Second Reading Debate
Ms MARYANNE STUART (Heathcote) (12:20): I speak on the Better Regulation Legislation Amendment (Miscellaneous) Bill 2024. I am proud that the Minns Labor Government will assist the people of New South Wales by simplifying some of the language in legislation. It has listened to stakeholders and is taking action. Issues had been identified by NSW Fair Trading and the Building Commission NSW during routine departmental review of legislation. Before question time the member for Pittwater was grappling with the reason for the bill coming before the Parliament. I say for his benefit that the bill will introduce amendments to 24 Acts and four regulations to improve the clarity and accuracy of the laws and reduce the regulatory burdens that the previous Government left us with. The proposed amendments in the bill aim to improve accuracy by removing unnecessary, outdated and redundant references; limit misinterpretations by clarifying the intent of legislation; and modernise provisions to create more future-fit laws that support customers by reducing regulatory burden.
The legislation is administered by the Minister for Better Regulation and Fair Trading. I thank the Minister for the action that he, his team and departmental staff have taken to work on the bill, which demonstrates the Minns Labor Government's continued commitment to deliver laws that are not only responsive to change but also clear, accurate and reliable. For example, the amendment to section 58 of the Fair Trading Act supports the Government's FuelCheck app. Currently, the FuelCheck app only provides the location of electric vehicle charging stations, but the amendment will allow FuelCheck to be expanded to capture fuller details, including the charging costs at EV stations. With sales of EVs increasing by more than 120 per cent between 2022 and 2023, this amendment will make the FuelCheck app more useful for even more consumers.
Updates will be made to the Home Building Act to ensure that the requisite certifications are accurate and up to date regarding the competency within the Construction, Plumbing and Services Training Package for the installation and testing of medical gas pipeline systems, which is crucial. Additionally, the Tow Truck Industry Act 1998 will be amended to allow all new tow truck operator licence or tow truck driver certificate applicants to be granted a driver's certificate for three or five years, rather than only one year. This will provide consistency to licence duration across Fair Trading and ensure that the industry is not disadvantaged. These reforms will reduce unnecessary red tape and improve the operation of laws across multiple industries. The bill before the House proposes amendments that will clarify, update and improve the operation of many of these laws. I commend the bill to the House.
Ms DONNA DAVIS (Parramatta) (12:24): I speak in support of the Better Regulation Legislation Amendment (Miscellaneous) Bill 2024. I commend the Minister for Better Regulation and Fair Trading for bringing the bill before the House. The bill makes necessary amendments to further enhance the regulation of the building and construction industry in New South Wales and ensures the continued success of the Government's building reform agenda. In my electorate of Parramatta where the majority of housing growth is taking the form of apartments, many elements of the bill are of great significance to current and future home owners. The significant reforms under the Minns Government's construction industry transformation strategy and the work championed by the NSW Building Commissioner continue to progress. Tangible signs of change are already visible, with returning consumer confidence in the industry.
It is essential that the homes built in New South Wales are designed, constructed and maintained according to rigorous safety, environmental and structural standards. It is crucial that we maintain the highest standards of compliance and effective enforcement to ensure safety, quality and integrity of our built environment. For many people, building or buying a home is the single biggest investment of their lives. The impact on people when things go wrong can take a devastating financial and mental toll. Sadly, in my electorate, far too many buildings have been investigated and found to have construction faults. All members would remember the awful situation of the Opal Tower in Sydney Olympic Park. I note the role that the member for Auburn played as the State member for that area at the time. She worked with the community and with the former Government to find solutions. Devastating situations like that of the Opal Tower have led us to where we are today.
A building regulatory framework must have robust measures to ensure consumers and occupiers of homes are delivered defect‑free and compliant buildings. This includes a licensing framework that ensures only those people who are competent and have the relevant experience can carry out home building work. The bill includes a number of small but important amendments to ensure the building licensing framework operates effectively. The bill updates references to certain qualifications required for tradesperson certificates and supervisor certificates for mechanical services and medical gas work, medical gasfitting work and medical gas technical work.
Many members will remember the important changes to laws that were made in this place to introduce a new licensing framework to ensure public safety where medical gases are used. This includes private and public hospitals, dental surgeries and aged‑care facilities—places where the safety of patients is vital. Unlike other licensing schemes, the qualification requirements are embedded in the legislation. This presents challenges when the reference training package is updated because updates to the units of competency in the training package may cause references to the relevant units in the Act to become incorrect or outdated.
Earlier today the member for Pittwater mentioned in his contribution to debate that the bill was important, but he felt that we were just treading water and that there were elements of this bill that were just, in his words, "moving deck chairs on the Titanic". In light of what people in our communities are experiencing, we are more than merely moving deck chairs on the Titanic with the important changes to qualifications that this bill implements. The bill ensures that we have quality controls and that we have the right people doing the right jobs. We are ensuring that there is confidence in the industries that this bill relates to.
The bill will remedy that exact situation with updates made to the Construction, Plumbing and Services Training Package, which change the title of the reference unit of competency. It will ensure that the Act aligns with the updated training requirements in the training package and support new qualified entrants to the industry at a time when the Government is delivering on a comprehensive suite of housing, infrastructure and health reforms. The bill also removes a redundant reference to a certificate IV in gas fitting, which is not a current valid qualification in New South Wales and does not appear ever to have existed. Removing that reference will avoid confusion about applicable pathways to a licence.
The Home Building Act includes important protections to safeguard home owners when engaging builders to build or renovate their homes. I have seen friends' lives turned upside down and grown men in tears due to the lack of protections in the current system. They have invested their hard-earned money into their home only to find that pieces of the wall and verandahs are falling away due to waterproofing issues. People are facing unbelievable issues in new constructions. The bill ensures that only licensed builders who hold a contractor licence are able to contract with home owners for residential building work. The contractor licence has stronger eligibility requirements than other licence types to ensure that consumers are protected from practitioners at risk of bankruptcy.
Another key protection is the requirement for home building compensation cover for a home owner as a last resort if their builder cannot complete building work or fix defects because they have become insolvent, died, disappeared or had their licence suspended, in certain circumstances. A recent court outcome in relation to the rights of contractors to receive progress payments under security of payment legislation threatens to undermine the operation of those important protections in the Home Building Act, at the expense of consumers. InSunshine East Pty Ltd v CBEM Holdings Pty Ltd, the Supreme Court held that a progress claim for residential work under contract is payable even if a contractor is unlicensed and uninsured under the Home Building Act.
While no-one can dispute the importance of contractors being paid fairly and promptly for work they have undertaken, it would be irrational to permit a contractor to benefit from unlawfully undertaking work while unlicensed or uninsured. The bill makes a sensible amendment to section 8 of the Building and Construction Industry Security of Payment Act 1999 to ensure that the important consumer safeguards under the Home Building Act are not compromised. The amendment will clarify the provision to ensure that the right to receive a progress payment for building work is limited to lawful building work. It provides a disincentive to builders carrying out unlawful work, which is in addition to the powers of Building Commission NSW to commence action against them.
Many members will recall that late last year reforms passed in this place to provide the regulator with the necessary powers to effectively oversee the construction of residential homes in New South Wales. No home owner in New South Wales should move into a brand-new house that has serious defects. The reforms enhanced the essential tools the Building Commission NSW uses to prevent that from occurring by providing comprehensive and wideranging investigation powers with respect to low-rise residences. Inspectors are now able to enter a house under construction, request documents or information, and examine and test building work. In addition, the reforms provide the commission with important powers that enable it to address serious defects through rectification orders that compel developers to fix defects and stop building work where continuing could lead to significant harm to the public or occupiers, including future occupiers, of the building. Those powers are needed to proactively prevent and respond to building defects to restore confidence in the New South Wales construction sector and improve customer confidence in the quality of the buildings in every electorate across New South Wales. The issue is not isolated to one particular area or region of the State. Unfortunately, every electorate faces it. We are ensuring that we find solutions.
By investigating and issuing rectification orders before an occupation certificate is issued, the commission can not only keep first home owners safe but also prevent the burden of dealing with defects being passed on to future owners who may not have all the details of the builders and tradespeople responsible for the defective work. Despite the success of those reforms already being evident, an amendment has been proposed to ensure that there is clarity over the operation of any appeals to a rectification or stop work order. [Extension of time]
When the reforms were passed last year, the Government included important protections in the Act to ensure the amendments were procedurally fair. Those protections recognised the impact rectification orders can have on industry and ensured that the use of regulatory powers is subject to ongoing oversight. Parties are given an opportunity to be heard or remedy any wrong before an order is made. In addition, the amendments allow for parties to appeal against the orders, preserving the parties' rights to natural justice and making sure the provisions are balanced. Following the use of those powers over the past six months, it is proposed to enhance the procedural fairness provisions by clarifying how orders will be challenged in the NSW Civil and Administrative Tribunal. The bill makes the required changes to ensure the legislation appropriately reflects the framing of the NCAT's jurisdiction.
I express my strong support for one final reform. While not introducing any new changes, it is a really important amendment which ensures that our building laws operate as they intended, ultimately benefiting consumers. We know that purchasers of apartments in apartment buildings, which are known as class 2 buildings under the National Construction Code, are in a particularly vulnerable position when handling defects because they often have no involvement in, or control over, the construction of their future homes. They leave it in the hands of design practitioners and builders. Defects within class 2 buildings are often difficult to detect at the time of purchase and are expensive to rectify. Currently, the Strata Schemes Management Act establishes a strata building bond and inspections scheme. That scheme requires developers of new apartment buildings four storeys or higher to lodge a bond of 2 per cent of the contract price of the development prior to the issue of the occupation certificate. The bond is then retained to be available to cover the costs of any rectification works required to address defects identified during the building inspection process.
Since the commencement of the strata building bond and inspections scheme, developments of mixed-use buildings have become an increasingly prevalent housing type. "Mixed-use buildings" refer to buildings that comprise multiple forms of building use, such as apartments over shops or a combined office and residential building. That is very common in your electorate, Temporary Speaker Greenwich, and it is becoming more common in mine. The operation of the scheme is straightforward for standalone apartment buildings, but for mixed-use buildings the Act currently provides that the quantum of the bond is determined by the contract price of the building work for the parts of the building that will be covered by the strata scheme, being strata schemes registered under the Strata Schemes Development Act 2015.
The provision is intended to ensure that work on non-residential components is not included in the calculation of the bond, but it was not intended to prevent the bond from applying to work that is otherwise linked to the strata scheme and for which residents would be liable to pay for service, maintenance or repair. For example, if there is a structural defect in a common carpark used by occupiers of an office block and of the apartments above it, the strata scheme would be required to contribute to the costs of repair because it is not only used by the strata scheme but also essential to the structural integrity of the apartment components of the building. Despite that, attempts have been made to push a narrow interpretation of the legislation to minimise the amount of bond a developer lodges by arguing that those parts of the building are not captured by the scheme. The bill includes important changes to put beyond any doubt the intended scope of the scheme and ensure that the strata scheme enjoys the intended protection provided for by the Act. Many residents in my electorate will be pleased by that. I have been campaigning and advocating for that for a long time.
The bill is critical in supporting the fantastic work that the Building Commission NSW is undertaking to regain consumer confidence in the building industry. It reflects the Government's ongoing commitment to overhauling the building and construction industry by creating a clear line of accountability, improved transparency and better quality of work without compromising consumer interests. This is a sensible, appropriate and necessary bill. I commend the bill to the House.
Mr GREG WARREN (Campbelltown) (12:38): I am delighted to make a brief contribution to debate on the Better Regulation Legislation Amendment (Miscellaneous) Bill 2024. The bill does not make overly controversial or complicated changes, but it is a good indication that our Ministers are progressively reviewing and modernising legislation to make it fit for purpose. The bill makes a number of changes. I acknowledge all the Ministers who have proactively and progressively pursued this piece of legislation and brought it before the House. I particularly acknowledge Minister Chanthivong, who, as Minister, has a strong interest in matters of this nature and ensuring that legislation is fit for the future and fit for purpose.
As a parliament, and by extension as a government, we must make sure that legislation in this place is consistent with the needs of industry and that it responds to matters that arise throughout the course of the practices of that industry. More specifically, the amendments in the bill are minor and non-contentious. They are the result of routine and ongoing departmental examination of the legislation. I take this opportunity to acknowledge the ministerial and departmental staff who put a lot of work into the bill. The bill also contains some more significant elements that will be subject to ongoing consultation as part of implementation. As a government, consultation with stakeholders and industry is important, because it means any changes that are brought before the House are consistent with their needs and their expectations.
The proposed amendments aim to improve accuracy by removing unnecessary, outdated and redundant references. Ultimately, they will limit misinterpretation by clarifying the intent of the legislation, modernise provisions and create more future-fit laws, and support customers by reducing regulatory burden. I get a lot of feedback from my electorate about how that burden bogs people down from getting on with their day-to-day lives. I am a massive advocate and a huge supporter of having less burden placed on people and removing red tape. I believe a more fluid process provides better outcomes for industry and that it will make it more efficient and appropriate for consumers and stakeholders engaged in the industry.
When it comes to improving accuracy of legislation, the Government is dedicated to ensuring legislation remains up to date and accurate—for example, by amending the Home Building Act 1989 to remove references to "certificate IV" in gas fitting, which is not a valid qualification in New South Wales anymore, and updating the legislation with the current unit of competency. The bill seeks to tidy up a lot of pieces of legislation to make sure that they remain fit for purpose A lot of work has gone into the bill. They are not particularly controversial changes, and they are important changes. I again thank the Minister, his team and everyone involved for their efforts in bringing the bill before the House today. I commend the bill to the House.
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) (12:42): In reply: I thank members representing the electorates of Liverpool, Mount Druitt, Heathcote, Parramatta, Campbelltown, Willoughby and Pittwater for their contributions to the debate on the Better Regulation Amendment (Miscellaneous) Bill 2024. I will address a number of points made during the debate. The member for Pittwater described the bill as "moving the deckchairs on theTitanic". In fact, it is quite the opposite. That comment demonstrates a misunderstanding of these measures, and it is overtly simplistic to dismiss these amendments out of hand. It does help to actually read and understand something before speaking about it.
The changes in the bill will deliver practical benefits and greater legal certainty for the consumers and traders of New South Wales. The member for Pittwater also described the changes to the Rental Bond Board as "jobs for the boys". The changes to the Rental Bond Board are purely for the sake of operational efficiency and flexibility. They will not provide any advantage or material benefit to any current board members or, indeed, to any potential future board members. That just shows the level of misunderstanding from the member for Pittwater. Although the bill before the House makes a range of minor and primarily administrative amendments to various Acts and regulations, it remains a critical piece of legislation. Miscellaneous provision bills are introduced annually as a means for the Government to make legislative change for non-controversial matters. One cannot understate the importance of such bills, as they are an essential tool that allows for the machinery of government to operate as intended.
Schedule 1 to the bill seeks to amend and clarify existing provisions across many laws, as well as update and remove those that are outdated or no longer required. This included two Acts within the portfolio of the Minister for Customer Service and Digital Government to remove references to outdated practices. Schedule 2 to the bill deals with amendments relating to the dissolution of the Building Insurers' Guarantee Corporation and any consequential amendments relating to the now outdated reference of the Building Insurers' Guarantee Corporation. Finally, schedule 3 to the bill contains amendments relating to administrative arrangements to reflect recent changes in the machinery of government.
The bill before the House demonstrates this Government's continued commitment to routine and ongoing examination of legislation to ensure that laws are updated, modernised and reduce regulatory burdens. I am confident that the citizens of New South Wales will benefit from the amendments that the bill intends to carry out. I take this opportunity to thank our dedicated departmental officers Jenna Dries, Abby Tozer, Katie Harbon, Diana Holy, Katerina Pavlidis and Warren McAllister for their efforts in bringing the bill to the House. I also thank staff members in my own office—Alicia Sylvester, Ivy Tseng, Laura Gregory and Khamena Zaya—for all their hard work on the bill. I commend the bill to the House.
TEMPORARY SPEAKER (Mr Alex Greenwich): The question is that this bill be now read a second time.
Motion agreed to.
Third Reading
Mr ANOULACK CHANTHIVONG: I move:
That this bill be now read a third time.
Motion agreed to.
