Avoid Designated Application refusal – 4 amendments the hospitality industry can expect to see

To avoid refusal of your Designated Application, it is important to be aware of the new amendments to the Community Impact Assessment Guidelines (CIA Guidelines).

Consumer and Business Services (CBS) has been undertaking consultation with industry organisations, other government agencies and corporate entities on proposed changes to the CIA Guidelines for the purposes of the Liquor Licensing Act 1997 (SA) (LLA) and the Gaming Machines Act 1992 (SA) (GMA).

New CIA guidelines have been published by notice in the Government Gazette and will commence on 29 January 2024.

As well as expanding on the specific requirements applicants should address under the current assessment criteria, further criteria have been added.

Section 53A(2)(a)(i) of the LLA

• The ‘harm’ consideration has been expanded to provide more information to the applicant about what harm means in the context of the sale and supply of liquor and how to address this consideration.
• Applicants are required to consider the harm that might be caused to a community, or a group within a community.
• In addition to the current considerations, the licensing authority will now often have regard to, but is not limited to, socio-economic data and crime statistics relevant to the locality of the premises.
• Applicants are required to identify any issues of social disadvantage, any community buildings, facilities and areas of interest/concern within the locality and address how they will manage the potential for harm at the premises.

Section 17A(2)(a)(i) of the GMA

• Applicants are required to consider the harm that might be caused by gambling, whether to a community as a whole or a group within the community.
• Applicants are now required to identify NET Gambling Revenue data, the socio-economic profile of the locality, whether there are any ‘at-risk’ groups within the locality, how the applicant proposes to minimise any potential harm to those groups, and whether there are any buildings of interest/concern within the locality, i.e., schools and hospitals.

• Licence density has been added as a new consideration if the application includes or relates to an authorisation to sell liquor for consumption off the premises.
• The licensing authority will consider the number and nature of existing licences in the locality.
• Applicants are required to address licence density for the locality and why, in light of the various licenses premises already approved and trading in the locality, it would be in the community interest for the licensing authority to grant their application.

• Applicants are now required to address whether the community of the locality of the premises/proposed premises have concerns about the application. The applicant should consider the following options of community consultation:
  • consultation with persons who reside within the locality and who may be affected by the grant of the application;
  • petitions, customer surveys or letters of support from existing or potential customers;
  • letters of support or evidence of consultation with local businesses; and
  • evidence of consultation with relevant authorities and community organisations i.e. SA Health, drug and alcohol related services or gambling help groups.
• Where appropriate, the applicant is required to demonstrate what measures will be implemented to address or mitigate concerns raised through the consultation process.

• Applicants are also required to demonstrate the measures that have been implemented, or that they will implement, to ensure that the grant of the application would be unlikely to result in undue offence, annoyance, disturbance or inconvenience to those who reside, work or worship in the vicinity of the premises.

It is important to note that any Designated Applications lodged prior to 29 January 2024 will continue to be assessed in accordance with the current CIA Guidelines.

This article provides general comments only. It does not purport to be legal advice. Before acting on the basis of any material contained in this article, we recommend that you seek professional advice.

Co-author

Name: Irini Kourakis

Position: Lawyer

Practice: Disputes

There is a myriad of potential liabilities that businesses in the hospitality industry must navigate. Whether you are a landlord, tenant or licensee in the industry, our aim is to ensure you maximise the benefits and opportunities of your business.

We pride ourselves on pursuing a deep understanding of our clients’ business and objectives, developing a rapport with them and achieving commercial outcomes.

Find out more about how our hospitality experts can assist your business here.