The night-time economy is a vital part of NSW’s social and economic fabric.

In 2023-24 industries associated with the core night-time economy—including food, drink, and leisure and entertainment businesses that primarily operate between 6pm and 6am—generated more than $56 billion in turnover.

This activity was delivered across more than 45,000 businesses and directly employed more than 300,000 people in NSW.

Yet the often long, complex, costly and uncertain planning system can be a major barrier for businesses wanting to operate after 6pm.

The report of a review of the night-time economy by the NSW Productivity and Equality Commission, commissioned by the Minister for Music and the Night-time Economy, found it can take around four months and cost around $30,000 to get a Development Application just to extend trading hours to 11pm.

The Commission heard from stakeholders that finding out they need to apply for a DA is enough to stop people pursuing their ambitions.

To help grow the night-time economy the Commission’s review identified 55 recommendations.

Key recommendations include:

  • Streamlining processes to make it easier to start and grow night-time businesses and to run events after dark
  • Making it easier for people to get around and enjoy everything the night has to offer
  • Clearly communicating existing initiatives, like the vibrancy reforms, so businesses and councils know how they can benefit from them.

For example, streamlining liquor licensing and planning approvals for businesses looking to trade later into the night could save $15 million a year. If this was applied to all businesses seeking these approvals, the total potential saving could be over $90 million a year.

These ideas complement the NSW Government’s already significant reform program, removing barriers holding the night-time economy back from billions of dollars in additional economic activity.

Despite its scale and importance, the night-time economy faces a range of challenges. Many businesses report that it is simply too hard to open or stay open late, with complex and outdated regulations making it costly and time-consuming to operate after dark.

At the same time, NSW consumers cite cost-of-living pressures, limited late-night public transport, and concerns about safety and convenience make it less appealing to go out in the evening.

People are willing to travel across Sydney to places like Newtown because they know they’ll find a diverse mix of great quality restaurants, shops and entertainment – and this helps sustain the businesses.

By making it easier for innovative new and growing businesses to open and thrive, we can help more neighbourhoods across NSW achieve this kind of ‘vibrancy cycle’.

The report also highlights the broader benefits of a vibrant night-time economy: it supports local jobs, attracts visitors, boosts cultural life, and helps build safer, more connected communities.

The NSW Productivity and Equality Commission’s Review of regulatory barriers impeding a vibrant 24- hour economy report is available here.

NSW Productivity and Equality Commissioner Peter Achterstraat AM said: “We’ve heard that since COVID-19, a lot of people find it easier to stay home and play video games than going out and mixing with people.

“I’m worried that this ‘slouch on the couch’ attitude is reducing productivity, harming social connection and could also cause long-term mental health issues.

“I’d like to encourage individuals and groups, whether work colleagues, sporting teams, or faith-based groups, to make a concerted effort to regularly go out and enjoy what the community has to offer. It would be good to dedicate the first Friday of every month as ‘Friday Night Live’.

“People are missing out on the benefits of new and growing businesses because unnecessary and cumbersome rules make change too costly.

“These barriers should be addressed because a vibrant, safe and growing night-time economy is crucial for both social and economic reasons.

“It enhances the quality of life for residents and visitors by offering a diverse range of leisure and cultural activities.

“For the NSW economy, it makes our towns and cities the kind of places people want to visit, helps us attract and retain productive workers, and supports an ecosystem of local businesses and jobs.”

Response to NSW Productivity Commissioner’s NTE report

Minister for Music and the Night-time Economy John Graham said: "I would like to thank the NSW Productivity and Equality Commissioner’s for bringing his trademark analysis and big picture thinking to the night-time economy.

"As this report states, previous policies have had severe unintended consequences, wiping out hundreds of venues and causing long lasting social and economic damage.

"During two years in office we’ve worked hard to rebuild our night-time economy, but as the Commissioner says there is still so much work to do to harness its full potential. Overregulation, safety and the cost-of-living continue to be handbrakes on the night-time economy.

"This report is a call to double down on our work.

"One of the specific areas the Commissioner singles out for reform is the expensive and arduous development application process. This report shows that the DA has become a stop sign to progress.

"Small businesses are being saddled with tens of thousands of dollars of costs and countless hours of work to make modest changes. We have to make it easier and less costly for hospitality businesses to boost vibrancy and productivity.

"The report highlights the important role of transport in the night-time economy. For our nightlife precincts to thrive, people need a safe, fast and affordable way to get home. Work is already underway to increase public transport in the right places to support growth in the night-time economy.

"The Commissioner makes an important call out about the safety for women. The report says 65% of people would go out more if they felt safer, that represents a huge opportunity. Safety for women in our nightlife precincts is a fundamental human right, but the commissioner highlights that it’s also holding the night-time economy back from its full potential.

"We need to continue finding ways to improve transport, cut costs and increase flexibility for venues – to build a nightlife that’s more fun, safe and affordable.

"We will have more to say in response to the specific recommendations in the coming weeks and months."