Pubs and clubs should pay more for liquor licences if they breach the Liquor Act, the NSW Attorney-General's Department has argued.
The department has also blamed floor and door staff for contributing to alcohol-related violence by being confrontational and said staff don't know how to deal with aggressive and drunk patrons.
Pubs were not upholding Responsible Service of Alcohol standards and RSA training was inadequate, Attorney-General Greg Smith's department said in a submission to the review of the Liquor Act.
''Despite legal requirements, some licensed premises continue to sell alcohol to intoxicated patrons,'' the department said.
Staff were unable to cut patrons off at the bar without inciting an aggressive reaction, it said.
Managing behaviour could reduce the opportunity for assaults but RSA rules weren't being adhered to, the department said.
The program's education requirements also weren't addressing the management of intoxicated patrons. The training should be continuing, requiring refresher training, with management and floor staff taking part in advanced modules on dealing with aggressive drunks.
In NSW, liquor licences are perpetual, which the department argued meant there was ''little positive incentive'' to comply with the law.
The government should consider introducing regular licence fee payments, with amounts to be determined by a venue's level of compliance with the law, the submission said.
''There is no ongoing requirement for licensed premises to prove they are fit to trade,'' acting Director-General Brendan Thomas wrote.