The success of the Minns Labor Government’s outdoor dining reforms continues to grow, with more than 580 businesses across the state making the most of the relaxed rules to host patrons outside their venues.
As part of its vibrancy reforms* that have been rolled out since 2023, the Minns Government streamlined processes for venues to apply for permanent outdoor dining which has led to a booming alfresco and outdoor event scene.
Some of the approvals have been for one-off events, such as festivals and markets, in addition to the 380 ongoing outdoor dining approvals across the state for footpaths, roads and other land adjoining venues to be turned into entertainment spaces.
The NSW Government has continued to save hospitality venues time and money by abolishing the $121 application fee to reapply for temporary approvals to use their outdoor space, as part of the third tranche of vibrancy reforms that came into effect in January 2026.
Hospitality businesses wishing to use footpaths and public spaces can now apply through their local council, which will notify Liquor & Gaming NSW as part of the streamlined approval process.
Previously, businesses had to apply for a development application through councils and then go through another 30-day consultation process with Liquor & Gaming NSW.
The government has also scrapped rules that prevented patrons from standing while drinking outside licensed premises, with more than 420 venues with temporary outdoor dining approvals on footpaths and roads benefitting from the change.
Venues wanting to take advantage of outdoor dining or make the provision permanent, go to: https://www.nsw.gov.au/business-and-economy/liquor-and-gaming/liquor-licensing/apply-manage/change-liquor-licence-boundaries
Advice is also available through the Hospitality Concierge service, which can help with streamlined application processes and assist businesses and local councils to navigate the liquor licensing, planning and regulatory changes introduced through the Vibrancy Reforms.
Access the Hospitality Concierge here: https://www.nsw.gov.au/departments-and-agencies/dciths/liquor-gaming-nsw/contact-us/hospitality-concierge
Minister for Music and the Night-time Economy John Graham said:
“Raise your glasses! To have 580 more businesses embracing outdoor dining is a great result for NSW and a clear sign that the former government had tangled these businesses up in too much costly red tape.
“This is a great example of the way we’re cutting red tape and reducing costs for business to bring the fun back to Sydney.
“In the most beautiful city on earth, with great weather all year round, it was almost criminal to let red tape stop us from embracing outdoor dining.
“When you combine the increased outdoor dining, the big boost in live music venues and the rising number of special entertainment precincts – you can see that we’re leaving the lockout era well and truly behind.”
Minister for Gaming and Racing David Harris said:
“It’s wonderful to have all these great new alfresco dining and entertainment options at bars, clubs and restaurants for people to enjoy while they’re out and about across our great state.
“Venue owners are embracing these Vibrancy Reforms that are making it easier to make the most of their space, add value to their offer and increase revenue.
“It’s great to see the positive impacts for premises and patrons alike, while boosting employment opportunities and the NSW economy.”
Business Sydney CEO Paul Nicolaou said:
“The Minns Government deserves credit for these practical reforms that are helping hospitality businesses thrive.
“By cutting red tape and making it easier for venues to activate outdoor spaces, the government is supporting cafes, bars and restaurants to welcome more customers and create vibrant street life across our communities.
“These changes are a real boost for the hospitality and tourism sectors. Outdoor dining enhances the visitor experience, encourages people to stay longer and spend more, and helps create the lively atmosphere that makes our cities and neighbourhoods attractive destinations for both locals and visitors.”
The Point* Group CEO Brett Robinson said:
“Since opening, The International and our nearby venue The Shell House have played a role in shaping the CBD’s dining culture and we are always looking to elevate the guest experience.
“The updates to both venues allow us to create more alfresco moments for people to enjoy.
“We are thrilled about these developments, which allow us to provide more outdoor dining at The International and standing options for patrons at the Shell House and see this as an opportunity to further energise the CBD, paving the way for a lively dining landscape of a global standard similar to big international cities like London.”
*Vibrancy reforms
The first tranche of Vibrancy Reforms in December 2023 delivered improvements that:
- Ended single noise complaints from shutting down pubs and other licensed venues
- Made it easier to activate streets for festivals and events (Open Streets program) and a regulatory model that allows streamlined approvals for repeat events (Permit, Plug, Play)
- Expanded Special Entertainment Precincts that empower local councils to change the rules around noise and opening hours in a designated area to support live entertainment and nightlife
- Increased incentives for live music and live performance, with two hours extended trading and an 80% reduction in liquor licence fees for licensed venues offering live music and performance
- Created easier pathways for extended trading hours for major events like the Olympics and World Cups.
The second tranche of reforms in October 2024 included:
- Scrapping baffling restrictions on the development consents for licensed venues that included “no entertainment” clauses or dictated what genre of music or even how many musicians could play
- Requiring property buyers to be notified that they are moving into an existing entertainment zone to protect the intent of Special Entertainment Precincts and reduce the friction between venues and their neighbours
- Ending the antiquated rule that prevents people living within 5km of a registered club from signing in without first becoming a member
- Amending the Major Events Act to make it easier to support foundational events like Sydney Festival and Vivid Sydney
- Empowering the Minister for Music and the Night-time Economy to refer live music and performance venues with legitimate disputes to mediation.
The third tranche of reforms that passed the NSW Parliament in October 2025 included (timings are November 2025 to various times in 2026):
- Adding an exemption allowing licensees and venue staff limited discretion to permit an intoxicated person to remain on a licensed premise if they require medical care or require transport home, rather than being evicted
- Making it easier for the Independent Liquor & Gaming Authority to revoke a competency card where an individual is not considered ‘fit and proper’, or where the person has committed a prescribed sexual offence or other relevant offence
- Further enabling the Independent Liquor & Gaming Authority to cancel a liquor licence if a licensee has failed to create a safe working environment
- Changes to live music incentives:
- Expanding the timeframes for eligible performances to qualify for live music incentives to allow more flexibility from 6pm on weeknights and from midday on weekends in all live music venues, rather than 8pm
- Changing the criteria from two performances per week to 10 performances per month for venues in metropolitan areas, encouraging more performances while offering more flexibility about when it happens
- Making it easier for regional venues to qualify for the incentive by allowing them to count live performances over an annual basis rather than monthly, recognising that programming in regional areas can be irregular due to seasonality and artist availability
- Changing the requirement for regional venues to have a ‘dedicated space’ for performances to a ‘space that is predominantly or frequently used’ for live music.
- Supporting outdoor dining and alfresco activation by removing the requirement for liquor to be sold in ‘sealed’ containers for restaurants and small bars that are already authorised to sell takeaway liquor, so that customers may consume alcohol in legally permissible areas, such as plazas or outdoor alfresco areas shared by restaurants and businesses
- Enabling clubs to host events away from their main club location, such as community events in conjunction with sporting organisations and other groups
- Supporting tourism by expanding the Special Event Extended Trading to allow for 24 hours prior to the event, recognising the attendees who travel to events will often arrive the day before
- Allowing venues that offer primary entertainment of pool tables or juke boxes to apply for an on-premises liquor licence
- Removing the ‘midnight’ restriction for temporary boundary extensions for footpaths and roads meaning licensed venues can participate in late night events, subject to council approval for late night outdoor dining.