When a liquor licence isn't required

Your business needs a liquor licence to sell alcohol in most situations in NSW. But there are some circumstances when you don't need a licence. Find out more.

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What IS required in NSW

It's important to apply for and get a liquor licence to sell alcohol in most situations in NSW.

You can check through the table below to see if you qualify for an exemption under the law.

If you sell liquor without a licence, or outside the scope of exemptions provided for under the law, stiff penalties apply. The sale or supply of liquor to a person under 18 is an offence. Penalties of up to $11,000 and/or 12 months' imprisonment may apply.

If a liquor licence is needed:

Circumstances where a liquor licence may not be required

Expand to check if it applies in your situation.

Bed and breakfast establishments (B&Bs)
Must have a licenceWhen a licence isn't requiredDo you need to notify ILGA for an exemption?
Larger accommodation venues, or B&Bs with public restaurants, should apply for an on-premises liquor licence.

The Liquor Act 2007 defines a bed and breakfast establishment as a premises that provides temporary guest accommodation where:

  • it is operated by the permanent residents of the establishment
  • meals are provided for guests only (no public restaurant).

This exemption also applies to small accommodation venues such as farm-stays.

A liquor licence is not required if:

  • no more than eight adult guests are staying at the establishment at one time
  • alcohol has been purchased from a retail outlet by the establishment proprietor
  • the sale and supply of alcohol is in addition to the provision of accommodation or food including a take- away picnic basket.

To gain an exemption, the B&B proprietor must first notify the Independent Liquor & Gaming Authority (ILGA) that the establishment wishes to sell or supply liquor to guests.

Download the Notification Form (PDF 701.21KB)

Residential land lease communities

The following applies to residential land lease communities that restrict residents to those aged 55 or over.

Must have a licenceWhen a licence isn't required
If the operator of a residential land lease community wishes to sell alcohol at gatherings or in any other circumstances not outlined in the column at right, an on-premises liquor licence is required.

A liquor licence is not required for alcohol to be sold or supplied during gatherings at a residential land lease community to adult residents or guests of residents. However:

  • the residential land lease community must operate with an over-55s age restriction rule
  • the gathering must be organised and run by residents (and not by the operator of the registered residential community)
  • a residents committee member or nominee of the residents committee must be present at the gathering to supervise the sale and supply of alcohol and the general conduct of the gathering
  • alcohol sold and supplied at the gathering must be purchased from a retail liquor outlet
  • gatherings must be held at a temporary bar or common areas of the registered residential community
  • records must be kept of the gatherings held by the community.

Liquor & Gaming NSW inspectors reserve the right to compel a residential land lease community to provide evidence that it restricts residents to those aged 55 and above and for records of the gatherings.

Retirement villages
Must have a licenceWhen a licence isn't required
If a retirement village operator wishes to sell alcohol at gatherings or in any other circumstances not outlined in the column at right, an on-premises liquor licence is required.

​A liquor licence is not required for alcohol to be sold during gatherings at a retirement village to adult residents or guests of residents. However:

  • the gathering must not be organised or run by the operator of the retirement village.
  • a resident’s committee member or nominee must be present at the gathering to supervise the sale and supply of alcohol and the general conduct of the gathering
  • alcohol sold at the gathering must be purchased from a retail liquor outlet.
Cruises
Must have a licenceWhen a licence isn't required
Required except as noted in next column.

​A liquor licence is not required to sell alcohol to an adult on board an interstate or international cruise vessel while it's engaged in a voyage within NSW waters.

A liquor licence is also not required where liquor is sold on a vessel conducting a cruise in NSW waters that meets the following requirements:

  • the vessel has sleeping facilities for at least 100 passengers
  • liquor is sold or supplied to registered fee-paying passengers or crew members only
  • liquor is sold or supplied for consumption on the vessel only
  • liquor is not sold or supplied to a minor or an intoxicated person.
Aircraft
Must have a licenceWhen a licence isn't required
This exemption only applies to a person or organisation selling or supplying alcohol and who also operates the aircraft. For example a person who charters an aircraft and wants to sell liquor on board must obtain a liquor licence.

Aircraft operators are not required to hold a liquor licence to sell alcohol to an adult on board their aircraft while in NSW.

As noted in column 1, this exemption only applies to a person or organisation selling or supplying alcohol and who also operates the aircraft.

Auctions
Need a licence?When a licence isn't requiredYou must notify ILGA
Not generally required providing criteria in next two columns (this row) is met.

A liquor licence is not required to sell alcohol to an adult at an auction conducted by an auctioneer that complies with the following requirements:

  • the auctioneer must be a person who operates an auction house, or is employed as a professional auctioneer
  • auctions must be publicly promoted as an auction involving the sale of liquor.
  • See additional requirements in the following column.
  • ILGA must be notified that the auctioneer auctions liquor
  • the auctioneer must comply with any direction issued by the Secretary of the NSW Department of Industry. Directions can relate to the quantity or type of liquor that may be sold by auction or the manner or frequency in which liquor is sold.
  • Download: Notification Form (PDF 99.68KB)
Complimentary drinks
Must have a licenceWhen a licence isn't required

A licence is necessary if a venue intends to receive something (such as money, goods, or other benefits), either directly or indirectly, in exchange for the liquor.

For example, a liquor licence is required if free drinks are offered as part of a package, such as an entry fee or bundled service.

If a liquor licence is needed, you can use our licence selector tool to find the most suitable licence for your venue.

A licence is not required if there is no direct or indirect charge for the drinks. (See previous column for what might constitute direct or indirect charge).

While Responsible Service of Alcohol (RSA) obligations do not apply to unlicensed venues offering complimentary drinks, it is strongly recommended to follow RSA guidelines for ensuring harm minimisation.

Hospitals and nursing homes
Must have a licenceWhen a licence isn't required
Required except as noted in next column.

A liquor licence is not required to sell alcohol to an adult who is receiving care in a nursing home, or a patient in a public hospital, private hospital, or medical facility.

The alcohol must be provided by, or on behalf of, the person in charge of the facility.

Gift baskets and flowers
Need a licence?When a licence isn't required
Not generally required providing criteria in next column (this row) is met.

​A liquor licence is not required to sell alcohol that is included in the sale of flowers or food designed to be delivered as a genuine gift to a person, such as a gift basket or bouquet of flowers.

  • the alcohol included in the gift must be purchased from a retail liquor outlet
  • two litres is the maximum volume of alcohol permitted in each gift
  • the gift must be packaged and presented in such a manner that it would be taken to be a gift
  • the gift can only be delivered to another adult who is not the purchaser
  • the gift cannot be delivered to a person at the location where the gift was purchased
  • gifts must be delivered between the hours of 7am to 7pm.

Other

BYO Restaurant

A liquor licence generally isn't required for BYO restaurants. But there are responsibilities to consider.

Exemption for not for profit organisations

As a not for profit organisation in NSW, you may be eligible to sell liquor at up to six fundraising functions annually without a liquor licence.

Unsure? We're here to help

Access the Liquor Act 2007 and the Liquor Regulation 2018 at www.legislation.nsw.gov.au

Contact us at Liquor & Gaming NSW

We welcome your feedback, enquiries and complaints about us or a licensed business.

Phone:  1300 024 720 Monday to Friday 9am - 4pm

Email:  contact.us@liquorandgaming.nsw.gov.au

Contact us online:  Contact us form

Our website:  www.nsw.gov.au/liquorandgaming

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