3.2 Licence Conditions & Mandatory Requirements

Compulsory vs Discretionary Conditions

Every alcohol licence carries two layers of conditions. Compulsory conditions attach to every licence by operation of the Act. Discretionary conditions may be imposed by the District Licensing Committee (DLC) or the Alcohol Regulatory and Licensing Authority (ARLA) on a case-by-case basis.

Compulsory conditions (every licence)

• Trading days and hours — the licence must specify the days and hours during which alcohol may be sold, up to the statutory maxima.
• Licensing fees — payable to the territorial authority.
• A place where drinking water is freely available to customers — stated on the licence itself as a compulsory condition (s.110 for on-licences and club licences, s.116 for off-licences, s.147 for special licences).

Discretionary conditions (DLC/ARLA may impose)

The DLC or ARLA may impose conditions tailored to the premises and locality, including:

• Steps to ensure alcohol is not sold to prohibited persons (intoxicated, minors, disorderly).
• Premises management conditions (e.g. security, CCTV, crowd control).
• Who may be sold alcohol on the premises.
• One-way door restrictions (patrons who leave after a set time cannot re-enter).
• Requiring a manager on duty at all times alcohol is sold.
• For off-licences where the principal business is not the sale of alcohol — the kinds of alcohol that may be sold.
• For special licences — food provision, low/non-alcoholic beverages, transport information, container restrictions, exclusion of the public from defined areas, and filing of returns.

Host Responsibility: Statutory Requirements (ss.51-54)

These are not optional, and each has its own section. For an on-licence or club licence, at all times the premises are open for the sale and supply of alcohol the licensee must ensure:

Two points candidates routinely get wrong:

• Free water is not in ss.51-54. It is a compulsory licence condition — s.110 states the place or places on the premises where drinking water is to be freely available to customers. It is just as binding; it simply comes from a different provision.
• "At least three substantial meal options" is not the statutory wording. Section 53 says a reasonable range of food ... in portions suitable for a single customer. The three-substantial-options benchmark comes from DLC practice and Te Whatu Ora host-responsibility guidance, and is what inspectors typically expect. Learn the benchmark, but do not quote it as the words of s.53.

A common exam trap treats all of this as "good practice". These are statutory requirements; failure to meet them grounds licence enforcement action.

Designated Areas

Premises may designate areas for age-access purposes:

A minor found in a restricted area without a lawful reason is a breach; the licensee and duty manager are responsible for enforcing the designation.

Signage

The following must be displayed on the premises:

• The licence itself (or a copy) — prominently, so patrons can see it.
• The current manager's certificate (name of the duty manager on duty, prominently displayed inside the premises).
• Evidence-of-age signage — reminding staff and patrons of the purchase age and ID requirements.
• Host responsibility signage — information about low-alcohol options, free water, food and transport.

Trading Hours & Restricted Days

Default national maximum hours

• On-licence / club licence: 8:00am to 4:00am.
• Off-licence: 7:00am to 11:00pm.

A Local Alcohol Policy (LAP) may reduce these hours but cannot extend them beyond the national maxima. The hours on the licence itself are what the duty manager must enforce.

Restricted days (ss.47-48)

Section 47 restricts on-licences and section 48 restricts off-licences. Alcohol sales are prohibited on:

• Good Friday
• Easter Sunday
• Christmas Day (25 December)
• Before 1:00pm on Anzac Day (25 April)

Exceptions:

• Residents and diners — a person who is on the premises for the purpose of dining, or who is resident (e.g. hotel guests), may be served alcohol with a meal.
• RNZRSA clubs — may sell alcohol on Anzac Day before 1pm to members and their guests attending an Anzac function.

Conditions Snapshot by Licence Type

Exam Traps

• Non-alcoholic (s.51) + low-alcohol ≤2.5% (s.52) + food (s.53) + transport help and information (s.54) are mandatory statutory host-responsibility duties for on-licence and club licence, not optional guidance; free water is compulsory too, but as a licence condition under s.110.
• "Reasonable range of food ... in portions suitable for a single customer" is the s.53 test, and inspectors read it as substantial meals — a bowl of chips or a jar of nuts does not satisfy it.
• The LAP can shorten trading hours but cannot extend them past the national maxima.
• A supervised area permits minors only with a parent/guardian — not any adult, and not unaccompanied.

Scenario

A restaurant holds an on-licence and trades until midnight on Good Friday. The duty manager allows a table of four to be served wine with their main meals. Lawful under the residents/diners exception — provided the patrons are on the premises for the purpose of dining. If the same table lingers after the meal and orders spirits without food, the sale is unlawful on Good Friday.