Key Takeaways
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The Office of Liquor and Gaming Regulation (OLGR) administers liquor licensing in Queensland, and a licence moves to a new licensee only through an approved application.
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The buyer applies for the transfer with the required consents, and OLGR assesses the applicant’s suitability.
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The buyer cannot supply liquor until an interim authority or the transfer is approved. Do not assume approval by a particular date.
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The contract should state which licensing approval is required before settlement and what happens if approval is delayed or refused.
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Incomplete applications, unpaid fees and unresolved compliance matters are common sources of delay.
When a licensed venue is sold, the ability to trade under the existing liquor licence does not pass automatically with the keys. The buyer must apply to OLGR to transfer the licence and cannot supply liquor until an interim authority or the transfer is approved.
Understanding the process early helps both parties plan the contract and settlement. A venue appraisal can also consider how the licence affects the business being sold.
Who Regulates Liquor Licences
OLGR administers liquor licences under the Liquor Act 1992 (Qld). The licence relates to the licensee and the premises, not the business name, so the incoming operator must be approved before they can lawfully supply liquor.
Where the venue also holds gaming machine approvals, additional applications may be required. Confirm the requirements with OLGR and a licensing solicitor before agreeing a settlement date.
How the Transfer Works
The transfer involves several linked steps:
Application and Consents
The buyer lodges the application to transfer the licence with the required supporting documents. The application may require consent from the outgoing licensee and, where the premises are leased, the owner of the premises. Check the current form and requirements in OLGR’s transfer guidance.
The seller can help by providing accurate licence details promptly and confirming the venue’s compliance position.
Suitability Assessment
OLGR assesses whether the applicant is suitable to hold a licence. For companies, this can extend to directors and other associates of the entity. Applicants with more complex structures should be prepared to provide additional information and respond to requests promptly.
Approved Managers and Training
Licensees and approved managers may need current responsible management training, and some venues need a licensee or approved manager available during certain trading periods, depending on the licence and venue. Confirm the current training and supervision requirements with OLGR so the buyer can operate lawfully from settlement.
OLGR may also require management plans covering matters such as harm minimisation and patron safety, and may consult other agencies where an application raises concerns.
Timing and Settlement
OLGR processing depends on the application, the supporting documents and any further enquiries. Check current guidance when planning settlement and lodge a complete application as early as the contract allows.
Because approval is outside the parties’ control, the contract should specify which licensing approval is required before settlement, each party’s obligation to cooperate with the application and what happens if approval is delayed or refused. Have your solicitor draft these provisions.
Interim Authority
A buyer may apply for an interim authority, which may allow them to trade under the existing licence while the transfer application is assessed. The application is supported by a statutory declaration about the applicant and the premises, so confirm the current requirements and processing expectations with OLGR.
Do not assume an interim authority will be issued by a particular date. The parties and their advisers should agree in the contract whether an interim authority is sufficient for settlement and how the remaining approval risk is allocated.
Common Causes of Delay
Delays often arise from:
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Incomplete forms or missing signatures from the seller, buyer or premises owner.
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Insufficient information about company directors and associates.
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Outstanding licence fees or unresolved compliance matters.
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Training or approved manager requirements that have not been met.
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Slow responses to requests for further information.
Sellers can reduce the risk by bringing licence fees up to date, resolving open compliance matters and having the licence documents ready for buyer due diligence.
Costs to Consider
OLGR charges fees for applications, including transfers and interim authorities, as set out in its current fee schedule. The licence also carries an annual fee, so check when it falls due and how it will be treated at settlement.
Legal costs are additional. A licensing solicitor can prepare or review the application, draft the licensing provisions in the contract and respond to requests for further information.
If an application is refused, review rights may be available. Obtain legal advice promptly about the options and any deadlines that apply.
Coordinating the Sale
A licensed venue sale involves the contract, the lease assignment and the licensing applications running together. Agree early who will prepare each document, how progress will be reported and which approvals must be in place before settlement.
Buyers reviewing licensed venues for sale will usually ask about the licence type, conditions, trading hours and compliance history, so have that information ready before the venue is marketed.
Start the Application Early
Confirm the licence details, fees and compliance position before listing, and agree the licensing conditions in the contract with your solicitor. Lodge a complete application as soon as the contract allows.
Selling a licensed venue in Queensland? Bond Business Brokers can help you plan the sale around the licence transfer.
Common Questions
Can a liquor licence be transferred when a venue is sold?
Generally, yes. The buyer applies to OLGR to transfer the existing licence with the required consents. A new licence may be needed in some circumstances, so confirm the position with a licensing solicitor.
What will a buyer check about the licence?
Usually the licence type, conditions, trading hours, licensed areas, compliance history and whether fees are paid. The buyer’s solicitor will typically compare these details with the contract.
Can the buyer change trading hours after the transfer?
The transfer moves the existing licence with its current conditions. Changes to trading hours or licensed areas usually require a separate application, which OLGR assesses on its own merits.
This article provides general information only. Obtain advice from appropriately qualified advisers about your circumstances before entering into a transaction or relying on tax, legal or regulatory information.