Bank Street Social says laneway bars will be forced to consider higher prices, fewer hours after big increase in liquor fees

The rise in liquor licence fees announced last week could force small bars to raise their own prices or scale back their opening hours, say the owners of Bank St Social.

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Owners of one of Adelaide’s best known laneway bars have warned of possible price rises or cutbacks to trading hours after massive fee increases.

Treasurer Rob Lucas last week revealed higher prices for a range of liquor licences, which Bank Street Social fears will lead to a near six-fold increase in its annual bill from about $1000 to $6000.

Under the new scheme, small bars that close before 2am will pay $425 compared to $115 last year. However, venues which trade until 4am will be hit with the $6000 charge.

Bank Street Social co-owner Simon Orders said businesses must look at all options to meet or avoid the cost.

“It’s definitely going to have to make us look at our numbers again and reassess,” he said. “It’s the cost of sales I guess we’ve got to look at as well, and whether it’s worth increasing (prices) but crossing your fingers and hoping it doesn’t turn away customers.

“If you haven’t got a full house and you’re trading late, you are going to be definitely looking at closing early.”

Bank Street Social co-owner Simon Orders said businesses must look at all options to meet or avoid the cost.

He said the industry overall was doing well, particularly as the Adelaide Oval and events attracted people to the CBD.

Opposition treasury spokesman Stephen Mullighan said Bank Street Social was a “great success story” and businesses like it shouldn’t be “punished with higher taxes”.

He said the State Government had broken its election promise of lower costs by jacking up fees and charges.

Mr Lucas said liquor licencing fees were settled on after an independent review commissioned by the former Labor government, which focused on the risks posed by certain types of operations.

Treasurer Rob Lucas said the biggest source of revenue from the changed fees would be large-scale bottle shop operators.

“Small bars continue to be protected, but those establishments which could be hotels and those like this one which trade in these particular hours and serve alcohol, will be charge higher fees because of the deemed risk,” he said.

Large bottle shop chains, like those owned by Coles and Woolworths, also face much higher costs as fees increase from $805 per store to $6900.

Mr Lucas said: “The biggest revenue source of this (change in fees) will be big corporates that own large numbers of packaged liquor outlets”.

The $79 million rise in fees and charges, including higher penalties for speeding and breaking road rules, follows a $517 million collapse in GST revenue that threatens to send next month’s State Budget into the red.