Changes Proposed to Alcohol Licensing Provisions
Changes Proposed to Alcohol Licensing Provisions
Thursday 2 April, 2026
Our previous Legal Brief, Changes to Alcohol Trading and Licensing, addressed the liberalising of opening hours for licensed premises on Anzac Day Morning, Good Friday, Easter Sunday, and Christmas Day. But other changes are also proposed to licensing provisions.
The Sale and Supply of Alcohol (Improving Alcohol Regulation) Amendment Bill (the Bill) was introduced to the House on 16 March 2026 and if passed would amend the Sale and Supply of Alcohol Act 2012 (the Act). It is a Government Bill intended to improve alcohol regulation and remove barriers to economic growth while still furthering the object of the Act. While recognising that the sale and supply of alcohol contribute to violent crime and other social and health harm, the Government view is that it also provides economic and social benefit to New Zealand. The Bill therefore seeks to strengthen key areas to support the object of the Act (to minimise harm) while also providing for a fairer, more certain licensing process with benefits for businesses and consumers.
The Bill is relevant to local authorities in important respects, particularly in relation to district licensing committees (DLCs) and local alcohol policies (LAPs).
The following key changes are proposed in the Bill.
Restrictions on Who May Object to Licence Applications
The Bill amends the Act to provide that the only persons who may object to certain licence-related applications are persons who can certify to the relevant DLC that they are resident, or have an office or a place of business in the district of that DLC, or within 1 kilometre of the premises to which the application relates.
This restriction applies to applications for the grant and renewal of on-licences, off-licences, and club licences, as well as applications to vary conditions and applications for special licences where notice has been required. This will reduce the volume of objections that DLCs must process from parties with no genuine local connection.
Applicants' Right to Respond to Objections
The Bill amends the Act to permit an applicant to respond to an objection made to their application within 15 working days after receiving a copy of it. This right applies across the grant, variation, renewal of licences, and special licence applications. DLCs will be required to consider any such response when deciding the application.
Renewal of Licences and Local Alcohol Policies
The Bill reinstates section 133 of the Act as it was before its replacement by the Sale and Supply of Alcohol (Community Participation) Amendment Act 2023. The effect of this is that, when considering whether to renew a licence, the Alcohol Regulatory and Licensing Authority (the Authority) or DLC must not take into account any inconsistency between a relevant LAP and the renewal of the licence or the consequences of its renewal. Businesses will have certainty they can continue to renew their licences if they operate within their licence conditions. However, conditions may be imposed on any licence renewed if there is a relevant LAP and the DLC considers that renewal without those conditions would be inconsistent with the policy.
This reverses the position introduced in 2023, which had allowed DLCs to decline renewals because of inconsistency with a LAP.
Changes to Special Licensing
Risk-Based Assessment
The Bill amends section 142 of the Act to replace most of the criteria for issuing special licences with a requirement to, in accordance with regulations, assess and classify the risk of alcohol-related harm that would arise from issuing the licence, and have regard to that risk (and any other matters prescribed by regulations) when deciding whether to issue the licence.
The detailed risk criteria will be set out in regulations, giving DLCs a structured framework for consistent decision-making.
Conditions on Special Licences
A DLC may issue a special licence subject to conditions only if the conditions are permitted or required by regulations, or in the committee's opinion, the granting of the licence, or the consequences of granting the licence, without those conditions would be inconsistent with any relevant LAP.
Consultation Between DLCs for Multi-District Events
The Bill inserts new section 142A, which provides that DLCs that receive applications for events that are part of a group of interconnected events must consult each other when considering the applications. Specifically, the licensing committees must consult each other for the purpose of supporting, to the extent reasonably practicable, a consistent approach to decisions about the assessment and classification of the risk of alcohol-related harm, whether to issue the licences, and the conditions (if any) subject to which the licences are issued.
This is relevant to festivals or events spanning multiple territorial authority areas, such as cycling events or music touring events, and will require DLCs to actively co-ordinate.
Extended Trading Hours for Televised Significant Events
The Bill would create a new self-service notification mechanism for extended trading hours, bypassing the special licence process in qualifying cases.
The purpose of new sections 45B to 45G is to facilitate extended trading hours (and related adjustments to one-way door restrictions) for certain premises for which an on-licence or a club licence is held during televised significant events. The Governor-General may make regulations designating a significant event on the recommendation of the Minister.
The extended trading hour provisions apply to eligible premises only if the licensee has given the territorial authority and the Police at least 7 days' written notice that the licensee intends to televise in the premises on the night of the significant event, and of the details of a noise management plan or other arrangements for managing noise levels appropriate to the locality that will be in place during every proposed extension. Although local authorities will receive 7-day advance notice of intended extensions they will have no decision-making role — the mechanism operates automatically upon proper notification.
The following provisions will apply:
- The primary or sole purpose of the premises being open on the night must be to allow customers to watch the televised significant event.
- Any one-way door restriction applicable to the premises during permitted trading hours does not operate during the hour before an extension starts, during the extension itself, or for an hour after the premises are required to close for the sale of alcohol.
- The provisions relating to extended trading hours and the effect of extensions on one-way door restrictions will override any contrary provisions of the Act, of a relevant LAP, or of a condition of the licence. LAP provisions on trading hours and one-way door conditions will not apply during a televised significant event extension.
- During extensions, open areas cannot be used for any purpose, audio equipment cannot be used in open areas, and bottles or other rubbish cannot be disposed of or left for collection in an open area.
- Before recommending an event be designated as a significant event, the Minister must be satisfied that the event is likely to bring sporting, cultural, social, economic, or other benefits to New Zealand or New Zealanders, raise New Zealand's international profile, and attract a large number of New Zealanders as participants or spectators.
Producer Tasting Rooms
The Bill replaces the definition of "winery cellar door" with a new definition of "producer tasting room," extending the relevant provisions of the Act to apply to any alcohol produced on the premises or from produce harvested from the operator's land — not limited to grape wine. This will enable breweries, meaderies, and distilleries to hold both an on-licence and an off-licence at the same premises.
DLCs will need to assess applications from breweries, distilleries, and meaderies for producer tasting room off-licences using the same framework previously applicable to winery cellar doors.
Hairdressing Shops — Licence Exemption
The Bill inserts a new section, which provides that a person may supply a single serving of alcohol to a customer in a hairdressing shop without a licence if certain conditions are met.
The alcohol must be for consumption in the shop only and the customer must not be a minor. A serving is limited to no more than 150 millilitres of mead or wine, 330 millilitres of beer, or 30 millilitres of spirits. Licensing is not required, so this change will not generate any additional DLC workload.
Restaurants — Additional Off-Licence Eligibility
The Bill provides that an off-licence may be issued for a restaurant if it holds an on-licence and includes retail premises from which food or non-alcoholic drinks prepared on the premises are sold for consumption somewhere else. This will apply, for example, to restaurants with a takeaway food counter. DLCs may receive applications from existing on-licence restaurant holders seeking this additional off-licence category.
Rapid Delivery Services
The Bill inserts a new section that requires that any person delivering alcohol as part of a rapid delivery service is not a minor, and that delivery may only be completed if a person who is not a minor and not intoxicated is present to receive the alcohol. A "rapid delivery service" means a service by which a product sold by remote sale is delivered or attempted to be delivered to the buyer's chosen address within 2 hours after that product is sold. This is primarily a compliance obligation on licence holders and delivery operators rather than on councils directly.
Zero-Alcohol Drinks
Holders of on-licences or club licences may sell for consumption an expanded range of qualifying low/zero alcohol options thereby meeting their existing statutory obligation to provide non-alcoholic beverages. In addition, supermarkets and grocery stores will be permitted to display, promote or advertise certain non-alcoholic drinks within an alcohol area in the store. The products covered include non-alcoholic beer, wine, and mead, zero-alcohol equivalents of spirits, liqueurs, and ready-to-drink beverages containing less than 1.15% ethanol.
Commencement
Changes to the Act are proposed to come into force 6 months after Royal Assent. However, the subpart relating to special licences will come into force on a date set by Order in Council, or otherwise 12 months after Royal Assent if no Order in Council has been made — this is to allow time to develop the supporting regulations.
This summary is based on the Bill as introduced and should be read alongside the principal Act. Councils are encouraged to seek specific legal advice on the implications for their district and existing local alcohol policies. As always, Tompkins Wake would be happy to assist. Please get in touch with one of our experts below for any questions.
