Released in June 2015, and updated in October 2023 by the Department of Transport and Planning, the purpose of PPN61 is to:

1. Explain cumulative impact in relation to licensed premises in the planning system.
2. Provide guidelines on preparing and assessing an application under clause 52.27 of the planning scheme to:
   • assist a permit applicant when considering and responding to the potential cumulative impact of their proposal
   • support a council when assessing the cumulative impact of licensed premises as part of a planning permit application.[1]

Clause 52.27 of the Victorian Planning Scheme requires the responsible authority to consider, amongst other things, ‘The cumulative impact of any existing licensed premises and the proposed licensed premises on the amenity of the surrounding area’[2]. PPN61 outlines specific guidelines associated with the preparation of appropriate cumulative impact assessments relevant to the requirements of clause 52.27.

PPN61 describes cumulative impact as:

Cumulative impact refers to both positive and negative impacts that can result from clustering a particular land use or type of land use. Potential cumulative impact from a cluster of licensed premises will vary between locations, depending on the mix and number of venues and whether the area is a destination for activities associated with the supply of alcohol. Cumulative impact is a product of the number and type of venues present, the way they are managed, and the capacity of the local area to accommodate those venues.

Negative cumulative impacts can include increased occurrences of:

• nuisance including noise and anti-social behaviour from intoxicated persons
• infrastructure capacity problems including limited availability of transport and car parking for patrons and local residents
• violence and perceived threats to safety
• crime including vandalism, trespass and property damage.

Positive cumulative impact can include:

• the creation of a local ‘identity’ or status as an entertainment or tourism destination
• enhanced vitality of an area
• economic benefits
• increase in consumer choice
• increased ability to manage impacts, for example by concentrating venues around transport to aid dispersal of patrons.

The clustering of licensed premises may lead to a negative impact even though any given venue in the cluster may be well run and have minimal impact. An area might reach a ‘saturation point’ where an additional licensed premises or a particular type of licensed premises is likely to impact negatively on the surrounding area. Alternatively, there may be a positive cumulative impact where an additional premises will enhance the character or vibrancy of an area.[3]

Neither clause 52.27 of the planning scheme, or PPN61, allow for the consideration of the broader issues associated with the accessibility or consumption of alcohol within the wider community in a general sense. On this basis, a cumulative impact assessment requires a focus on the likely impacts of the proposed licence on the amenity of the surrounding area.

[1] Planning Practice Note 61 – Licensed Premises: Assessing Cumulative Impact (Department of Transport and Planning, 2023)

[2] Victorian Planning Scheme Clause 52.27

[3] Planning Practice Note 61 – Licensed Premises: Assessing Cumulative Impact (Department of Transport and Planning, 2023)

PPN61 provides a general guide in relation to the definition of a ‘Cluster’ of licensed venues. According to the practice note, a cluster would occur where there are:

• three or more licensed premises (including the proposed premises) within a radius of 100 metres from the subject land; or
• 15 or more licensed premises (including the proposed premises) within a radius of 500 metres from the subject land.[1]

[1] Planning Practice Note 61 – Licensed Premises: Assessing Cumulative Impact (Department of Transport and Planning, 2023)