ALDI has been banned from selling alcohol at its Kwinana store over fears bargain-basement booze could stoke drink-related problems in the area.

Deputy director of liquor control and arbitration Brett Snell rejected an application from the supermarket chain that would have allowed it to peddle 22 varieties of wine for less than $5 a bottle, including three priced at just $2.79.

“I find that there is a high level of pre-existing harm and ill-health in Kwinana due to the use of liquor,” Mr Snell wrote, referencing an upward trend in alcohol-related domestic violence and hospitalisations.

“I have concluded that it is highly likely, on the balance of probability, that the grant of the application will, in due course, contribute to the high rate of alcohol-related harm that presently exists in the locality.

“I do not share the view of the applicant that the low-risk features of its proposal will sufficiently mitigate the potential risks.”

The application was opposed by WA chief health officer Tarun Weeramanthri on the grounds the City of Kwinana was the most socio-economically disadvantaged local government area in Perth.

In the two years to December, 2016 there were nearly 1100 domestic offences in the suburbs surrounding the store, with nearly one in four recorded as alcohol-related.

The South Metro Community Alcohol and Drug Service also opposed the application, afraid clients struggling with alcohol dependency would be “triggered” by the availability of booze in a supermarket.

Aldi had argued a survey of customers in the area found strong support for adding a small non-refrigerated alcohol section and that it would boost competition in the area.

A liquor licence application for Aldi’s Belmont store — the third most disadvantaged council area — was knocked back for similar reasons late last year.