Maintaining exclusive possession of your licensed premises

Licensees, other than club restricted or occasional licensees, are required to actually occupy the licensed premises and maintain the right to occupy the licensed premises to the exclusion of others pursuant to section 37(5) of the Liquor Control Act

There are numerous circumstances where licensees may lose the right to occupy licensed premises.  Examples of these are:

  • where a licensee enters into an agreement with the chef to lease and operate the kitchen within the licensed venue;

  • authorising or letting part of the premises to another organisation by allowing a neighbouring business to lease a store room that forms part of the licensed area; or

  • where a corporate manager is appointed to operate parts of a business, such as in a hotel, where a manager might be appointed to operate the accommodation facilities.

In circumstances such as these, unless the arrangement has the prior approval of the Director of Liquor Licensing, the licensee’s interest in the licence terminates.  In the event the licensing authority becomes aware that a licensee has lost exclusive possession of its premises, the licence is likely to be suspended pending a response from the licensee explaining why the licence should not be cancelled or other sanctions applied. 

It is therefore of paramount importance that licensees occupy the licensed premises at all times to the exclusion of all others.

If you are concerned your business may have lost its right to occupy its licensed premises to the exclusion of all others, please do not hesitate to contact:



Dan Mossenson                                   Ian Curlewis
Partner                                                Partner
(08) 9288 6769                                    (08) 9288 6756
dan.mossenson@lavanlegal.com.au      ian.curlewis@lavanlegal.com.au

Jessica Patterson                                Alec Weston
Senior Associate                                 Solicitor
(08) 9288 6946                                     (08) 9288 6873
jessica.patterson@lavanlegal.com.au    alec.weston@lavanlegal.com.au

Disclaimer – the information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.