SEP funding for NSW councils to promote the night time economy

NSW dangles $1.25m carrot to help councils turn on the lights after dark

By Cec Busby January 28, 2026 4:48 pm

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Live music venues, late-night cafés and small bars across NSW could soon get a much-needed leg-up, with the state government tipping an extra $1.25 million into its Special Entertainment Precinct (SEP) Grant Program.

The funding, announced by the Office of the 24-Hour Economy Commissioner, is designed to help more councils set up SEP trials in precincts where nightlife is encouraged. It will make rules clearer and ensure red tape is cut back.

The announcement is great news for small business owners, especially those in hospitality and entertainment. SEP trials mean fewer delays, lower costs and a much smoother path to trading later into the night.

Key points

Extra $1.25m to help councils trial Special Entertainment Precincts
Businesses could save around $30,000 and months of DA delays
Round two grants range from $20k to $200k, plus $50k for safety accreditation.

What’s is an SEP?

SEPs are precinct-wide rules rather than venue-by-venue headaches. Instead of each business lodging expensive Development Applications just to stay open later, councils can set tailored trading hours and rules across a whole area.

According to the Productivity and Equality Commissioner’s 2025 report into the NSW night-time economy, businesses inside an SEP can skip Development Application costs entirely for extended trading hours. That’s no laughing matter, considering the cost of these DAs can reach $30,000 per application and the wait time for approval can exceed 130 days.

SEPs deliver certainty around sound rules, helping live music venues operate without constantly worrying about complaints or sudden clampdowns.

Extended trading = more business

Extending trading hours at live venues can also benefit nearby businesses. An enlivened precinct means more foot traffic. More foot traffic equals more potential customers. SEPs also allow nearby shops, cafés and community facilities to open later without changing their own development consents, meaning the whole precinct benefits.

Councils can also ‘future-proof’ these areas by making it clear to new residents that they’re moving into an entertainment zone and requiring appropriate soundproofing in new developments. Fewer conflicts, fewer complaints, fewer headaches.

So far, 22 councils have passed resolutions to investigate or establish SEPs. Councils including Burwood, Fairfield, Byron Shire, Sutherland Shire, Hornsby, Liverpool, Northern Beaches, Tamworth and Goulburn have already received funding under round one.

More money on the table in round two

Under round two of the program, eligible NSW councils can apply for grants ranging from $20,000 to $200,000 to cover setup costs. That includes strategic planning, acoustic frameworks, community consultation and communications.

There’s also a safety and collaboration focus, with councils able to apply for up to an additional $50,000 to explore Purple Flag accreditation: an international benchmark for vibrant, safe and welcoming night-time precincts.

24-Hour Economy Commissioner Michael Rodrigues said the strength of the model lies in local decision-making.

“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,” he 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.”

Councils can find more information and apply through the NSW Government grants website. For small businesses, it could be the start of a louder, later and more lively future.

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