Wake up, Sydney! Why going clubbing is good for your health

• From pizza delivery loneliness to billion-dollar opportunities, a new report shows why the future of New South Wales depends on what happens after 6 p.m.
• Thanks to ridiculously tough drinks and licensing laws, no one wants to run clubs or music venues.
• Now a massive public campaign is underway to turn the lights back on.

Pubs, clubs, theatres and restaurants are being revived as the State Government considers 55 recommendations to bring the life back into Sydney nights.

Better transport, dumping outdated laws that mean it costs the same to get approval for a Taylor Swift concert as it does for a music venue, and more incentives are all on the table.

A landmark report by the NSW Productivity and Equality Commission argues that vibrant after-dark activity is vital not only to business but also to mental health and social connection.

Launching the Review of Regulatory Barriers Impeding a Vibrant 24 Hour Economy, Productivity and Equality Commissioner Peter Achterstraat and NSW Minister for the Night-time Economy John Graham made the case that NSW stands at a turning point: one where extending activity beyond daylight hours could deliver billions in revenue, thousands of jobs, and a healthier, more connected community.

The report’s most powerful finding is that the night-time economy is not simply about pubs and clubs — it is about people. It stresses that two-thirds of full-time workers’ leisure time takes place after dark, making evenings and nights the most important period for social interaction.

“Spending time together after dark helps combat loneliness, which has been increasing across society,” Minister Graham said. “This isn’t just about going out for a drink — it’s about joy, connection, and the mental health benefits that come from being part of a community.”

Commissioner Achterstraat was even more direct, warning that without action, isolation will become one of the defining health and social issues of our time.

“Sometimes the only person people talk to of an evening is the Uber Eats delivery driver who drops off their pizza,” he said. “We can’t accept that as the new normal. A society where most people spend their evenings in pyjamas in front of a screen, with minimal human contact, is one where loneliness and mental health costs spiral out of control.”

He likened the challenge to the fight against smoking in the late 20th century. “Forty years ago, we were warned that if we didn’t act on smoking, it would overwhelm health budgets. Today, we face the same with social isolation. If we don’t invest in ways to bring people together, we will be left with a future where mental health dominates government spending.”

While the social argument was central, the economic case is equally compelling. Achterstraat’s modelling found that if NSW’s night-time economy — essentially hospitality and entertainment after 6 p.m. — reached the same intensity as Victoria’s, the state would gain an additional $8.2 billion annually, representing a 15% uplift.

Currently, NSW’s night-time economy contributes $56 billion in turnover and employs more than 300,000 people. Restaurants, cafes, retailers, theatres, and live music venues stand to benefit most from regulatory reform and consumer confidence.

Catch 22 – nothing open for lack of customers; no one goes out because nothing is open

One of the most telling findings of the Commission’s review is what Achterstraat described as a “disconnect” between businesses and customers.

On one side, small businesses report closing early because of a lack of customers. On the other side, customers say they stay home because “there’s nothing open.” Breaking this cycle, the Commissioner said, is essential.

Venue operators also highlighted barriers such as rising energy and insurance costs, staff shortages, and heavy-handed red tape. Customers cited safety concerns and limited late-night transport as deterrents.

“We heard from business owners who say: ‘We’d like to open later, but the paperwork and costs make it impossible.’ And we heard from customers who say: ‘We’d like to go out, but there’s nothing open and no safe way to get home,’” Achterstraat said. “It’s a chicken-and-egg problem — and unless government helps break the deadlock, everyone loses.”

Now many pina coladas to cover a $30k DA?

The report is scathing about excessive regulation, particularly around development approvals (DAs). Businesses spoke of tens of thousands of dollars spent on consultants just to make modest, low-risk changes such as extending trading hours.

Minister Graham illustrated the problem vividly: “Do you know how many piña coladas you need to sell to cover a $30,000 DA application? It’s mind boggling. For small business owners, it’s a stop sign to progress.”

Examples abound: A small community event organiser filling out the same forms as a Taylor Swift stadium tour. A Bondi group forced into paperwork because a temporary stage measured 52 square metres, just over the 50-metre exemption limit. These kinds of rules, Achterstraat said, crush initiative and need urgent reform.

The report recommends streamlining planning and licensing so that business owners deal with a single process rather than sequential applications across multiple agencies.

55 ways to bring the nightlife back

The Commission has proposed 55 recommendations, grouped into three broad strategies:

1. Making it easier to open and run a business

• Streamlining DA and licensing approvals into a one-stop process.
• Expanding Special Entertainment Precincts, which allow more flexibility for live music and entertainment.
• Reducing regulation for low-impact activities and small events.

2. Improving safety and transport

• Piloting extended late-night public transport in Sydney’s York, Kent, and Clarence (YCK) precinct.
• Expanding late-night rideshare and on-demand services.
• Reviewing liquor restrictions, including the controversial six-hour trading ban.

3. Raising awareness and participation

• Better communication of recent vibrancy reforms, which many businesses remain unaware of.
• A cultural campaign such as “Friday Night Live” encourages people to get out at least once a month.
• Highlighting museums, galleries, and retail as part of the night-time mix, alongside hospitality.

Graham has made the night-time economy a personal priority, keeping it within his portfolio rather than relegating it solely to arts. He pointed to two packages of “vibrancy legislation” already passed in the government’s first two years, with a third planned.

“There’s momentum,” he said. “Each year ahead of summer, we’ve moved reforms to unlock more activity. But this report shows the scale of the opportunity. We can go further — and we must, because the potential is enormous.”

Graham also addressed cultural perceptions. “For too long, night-time policy has been framed by the idea that ‘nothing good happens after dark.’ This report turns that on its head. Most of our leisure time happens at night. If we get this right, nights will be when people come together, communities thrive, and our economy grows.”

Achterstraat said: “The night-time economy is not a luxury. It’s an essential part of a vibrant, productive society. If people are out mixing with colleagues and neighbours, we’ll have a richer society, fewer mental health costs, and a more dynamic economy.”

He urged both the government and citizens to play their part. “We can’t just sit back and say it’s all up to government. Each of us needs to make the effort to get out, even if it’s just for a coffee at the local club. Otherwise, we risk becoming a society of Friday night hermits, where the highlight of the week is the pizza delivery. That’s not the future we want.

What’s next

The NSW Government will now consider the 55 recommendations. While not all will be adopted immediately, both speakers signalled that the report provides a roadmap for the next stage of reform.

“This report will be crucial to the next stage of unlocking the state’s night-time economy,” Graham said. “It shows clearly the benefits for mental health, for social connection, and for our economy. The opportunity is too big to ignore.”

Achterstraat’s final words were both a warning and an invitation: “We can either drift into a future of isolation and missed opportunity, or we can make a deliberate choice to create a society that comes alive after dark. The choice is ours.”

Download the report here: