"It puts a burden on a lot of small bars who are losing a lot of profit and business hours ... We find that it just channels customers into big venues who already have those licences," Ms Nicol said.
"For news bars opening it makes it so much harder if they can't apply for late-night licences. If you are going out at 11 you aren't going to go to a little place that has to close at 1."
Ms Nicol said she understood concerns about over-saturation of nightclubs, but felt that other restrictions, such as on loud music and venue capacity, should be considered rather than just liquor regulations.
Gaming and Liquor Regulation Minister Marlene Kairouz said the laws would not damage Melbourne's nightlife and culture.
“These reforms are helping boost Melbourne’s thriving night-time economy, without sacrificing community safety," she said.
"This is an important step in continuing to reduce antisocial behaviour while also allowing Victorians to go out and enjoy Melbourne’s world-class nightlife.”
The government did not provide data demonstrating a reduction in alcohol-related crime and violence since the freeze came into effect in the council areas of Melbourne, Port Phillip, Stonnington, and Yarra.
Live music venues can seek an exemption to the freeze on late-night liquor licences.Credit:Scott Barbour
Live music venues with capacity for up to 200 people have previously been exempt from the freeze. The government has now expanded that exemption to music venues that can host up to 500 people.
Currently, 87 per cent of all exemption requests are granted, and the new laws aim to simplify this process.
The Victorian Commission for Gambling and Liquor Regulation can now grant exemptions to venues wishing to broadcast major international sporting events.
The freeze will also now be thawed on New Year's Eve, allowing punters to celebrate well into the morning.
Stonnington mayor Steve Stefanopoulos.Credit:Kristian Scott
Stonnington mayor Steve Stefanopoulos said councils should have been consulted by the government before it approved the extension.
"It is disappointing that the state government has again implemented changes that impact our residents without consulting," he said.
"The City of Stonnington is home to the Chapel Street precinct, Melbourne’s best music and entertainment area. Council is supportive and proud of this. It is also a densely populated area and as a council elected by local residents we believe we are best placed to judge what should be allowed."
Cr Stefanopoulos said the council would attempt to work with the state government as the new laws are implemented to find a balance that benefits residents and businesses.
The government says changes to the existing laws will make it easier for bars, clubs and live music venues to gain exemptions for special events.
“We’re extending the freeze on late-night liquor licences, but we’re also making sure that the process is clear and simple for venues that have legitimate grounds for exemptions," Ms Kairouz said.
Other affected councils support continuing the freeze.
“We have a long history of working with licensees, the Victorian government, the Victorian Police, residents and others to ensure alcohol consumption in the city is safe for everyone involved," Melbourne lord mayor Sally Capp said.
Port Phillip mayor Dick Gross said the laws helped prevent an "open slather" of late-night venues.
The state opposition also supports extending the freeze.
"This freeze has been put in place by successive governments and the Liberal-Nationals support the continuation of it," Victorian Nationals leader Peter Walsh said.
"It has stopped the opening of additional nightclubs and will continue to keep Victorians on our streets safer.”
The guidelines will be in effect until the June 30, 2021, when they will again be reviewed.
Matilda reports breaking news for The Age
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