New penalties for pubs and clubs that breach their licence conditions have been watered down by the NSW government even before they come into force after a review of laws designed to combat alcohol-related violence.
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A risk-based licensing scheme for venues was announced by the government in 2014 as part of a suite of reforms after the deaths of teenagers Thomas Kelly and Daniel Christie in Kings Cross.
Under the scheme, venues would be penalised with a "risk loading" on top of their annual licence fee, determined by factors including breaches of licence conditions, trading hours, capacity and whether they were on the violent venues list.
If a venue had one strike against it under the "three strikes" scheme, the loading would automatically be $3000 for each of the three years the strike was in place.
For venues with two strikes, the loading would be $6000 each year and for three strikes it would be $9000 each year.
The scheme's introduction was delayed by the NSW government until after last year's review of liquor licensing laws by former High Court judge Ian Callinan.
Mr Callinan's review recommended that a strike be attached to a venue's licensee instead of the venue itself, after lobbying from the hotels industry which complained it was causing banks to revalue their businesses.
As a consequence, the government is set to amend its liquor legislation and in the process remove the automatic loading relating to venues with two strikes and three strikes.
Consequently the provision for an automatic $3000, $6000 or $9000 loading for each year one, two or three strikes are in place has been removed.
Instead, venues will be assessed annually and a compliance risk loading added only if a licence breach has occurred in the previous calendar year, regardless of any strikes in force against its licensee.
For one licence breach in the year the loading is $3000, for two $6000 and for three $9000.
A spokesman for Liquor and Gaming NSW said the change was designed to "make the fee system's operation consistent with proposed changes to the Three Strikes disciplinary scheme which will be part of a bill to go before Parliament this year".
He said the majority of offences that can lead to a strike will still lead to a compliance history risk loading.
"Venues with an adverse compliance history will for the first time pay extra loadings of between $4000 and $19,000, in addition to any financial penalties already paid for the offence/s [e.g. penalty notice or court-issued fine]," he said.
Following Mr Callinan's review, the government eased the 1.30am lockout and 3am last drinks laws to allow affected live entertainment venues to apply for a 2am lockout and 3.30am last drinks.
