Consumer and Business Services

120 The Hon. K.J. MAHER (Leader of the Opposition) (25 October 2018). Can the Attorney-General advise:

1. Why did Consumer and Business Services (CBS) not achieve their target for fair trading and related inspections?

2. Why are CBS increasing their number of new occupational licence applications by 3,000 and why will the new property manager registration increase this number by 3,000?

3. Why are CBS predicting a doubling of liquor licencing applications?

4. Why are CBS predicting an increase of 250 gaming, casino and wagering applications from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and a breakdown of projected applications?

5. Why are CBS predicting a decrease of 1,500 charity and lottery licence applications from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and a breakdown of projected applications that will not occur?

6. Why are CBS predicting a decrease of 4,000 of residential tenancy funds refunded from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and a breakdown of tenancy funds refunded?

7. Why are CBS predicting a decrease of 3,000 of requests for residential tenancy advice finalised from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and a breakdown of the nature of residential tenancy advice provided?

8. Why are CBS predicting a decrease of 2,000 of requests for fair trading advice finalised from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and a breakdown of fair trading advice provided?

9. Why are CBS predicting a decrease of 350 of consumer disputes conciliated from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and more details on what disputes are undergoing conciliation?

10. Why are CBS predicting a decrease of 60 to consumer disputes referred to compulsory conciliation from the 2017-18 projected result to the 2018-19 projected result and can the Attorney-General provide an explanation and more details on what disputes are being referred for conciliation?

The Hon. R.I. LUCAS (Treasurer): The Attorney-General has provided the following advice:

1. CBS came within 4% (1,439) to achieving its target of 1,500 fair trading and related inspections. The intelligence, compliance and strategy team (ICS team) had a number of new staff to train during the reporting period which initially reduced output.

2. Occupational licence applications are expected to increase by 3,000 in 2018-19 as a result of the amendments to the Land Agents Act 1994 which require property managers to become registered by 28 September 2019. It is anticipated that there are around 3,000 residential property managers requiring registration under these amendments.

3. Liquor Licence applications have been estimated to be 5,000 in 2018-19 in line with recent year's activity.

4. In 2017-18, the number of gaming, casino and wagering applications were projected to be 750, however, the estimated result was 1,200. The 2018-19 projection of 1,000 is a reduction of 200 and is informed by the 2017-18 estimated result.

The breakdown of these applications, as noted in the 2018-19 budget papers, includes new, transfer and variation licence applications, gaming machine entitlements and related applications, such as procedures, systems and equipment.

5. Charity applications are expected to decline in 2018-19 due to many charities now only being required to register with the national Australian Charities and Not-for-profits Commission (ACNC) to operate across Australia. Only charities operating in South Australia alone are required to apply through Consumer and Business Services.

6. The projection is based on 2017-18 actual figures and is considered more reliable than the projection for last financial year.

7. Inquiry numbers fluctuate from year to year within a gradual downward trend over the longer term, which is reflected in the decreased number for the 2018-19 projection compared to the 2017-18 projection. Improved online resources and an increased focus by CBS on providing tenancy information to vulnerable clients in recent years may explain this downward trend in advice requests received.

The six largest topic areas were:

5,940—Repairs and maintenance

2,943—Help with forms

2,832—Breaking a lease

2,494—Bond refund

1,804—SACAT hearings and organisation

1,138—Entry and inspection of properties

8. It is expected that more consumers will access and utilise online advice and online resources (CBS online publications, PDFs, educational resources, etc) as CBS continues to improve its digital channels, enabling greater access to quality information and helpful online tools for consumers and business.

Consumers contact CBS for fair trading advice about hundreds of different goods and services. The top five types of inquiries received are:

1,725 in relation to new home construction

1,650 in relation to second hand vehicle purchases

1,058 in relation to solar panel installation

969 in relation to motor vehicle repairs

708 in relation to new car sales

9. Matters subject to conciliation are consumer transactions and may relate to consumer guarantees, building work or any other dispute where a consumer purchases a good and/or service in trade or commerce. The number of disputes conciliated can vary from year to year, with the 2018-19 projected result an approximate average of recent years' activity.

The top industries for conciliation are:

121 new home construction

120 solar panel installation

60 second hand vehicle purchases

52 home additions and renovations

39 motor vehicle repairs

These matters are outlined in further detail in the Attorney-General's Department Annual Report.

10. The 2018-19 projection has been reduced given the development of a trader engagement strategy whereby problem traders will be engaged with at a high level (ie. directly with the commissioner in some cases). It is anticipated that this strategy should result in a gradual decrease in compulsory conciliations required, particularly given that some problem traders can have multiple compulsory conciliations in a year.

The top industries where compulsory conciliation is used are:

76 solar panel installation

59 new home construction

13 home additions and renovation

9 fencing including gates

9 beds and mattresses

8 motor vehicle repairs

8 second hand vehicle purchases