Victoria’s Pub Industry Says the System Is Broken — Are They Right?

The Australian Hotels Association (Victoria) has recently released its Blueprint for Victorian Pubs and Hotels — a policy document calling for significant reform across planning, liquor licensing, and broader regulatory settings.

At its core, the message is simple:
the current system is too slow, too complex, and is holding back investment in the hospitality sector.

From our perspective working on planning and liquor licensing approvals across Victoria, it’s hard to argue with that.

A System Under Pressure

The Blueprint, along with recent commentary in The Shout, highlights a number of consistent issues facing pub and hotel operators:

• Lengthy and uncertain approval timeframes

• Duplication between planning and liquor licensing processes

• Increasing compliance and cost pressures

• Difficulty delivering upgrades or new venues in a timely way

These are not new issues — but they are becoming more pronounced.

For many operators, particularly in regional areas, delays in approvals are no longer just frustrating — they can directly impact project feasibility, funding, and ultimately whether a project proceeds at all.

Planning Is at the Centre of the Problem

While the Blueprint touches on taxation, workforce shortages and broader economic pressures, the most significant friction point is the planning system.

Hospitality projects often require:

• A planning permit for use and/or development

• A separate liquor licence approval

• Input from multiple referral authorities

• Detailed responses to amenity concerns

Each step introduces time, cost, and risk.

Even relatively modest changes — such as extending trading hours, adding outdoor dining, or reconfiguring internal layouts — can trigger a full planning process, often with uncertain outcomes.

The result is a system that can feel disproportionate to the scale of what is being proposed.

The Push for Reform

The AHA Blueprint calls for a more streamlined and practical approach, including:

• Faster and more consistent approval pathways

• Better alignment between planning and liquor licensing systems

• Reduced regulatory burden for low-risk or compliant operators

• Recognition of pubs as important community and economic infrastructure

There is also a strong push toward a more risk-based model, where well-run venues are subject to less regulatory friction.

This reflects a broader shift in thinking — away from blanket controls, and toward targeted regulation where issues actually arise.

A Shift in How Pubs Are Viewed

One of the more interesting aspects of the Blueprint is how it reframes pubs and hotels.

Rather than being treated purely as commercial land uses, they are positioned as:

• Community hubs

• Tourism drivers

• Local employers

• Social infrastructure

This is not just rhetoric — if adopted more broadly, it could influence how planning applications are assessed, particularly in relation to amenity impacts and community benefit.

In regional areas especially, this argument carries weight.
Pubs often play a central role in the local economy and social fabric, far beyond their immediate land use classification.

Will Anything Actually Change?

That’s the key question.

At this stage, the Blueprint represents an industry-led push for reform rather than confirmed policy change. However, it aligns with a broader trend of incremental planning reform in Victoria over recent years.

It’s unlikely we will see a single, sweeping change.

More likely is a continuation of:

• Targeted planning scheme amendments

• Gradual simplification of approval pathways

• Ongoing refinement of liquor licensing processes

Importantly, local councils will still play a central role in decision-making — and amenity considerations will continue to be a key factor.

What This Means for Hospitality Operators

For venue owners and operators, the current environment still requires careful navigation.

Early advice is critical — particularly to:

• Understand whether a proposal is permissible

• Identify approval risks upfront

• Align planning and licensing strategies

• Avoid unnecessary delays or redesign

While reform may be coming, the system as it stands today remains complex — and getting it wrong can be costly.

Our Perspective

The AHA Blueprint reflects what we see on the ground every day.

The system isn’t broken in a technical sense — but it is often inefficient, inconsistent, and difficult for operators to navigate.

There is a clear opportunity to improve how planning and liquor licensing frameworks interact, particularly for low-risk, well-managed venues.

In the meantime, success still comes down to:

• Strong upfront strategy

• Clear documentation

• Understanding how decision-makers assess these applications

Final Thoughts

The release of the Blueprint is an important moment for the industry.

It brings together a consistent set of issues and presents a clear case for reform.

Whether those reforms are implemented — and to what extent — remains to be seen.

But one thing is clear:

The conversation around how Victoria plans for and regulates hospitality venues is far from over.