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Cumulative Impact Assessment in the Precincts

The NSW Independent Liquor & Gaming Authority (ILGA) has decided to revoke the Cumulative Impact Assessment (CIA) in the Sydney CBD Entertainment and Kings Cross Precincts (Precincts).  Accordingly, ILGA will also revoke its Guideline 18.

Liquor & Gaming NSW (L&GNSW) recently completed a review of the CIA in the Precincts on behalf of ILGA.  L&GNSW sought and considered submissions from stakeholders and analysed crime and liquor licensing data to inform its findings.

ILGA was required to determine whether it is appropriate to retain, amend or revoke the CIA.  Cumulative impacts include the shared impact, both positive and negative, that results from the clustering of licensed premises.  Based on the review’s findings, ILGA decided to revoke the CIA in the Precincts.

ILGA will withdraw Guideline 18: Cumulative Impact Assessment (CIA) —Sydney CBD Entertainment and Kings Cross Precincts.

The removal of the CIA does not preclude ILGA from considering factors relating to outlet density, safety or other relevant matters when making licensing determinations.

The review’s findings included:

  • An analysis of crime data shows the CIA has had little impact on safety in the Precincts.  However licensing data shows it is likely to have restricted the growth of liquor outlets in the Precincts.
  • Stakeholders reported the CIA has had negative impacts on industry, creating barriers and disincentives to innovation.  We therefore inferred that by discouraging businesses from undertaking reasonable development of their premises, maintenance of the CIA in the Precincts may conflict with the other objects of the Liquor Act 2007, such as facilitating the balanced development of the industry in the public interest.
  • That there is no incremental safety benefit that could not equally be realised through ILGA using its standard powers as the licensing body in NSW.

ILGA therefore decided that an appropriate response to the absence of any demonstrated benefit from the CIA in the Precincts is its removal.

The Authority will continue to consider applications having regard to the objects of the legislation and the considerations of harm minimisation and community amenity it requires.

Background

ILGA previously issued the CIA in the Precincts following the NSW Government lifting a temporary liquor licence freeze on 30 April 2021 and establishment of a new CIA framework to manage the risks associated with the high concentration of licensed premises and crime rates in the Precincts.