On 1 January 2021, an integrated incentives and demerit point system replaces the Violent Venues, Three Strikes and Minors Sanctions schemes. The system is designed to reward licensees, managers and clubs with a clean record by discounting licence fees and sanction those who commit serious offences under the Liquor Act or fail to provide a safe environment for patrons by imposing demerit points.
Licensees, managers and clubs will incur demerit points for committing demerit offences or via a prescribed complaint. Demerit points expire after 3 years.
A demerit offence is a serious breach of liquor legislation. Most demerit offences result in the automatic imposition of 1 demerit point against a licensee, manager or club. However, offences involving the sale or supply of liquor to minors result in 2 demerit points.
Liquor & Gaming NSW or NSW Police can make a prescribed complaint to the Independent Liquor & Gaming Authority (ILGA) in relation to a licensee or manager of a venue who fails to provide a safe environment for their patrons. After considering the circumstances, ILGA may decide to impose 1 or 2 demerit points.
For a list of demerit offences and further information in relation to prescribed complaints, please refer to the Incentives and Demerit Point System fact sheet PDF, 444 KB.
Demerit points result in additional loadings attached to the annual liquor licence fee of a venue. For more information visit the licence page.
The accumulation of multiple demerit points within a 3-year period may also result in other escalating remedial action. Such action ranges from a reprimand to the potential permanent disqualification of licensees, managers or club secretaries and/or the suspension of associated liquor licences for up to 14 days, depending on the number of demerit points incurred.
Venues whose licensees and managers have not incurred any demerit points in the last three years will be rewarded with a 5% discount on annual liquor licence fees on base fee and trading hours risk loading. This will increase to a 10% discount if they have not incurred any demerit points over five years. Venues will first be eligible for a discount in 2024.
In certain circumstances, licensees, managers and club secretaries can apply to remove a demerit point. Please email the Office of the Independent Liquor & Gaming Authority at office@ilga.nsw.gov.au for further guidance on seeking a removal, or refer to the ILGA Application form for review of demerit points form - APP997 PDF, 870.94 KB.
Licensees, managers and clubs may also seek to review a decision of ILGA to take remedial action or not remove a demerit point with the NSW Civil & Administrative Tribunal.
A public registry of demerit points will be available. The register lists the demerit points that are in force and the circumstances that led to them. The register will be updated on a regular basis.
Strikes incurred by a licensee, manager or club under the old Three Strikes Scheme have been revoked. This, however, does not affect the operation of any remedial action taken by ILGA as a result of the strike.
To find out more including what offences lead to a demerit point, the grounds for a prescribed complaint, and the type of remedial action ILGA may take against an individual or licence, please refer to the Incentives and Demerit Point System fact sheet PDF, 444 KB.
