The liquor licensing rules were passed by Parliament last week in response to community outcry over the government's response to alcohol-fuelled violence. Under the regime, covering all licensed venues within a newly defined "CBD entertainment precinct", patrons will no longer be able to enter after 1.30am and service of alcoholic drinks must cease at 3am. The new area is bounded by Kings Cross, Darlinghurst, Cockle Bay, The Rocks and Haymarket. The only exceptions are restaurants, small bars with capacity for fewer than 60 customers and tourism accommodation venues such as large hotels. Mr O'Farrell had initially said he hoped the rules would be in place by late April.

The NSW branch of the Australian Hotels Association has warned the conditions would be "catastrophic" for Sydney's night-time economy. While most alcohol campaigners have welcomed the initiative, many are pushing for the measures to be imposed on a state-wide basis or extended to other violence hotspots, such as Byron Bay. Mr O'Farrell reiterated that the government has the power to extend the regime to other parts of the city in the event of a violence "spill over" from the initial target areas. As part of the package, bottle shops will no longer be able to sell alcohol after 10pm. This rule will also come into force from February 24. A new law introducing a mandatory minimum sentence of eight years in jail for fatal assaults where the assailant is drunk or drug-affected came into effect last weekend.

However, the government has delayed introduction of a second tranche of mandatory minimum sentences for other violent crimes – including assault causing actual bodily harm, sexual assault and affray – where alcohol or drugs are a factor. The government has been strongly criticised by sections of the legal community over the introduction of mandatory minimum sentences as part of its package on alcohol-related violence. Loading Asked on Wednesday if the government was considering removing assault occasioning actual bodily harm from the list, Mr O'Farrell said he was "happy to address those issues when we get to the legislation". Tabling of the legislation is anticipated soon after Parliament resumes on February 25.