Mr ANOULACK CHANTHIVONG (Macquarie Fields) (16:35): I wish to make a brief contribution to the Betting Tax Amendment (Point of Consumption) Bill 2018, which is reflective of the changing times, where legislation and regulatory reform needs to keep up with technology in our current economy.

Disruptive technology — whether it is with Uber, short-term stays or many other apps — is changing the ways that people interact in the market economy. Our legislation should try to keep up with the times; otherwise we will be left behind.

Internet gambling is not new but it is growing at a very fast rate and the laws of New South Wales need to catch up. I am glad that this bill was introduced to the House. In one sense New South Wales should have been leading the charge on this type of legislation rather than following some of our contemporaries in the other jurisdictions.

Nevertheless, amendments need to be made to the legislation framework to meet the needs of the current market economy.

Betting can now be done virtually anywhere and under division 1, proposed sections 13B and 13L oblige operators to identify people who are located in New South Wales to ensure that we get an estimation of the tax payable to the people of New South Wales—tax that will be used to fund important and essential services in our local communities.

The introduction of taxation of any form is always hard. With respect to corporate Australia, major international companies have used tax minimisation strategies such as transfer pricing through overseas subsidiaries and tax minimisation, where companies use advantages of lower-taxed jurisdictions.

Those strategies cheat the people of New South Wales and the people of Australia of the tax they are owed for activities that are conducted in our local community. The estimate of the annual review of $130 million to $140 million will be important to ensure that the industry grows. Some of that money will be used to support the three racing codes: harness racing, the thoroughbreds and the dogs. The funds that are raised will not be used merely for general revenue but will support the industry as it adjusts to the new regime.

I make another point with respect to division 2, proposed section 13. Implementation of a new taxation will have an impact on a range of businesses, small and large. In this case, the threshold of $1 million will ensure that local small businesses — particularly family-run operations — are not burdened with majority administrative issues that they have to endure as part of running their businesses. It is important that we take that into account and support small businesses to grow. If those businesses grow and meet the threshold they will be caught by that net, but we do not want to prevent them from growing until they reach that step.

Any new legislation may sometimes have unintended consequences so it is important for us to review the effects of the legislation. I noted that the Treasurer stipulated 18 months in his second reading speech. The shadow Treasurer's suggestion of 12 months is a reasonable one. It is probably a better option because we do not want to wait an extra six months for no particular reason. If there are unintended adverse consequences to the market, the operator or the consumer we must to act quickly to iron out the problem.

The shadow Treasurer made the point that it will be an independent review, which is important. It will give it credibility to ensure that any changes that are made are reflective of the market circumstances and will ensure that market operators and competition works much more efficiently.

Any review should also focus on any adverse social consequences that internet gambling may have on the community. This is a growing market and the member for Tweed made some very good comments about those who may be susceptible to internet gambling. They may get themselves into all sorts of financial and social problems just by a press of a button on their phones or iPads — perhaps in some darker places around their homes — without having to go out. There is a big difference between going to the TAB and handing over $1,000 — if you have that sort of money — and betting that amount of money via a phone. It is much easier to bet by using the phone because the transaction involves no physical handling of money. I hope the review looks at the impact of the taxation regime and also at the impact that internet gambling has on local communities — particularly on those who are vulnerable.

In new section 13O some allocation of funds is made to the greyhounds. The best way to manage any industry is through regulation. But regulation can come in many different forms. There have been some animal welfare issues in the greyhound industry. Applying funds to an integrity welfare commission is a welcome response to ensure that the industry is able to survive but is regulated in a way that meets the community's expectations with respect to animal welfare. Those lovely animals — those pets — are not only for racing but also for human enjoyment. Any industry that operates in New South Wales or the nation operates under a social licence and the integrity commission is part of that social licence. We must support and fund it to ensure that the industry does the right thing by all punters.

Lastly, with respect to allocation of the codes — I think it is proposed section 13M — in the financial markets there is a term "mark to market", which is to make sure things move contemporaneously in the market and that they meet moves that different participants are making.

A 1998 code is probably a little bit outdated; hopefully that will be part of the review.

I think that consideration should be given to a much more flexible model that may be able to adapt, particularly where there may be unintended and unforeseen consequences. As much as we would like to, we cannot predict the future, and having these clauses in the legislation will allow us to adapt.

I will leave my comments at that. The internet gambling industry is changing. Taxing it is important not only to support the industry but also to support responses to any social issues and adverse impacts that internet gambling may have. I am hoping the review will look at the industry, the tax and the social consequences of internet gambling, particularly for those who are vulnerable.