"To increase the fees by 500 per cent, I might as well close the doors," multi-venue owner Frank Condi said.

He is referring to two nightclubs he owns, Academy and Mr Wolf, which would hit hard by the ACT government's proposed 3am last drinks for bars and nightclubs, with the possibility of allowing venues to serve later if they pay a massively increased licence fee. The fee for bigger bottle shops would also rise by 25 per cent.

"I definitely agree that something has to be done to stop alcohol violence, I just don't think this is right," he said.

"To alienate one group, and say, 'We're going to lump the problem with you', I think that's pretty harsh."

The government's white paper sets out three options: last drinks at 3am with current fees; or a 300 per cent increase in fees to get a 4am licence; or an rise of up to 500 per cent to stay open till 5am, the current closing time.

Under the proposal, restaurants and small bars with 80 patrons or fewer and open no later than midnight would get a 75 per cent reduction in its annual licence fee.

Attorney-General Simon Corbell hopes the laws would lead to more smaller bars opening. He said increased fees would force late night traders to contribute to the significant cost of alcohol-related violence and make them contribute to police and safety costs.

Mr Condi, who also owns a number of other bars and restaurants around Canberra, said the laws would likely push nightclub-goers to order more drinks within a smaller timeframe just before 3am, or drink more at house parties.

"There are statistics saying that as a country we are big drinkers, and we are, but people need to be educated about drinking responsibly and individuals need to be held more accountable, rather than punishing just two elements of the industry," he said.

"If we stop serving drinks at 3am, and we're paying $130,000 in fees, it's just not going to be viable."

However, Mr Condi welcomed the suggestion to give pubs and other venues the right to refuse admission or throw out a disorderly or drunk patron, and make it an offence for the person to stay in the area after eviction.

"Police have those powers, but they don't always use them enough," he said.

Peter Conway, who spent 10 years on the ACT Liquor Licensing Board, welcomed the push to earlier closing times but was concerned it could lead to masses of drunken groups on the streets.

"So I think the legislation in part tries to address that, but we will have to accept that will be a reality," he said.

The white paper was seen as a vital step forward by the co-chairman of the National Alliance on Alcohol, Michael Moore, who was disappointed in the ACT government's decision to rule out lockout laws last month.

"What we need is a comprehensive approach to the issue of alcohol, particularly when we are talking about availability and accessibility in the early mornings," he said.

"Has it gone far enough? It will be interesting to watch an appropriate evaluation of these moves to make sure that they are as effective as the lockout laws in Queensland and NSW."

The white paper suggests that early closing is more effective in reducing drunken violence compared with lockout laws.

A Newcastle study found that there were 37 per cent less assaults when venues closed two hours earlier.

Canberra CBD Limited chief executive Jane Easthope also supported the proposal, but hoped the city's nightlife would remain buzzing and diverse.

"We are looking at it purely from an economic perspective," she said.

"The economic health of the CBD 24/7 is important for everyone, but so too is the social and medical health of the population.

"It is about finding a balance."