Security requirements for inner city Melbourne music venues are set to be slashed in a desperate government bid to save live music from the scrapheap amid spiralling liquor licensing costs and a looming state election.

As hallowed punk-rock incubator The Arthouse announced it was going the way of The Tote and shutting its doors next year, the owner of several live music venues, and a leading candidate to take over The Tote's license, Jon Perring, told Crikey he will meet next week with Victorian gaming minister Tony Robinson to thrash out a new deal that would see security linked to a venue's alcohol sales as opposed to current laws which are triggered by the presence of "live or amplified music".