Residents of Avalon Beach are calling for the reversal of a liquor licence granted to Dan Murphy's, citing serious risks to community health, child safety, and local amenity.
The core problem, residents state, is a large-scale, discount liquor outlet has been approved for the 1-3 Careel Head Road site that sits directly beneath a childcare centre — normalising alcohol in a space designed for young children.
See May 2026 report: 491 square Metre Liquor shop at Careel Bay Shops Approved: NCAT Review Request May be lodged by Community
Development Application DA2024/1091, as amended, for the demolition works and construction of a mixed use development with basement parking comprising retail uses and a childcare centre at 1-3 Careel Head Road, Avalon Beach, was determined by the grant of consent and through a Land and Environment court action with the judgement handed down on September 4 2025.
The council requested the developers include a separate entry to the childcare centre.
The developers proposed a child care centre and 3 retail premises (one being a liquor store). An entry, separate from the liquor store, for the childcare centre now forms part of the proposal.
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Details at: lngnoticeboard.onegov.nsw.gov.au//APP-0015360276
The facts and what residents and authorities are saying:
• Already oversupplied. Local resident Karen Young points to the Pittwater Peninsula already being comprehensively serviced by packaged liquor outlets. Residents currently have access to multiple bottle shops, licensed clubs, hotels and a large Dan Murphy's store at Mona Vale. There is a substantial existing concentration of alcohol retail and licenses premises in the immediate vicinity of the proposed outlet. Avalon Beach has five existing bottle shops. No community need has been demonstrated for a sixth.
Those outlets are:
- Le Pont Clareville
- Palm Beach Wines
- Bilgola Cellars
- Mr Liquor Nth Avalon
- Avalon Brewery
- Winona Avalon
- Chambers Cellars Avalon
• Children at risk. Rick Stevens, a nearby resident and teacher of over 40 years highlights that; ‘the co-location of a Dan Murphy's packaged liquor outlet and a childcare centre conflict with NSW planning policy designed to protect children's health, safety, and security. Having a large liquor outlet operating alongside a childcare centre sends the wrong message'.
• A health district warning ignored. Northern Sydney Local Health District flagged that alcohol-related hospitalisations on the northern beaches run 65% above the NSW average. Emergency department alcohol presentations are 59% above the state rate. A large discount liquor outlet will make this worse.
• Validity of Licence The Northern Beaches Council objected to the issue of the liquor licence. Council raised concerns the liquor licence was issued based on incorrect plans, despite Council identifying the error. Confirmation has been requested concerning the position of Liquor and Gaming NSW concerning the validity of the Licence.
• Wrong street, wrong traffic. Nearby resident, Dr Helen Dauncey, expressed concern saying that, ‘’operating the site requires diverting vehicles from a main road into a narrow residential street used daily by families and children. This is a quiet street where kids ride bikes and families walk every day. Redirecting traffic here fundamentally changes its safety and character."
200 submissions. Overruled. The Careel Bay Residents Association points out that despite overwhelming community opposition, "convenience and choice" was given greater weight than harm minimisation and statutory protections under the Liquor Act 2007. The Association explains, "this isn't about opposing business — it's about ensuring developments don't come at the expense of community safety and wellbeing.
On Monday July 13 2026 the ACCC made a decision in favour of the Dan Murphy's going ahead. While this is a blow it does not impact an NCAT hearing, currently lodged by residents of Careel Bay, Avalon and Palm Beach, where Liquor & Gaming Authority decisions are assessed. The ACCC decision is also subject to review.
Commissioner Williams' Phase 1 Determination states:
Endeavour Group Limited (Endeavour Group) proposes to acquire a leasehold interest for retail space in a new development at 1 & 3 Careel Head Road, Avalon NSW 2107 (the Proposed Site) from Avalon DM Pty Ltd (the Lessor) (the Acquisition).
Endeavour Group intends to operate a Dan Murphy's on the Proposed Site, with a trading area of approximately 340 square metres.
Endeavour is an Australian public company that primarily operates:
- retail liquor stores nationwide under the BWS and Dan Murphy’s brands
- licensed hotel venues under the ALH Hotels banner in all state and territories. These venues are individually branded venues offering on-premises food and drinks, entertainment, gaming services and, in some cases, accommodation
- Pinnacle Drinks, a manufacturer and distributor of liquor products, which it distributes exclusively to the Endeavour retail and hotel network in Australia.
The Lessor is an independent, Australian privately-owned special purpose vehicle established for the purposes of the acquisition and development of the property.
''When making a determination in Phase 1, the Australian Competition and Consumer Commission (ACCC) undertakes a competition assessment and considers whether it is appropriate for an acquisition to be approved or subject to further assessment in Phase 2 in accordance with section 51ABZJ of the Competition and Consumer Act 2010 (Cth) (the Act). In doing so, the ACCC must have regard to the object of the Act and all relevant matters, including the interests of consumers.
In conducting its competition assessment, the ACCC has considered the information and documents that were submitted with the notification form. The ACCC also considered feedback from third parties which raised concerns that the Acquisition would result in existing competitors exiting the market.
The ACCC has determined that the Acquisition may be put into effect as it considers that the Acquisition is unlikely to have the effect of substantially lessening competition in any market. In reaching its decision, and based on the material before it, the ACCC makes the following findings.
▪ The proposed Dan Murphy’s would face competition from multiple alternative suppliers in the surrounding area.
▪ The likely degree of overlap between the Proposed Site and existing Endeavour Group stores is not significant in the context of the local area. The closest existing Endeavour Group sites to the Proposed Site are BWS Newport (3.9 km away) and Dan Murphy’s Mona Vale (6.7 km away).
▪ The aggregation arising from the Acquisition, including considering previous acquisitions by Endeavour Group in the last three years, is not sufficient to meaningfully change competition over a relevant broader market.
The ACCC notes that some third parties raised concerns about a liquor licence being granted for the Proposed Site, and the suitability of the Proposed Site for liquor retailing. However, these concerns did not relate to the likely competitive effects of the Acquisition and were therefore outside the scope of the ACCC’s assessment.
Applications for review: A notifying party, or other person who has been allowed to do so by the Australian Competition Tribunal, may apply for review if they are dissatisfied with the determination. Pursuant to section 100C of the Act, applications for review of the determination are to be made to the Australian Competition Tribunal before the end of 14 calendar days after this statement of reasons was included on the ACCC’s Acquisitions Register. To confirm whether there has been any application for review, please contact the Australian Competition Tribunal.''
Next steps
The community is pursuing an appeal through the NSW Civil and Administrative Tribunal (NCAT).