Running a hospitality business in Australia often requires a liquor license, which can be one of the key conditions for lawful trading.
During a business sale or purchase, whether the liquor license can be transferred smoothly may affect settlement timing and whether the new owner can legally sell alcohol.
In New South Wales (NSW), it is important to note that a liquor license does not automatically transfer with the business or the lease. Any change or transfer of a liquor license must be formally lodged with Liquor & Gaming NSW and will only take effect once approved.
Below are four common liquor license transfer pathways in NSW, along with their typical use cases and key procedural points.
1. Transfer With the Outgoing Licensee’s Written Consent
This is the most common pathway and is generally the most straightforward.
The outgoing licensee completes and signs the relevant declaration (TDEC1) to confirm written consent to transfer the licence to the incoming licensee. Where written consent is provided, Liquor & Gaming NSW will generally process the transfer more efficiently.
Who can lodge the application?
A liquor licence transfer application may be lodged by:
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the outgoing licensee
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the incoming licensee
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the business owner
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the premises owner
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a company secretary or another authorised officer
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the General Manager of the local council
Core information and documents commonly required include:
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licence name and licence number
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name and contact details of the person lodging the application
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proposed transfer date (generally at least 10 business days after the application is received)
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details of your representative (for example, a lawyer or business advisor)
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evidence of premises ownership (if the applicant is the premises owner)
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details of the incoming licensee’s industry experience and background
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direct debit/monitoring arrangements (if gaming machines apply)
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outgoing licensee declaration (TDEC1)
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incoming licensee declaration (TDEC2)
Additional documents commonly required for an individual applicant:
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a NSW National Police Certificate issued within the last 3 months
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copies of identity documents
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evidence of relevant industry experience
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personal details for the incoming licensee and relevant parties (such as interested third parties, premises owner and business owner, where applicable)
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Responsible Conduct of Gaming evidence if gaming machines apply
Additional documents commonly required for a company applicant:
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details of the nominated Approved Manager
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company ABN/ACN and contact details
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details of relevant third parties (if applicable)
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premises owner and business owner details (including ABN/ACN where applicable)
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current ASIC extract showing directors and shareholders
In many cases, Liquor & Gaming NSW may grant provisional approval within approximately 5 business days so the business can continue trading, while the final confirmation may take longer. Where provisional approval is issued, the newly appointed Approved Manager may be required to complete mandatory training.
2. Transfer Without the Outgoing Licensee’s Consent (Owner in Possession / Ownership Transfer)
In certain situations, even if the outgoing licensee does not agree, the premises owner or business owner may still apply to transfer the liquor licence.
This option is commonly used where:
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the outgoing licensee refuses to consent to the transfer
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the outgoing licensee has vacated the premises
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the outgoing licensee has been evicted (for example, due to rental default)
Key procedural requirements
Before applying, the premises owner or business owner must notify the outgoing licensee in writing (by letter or email) that a transfer is intended, and that the outgoing licensee has 3 days to make a submission to Liquor & Gaming NSW. Evidence of this notice must be provided as part of the application.
If the transfer application is lodged within 28 days of the outgoing licensee leaving the premises, the applicant may be treated as the licensee until the application is determined, allowing the business to continue trading.
Common practical example
If a tenant holds the liquor licence but is evicted for rental arrears, the landlord may apply to transfer the licence into their own name without the tenant’s consent, to keep the business operating.
In addition to the standard documents, applicants will typically need:
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premises owner declaration (TDEC3)
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a copy of the letter/email sent to the outgoing licensee
3. Transfer Following Death, Incapacity, or Bankruptcy of the Licensee
A liquor licence may be transferred where the current licensee has died, become incapacitated, or become bankrupt.
If the licence was being used immediately prior to the death, incapacity, or bankruptcy, another person may be allowed to continue operating the licensed business for up to one month.
This person may include:
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the licensee’s spouse or partner
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a family member
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a lawful representative of the business
If you intend to continue operating, you should notify Liquor & Gaming NSW as soon as possible using the relevant notification form (AM0323).
4. Notice of Licence Transfer (Streamlined Transfer)
This is a simplified process commonly used by businesses that operate multiple venues and regularly transfer staff between locations.
The streamlined transfer pathway generally requires that:
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the business owner is not changing
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the incoming licensee is an individual (not a company)
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the business owner provides written consent
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the incoming licensee has held the same licence type over the previous 3 years
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over the previous 3 years, the incoming licensee has not committed a prescribed offence, has not been disqualified, and the licence has not been suspended or cancelled
Conclusion
In NSW, liquor licence transfer is a key legal step in hospitality business transactions. Each transfer pathway has different requirements, timeframes, and risk considerations. If the process is not handled correctly, it may delay settlement or prevent lawful alcohol trading.
Before buying or selling a hospitality business, it is strongly recommended to confirm the liquor licence status early and select the most suitable transfer pathway to support a smooth transaction.
Sources
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NSW Government (Liquor & Gaming NSW) – Transfer a liquor licence. (NSW Government)
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Service NSW – Apply to transfer a liquor licence (with previous licensee’s consent). (Service NSW)
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Service NSW – Apply to transfer a liquor licence (without previous licensee’s consent). (Service NSW)
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Service NSW – Apply for a notice of licence transfer (streamlined liquor licence transfer). (Service NSW)
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NSW Government (Liquor & Gaming NSW) – Manage, modify or move your liquor licence (police certificate less than 3 months). (NSW Government)
