6.2 Suspension & Cancellation of Certificates & Licences

Why This Topic Matters

US 16705 Performance Criterion 2.2 requires a duty manager to demonstrate knowledge of the provisions in legislation for the suspension or cancellation of a certificate or licence. The duty manager's personal certificate is at risk every shift—not just the licence holder's. The escalation regime in ss288-290 is the single most punitive feature of the Act and a high-yield exam topic.

Who Has the Power

Two bodies can suspend or cancel:

1. District Licensing Committees (DLCs) — hear most local matters. Applications to vary, suspend or cancel a licence (other than a special licence) are made under s280; applications about a manager's certificate are made under s285.
2. The Alcohol Regulatory and Licensing Authority (ARLA) — the national authority that hears appeals from DLCs and the most serious cases directly.

Grounds for Suspension or Cancellation

A licence or manager's certificate may be suspended or cancelled on grounds including:

• Breach of the Act or any condition of the licence
• Disqualifying offence — the holder convicted of an offence against the Act or other relevant offence
• Unsuitability — the holder is no longer a suitable person to hold the licence or certificate
• Failure to manage properly — the manager has not properly supervised the premises and the conduct of the business

Interim Suspension

Pending a full hearing, a licence or certificate may be suspended on an interim basis where there is a serious risk to the public or the community. Interim suspension is an emergency measure — the business cannot sell alcohol and the manager cannot act as duty manager during the suspension period. The full hearing then determines whether the suspension is confirmed, lifted, or escalated to cancellation.

The Three-Holdings Escalation Regime (ss288-290)

This is the repeat-offender provision and the most heavily examined cancellation topic.

Section 288 — What Is a "Negative Holding"?

A negative holding is a formal finding by ARLA or a court that the licensee or manager has, after the section commenced, done any of the things listed in s288(a)-(k). The list mirrors the most serious offences in the Act:

• (a) encouraged excessive consumption
• (b) promoted discounts of 25% or more outside licensed premises
• (c) held visible 25%+ discount promotions audible/visible from outside
• (d) promoted free alcohol (outside the permitted exceptions)
• (e) offered goods/services/prizes conditional on alcohol purchase (outside licensed premises)
• (f) promoted a competition requiring alcohol purchase to enter (outside permitted exceptions)
• (g) promoted alcohol with special appeal to minors
• (h) sold or supplied alcohol to a person under purchase age (s239)
• (i) allowed alcohol to be sold or supplied to a minor
• (j) sold or supplied alcohol at a time not authorised by the licence
• (k) sold or supplied alcohol to an intoxicated person (s248)

Section 289 — Cancellation of a Licence

If a constable or inspector applies for a finding that, if proven, will result in a third negative holding against the same licensee for incidents at the same premises within a 3-year period, ARLA may cancel the licence. Key features:

• The three holdings must relate to the same premises
• The 3-year period ends immediately before the incident giving rise to the current application
• Cancellation takes effect on a specified date no more than 3 months after the third holding
• No appeal to the High Court lies against a cancellation decision under s289

Section 290 — Cancellation of a Manager's Certificate

This is the mandatory version and the one exam candidates must get right:

• ARLA MUST cancel a manager's certificate if it makes a third negative holding against the manager and two other negative holdings have already been made within the 3-year period.
• The cancellation takes effect immediately.
• No appeal to the High Court lies against a cancellation under s290.

Exam trap (high yield): Three holdings within 3 years = mandatory certificate cancellation (s290), immediate effect, 5-year disqualification under s293, and no High Court appeal. The licence version (s289) is discretionary ("may cancel"); the certificate version (s290) is mandatory ("must cancel"). Do not confuse the two.

Section 293 — The 5-Year Disqualification

A person whose manager's certificate has been cancelled under s290 is, for 5 years from the date of the third holding:

• Not eligible to be issued a new manager's certificate — ARLA must not issue one
• Not eligible to be appointed as a temporary manager or acting manager
• Any purported appointment is void
• These restrictions override ss222-231 (the normal appointment provisions)

A parallel 5-year restriction applies to a person whose licence has been cancelled under s289 (s292), in respect of the premises to which the holdings relate.

Effects of Suspension vs Cancellation

Variation or Endorsement — Not a Penalty

A variation changes a condition of the licence (e.g. trading hours). An endorsement adds a new activity (e.g. a gambling endorsement). Neither is a penalty — they are administrative changes applied for by the licensee. Suspension and cancellation are penalties imposed by the authority.

Personal Exposure of the Duty Manager

A common misconception is that only the licence holder is at risk. In fact, the manager's certificate is at risk for how the manager runs the premises during their shift. A single s248 sale-to-intoxicated offence produces a negative holding against the manager personally. Two more within three years triggers mandatory s290 cancellation of that manager's certificate and a 5-year ban—regardless of what happens to the licence. The duty manager is the on-site legal controller, and the Act holds them personally accountable.

Realistic Scenario

A duty manager is the holder of two negative holdings in two years for selling to intoxicated patrons (s248 / s288(k)). On a third shift, a server sells to a minor and the manager is deemed to have "allowed" it (s239(1) / s288(i)). ARLA makes the third negative holding. The licence may be cancelled under s289 (discretionary), but the manager's certificate must be cancelled under s290 (mandatory), takes effect immediately, and the manager is disqualified for 5 years under s293. No High Court appeal is available. The manager's LCQ and career as a duty manager are over for five years.