When Councils Get Liquor Planning Wrong After VC286
Amendment VC286 was introduced to remove duplicated regulation between the planning system and liquor licensing. Its intent was clear: planning schemes no longer regulate the sale and consumption of liquor.
Yet despite this, some councils are continuing to insist that applicants must amend historic planning permits issued solely under former Clause 52.27 in order to vary an existing liquor licence. In our professional view, that position is legally incorrect.
VC286 Removed Liquor From the Planning Scheme — Entirely
From 1 July 2025, Amendment VC286 deleted Clause 52.27 (Licensed Premises) from all Victorian planning schemes. This was not a partial reform or a re-draft — the clause was removed outright, with no replacement controls regulating liquor use through planning.
Crucially, VC286 contains no savings or transitional provisions preserving permits issued solely under Clause 52.27. The planning scheme no longer regulates liquor, full stop.
The explanatory material for VC286 makes the intent explicit: to eliminate duplicated regulation and leave liquor control to the Liquor Control Reform Act 1998 and Liquor Control Victoria. Planning approval is no longer part of that framework.
Section 16 of the Liquor Control Reform Act — What LCV Actually Tests
Section 16(1) of the Liquor Control Reform Act 1998 provides that (subject to limited exceptions) it is a condition of every licence and BYO permit that the use of the licensed premises does not contravene the planning scheme applying to that premises.
That statutory test is critical. It is not a test against historic permits. It is not a test of whether a permit once existed. It is a test of whether the current proposal contravenes the planning scheme as it stands today.
If the planning scheme no longer regulates liquor — which it does not — then a liquor licence variation cannot contravene it on that basis.
The VCAT Position Is Now Clear
In Ballarat Cinemas Pty Ltd v Ballarat City Council [2025] VCAT 1029, the Tribunal addressed this issue directly.
VCAT confirmed that Amendment VC286 contains no savings provisions for permits issued under Clause 52.27. The Tribunal stated:
“The implication is that a permit issued only under clause 52.27 has no continuing effect even though it has not expired.”
That finding matters because it goes to the heart of the problem: a permit issued solely to regulate liquor under a clause that no longer exists has no operative legal effect, even if it technically remains “live” on a permit register.
Why Requiring Permit Amendments Is Wrong in Law
Requiring an amendment to a Clause 52.27 permit in order to vary a liquor licence is flawed for several reasons:
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the planning scheme no longer regulates liquor
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the repealed clause cannot continue to operate by implication
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the LCRA test is scheme-based, not permit-based
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VCAT has confirmed there is no continuing legal effect for Clause 52.27-only permits
At best, these permits are administrative artefacts. At worst, insisting on their amendment unlawfully re-introduces a regulatory control that has been expressly removed.
What Councils Should Be Doing
Where a liquor licence variation is proposed, the appropriate approach is for council to issue a simple confirmation letter stating:
“The proposed variation to the liquor licence does not contravene the planning scheme as in force on the date of this letter.”
Nothing more is required unless another current planning control is triggered which requires town planning approval considerations (for example, buildings and works, heritage controls, signage, or a separate land-use issue unrelated to liquor regulation).
Stuck in “regulatory limbo”?
If you (or your client) are being told you must amend an old Clause 52.27 permit just to progress a liquor licence variation, we can help.
We can:
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review the planning controls and confirm the correct statutory position
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prepare a short, targeted submission to council requesting the correct “does not contravene the planning scheme” letter
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support escalation where required (including preparing an evidence trail aligned to Ballarat Cinemas and VC286 intent)
Get in touch with OTL Consulting Group / On Tap Liquor Consulting if you want us to step in and get it moving.