Second Reading Speech
Debate resumed from an earlier hour.
Mr ANOULACK CHANTHIVONG (Macquarie Fields—Minister for Better Regulation and Fair Trading, Minister for Industry and Trade, Minister for Innovation, Science and Technology, Minister for Building, and Minister for Corrections) (14:32): I continue my second reading speech on the Better Regulation, Fair Trading and Other Legislation Amendment Bill 2024. Provisions that require a notice to be published in a newspaper were introduced decades ago. Some have been in force for over a century without any substantive change, including some commencing before consumers could access radios, let alone mobile phones and the internet. Newspapers are no longer the only way to reach the public, nor are they always the most effective way. In today's market, readers are increasingly using digital services to access information quickly. The bushfires, floods and the global pandemic have resulted in digital channels becoming critical as readers are constantly seeking up-to-the-minute information. During the global pandemic, digital subscriptions increased 23.5 per cent. It is now more likely that a notice will come to the public's attention if it is prominently published online, instead of as a one-off ad in a daily newspaper.
The bill will not only improve the effectiveness of these newspaper notices but could also reduce unnecessary costs, estimated from around $300 to $3,000 per notice or more. This is money that businesses could be using to improve services, and money that could instead be flowing through to consumers. In particular the bill amends the Storage Liens Act 1935 to remove the newspaper notification so that a storage business only needs to serve notice of unpaid charges to the owner of the goods. While the current newspaper ad requirement was important in 1935 as a fail-safe in case the owner was not able to be reached by post, the methods of serving notice now include email and other electronic methods accessible 24/7 from almost any location.
It is highly unlikely that, when all other contact methods have failed, a consumer will happen to see a one‑off newspaper ad. The bill also removes the cost of the newspaper ad from the money that can be recovered from the owner, which may result in more money being returned to them following the sale of the unclaimed goods. Schedule 5 modernises various Acts and a regulation to enable electronic record keeping and provide that information can be exchanged electronically between parties without the need for in-person contact. Currently, several laws contain or imply solely paper-based record keeping for businesses. The laws also contain requirements for records to be provided or distributed in hard copy or using outdated methods to share records, such as making records available on request for physical inspection at any reasonable hour.
For example, the Agricultural Tenancies Act 1990 provides that it is a duty for the owner and tenant to keep accounts in connection with the tenancy and each party has a right to inspect the other's accounts at any reasonable time. There is no recognition that these records could also be kept electronically or that information can be exchanged between the parties without the need for a personal home visit. The bill also updates a small number of provisions that only allow for the physical inspection of documents. The Funeral Funds Act 1979 currently requires a funeral contribution fund to provide for physical inspection at its office of a number of documents, including a copy of the latest annual return and a copy of the rules of the fund.
The bill will allow funeral funds to publish these documents on their website if they wish. This amendment recognises and will support the needs of these funds and their contributors and provides cost savings. It will also make this information more readily available to members through modern means of communication. Similarly, the Funeral Funds Act 1979 requires the secretary to make available certain documents for public access. The provision is outdated in that it only provides for physical inspection. The bill will allow the secretary to determine the form or manner in which these documents can be made available. This amendment will provide oversight, while also allowing the public to access information more quickly and efficiently by removing the requirement to physically visit an office.
Modernising these provisions to complement existing methods will support digitisation initiatives and also benefit both businesses and consumers as they can save time and reduce unnecessary costs. Schedule 6 modernises and harmonises the service of documents across 21 Acts in the Better Regulation and Fair Trading portfolio. The bill will futureproof the law by providing the option to serve documents by electronic means, not just email, and allowing extra methods to be added in the regulations. The changes will benefit industry by creating more clear and consistent rules that support automation.
Consumers will have more choice in how they want to be contacted, creating a better experience and reducing the risk of delays. For example, the Strata Hub is an online hub that consolidates information about 82,000 strata schemes. Thousands of builders, owners, tenants and workers can access and send information through one customer-friendly portal. By inserting a standard electronic service method in every other Fair Trading Act, the bill will support future digitisation projects, including the adoption of technology like the Strata Hub, so documents can be electronically served in other regimes. While the bill modernises the service of documents, it also retains important protections for consumers and businesses.
In order to serve a document using electronic means, the recipient will need to consent to the service of documents in that way and provide the address or location. The bill does not replace methods like sending documents by post, but simply seeks to increase the range of options available for individuals and businesses to use. The bill also inserts the standard general service of documents provision in other Acts that do not contain a service of documents provision despite making references in the Act to serving notices. Specifying the acceptable methods of service in the Acts that are currently silent on the matter will provide legislative certainty and clarity.
Schedule 7 to the bill makes various miscellaneous amendments to modernise provisions and reduce the regulatory burden and to clarify the law so it remains fit for purpose and can operate as intended. I first turn to the amendments in schedule 7 to the bill relating to the Associations Incorporation Act 2009. The bill introduces several amendments seeking to provide greater flexibility, clarity and certainty for incorporated associations in New South Wales. Associations represent a diverse range of activities, including sporting clubs, music groups, charities, childcare services and migrant support services. By bringing people together for a shared purpose, associations are pivotal in weaving the social and cultural threads of the community, particularly in rural and regional areas.
Schedule 7.1 to the bill aims to increase privacy protections for association committee members and the public officer while reducing the potential for identity fraud or harm. The bill does this by removing unnecessary requirements from the Associations Incorporation Act 2009. First, it removes the requirement that the association's official address must be the address where the public officer can generally be found. Instead, it clarifies that an association's official address should be an address located in New South Wales at which documents can be served by post. Second, the bill removes the requirement for certain personal information about committee members and the public officer to be notified to the secretary and recorded in a register that can be made available to the public.
These amendments will increase protections for these groups as the date of birth and residential address of members will no longer be required or recorded in the register of committee members, which can be made available to the public. Similarly, it removes the requirement for the public officer's date of birth and address, where they can generally be found, to be notified to the secretary. A copy of the notification is available to any person who searches the public register.
Details of a public officer's date of birth are not considered to be necessary for the proper administration of the Act. Stakeholders have raised concerns about publishing this information, including women's refuges, associations with members who are judicial officers, Corrective Services staff and staff who work in child protection. Many people in these fields do not ordinarily disclose their personal details to the general public due to safety concerns.
The bill also makes another important change for associations which clarifies that the process for finalising an association's affairs following involuntary cancellation is different from winding up an association. Section 77 deals with the finalisation of an association's affairs and the distribution of surplus assets following involuntary cancellation of an association's registration. However, the section uses the term "winding up", which potentially misrepresents the functions of the secretary under this provision. Distribution of surplus property in winding up an association is provided for elsewhere, under section 65, and applies a different process as it is undertaken in accordance with the applied Commonwealth provisions of the Corporations Act 2001. The amendment in the bill will remove the confusion between the application of sections 77 and 65 and will address the issue where an association has assets it cannot distribute.
Further, the bill also enables combined electronic and postal ballots for incorporated associations. Currently, associations can only choose one of these methods to carry out ballots. This is impractical and does not reflect the modern ways in which voting can be conducted. The amendment will allow more associations to use both postal and electronic ballots. It is likely to reduce red tape and expense for the administration of incorporated associations.
I now turn to the miscellaneous amendments in schedule 7, which focus on improvements which modernise provisions, futureproof the law so it remains up to date and reduce regulatory and administrative burden. Schedules 7.1, 7.5 and 7.9 to the bill include amendments to the Associations Incorporation Act 2009, the Co‑operative Housing and Starr-Bowkett Societies Act 1998 and the Tow Truck Industry Act 1998 to remove the need to provide a statutory declaration where it is unnecessary. These Acts are the only Acts left in the portfolio that still contain references to provisions to submit statutory declarations.
The need for statutory declarations is unclear given that false or misleading declarations are already general offences under the Crimes Act 1900. Some Acts also have specific provisions, making it an offence to make a false or misleading statement on a form. For example, the Tow Truck Industry Act 1998 authorises the secretary to require additional information to be verified by statutory declaration as part of an application. However, separately, it provides that it is an offence to make false or misleading statements as part of that application. The Associations Incorporation Act 2009 and the Co-operative Housing and Starr-Bowkett Societies Act 1998 allow a person to provide a statutory declaration to fulfil certain requirements when there is already an approved form with a declaration section that can be used. The requirement to use a statutory declaration in these instances is unnecessary.
This reform will reduce the regulatory burden for customers by omitting unnecessary statutory declarations. It will also allow documents to be signed electronically without needing a witness, helping to create a more seamless customer experience. The reforms will not impact the integrity of the process or the ability of NSW Fair Trading to actually take action, however, as the specific dishonesty offences in the Act can be called upon as required. These amendments will complement work that has started nationally to modernise statutory declarations by removing redundant requirements. Where statutory declarations remain necessary, the national reforms create a more customer-friendly experience by allowing for electronic execution.
Schedules 7.3 and 7.4 amend the Biofuels Act 2007 and regulation to enable the regulation to "apply, adopt or incorporate a publication as in force at a particular time or as in force from time to time". The Biofuels Act currently relies on the international industry standard for biofuel sustainability and is the only Act in the portfolio to rely on external publications. This means that the regulation needs to be amended every time a new version of the publication is released. This amendment will reduce administrative effort and resource allocation spent on amending the regulation, allowing those resources to be allocated to other priorities. It will also avoid situations where a regulation, if not amended in time, refers to out-of-date documents.
Schedule 7.5 amends the Co-operative Housing and Starr-Bowkett Societies Act 1998 to allow members to interact with the board using electronic means rather than only in person. Currently, a member can appear before the board in person to show why they should not be fined for breaching the society's rules. The only other option a member has is to send written statements to the board. There is no recognition that a person can meet this obligation virtually, such as via a video call, if that is their preference. Videoconferencing software on phones and computers has been available for years, yet people resisted its use as they would prefer to have a voice‑only telephone conversation or meet in person. The COVID-19 lockdowns have now swept this all away, along with many outdated rules that required physical presence.
Schedules 7.6 and 5.3 amend the Co-operative Housing and Starr-Bowkett Societies Act 1998 and the Funeral Funds Act 1979 to remove the need for businesses to keep and provide a copy of the regulating Act and regulation when requested by a person attending their office. This amendment will remove outdated and redundant provisions as copies of all Acts and regulations are available online via the NSW Legislation website and at other places.
I now turn to the miscellaneous amendments in schedule 7, which improve clarity of the law to ensure that it operates as intended. Schedule 7.7 corrects the wording in Schedule 1 [56] to the Motor Dealers and Repairers Amendment Act 2023 to clarify that, under the Motor Dealers and Repairers Act 2013, parties can make claims on the compensation fund to enforce a tribunal order, not just a judgement or an order of a court. Schedule 7.8 clarifies that the period in which a person can be disqualified from being involved in directing, managing or conducting business under the Property and Stock Agents Act 2002 can be either temporary or permanent. Currently, a person can be disqualified from being involved in the direction, management or conduct of the business of a licensee, but it does not specify a time period for the disqualification. The lack of a time period for this disqualification makes it difficult for Fair Trading to implement disciplinary decisions. The proposed amendment will improve clarity and is consistent with disciplinary provisions in other Acts that specify a time period.
Finally, I turn to schedule 8 to the bill, which finalises amendments to the Liquor Act 2007 first proposed late last year under the 24-Hour Economy Legislation Amendment (Vibrancy Reforms) Act 2023. The vibrancy reforms Act was a major package of reforms, returning vibrancy to New South Wales' night-time economy and cutting red tape. It included amendments to part 12 of the Liquor Act 2007 to permanently grant local councils powers to temporarily allow outdoor dining and performance on local roads and public spaces. This amendment finalises that initiative by clarifying specific language about powers and correcting an administrative issue.
Schedule 8.1 [1] inserts a new part 12 into the Liquor Act 2007 to continue to allow councils to temporarily allow the use of certain spaces for outdoor dining, performance and extension of foyer spaces. These amendments are of a savings and transitional nature, and schedule 8.2 will repeal the Liquor Amendment (Savings and Transitional Arrangements) Regulation 2023 on the commencement of the new part 12. It is important that we get these amendments right so we can deliver the full intent of the vibrancy reforms to the people of New South Wales.
This bill is an important step in the Government's stewardship approach to managing legislation. The amendments in the bill will improve the digital relevance of legislation and help to deliver world-class services for the people of New South Wales, now and into the future. I am confident that the reforms will reduce the regulatory burden and improve public confidence in the law. They will do this by modernising legacy provisions, recognising the evolving capabilities of technology and providing greater legislative clarity and consistency. I commend the bill to the House.
Debate adjourned.
