Public Interest Assessments (PIA): a guide

Posted on September 21, 2024

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Liquor licensing in Western Australia is regulated by the Department of Local Government, Sport and Cultural Industries (DLGSC) under the Liquor Control Act 1988.  One of the most critical elements of your liquor licence application is the Public Interest Assessment (PIA).  This is a key document that is a requirement to many new licence applications and also in applications where existing licensees are seeking significant changes to a licensed area and/or trading conditions.

The quality of a PIA can make or break your application.

In this article, we will answer the following common PIA questions:

  • What is a PIA?
  • Why the PIA is so important?
  • When is a PIA needed?
  • What does a PIA incude?
  • What are some common mistakes applicants make when submitting a PIA?
  • Why should you engage Fraser & Associates Lawyers?

What is a Public Interest Assessment?

A Public Interest Assessment (PIA) is a formal document that applicants must submit with many types of liquor licence applications in WA.

Its purpose is to demonstrate how granting the liquor licence will serve the public interest, balancing both the benefits and potential risks to the local community.

Under the Act, every liquor licence must align with the broader public interest, meaning it’s not enough to simply want to run a licensed premises. You must convince the Licensing Authority that your venue will contribute positively to the community and not lead to a worsening of issues like alcohol-related harm or public disturbances.

Why is the Public Interest Assessment Important?

The PIA is one of the most important components of a liquor licence application because it provides the key evidence that DLGSC relies on to make its decision. It answers the central question: Is granting this licence in the best interest of the public?

Here’s why the PIA is crucial to your application’s success:

  • Legal Requirement Under the Liquor Control Act
    • The Liquor Control Act 1988 mandates that liquor licences are only granted if they align with the public interest. Without a thorough and compelling PIA, your application is likely to be rejected, as you won’t have fulfilled the primary legal requirement.
  • Mitigating the Risk of Objections
    • PIAs are often scrutinised by local stakeholders, including local residents, community groups and businesses, together with government bodies such as WA Health and WA Police. A poorly constructed PIA can result in not adequately setting out the framework that will later assist in responding to objections and/or interventions from these group.  This can lead to delays in the determination of the application, unwanted trading conditions being placed on a licence, or even rejection.
  • Demonstrating Community Benefit
    • The Licensing Authority needs to see clear evidence that your venue will provide a benefit to the community, such as meeting a demand for hospitality services in the area, boosting tourism, or creating jobs. The PIA allows you to present this evidence in a structured and persuasive way.
  • Addressing Potential Harms
    • WA has strict guidelines around minimising alcohol-related harm, particularly for vulnerable groups. A strong PIA provides a detailed analysis of how your business will prevent or mitigate potential harm.

Simply put, without a strong PIA, it’s nearly impossible to obtain a liquor licence in WA. DLGC’s primary concern is protecting the public interest, and the PIA is how you prove that your application meets that standard.

When Is a PIA Needed?

A PIA must be prepared and submitted with your liquor licence application. This includes applications for:

  • New liquor licences (e.g., tavern, restaurant, small bar, nightclub),
  • Extended trading hours, or
  • Variations to existing licence conditions and in some cases applications for alteration / redefinition of licensed areas (for example, an increase in the area to be licensed, patron numbers, or services).

In such cases a PIA will need to be filed and failing to submit one – or submitting a weak one, will almost certainly result in delays or rejection.

What Does a PIA Include?

A compelling PIA addresses several key areas, demonstrating that the benefits of the proposed liquor licence outweigh any potential risks or harm.

Harm or Ill-Health Considerations

The PIA should assess the likelihood of alcohol-related harm or ill-health, particularly in relation to vulnerable groups.

Impact on the Local Community

How will your venue affect the local area? The PIA will need to examine a number of factors and details the measures that will be taken to minimise negative impacts.

As part of the application process an applicant may be required to obtain an acoustic report, as well as other reports and plans that may have a bearing on what conditions are placed on a licence.  Carefully addressing any issues to avoid unnecessary restrictive conditions is essential

Mitigation Strategies

What steps will you take to mitigate risks associated with running a licensed premises needs to be considered.

Demonstrating Community Benefits

The PIA should clearly show the positive contributions of your business to the community and how the venue will enhance the locality.

 What are some common mistakes applicants make when preparing a PIA?

While many applicants try to complete their PIAs on their own, several common mistakes can reduce the chances of approval:

  • Failing to provide sufficient consumer requirement evidence and in the correct format
  • Overlooking the issues of alcohol-related harm and crime.
  • Ignoring local stakeholder concerns
  • Not customising the PIA for the specific location

Why should I Engage Fraser & Associates Lawyers to do the PIA?

Given the complexity and importance of the PIA, collaborating with experienced legal professionals like Fraser & Associates Lawyers can significantly improve your chances of success. Here’s why:

  1. In-Depth Knowledge of Liquor Licensing Law
  • Fraser & Associates specialises in liquor licensing and know the specific requirements of the Act. They can ensure that your PIA meets all legal standards and is presented in a way that maximises your chances of approval.
  1. Tailored, Evidence-Based Assessments
  • The team will thoroughly research the local community and craft a detailed, evidence-based submissions in your favour. This approach helps you stand out from applicants who submit generic or incomplete PIAs.
  1. Strategic Stakeholder Engagement
  • Fraser & Associates can guide you through consultations with local stakeholders, ensuring you address concerns early and reduce the risk of objections. Their experience with local government bodies, police, and community groups will help smooth out the process for you.
  1. Avoiding Common Pitfalls
  • With years of experience in liquor licensing, Fraser & Associates can help you avoid the common mistakes that can lead to rejection, ensuring your PIA is detailed, clear, and well-supported with evidence.
  1. Proven Track Record
  • Fraser & Associates have a history of successfully navigating the liquor licensing process. Their expertise can help you present the best possible case to the licensing authority, avoiding delays and increasing the likelihood of approval.

What Happens If My Application is Refused?

If the Licensing Authority refuses an application on public interest grounds, reapplying for the same licence at the same location is typically prohibited for three years.

Whilst an applicant can seek to Review a Director’s Decision through the WA Liquor Commission, the review is limited to the original evidence presented, which means no new material can be introduced to address gaps or oversights from the initial PIA that was lodged.

Ensuring all relevant factors and evidence is addressed and submitted in the application is critical, as the consequences of a deficient PIA can be significant and getting the application and PIA right the first time is vitally important.

By engaging Fraser & Associates Lawyers, you gain access to the expertise and guidance needed to prepare a compelling, evidence-based PIA that increases your chances of success. Don’t leave your liquor licence application to chance – partner with professionals who know what it takes to get your liquor licence approved.