What Are the Rules Governing Brothels and Massage Parlour Licences in NSW?

In NSW, the laws regulating brothels and massage parlours have become more strict over recent years, with a focus on reducing worker exploitation and limiting the influence of organised crime in the sex industry.

Brothels in NSW are regulated by the Restricted Premises Act 1943 (NSW) which allows the Land and Environment Court, upon application by a local council, issue an order to prevent the use of premises as brothel if they are located within the council’s jurisdiction. The Court may direct that the owner or occupier of the property is not to allow the premises to be used for the purpose of operating a brothel.

Serious criminal offences can also arise if a brothel owner is found to be involved in child prostitution or sex trafficking. Under the Crimes Act 1900 (NSW), brothel owners can face up to 7 years imprisonment if a child engaged in prostitution on their premises.

Additionally, causing sexual servitude or operating a business involving sexual services can lead to up to 15 years in prison. Nationally, the Criminal Code Act 1955 imposes severe penalties for sexual slavery and trafficking, carrying heavy sentences.

What is the difference between a massage business and a brothel?

Massage businesses provide massages and sometimes other beauty or health-related services to clients such as saunas, waxing and other treatments.

Massage businesses are not allowed by law to offer or advertise sexual services, and sex workers are prohibited from soliciting on the premises.

If a massage business does offer sexual services, it is classified as a brothel and must be licensed.

In NSW, the law defines a brothel very broadly. They are premises that:

• Are used for prostitution (sex work), or
• Have been used for prostitution and are likely to be used for it again, or
• Have been advertised or represented as being used for position, and are likely to be used for prostitution.

Prostitution or sex work is defined in NSW as sexual intercourse with another person, or masturbation of another person, using any part of the body or an object – for payment. Although, in situations where it is not clear if an act amounts to legal definitions of a sexual service, it is open to the interpretation of the courts.

Once a business is classified as a brothel, operators must comply with the following legal requirements:

• Advertise their business (Section 18 Summary Offences Act 1988)
• Sell Alcohol on their premises (or be licensed to do so) 
• Allow a minor under 18 to be on the premises (Section 21 Summary Offences Act)
• Coercive conduct or due influences cause or induce another person to do so sex work or to surrender earning of sex work (Section 15A Summary Offences Act)

While brothels may offer services like massage, they are distinct in that they also provide sexual services for payment. These establishments are subject to strict regulation, aimed at curbing associated issues such as human trafficking, drug trade, and exploitation. 

What are the penalties for offering sexual services at a massage business?

There are a number of penalties for operating a massage parlour that offers sexual services without officially being declared a brothel.

Section 16 of the Summary Offences Act specifically targets businesses that are held out as offering legitimate services, such as massages, steam baths, or photography studios, but are actually being used for prostitution or to solicit prostitution. 

A person caught using a massage business for prostitution or soliciting prostitution can face significant penalties, including:

• A maximum fine of up to 5 penalty units ($550)
• Up to 3 months in prison

If you are caught running a brothel without approval, it is likely that you will be required to apply for a licence, or you will be required to close the premises.

What will happen if I am suspected of running a brothel?

If you are suspected of providing sexual services at a massage parlour without the right licensing, you will undergo an investigation process. This is designed to determine whether you are:

• Running a business from the premises.
• Providing sexual services as part of that business.
• In compliance with local licencing requirements to offer sexual services.

As a result of investigations, authorities can demand that you cease offering sexual services, apply for the relevant licence, or close down the business altogether.

What are my rights?

As the proprietor or staff member of a massage parlour, you have certain rights when you are under investigation for the possibility of offering sexual services.

Before they visit your premises, authorities must issue you with a notice of intention to visit, and they should visit you at a reasonable time during daylight hours or when the business is in operation.

If they arrive without having issued a notice of intention, or without a search warrant, you are under no obligation to allow them to search your premises or ask questions.

If you are under investigation for operating a business without the appropriate brothel and massage parlour licence in NSW, it is a good idea to seek legal advice.

If you are asked to close down your business as a result of the investigation, it can affect your income and reputation in the future.

In the event that authorities have not followed the correct procedures when obtaining evidence against you, your criminal lawyer may be able to successfully apply to have charges dropped or help you lodge an official complaint.