whether your council imposes specific rules for your area. Some zones restrict trading hours or noise levels to protect nearby residents.
Identifying these issues early is much easier than addressing them after submitting an application. A pre-DA or pre-lodgement meeting can also help align planning and licensing timeframes.
Step 3: Prepare Your Documents
Gather your RSA and Licensee Training certificates, National Police Check, and detailed floor plans. Applicants applying through a company structure must also provide an ASIC company extract.
Preparing these documents in digital format will streamline the online application process. You should also include your DA or CDC, any Occupation Certificate, a Plan of Management, and, where applicable, a Statement of Risks and Potential Effects (SoRPE) together with PSA or ETA plans.
Preparing documents in the formats specified by L&GNSW can help reduce requisitions.
Step 4: Notify the Community
Many licence applications require applicants to notify neighbours and the local community about their plans. This process often forms part of the Statement of Risks and Potential Effects (SoRPE).
You may need to display a notice at the venue or send notices to local residents and police. This process gives the community an opportunity to raise concerns about potential impacts such as noise.
Step 5: Submit the Application Online
Most applications are now submitted through the Liquor & Gaming NSW online portal via Service NSW or OneGov. Applicants complete the relevant forms, such as the APP600 for On-Premises Licences, and upload supporting documents.
Ensure all names exactly match your identification documents to avoid processing delays.
Step 6: Pay the Application Fee
You must pay an application fee when lodging your application. Application and annual fees change periodically and vary depending on licence type and authorisations.
Applicants should always refer to the current L&GNSW fee schedule at the time of lodgement rather than relying on example figures.
Step 7: The Review Period
Liquor & Gaming NSW will assess your application and may request further information or clarification. Authorities will also consider feedback from police and the public.
This process may take several weeks or even months. During this period, you cannot serve alcohol until you receive final approval and your licence number.
Outdoor Dining and Boundary Changes
Many NSW restaurants now take advantage of alfresco dining opportunities. If you want to serve alcohol to customers seated on a footpath or in another designated outdoor area, that space must form part of your licensed boundary.
The NSW Government has introduced streamlined processes for outdoor dining approvals. In many cases, businesses can apply to their local council for an outdoor dining permit and then extend the liquor licence boundary to match.
This process usually involves a linked application to vary the licensed boundary after council consent or another relevant permit, such as a roads approval, has been granted.
Businesses must still actively monitor outdoor areas to ensure staff serve alcohol responsibly and patrons remain within approved boundaries.
Managing Fees and Ongoing Costs
Businesses should budget for more than just the initial application costs.
- Application Fees: These are one-off costs paid when first applying for a licence.
- Annual Fees: Once granted, the licence holder must pay annual fees to keep the licence active. L&GNSW sets annual base fees and risk loadings, including late-trading risk loadings, which may increase based on trading hours and compliance history.
- Pro-rata Fees: If authorities grant your licence part-way through the year, you may only need to pay a portion of the annual fee for the first year.
Because fees change each financial year, we recommend checking the official government fee schedule or seeking professional advice to obtain accurate figures for your budget.
How We Can Help
Navigating liquor laws can feel overwhelming when launching a new business. Our team provides calm, practical guidance to help you open your doors sooner.
Our specialist licensing lawyers can assist with reviewing your application, preparing floor plans, and 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
How long does it take to get a liquor licence in NSW?
Approval typically takes 4 to 8 weeks for straightforward applications. More complex matters involving community consultation can take 4 to 6 months.
Can I sell takeaway alcohol with a restaurant licence?
Generally, no. An On-Premises Licence only permits on-site drinking. However, certain additional authorisations may allow limited takeaway sales.
What happens if I serve alcohol without a licence?
Serving alcohol without a licence is a serious legal offence. Authorities may impose substantial penalties, commence closure action, and pursue disciplinary consequences against staff and business owners.
Do I need a liquor licence if I only offer BYO?
No licence is required for a basic BYO arrangement. However, operators must still follow RSA principles and ensure patrons do not become intoxicated on the premises.