Liquor and Gaming NSW > Gaming & Wagering > Local Impact Assessment (LIA) public register

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​Local Impact Assessment

The Local Impact Assessment (LIA) looks at the impact to communities of an increase in gaming machines. The LIA process ensures local councils, police and residents have a say in what happens in their community.

An LIA is completed by clubs or hotels that request an increase to gaming machines in their venues,​​ or when a hotel or club changes location.

LIAs that are pending approval can be viewed on the LIA public register.

What is a Local Impact Assessment

    A Local Impact Assessment (LIA) is designed to assess the impact of additional gaming machines on the local community.

    The LIA process ensures that individuals and organisations can make a submission in response to a gaming machine threshold increase proposed by a club or a hotel.

    You don't need to submit an LIA with your threshold increase application if you apply for transfer of gaming machine entitlements or permits or to lease gaming machine entitlements: 

    1. within the same Statistical Area Level 2 (SA2);  or
    2. if your venue is located in a Band 1 SA2 and, if the application is approved, the total threshold increase for the venue in the past 12 months would not exceed 20;
    3. Transfer of entitlements or permits or lease of entitlements is between venues in the same LGA and the transferring venue is in a SA2 of the same or higher band than the receiving venue; or
    4. Transfer or lease of entitlements, or transfer of permits, to your venue from another venue in a SA2 directly bordering your venue's SA2, and the transferring venue's SA2 is of the same or higher Band than your venue's SA2. 

    All LIAs (both pending and determined) can be viewed on the LIA Public Register. ​

    A merits review of contentious licensing decisions and disciplinary matters can be sought by persons with standing to the New South Wales Civil and Administrative Tribunal (NCAT). The review of licensing decisions, which  includes decisions in relation to an application for an increase in gaming machine threshold requiring a Local Impact Assessment - Class 2, apply to applications lodged with ILGA from 1 March 2016.​​​

    NCAT decisions on licensing matters will be published on the ​NSW Case Law ​​website under the Administrative and Equal Opportunity Division as they become available. ​

    What are 'Statistical Area 2s' and how are they classified into 'Bands'?  

    An SA2 is a geographical boundary set by the Australian Bureau of Statistics.

    Each SA2 is classified into Band 1 (low risk), Band 2 (medium risk) and Band 3 (high risk) depending on the gaming machine density, gaming machine expenditure and the relative socio-economic disadvantage of the SA2.

    Each SA2 is assigned a score with a weighting of:

    All SA2s in NSW are then ranked into Band 1, Band 2, Band 3 according with the:

    • bottom 20% (i.e. those with the highest levels of socio-economic disadvantage) are put into Band 3
    • next 30% are put into Band 2
    • remaining 50% (i.e. those with the lowest levels of socio-economic disadvantage) are put into Band 1.

    Further information of the classifications of SA2s, including an interactive map that provides information on your community, is available here.

    What are the different types of LIA and when are they required?

    The purpose of an LIA is to inform and support a community consultation process that will enable the Independent Liquor & Gaming Authority to determine whether approving the application to increase a venue's GMT will provide either a positive contribution to the local community or an overall positive impact on the local community.

    There are two types of LIA that may be required before a GMT increase application can be approved by the Independent Liquor & Gaming Authority:

    • a Class 1 LIA requires the applicant to demonstrate that the proposed increase in the GMT will provide a positive contribution to the local community
    • a Class 2 LIA requires the applicant to demonstrate that the proposed increase in the GMT will have an overall positive impact on the local community.

    An LIA is required to accompany any application for an increase in a venue's GMT according to the following rules:


    Low-range increase (up to 20)
    ​Mid-range increase (21 to 40)
    ​High-range increase (over 40)
    ​Band 1
    ​No LIA required
    ​Class 1 LIA
    ​Class 2 LIA
    ​Band 2
    ​Class 1 LIA
    ​Class 2 LIA
    ​Class 2 LIA
    ​Band 3
    ​No GMT increases permitted via an LIA process

    ​Class 1 and Class 2 LIA

    Depending on the SA2 band and the size of a threshold increase sought, there are two types of LIA required.

    Class 1 LIA

    Class 1 LIA must demonstrate that approval of a threshold increase application will result in a positive contribution to the local community.Class 1 LIA is required for venues seeking a threshold increase:

    • Between 21 to 40 in a Band 1 SA2;
    • Up to 20 in a Band 2 SA2.​
    For Class 1 LIA, a venue has up to 2 years from the date of the approval in which to acquire gaming machine entitlements for the approved threshold increase – class 1 quota.

    After that time any unfulfilled class 1 quota automatically expires.

    Class 2 LIA

    Class 2 LIA must demonstrate that the approval of a threshold increase application will provide an overall net positive impact on the local community.

    Class 2 LIA is required for venues seeking a threshold increase of:
    • More than 40 in a Band 1 SA2; or
    • More than 20 in a Band 2 SA2. 
    For Class 2 LIA, a venue has up to 5 years from the date of the approval in which to acquire gaming machine entitlements for the approved threshold increase – class 2 quota.

    After that time, any unfulfilled class 2 quota automatically expires.

    Exceptions

    An LIA is not required in certain circumstances, usually where machines are moving within a local area. This is because there was previously an assessment of the impact on the local community when existing GMTs were granted, and the purpose of the LIA is to assess the impact of increased machines in a particular area, not at a specific venue.

    Venues in Band 3 SA2s seeking to increase their GMT are not required to undertake an LIA where it is acquiring additional GMEs from a venue:

    1. in the same Band 3 SA2, or
    2. in another Band 3 SA2 in the same Local Government Area, or
    3. in a directly bordering Band 3 SA2, even if it is in a different Local Government Area (note: this does not apply to the Fairfield LGA).

    Venues in Band 2 SA2s seeking to increase their GMT are not required to undertake an LIA where it is acquiring additional GMEs from a venue:

    1. in the same Band 2 SA2, or
    2. in another Band 2 SA2 in the same Local Government Area,
    3. in a Band 3 SA2 in the same Local Government Area, or
    4. in a directly bordering Band 2 or 3 SA2, even if it is in a different Local Government Area (note: this does not apply to the Fairfield LGA).

    Venues in Band 1 can increase their GMT without an LIA where they are acquiring additional GMEs from any SA2 in the same Local Government Area.

    For example, Figure 1 shows a portion of the Blacktown Local Government Area (right side of map) and Penrith Local Government Area (left side of map). In Figure 1, Band 3 is red, Band 2 is amber and Band 1 is green.

    Figure 1

    In Figure 1, a venue in SA2 "A" can apply for a GMT increase without an LIA where it is acquiring GMEs from a venue in:

    • SA2 "A" (same Band 3 SA2)
    • SA2 "B" or SA2 "E" (Band 3 SA2s in same Local Government Area)
    • SA2 "C" (directly bordering Band 3 SA2)

    SA2 "A" is a Band 3 and is subject to an area cap. As no additional gaming machines can be introduced from non-Band 3 SA2s, a venue in SA2 "A" cannot source GMEs from "D" or "F".

    As SA2 "F" is a Band 2 SA2, a venue in SA2 "F" can acquire entitlements from SA2 "A", "B" or "E" without undertaking an LIA as all SA2s are in the same Local Government Area, but cannot acquire from a venue in SA2 "D" without undertaking an LIA as SA2 "D" is a lower banding.