The demerit point and star system ratings are designed to improve compliance with liquor licence and encourage responsible industry practices.
There are a range of offences in the Liquor Control Reform Act 1998. However only the following 6 offences are considered “non-compliance incidents” for the purpose of demerit points, star ratings and calculating renewal fees.
Non-compliance incidents
| Offences | Section of the Act |
|---|---|
| Supply liquor to intoxicated person | 108(4)(a) |
| Permit drunken or disorderly person on licensed premises | 108(4)(b) |
| Supply liquor to underage person, other than as permitted | 119(1)(a) |
| Permit liquor to be supplied to underage person, other than as permitted | 119(1)(b) |
| Liquor is supplied to underage person on licensed premises, other than permitted | 119(2) |
| Permit underage person on licensed premises, other than as permitted | 120(1) |
A non-compliance incident is said to have occurred if one of these offences has been detected and either:
- an infringement notice for this offence has been paid in full or partially paid, or
- an infringement in respect of one of these offences has been lodged at the Infringements Court and an Enforcement Order has been issued, or
- the offence has been successfully prosecuted.
If a licensee commits a non-compliance incident, they incur a demerit point against their licence. If a licensee commits more than 5 non-compliance incidents, their licence will be automatically suspended.
Responsible licensees, with no recorded demerit points within the last 2 or more years receive star rating discounts on their renewal fees.
Demerit point system
Licensees incur demerit points on their liquor licence if there has been a non-compliance incident in relation to that licence. One offence equals one demerit point. A licence.
Licences are suspended at the following thresholds:
- 5 demerit points leads to a 24-hour suspension
- 10 demerit points leads to a 7-day suspension
- 15 demerit points leads to a 28-day suspension.
A demerit point applies to a licence / permit for a period of three years from the date on which it was incurred.
Demerit points are removed:
- if the licence is transferred and there is no relevant relationship between the transferee and transferor
- Liquor Control Victoria grants an application by a licensee to deduct demerit point(s) from the Demerits Register
- the demerit point expires (on the day immediately after three years since the date the demerit point was incurred)
- a Penalty Infringement Notice is withdrawn by the issuing authority.
If there is a relevant relationship between the parties, the new licensee can still apply to have the demerit points removed using the removal of demerit points kit below, which includes a fact sheet that provides additional information about this process.
Education and training
For licensees that receive a demerit point, the advanced RSA training program must be completed within six months of the demerit point being recorded in the demerits register.
The advanced RSA program assists licensees, managers and staff of late night venues who often face a range of challenges and issues. It teaches attendees responsible practices to assist them manage these issues and comply with liquor laws.
Current demerit point register
Liquor Control Victoria (LCV) is required to keep and publish a demerit point register and record demerit points against licences and permits when they occur.
The demerits register listed below is organised by date and includes the licence number, licence category, premises, licensee, date of offence, date and number of demerit points incurred.
Star-rating system
A star rating is calculated on the basis of whether a non-compliance incident has occurred in respect of the licensed premises. Licensees will receive a discount on their annual licence renewal fees where they have had two or more consecutive years without recording a non-compliance incident.
Liquor licences begin at a three star level at the commencement of this system. They will then receive a star rating based on the below criteria.
Venues with a four star rating will receive a 5 per cent discount. Venues with a five star rating will receive a 10 per cent discount.
| Rating | Rating criteria |
|---|---|
| One star | Three or more non-compliance incidents in the previous 12 months |
| Two star | One to two non-compliance incidents in the previous 12 months |
| Three star | No non-compliance incidents in the previous 12 months |
| Four star | No non-compliance incidents in the previous 24 months |
| Five star | No non-compliance incidents in the previous 36 months |
Licensees can access their star ratings through the Liquor Portal. Licensees are not required to display their star rating on their premises.
The star rating system does not apply to licensees with a licence to supply alcohol at sexually explicit entertainment venues.
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