Licensees may seek to enter into an arrangement or agreement with a third party relating to the conduct of the business under the licence.
When a licence is granted, it is granted to a specified entity (the licensee). The licence allows only the licensee to sell liquor and at a specified place (the licensed premises).
The Liquor Control Act 1988 provides the flexibility whereby licensees may seek to enter into an arrangement or agreement with a third party relating to the conduct of the business under the licence.
Parties to such agreements should be aware that the provisions of the Act override the terms of any management agreement. An application of this nature will not be approved where any terms of an agreement are contrary to the Act or seeks to contract out of the Act.
The licensee’s duties and obligations remain the same even with the creation of a profit sharing or management agreement. The licensee always has responsibility for the conduct of the business under the licence and must ensure the business carried on under the licence is personally supervised and managed by natural persons.
Furthermore, the agreement must not contradict section 37(5) of the Act. This means that the licensee must retain exclusive possession of the whole of the licensed premises and can not lease out a portion of the licensed area to a third party.
Agreements that seek to allow a company or manager to sell liquor on behalf of the licensee will not be approved.
Under Section 34 of the Act applications can not be granted if the applicant is:
Similarly, each person directly or indirectly interested in the application or in the business, or profits or proceeds of the business, to be carried on under the licence must be a fit and proper person to be so interested. Prior to any approval being granted the licensing authority will need to be satisfied that all persons seeking to be involved are fit and proper.
Applications of this nature will only be granted if the licensing authority is of the opinion that it would be in the public interest to approve of such an agreement or arrangement. In submissions for approval, applicants are required to address the public interest issue as to why it is in the public interest that such an agreement should be approved. The onus is on applicants to ensure that agreements or arrangements comply with the requirements of the Act.
Any approval given by the licensing authority does not authorise any person, other than the licensee, to conduct the business under a licence, and does not in any way abrogate the licensee from its obligations and responsibilities under the Act.
An application is not considered lodged until the fee has been received. An invoice for payment will be issued on receipt of your emailed or posted form and can either be paid through the licensee's online portal account, by posting a cheque made payable to the Department of Local Government, Sport and Cultural Industries or a BPOINT payment link can be emailed on request. Application fees are not subject to GST.
Applications will not be progressed until the fee is received. Generally the application fee is not refundable, even if the application is refused or withdrawn.
In addition to the application fee, new applicants in respect of profit sharing agreements or arrangements will pay an additional $166 fee for each individual who is party to the agreement or arrangement and in relation to whom a background check is sought from the WA Police Service.
Applicants must lodge completed applications to the department. An application should be made using the forms provided below.
Department staff will be available between 8.30 am and 4.00 pm to assess your application to ensure that it meets the legislative requirements prior to lodgement.
Ensure all required documentation is attached to your application.
Department of Local Government, Sport and Cultural Industries
Level 2, Gordon Stephenson House, 140 William Street Perth WA 6000
Ensure all documentation is attached to your email.
rgl@dlgsc.wa.gov.au
PO Box 8349Perth Business Centre WA 6849
You can submit online through the portal.
This information is designed to provide authoritative information in regard to the subject matter covered, and with the understanding that the Director of Liquor Licensing is not passing legal opinion or interpretation or other professional advice. The information is provided on the understanding that all persons undertake responsibility for assessing the relevance and accuracy of its contents.