Are you thinking about starting an online liquor business from your home? If so, you’re not alone! More and more entrepreneurs are launching alcohol start-ups, often using third-party logistics (3PL) companies for packaging and delivery. But before you dive in, let’s explore the key considerations you need to keep in mind, especially when it comes to the rules and regulations.

Each state has its own rules

First things first: each State and Territory in Australia has its own set of rules regarding liquor licensing. Therefore, if you are seeking national coverage whether for direct-to-consumer deliveries or for wholesale, it is paramount that you understand your obligations in each State and Territory. While some places have specific categories for online-only retailers, others may not. This means you’ll need to do your homework on the regulations in your area to ensure compliance.

The reality of online-only businesses

In our experience, online-only liquor licensing categories do not significantly lighten the regulatory load. You may still face the same compliance hurdles as a traditional bricks-and-mortar store.

Even in States and Territories that offer online-only liquor licenses, the application process can be a challenge, and the requirements often seem disconnected from the realities of running an online-only business. Many home-based liquor retailers use 3PLs, meaning they don’t keep stock on site and therefore have no customers visiting their homes. In fact, the packaging and delivery all take place elsewhere. This raises the question: why do the licensing rules still seem so stringent for businesses that don’t hold physical inventory and don’t engage in face-to-face sales at their premises?

What you should worry about

If you’re considering running an online liquor business from your home, here are the key obligations you need to be aware of, noting that there are state-by-state differences:

1. Display obligations: many States require you to post a public notice at your proposed business site for a certain period before you can submit your application. This is intended to serve as a notification of your intention to start an alcohol business to any nearby stakeholders. Practically speaking, this means your neighbours will know about your plans, so be prepared for any feedback they might have.
2. Planning permission: depending on where you live, you might need planning permission. Local councils often have specific requirements, and if you can show that your business won’t change the use or feel of your home, you might be eligible for an exemption.
3. Community impact statements: you may be required to submit a Community Impact Statement (CIS). This involves communicating with local authorities and gathering feedback from the community. This feedback can also be gathered from the public notice displayed on your home premise. If there are concerns such as noise or disruption, the licensing authority will take those into account when deciding whether to grant your license.
4. Landlord permission: if you’re renting your home, check your lease documentation carefully and notify your landlord. Many lease agreements have clauses that prohibit running a business from the premises without permission. This prohibition may apply even if you don’t have a formal lease.
5. Body corporate permission: if your home is part of a strata title or a community scheme, you may need to get permission from the Owners Corporation (OC). Each body corporate will have its own rules about home-based businesses; therefore, it would be wise to consult them too.

The big picture

While regulations are evolving, especially since the COVID-19 lockdowns, many obligations remain significant in the liquor licence regulatory space, which impacts home-based liquor businesses. Even if you’re not storing any alcohol at home, let alone delivering alcohol from your home premise, you’ll still have to navigate a maze of rules that can feel daunting.

Conclusion

Starting an online liquor business from your home can be exciting, but it’s essential to understand the regulatory landscape. Despite some advancements in regulations aimed at facilitating home-based businesses, the obligations can still be onerous. So, before you advance too far down the road, make sure you’re ready to tackle the paperwork and meet your local requirements!