Additional $1.25m Offered to Councils Wanting To Set Up A Special Entertainment Precinct

The NSW Government has expanded its Special Entertainment Precinct (SEP) Kickstart Grant program, committing an additional $1.25 million to support more councils looking to establish their own local SEP trials as part of a broader push to revitalise night-time economies across the state.

The funding will be delivered through the Office of the 24-Hour Economy Commissioner, as SEP trials continue to roll out in metropolitan, regional and suburban centres aimed at supporting live music, hospitality and local “going out” districts.

SEPs allow councils to set tailored rules around trading hours and sound within a defined precinct, rather than requiring individual venues to seek costly and time-consuming Development Applications to extend trading hours.

The model has been positioned as a way to provide greater certainty for live music venues and nightlife businesses in Sydney, following years of regulatory complexity and, more recently, the final removal of the remaining lockout-era restrictions.

According to the Productivity and Equality Commissioner’s 2025 report into the NSW night-time economy, precinct-wide rules under the SEP model can significantly reduce costs and delays for businesses while attracting new investment into local areas. The report found that businesses operating within SEPs can avoid Development Application costs of around $30,000 per venue, as well as bypass average waiting times of 130 days associated with DA processes for extended trading hours.

Why councils are interested in trialling a Special Entertainment Precinct

SEPs are designed to support live entertainment through extended trading hours for music venues and more favourable sound regulation, providing greater operational certainty for venues, businesses and nearby residents. Councils are also able to manage activity within a precinct through a dedicated management plan, allowing shops, cafes and community facilities to open later and complement nearby live music venues without having to modify their existing development consents.

The framework also includes “future-proofing” measures, ensuring prospective residents are aware they are moving into an entertainment-focused area and requiring appropriate sound attenuation in new developments to minimise conflict between nightlife and housing.

To date, 22 councils have passed resolutions to investigate or establish SEPs in their local areas. Under the first round of the SEP Kickstart Grant program, Burwood, Fairfield, Byron Shire, Sutherland Shire, Hornsby, Liverpool, Northern Beaches, Tamworth and Goulburn councils received funding to establish SEP trials.

Round two of the program will offer eligible NSW councils grants ranging from $20,000 to $200,000 to cover setup costs, including strategic planning, acoustic frameworks, consultation, communications and community engagement. Councils will also be encouraged to explore Purple Flag accreditation as part of the funding requirements, with up to an additional $50,000 available to assess the international framework, which recognises precincts that are safe, welcoming and vibrant after dark.

24-Hour Economy Commissioner Michael Rodrigues said the expansion reflected strong statewide interest.

“The key to the success of the Special Entertainment Precinct model is in empowering councils to work out, in consultation with their communities and local businesses, what the settings for nightlife should be,” Rodrigues said.

“Interest in the model from across the State is encouraging. We know that people are looking to enjoy a night out closer to home. We look forward to working with councils and their communities to make that happen.”

Applications for round two of the SEP Kickstart Grant program are now open.