29 November 2023

Second Reading Debate

Debate resumed from 22 November 2023.

Mr TIM JAMES (Willoughby) (01:22): I lead for the Opposition in debate on the Customer Service Legislation Amendment Bill 2023. The Liberal-Nationals support the measures in the bill. I am very conscious of the hour and will try to move through this swiftly. If enacted, the bill will make amendments in three distinct areas: It will enact the deemed recognition model for charitable fundraising that was agreed to by New South Wales and the national harmonisation process under the previous Coalition Government; address a potential issue with assistant real estate agent and assistant strata managing agent licensing that may cause a shortage of agents in that sector; and assist in the realisation of Western Sydney Airport by extending part 9A of the Retail Leases Act 1994 that applies to retail leases at Kingsford Smith Airport to also apply to the new airport. The Opposition supports each of these measures and I make some brief remarks on each.

As all members know, charities do incredible work across our communities and that work would not be possible without fundraising. But that can also be the source of cost and time constraints for organisations. We as policymakers should be doing all that we can to ease the burden on charities to reduce unnecessary compliance costs. The fundraising landscape has changed dramatically over the past decade. No longer are charities or fundraising appeals confined to single jurisdictions, and increasingly it is happening online. Many charities are captured by both State and Federal regulatory frameworks that govern charitable fundraising. We have the Australian Charities and Not-for-profits Commission [ACNC] as well as NSW Fair Trading regulating the same entities and activities. This can cause duplication in reporting and auditing obligations, potentially causing millions of dollars of wasted time and fundraising for charities.

Every dollar and every minute is precious. That is why the Coalition in government signed up to those national reforms so that charities can spend more time helping those in need and less time untangling unnecessary regulatory red tape. The Charitable Fundraising Working Group process of 2018 settled on a deemed recognition model for charitable fundraising to eliminate duplication between Federal and State regulatory frameworks. Under this model, which the bill enacts, an ACNC-registered charity is automatically deemed to hold a fundraising authority in New South Wales. An entity will also be deemed compliant with New South Wales financial reporting obligations if it is ACNC registered. This model was endorsed in 2020 by Federal and State Treasurers in the Council on Federal Financial Relations, including that of the former New South Wales Coalition Government.

The Coalition notes the consultation with the sector that was performed by the working group and the strong support that was expressed. Whilst oversight of charities is important to ensure probity and confidence for donors, we note that the existing strong safeguards and oversight by NSW Fair Trading will remain. The ACNC will continue to share data with NSW Fair Trading, which will continue to have oversight over these charities operating in New South Wales. This is a welcome, sensible reform that the charity and fundraising sector has been seeking for some time and the Coalition is pleased to assist in its delivery.

On assistant agents, briefly, the Liberal-Nationals support a strong property services industry with professional qualification pathways for real estate agents and strata managing agents that allow for rigorous on‑the‑job training. At the same time, the Coalition recognises the shortage of agents in the industry and the need to secure the workforce of the future. Reforms that came into effect in our Government in 2020 placed entry level agents—so‑called assistant agents—on a professional pathway with a requirement they obtain full qualifications and become fully licensed within four years. This gave them strong on-the-job development, allowing them to contribute to the provision of real estate services whilst under supervision.

Under the current laws, failure to meet the four‑year time line can result in the expiry of registration and a prohibition of 12 months on applying to again become an agent. Of the 22,000 assistant agents who moved to the scheme in 2020, 14,000 have not achieved full qualifications and could otherwise lose their licence in March 2024. The Coalition acknowledges the amendment in the bill will provide an extension of up to one year of licences to address the pending potential loss of agents that may otherwise cause a shortage of agents in the sector. It is a stopgap measure. I respectfully ask the Minister to outline a longer-term plan and actions that will be pursued to ensure as many of these 14,000 assistants achieve their full qualifications and that any roadblocks to this are removed.

Finally, to the Western Sydney Airport retail leases, as I said, the bill will extend the provisions of the Retail Leases Act 1994 to level the playing field, if you like, between Kingsford Smith Airport and Western Sydney Airport. Of course, those existing provisions that apply to Kingsford Smith recognise the unique retail, security and safety environment that exists in a major international airport setting. Those amendments were requested by the new Western Sydney Airport to create consistency with Kingsford Smith as it commences retail lease negotiations in 2024.

The Coalition supports these sensible amendments that ensure a level playing field between Sydney's two international airports, and consistency for retailers who will provide hundreds of jobs to Western Sydney locals. I note it took a Liberal-Nationals Government to get on with the job and build the Western Sydney Airport. This is a Coalition project that will transform access to and opportunity for people across Western Sydney. We on this side will not stand in the way of reasonable amendments and are certainly happy to support the passage of the bill. 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) (01:27): In reply: I thank my colleague the member for Willoughby for his contribution to debate on the Customer Service Legislation Amendment Bill 2023. As members have heard, the bill deals with three distinct matters: It helps the charitable fundraising sector operate more efficiently; it ensures that the New South Wales property services industry can operate without widescale disruption after 22 March 2024; and it gives the New South Wales airport retail leasing sector more clarity and consistency.

For the fundraising sector, the deemed recognition model provided in the bill will reduce the regulatory burden for entities registered with the Australian Charities and Not-for-profits Commission [ACNC]. The bill does this by making the ACNC the single point for registration and reporting obligations to NSW Fair Trading. This will significantly reduce the regulatory burden on the sector while promoting the proper and efficient management of fundraising appeals and will ultimately reduce the cost for charities to operate. This means a greater percentage of donations can be used for their intended cause to benefit the people of New South Wales.

For the New South Wales property services sector, the bill will ensure thousands of assistant agents with certificates of registration expiring on 22 March 2024 can continue to work in the industry and support their customers. Allowing NSW Fair Trading to extend the assistant agents' certificates of registration in exceptional circumstances for a further 12-month period will support these agents to complete their qualifications to transition to a class 2 agent licence. Without these changes the New South Wales property services industry will potentially face widescale disruption due to significant staff shortages. For the airport retail leasing sector, the amendments in the bill will clarify the regulatory framework for retail leasing at the future Western Sydney International Airport and support retail lease negotiations that are expected to start early in 2024. Extending the airport provisions under the Retail Leases Act 1994 so they apply to Western Sydney International Airport in addition to Sydney Kingsford Smith Airport ensures consistency and an even playing field for retailers at Sydney's two major international airports.

I specifically address the comments of the member for Willoughby regarding the long-term plan for skills. It is certainly important that we have a flow of people with the right skills in the industry. As members would be aware, the reason for extending the 12-month period is so that those who are going to take up the conditional offer also have to enrol in the training and qualification requirements. Certainly, in the long term, the Government will do all it can to ensure that it has the right people to service the industries so they can continue to make their contribution.

The amendments contained in the bill demonstrate the Government's commitment to a better future for New South Wales by ensuring that our laws are clear and fit for purpose and support positive outcomes for our community. As I outlined earlier, the bill will make significant strides towards harmonising national charitable fundraising laws. It will streamline and reduce regulatory burden on fundraisers in New South Wales. This is crucial to enable them to flourish and get on with the essential work that they do to support our communities everywhere. Introducing the deemed recognition model in New South Wales strikes the right balance between the need to minimise duplicative regulatory burden and the need to ensure transparency and accountability in fundraising appeals. The property licensing measures in the bill provide a sensible and effective means to avoid potential staff shortage and reductions in property services for the community, without undermining the professional standards required of the sector.

Lastly, the airport retail leasing reforms in the bill will apply the current policy and regulatory arrangements for retail leasing to the retailers that will operate at the Western Sydney International Airport. I am confident the bill will significantly benefit all three of these sectors and deliver meaningful change for the people of New South Wales. I thank the industry, consumer and other government stakeholders who have contributed to the development of the bill. I thank the Opposition and crossbench for supporting the important amendments. I also thank the departmental officers for their hard work during the development of the bill. Special recognition and thankyous go to Warren McAllister, Anjaline Jayamohan, Ju Yeon Lee, Emma Phipps, Abdullah Jawad, Constance Piperides, Leona Fernandez, Stewart Robertson, John Minns, Lachlan Malloch, Melissa Pinto, Riann Davis, Kaustubh Bhakay, Andrew Whitehead, Olympia Hollink, Chris Gowland, Robyne Lunney, Deborah Krieg and Dianne Dugan for all their hard work and commitment. I commend the bill to the House.

TEMPORARY SPEAKER (Mr Clayton Barr): 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.