Special Entertainment Precinct (SEP) Kickstart Grant Program​ Round 2 ​

To be eligible for the Program, applicants must:

• be a local council in NSW who has not previously received funding from the NSW Government to establish a SEP; and
• have a Council resolution to:
  • establish the SEP/s, which must identify a specific location and boundary for the SEP/s, and
  • commit to establishing a Special Entertainment Precinct Working Group (PWG); and
  • investigate Purple Flag accreditation for the same boundary as the proposed SEP/s in the project period; unless a council already has an existing Purple Flag accreditation that covers a boundary within the proposed SEP/s; and
• have one of the following:
  • an adopted night-time economy strategy, or
  • another adopted strategy document or strategic planning statement in which the night-time economy is identified as a priority, objective, pillar or key action, or
  • a Council resolution to prepare a night-time economy strategy or plan and have other demonstrated strategic context including a visitor economy strategy or plan or economic development strategy or plan; and

• demonstrate that the decision to establish the SEP/s has been informed by early engagement on the principle of the SEP with the local community and businesses; and
• demonstrate project deliverability by clearly detailing Council’s capacity to deliver the SEP/s and investigate Purple Flag accreditation; and
• be able to deliver the project within the project period, noting the requirements of the SEP Guidelines.

Department of Creative Industries, Tourism, Hospitality and Sport (DCITHS) cannot consider your application if it does not satisfy all the eligibility criteria.

Locations that are eligible include

The SEP Kickstart Grant is open to all eligible councils in NSW.

To encourage regional SEPs to be established, $250,000 (exc. GST) of the total fund will be reserved for priority allocation to councils located outside of the Sydney Metropolitan Area as defined in this Program using the NSW Department of Planning, Housing and Infrastructure’s (DPHI’s) map of ‘Regional Boundaries NSW’. If the reserved funding is not fully allocated to eligible regional councils, any remaining funding will be made available to other waitlisted eligible councils at the closure of the grant.

The funding is available to undertake the following:

• $20,000 to $200,000 (excluding GST) for the purpose of establishing a SEP/s; and
• an additional $10,000 to $50,000 (excluding GST) for the purpose of investigating Purple Flag accreditation including the costs of preparing a Purple Flag self-assessment report (unless a council already has an existing Purple Flag accreditation that covers a boundary within the proposed SEP/s)

to the total value of $250,000 (excluding GST) per eligible council.

While the grant requires all councils establishing SEPs (without an existing Purple Flag accreditation) to investigate Purple Flag accreditation and prepare a Purple Flag self-assessment report, the request for additional funding is optional. For example, councils may not require the additional funding if they have sufficient internal resources to do this work.

The SEP Kickstart Grant does not require councils to obtain Purple Flag accreditation. The accreditation will be subject to a separate assessment and process. For further details, click here.

All costs must:

• Be incurred within the project period (activities cannot have commenced or been completed prior to the execution of the funding agreement made to successful applicants);
• Reflect competitive market rates; and
• Be a true and accurate reflection of costs required to deliver the activity.

If your application is successful, we may ask you to verify the project cost and request evidence of costs such as supplier contracts, quotes, invoices and receipts. We may request financial reports and credit checks from independent third-party service providers.

You must demonstrate value for money by ensuring project costs are reasonable and reflective of market rates. We may use industry cost benchmarks to assess whether costs are reasonable.

DCITHS will make the final decision on whether the claimed cost is eligible or reasonable and only pay the reasonable amount and may therefore make a funding offer which is less than the requested funding amount.

Eligible costs for SEPs funding

Eligible councils may request between $20,000 and $200,000 (excluding GST) of funding for eligible costs as per Sections 3.1.1 and 3.1.2 of the Grant Guidelines for Round 2 for the purposes of establishing a SEP.

To be eligible, costs related to the establishment of the SEP/s must be a direct cost related to activities outlined within Step 1 (Establishing a SEP) of the SEP Guidelines. Costs associated with marketing and communication of the SEP/s must not be the only costs requested.

Eligible expert and consultant costs for SEPs include, but are not limited to:

• labor expenditure for temporary employment for the project
• external or third-party costs, such as
  • acoustic specialists to prepare or test the sound management framework
  • strategic planning consultants to prepare internal reporting and maps, a planning proposal, draft Development Control Plan (DCP) provisions, and/or draft precinct management plan
  • community engagement consultants to develop engagement strategies and undertake engagement activities (such as letterbox drops or support PWG meetings)
  • costs associated with marketing and communication of the SEP/s (note: this must not be the only cost requested)
  • monitoring, data collection and/or evaluation costs during the SEP/s trial.

Eligible costs for Purple Flag funding (optional)

Eligible councils may request an additional amount between $10,000 and $50,000 (excluding GST) of funding for eligible costs as per Sections 3.2.1 and 3.2.2 for the purposes of investigating Purple Flag accreditation. The request for funding for Purple Flag is optional.

Please note: the grant requires all funded councils establishing SEPs (without an existing Purple Flag accreditation) to prepare a Purple Flag self-assessment report, even if a council does not request the additional funding. However, if a council requires additional resources to prepare the self-assessment report, it may request the optional Purple Flag funding.

Councils who currently have existing Purple Flag accredited precincts within the proposed SEP/s cannot apply for additional funding to support the investigation of Purple Flag accreditation, and do not require a resolution to investigate a Purple Flag accreditation.

To be eligible, costs related to the investigation of Purple Flag accreditation must be to:

• establish or fund a coordinator role to manage stakeholder engagement and coordinate Purple Flag related working group meetings
• undertake activities related to investigating Purple Flag accreditation including developing a Purple Flag self-assessment report, developing a precinct map, and compiling other supporting information to progress a Purple Flag application, such as a precinct snapshot and precinct overview. For more details, see Section 3 of the Purple Flag Program Guidelines which can be accessed here

Eligible expert and consultant costs for Purple Flag include, but are not limited to:

• labor expenditure for temporary employment for the project for the coordination of the Purple Flag project
• external or third-party costs, such as:
  • data collection
  • preparation of documentation
  • stakeholder engagement

Note: Purple Flag accreditation will be subject to a separate assessment and process. The self-assessment report template will be provided to councils that are successful in receiving grant funding. It is not mandatory for SEP Kickstart Grant recipients to achieve Purple Flag accreditation.

For further details, click here

Ineligible applicants:

• Individuals, groups or organisations that are not NSW councils. 
• NSW Councils that do not meet the eligibility requirements of the grant.
• NSW Councils that have previously received funding from the NSW Government to establish a SEP, including in Round 1 of the SEP Kickstart Grant Program. 

The grant cannot be used to fund the following activities:

• activities that will not be delivered prior to the end of the grant project period, per agreed project milestones, unless otherwise approved by formal variation
• activities that have commenced or been completed prior to the execution of the funding agreement made to successful councils (i.e. no retrospective funding)
• permanent staff salaries
• costs incurred in the preparation of a grant application or related documentation
• projects requiring ongoing funding from the NSW Government
• projects that are ongoing or constitute the normal course of business.

Ineligible costs for SEPs funding

The grant cannot be used to fund the following activities:

• other than minor boundary changes, establishment of a SEP/s in a different location than originally proposed in the grant application
• physical activation of the SEP/s once established
• capital works or physical works within the SEP/s
• funding for works that are part of the council’s ongoing maintenance and management of the SEP/s
• the purchase of land or property
• marketing and communication of the SEP/s if this is the only cost requested – costs associated with marketing and communication of the SEP/s must not be the only costs requested. 

Ineligible costs for Purple Flag funding (optional)

The grant cannot be used to fund the following activities:

• the investigation of Purple Flag for a precinct or part of a precinct that is already Purple Flag accredited
• ongoing operational costs such as staff salaries, rent, utilities, maintenance/repairs and administrative overheads. This excludes the costs associated with the appointment or funding a program coordinator.

Projects funded through the SEP Kickstart Grant Program must commence after execution of the funding agreement and be completed by 30 June 2028 at the latest.

Funding agreements will be issued to successful applicants following notification. Successful councils will be expected to complete and sign a funding agreement within 2 weeks of receiving it. Upon execution of the funding agreement, successful councils will receive the fully allocated grant amount in a single payment.

3-Month Purple Flag Accreditation Briefing: Unless otherwise agreed with DCITHS, successful councils must attend a meeting (held online, time and date TBC) within 3 months of executing a funding agreement to discuss Purple Flag accreditation with the Office of the 24-Hour Economy Commissioner. Council’s Executive staff must be in attendance.

6-Month Progress Report: No later than 6 months after executing a funding agreement (or as otherwise agreed by DCITHS), councils must submit a progress report via Smarty Grants comprising:

• the draft documentation and request for Gateway Determination that will be submitted to DPHI comprising the precinct management plan, development control plan amendment if applicable, engagement outcomes report, SEP boundary maps, relevant Council resolutions and reports, any other draft documents to be submitted with the Planning Proposal, and the Planning Proposal
• a Special Entertainment Precinct working group (PWG) consultation outcomes report on the activities of the PWG
• a completed draft Purple Flag self-assessment report, unless a council already has an existing Purple Flag accreditation that covers a boundary within the proposed SEP and a summary of Purple Flag related working group meeting dates, actions and attendees
• information relating to expenditure carried out for the project (e.g. invoices, payment remittance) relevant to investigating Purple Flag accreditation
• information relating to expenditure carried out for the project (e.g. invoices, payment remittance) relevant to establishing the SEP/s
• baseline data to enable evaluation of the SEP/s

SEP trials must commence no later than 31 December 2026 (unless otherwise agreed with DCITHS) and be completed no later than 30 June 2028. Refer to the Grant Guidelines for a full list of the requirements of the Progress Report.

Project acquittal: Within 4 weeks of completing the project (at the conclusion of the SEP trial and no later than 31 July 2028) final acquittal report, including financial statements, must be submitted within four weeks of completing the project

Post-acquittal reporting: Councils will also be required to provide a six-month and twelve-month post-acquittal report to support evaluation of the SEP’s long-term outcomes.

Only one complete application per Council will be accepted. However, each application can comprise of more than one SEP (to be consolidated as maximum one (1) planning proposal). Where an application comprises more than one SEP, the maximum amount of funding which can be requested is up to $200,000 (excluding GST) per application. Funding will be allocated per council / application, not per SEP. 

Councils are not eligible for Round 2 funding if they have previously received funding from the NSW Government for establishing a SEP.

Councils whose applications have been deemed ineligible may reapply subject to the requirements of the Grant Guidelines for Round 2.