12 July 2011

Liquor licensing fee models released for discussion.

12 July 2011 | johnboy

The best part of a year into the new reformed liquor licensing regime Justice and Community Safety are back to circulating an options paper for fee models.

Well done Labor and Greens for pushing the last lot through which have obviously worked so well.

But looking to windward what’s on the table here?

2 Refined Current Off Licence Model
Off: Total fee based on Volume of Liquor sold (with new categories)

3 Refined Current Model
On/Club/General/Special: Standard Fee based on Volume of Liquor + Late Night Risk Fee (modified occupancy loading)= Total Fee

4 Flexi Model
On/Club/General/Special: Standard Fee based on Volume of Liquor + Late Night Fee Based On Occupancy Loading = Total Fee

5 OLM Model

On/Club/General/Special: (Standard Fee based on Volume of Liquor + Late Night Fee) x Occupancy Loading Multiplier = Total fee

6 Licence Category Model On/Club/General/Special: Standard Fee based on Licence Category x Late 23 Night Risk Factor = Total Fee

7 Three Risk Category Model
On/Club/General/Special: Standard Fee based on Licence Type x (Size Factor + Late Night Factor) = Total fee

8a Refined Current Model with compliance history
On/Club/General/Special: Standard Fee based on Volume of Liquor + Late Night Risk Fee + Compliance History Component = Total Fee

8b OLM Model with compliance history
On/Club/General/Special: (Standard Fee based on Volume of Liquor + Late Night Fee + Compliance History Component) x Occupancy Loading Multiplier = Total fee

8c Refined Off Licence Model with compliance history
Off: Total fee based on Volume of Liquor sold + Compliance History Component

So completely back to the drawing board then?

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notdingers3:38 pm 13 Jul 11

The volumes they are looking at is crazy too and doesn’t really seem to have been discussed much

For a venue to hit $120K in alcohol purchases is roughly $2300 a week on booze purchases.

That would be only 6 kegs a week, with no wine, RTD or spirit purchases.

Plus it adds another onerous reporting requirement to small businesses, which means more hours they have to pay the book keeper. Also if the volumetric purchases are done based on forecast of liquor purchases, what happens if the actuals exceed the $120K level when it was forecast to be below. The venue would presumably be made to pay the higher fee retrospectively, a large sum that a lot of small venues wouldn’t have sitting just sitting around.

random5:01 pm 12 Jul 11

A fee model designed to use all five risk factors of volume of liquor purchased for sale, occupancy loading, trading hours, class and subclass of licence and compliance history would place a heavy financial burden on a small percentage of on licensees in the ACT liquor market.

… and why do we care? If a venue’s risk factors are astronomical, it should face correspondingly high fees. That’s the entire point of a risk-based license model.

I also love this bit, referring to an extremely simple calculation involving three variables: liquor volume, closing time and occupancy loading:

This model is a highly complex and complicated model for a small jurisdiction like the ACT.

Unbelievable.

Tetranitrate3:59 pm 12 Jul 11

Even if/when a new and better model comes out, it’s too little too late for the businesses that have been ruined and subsequently sold off thanks to the present mess.

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