On 8 December 2024 the State Government announced a new initiative as part of the Economic Growth Statement to reduce red tape in planning approvals by abolishing the specific planning permit trigger for applications involving the supply and consumption of liquor on a premises – Clause 52.27 of all planning schemes in Victoria.
Currently, new or existing licensed businesses (save for those that benefit from existing use rights) that are either introducing a new liquor licence or expanding the scale or scope of an existing licence are required to obtain permissions from the Victorian Liquor Commission, and must also apply to local council for a new or amended planning permit under the Planning and Environment Act 1987 (PEA). This has always been regarded as a degree of duplication – even though the tests between the respective jurisdictions differ slightly.
The State Government has announced this change will be implemented by 1 July 2025.
For the hospitality industry this is a welcome and overdue change, particularly given the cost and time that can be spent on planning processes, and will greatly simplify and speed up the process for some new business ventures.
While this represents a very positive shift in favour of development and for expansion of licensed premises, as always there are some questions that remain to be answered, as well as consideration about what the experience for industry will be in this new landscape.
The removal of Clause 52.27 in principle creates a simple path for new and existing businesses, with our key takeaways below:
- You will still need a liquor licence issued by the VLC
And as many are aware, when an application for a new or varied licence is filed with the VLC, there are advising requirements and rights of review. Local councils are given direct notice of all licence applications in their municipality, and are permitted to object if the application would be detrimental to amenity or conducive to harm.
Councils also have a right of review of decisions made by the VLC under delegation. The LCRA was also amended in recent years to allow for a further right of review by all parties to VCAT after internal review at the VLC.
Historically, local councils have often taken more of a ‘back seat’ in the VLC process – typically because they often have had the opportunity to be involved in the process at the planning permit stage, where they are the decision-maker. This change may result in local councils become more active and involved in the VLC process, and potentially even seek a review of decisions that are contrary to their objectives.
- Planning permits may still be required
While the removal of Clause 52.27 is a key ‘trigger’ for many planning permits for licensed premises, this does not necessarily mean that new ventures will not require a planning permit at all. Common triggers for new or expanded businesses may include buildings and works, permission for the underlying land use, or waivers of car parking.
In essence, then, a new proposal may still require planning permission – but just with fewer ‘triggers’ than they may have required – depending what specific actions are required on site.
New businesses should continue to seek professional advice about what permissions are required for new projects.
- The impacts of liquor will still be relevant considerations
While Clause 52.27 may be removed, this does not mean that local councils will no longer have any power to establish controls over the supply of liquor or regulate those activities.
In particular, if permission is still required for land use (such as a bar) then the planning scheme still allow local council to consider the impacts associated with that proposed use – including the impacts of the supply of liquor – and to place appropriate conditions on that use.
The more complicated scenario will be in commercially-zoned areas where uses such as restaurants, bars and hotels are ‘as of right’ and do not require a permit for that use but permits may be required for buildings and works. Council should have a more limited scope to impose liquor related conditions.
- No changes to some areas – such as Melbourne CBD
Some areas within Victoria already benefit from exclusions to the operation of Clause 52.27 – meaning that in these areas you do not require a planning permit for a liquor licence. Most notably this includes the Capital City Zone and the Docklands Zone comprising the Melbourne CBD and Docklands areas.
- Reduced risk
By taking away a permit trigger it reduces one avenue of permission that could otherwise be refused, and means that there is less risk for new proposals.
This is particularly so given that a refusal or contested application at the planning stage creates a greater inconvenience (administratively) than a refusal or contested application at the VLC stage – simply due to the procedures for appeal under the respective legislation.
- Existing premises with planning permits
For existing licensed premises, and in particular those that have existing planning permits with conditions and restrictions that relate to the supply and consumption of liquor, it is unclear how they will be affected.
If Clause 52.27 is removed in isolation then any planning permit previously issued in theory will continue to exist and have effect – particularly if Clause 52.27 was just one trigger of many on the permit. In principle, then permission under the PEA may still be required to amend the text of that permit. Therefore what remains unclear is what benefits there will be to premises that have an existing planning permit.
Further consideration will be required on this point based on the exhibited changes to the scheme that will effect the change.
- Simplification for remote sellers licences
A key ‘winner’ of this proposal are businesses that sell liquor through online-only platforms – under what is referred to as a ‘remote sellers licence’.
Previously these licences technically triggered Clause 52.27 and an requirement for a planning permit in circumstances where the principles of Clause 52.27 had no real impact. The removal of Clause 52.27 remedies this unnecessary administrative burden for online retailers.
Ultimately this change represents a great opportunity for new businesses to establish with reduced risk and establishment cost, and for existing businesses to consider changes to their red line plan or any other conditions on their liquor licence without necessarily having to involve the Council in a lengthy process.
What has been on your wish list for your liquor licence ?
This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.
