New Law To Boost Canberra’s Night Time Economy But Venues Feel Bypassed

The Australian Capital Territory (ACT) government has given a major boost to Canberra’s $3.8 billion nighttime economy and widened the area where live music can be performed from April.

This follows the passing of the Liquor (Night-Time Economy) Amendment Bill 2024.

Among the introductions was a reduction in annual licence fees for those who support live music and the arts.

While grateful for the boost to the capital city’s nighttime economy, Canberra's live music sector admitted that the direct impact on existing live music and nightclubs was limited.

Music ACT President David Caffery said, “It’s a positive. But the changes are not that meaningful. They’re helpful. But they’re not going to change a venue from being non-profitable to profitable. However, the Government is heading in the right direction.”

For others, the ACT Government’s night-time economy plan is busy but not coordinated. 

One nightclub promoter told TheMusic.com.au that to be really effective, it needs to invest more funds in the way the Victorian State Government has done for Melbourne’s after-dark scene.

For Caffery, the changes in the law were significant because they encouraged more businesses to showcase live music.

“It’s quite a change from what we’ve seen in Canberra. The Liquor Act was used to shut down venues like Taste in the past.”

Reforms

Other changes support small and medium-sized venues to diversify their business models and attract a wider range of customers.

Restaurants and cafes can extend their trading hours and modify their floor plans to cater for more patrons.

Interim liquor licenses allow new businesses to open their doors faster, and the Government gains the power to declare special events with automatically extended trading hours.

More businesses can supply complimentary liquor to their clients without a licence.

It also ensures that any decision made under the Act considers the benefits to industry, community, and local economy while observing harm minimisation and community safety principles.

ACT Minister for Government Services and Regulatory Reform, Tara Cheyne, announced, “We’re investing in the ACT’s night-time economy through better regulation and enshrining in legislation the ACT Government’s commitment to live music, entertainment and tourism.

“Canberra is building a reputation as Australia’s Arts Capital and a destination of choice for business and tourism alike. 

“A strong, vibrant, and diverse night-time economy is essential to the continued growth of our tourism and visitor economy.”

She stressed that any growth of Canberra’s night-time experience would be balanced with security. 

“We're continuously looking at ways we can further enhance the city’s nighttime experience while balancing the need to ensure community safety. Safety is always a priority.”

The scope for growth is substantial. The Canberra nighttime economy generates $3.8 billion annually and employs 30,030 people in 2,100 businesses. 500 entertainment businesses make up 24 per cent of core nighttime economy businesses. 1,564 food businesses make up 70 per cent, while 133 drinks establishments constitute 6 per cent.

Friday is the busiest night, and Sunday is the quietest.

For Herbert’s, a bar in Evatt, the new rules are a double win. With a capacity under 80, its liquor license fees are slashed by half to $600 a year. It can now trade until 2 am instead of midnight and not have to pay an extra $2,000.

Co-owner Kristin Martiniello revealed they had been considering cutting down the amount of music shows. “We don’t have to do that next year, moving forward, with these new fee reductions.”

However, major live music venues argue that the changes will not affect them. “We're too large and already have extended trading hours,” Smith’s Alternative co-owner Beth Tully told TheMusic.com.au. It has a 200-capacity with an indoor auditorium and an outdoor space.

“It would have been more helpful if they’d taken turnover rather than capacity into account, because that’s what is typically used to assess a business” suggested Mik Bergersen of The Baso, Canberra’s longest running independent venue located in the heart of Belconnen.

“Unfortunately, even though we're an independent small family-run business, we don’t derive anything from the change because our capacity is 700. So it’s a bit disappointing.

“It would have been nice to get some relief from the $16,000 we pay in liquor licence fees or from our operating costs. 

“But at the same time, it’s going to help small venues like cafés or restaurants, and it’s definitely important to have more live music venues, so I don’t begrudge anybody who gets a benefit out of this and helps them put on music live music.”

Bergersen and his wife Nicole bought the 39-year-old Baso (previously The Basement) in 2021 and set about hosting 200 gigs a year. 

There is a 550-capacity main stage whose ceiling holds a collection of autographed guitars and a 140-capacity rear stage for intimate gigs.

What they need from the Government is insurance. He said a lot of insurers aren’t interested in live music venues. “Music venues are a small part of the hospitality industry, and there’s really no incentive for insurers to take on small marginal businesses because it’s not their bread and butter.”

He is currently getting quotes for next year and admits he’s worried, not just for The Baso but also for other music clubs.

Bergersen pointed out: “A lot of venues flat out can’t get insurance. It’s not a matter of not being able to afford it. It’s a question of being able to get it. 

“It’s a dangerous situation to be in. If someone slips over through no fault of the venue, they can sue you. That could bankrupt the business. 

“Even if you win the case, the whole process can take hundreds of thousands of dollars and multiple years to resolve. It’s not something small businesses can absorb.”

The insurance issue is more acute for DJ Ben Amando’s Creative Decibel, which owns and operates three nightclubs in the CBD.

The 700-capacity Fiction, 300-capacity Cube and 200-capacity One22 cover international, national and local live music, DJ and drag shows, bringing in three acts a week and totalling 150 events a year.

“Insurance is really costing us,” Amando relayed. “When we opened our first venue five years ago, insurance was 1 per cent of our costs; now it’s close to 10 per cent. We’re spending close to $1 million a year in insurance premiums, and [the] excess is $50,000.”

Running a private company, he accepted that the Government can’t do much to alleviate his insurance dilemma. But it could look at helping with rates. He pays five times more for his smaller club than his largest one because it’s in a heritage-listed building.

Alcohol tax is another. “It keeps going up 5 to 10 per cent every half-year, but no one’s drinking much, and our revenue from that is down. Kids don’t have as much money, and they're spending it differently. 

“Everyone got a big injection of money during COVID, but now there’s no injection anywhere.

“Something’s got to give; there won’t be too many venues left, I reckon. There’s not going to be much nighttime economy!”

Entertainment Precincts

The next step for Canberra is for entertainment precincts to go live – which Music ACT has had on its agenda as a priority as far back as 2015. 

The precincts were enshrined in Planning rules last year, with the first two identified for the City Centre and Gungahlin, a growing multicultural area with seven suburbs, including Casey, Forde, Throsby, and Moncrieff.

The Government has promised that in these precincts, “Existing and future nightlife activities and character, including live music, are prioritised and supported. These areas have been designated through regulation to support higher levels of activity and music, particularly into the evening.”

Existing venues will be protected from land use conflict, and newer venues will face less uncertainty. Possibly the lack of 200- to 400-seat venues can be jointly addressed by the Government and Canberra’s live sector. 

“It’s a long-term problem,” Caffery said, pointing out that it was one of the 25 recommendations in Music ACT and Live Music Office’s Cool Little Capital report in 2015.

“The current financial situation of the live industry is precarious at best, and you need as many venues to play in as possible.

“Canberra doesn’t have that many, and not that many for touring artists as well, so that’s holding back the industry.”

The delay now is over the sound regulation to be imposed for the entertainment precincts. Core areas will have a louder and longer limit, but surrounding areas will be a buffer for residents. Varying limits for diverse after-dark events also need to be considered, the Government said.

“They are still being negotiated,” Caffery reported.