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Legislative Council - Fifty-Third Parliament, Second Session (53-2)
2017-03-01 Daily Xml
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Statutes Amendment and Repeal (Simplify) Bill

Second Reading

Adjourned debated on second reading.

(Continued from 28 February 2017.)

The Hon. T.T. NGO (11:55): I rise to speak on the Statutes Amendment and Repeal (Simplify) Bill 2016. The simplify bill was introduced in the lower house by the Premier on 15 November last year, the government's inaugural Simplify Day.

The bill and associated regulations made by the Governor on Simplify Day aim to cut red tape and make things easier for business. This Simplify Day process is now an annual one, with work already underway to progress reform for this year's simplify bill.

The government commenced this process with the essential aim of creating a stable and easy to navigate regulatory environment. We want to make sure, as a government, that we are promoting innovation and facilitating investments and growth, while still upholding our community safety and environmental standards. We know that South Australia is a great place to establish and grow a business. We want to make our competitive advantage even greater.

I note that this Simplify Day process comes off the back of many important recent government reforms similarly aimed at red tape reduction. One reform that immediately stands out is the reform of our state taxation system over the past few years—the 2015 budget introducing the most comprehensive reform in this area in South Australia's history. We will have abolished five business taxes by 1 July 2018, most notably getting rid of stamp duty on commercial properties, progressively phasing out this tax to nothing.

We have seen $740 million in tax reductions over the past two years, with ongoing reductions of over $268 million each year from the 2018-19 financial year. Our taxation reform is just one way we are helping to make South Australia the best place in the country to do business.

We are also in the process of delivering major planning reform and liquor licensing reform. We have created the ReturnToWorkSA system, streamlined live music regulations and we are now transitioning to electronic certificates of compliance for plumbing, electrical and gas trades.

This government has clearly evidenced its commitment to red tape reduction and is continuing to do so through initiatives such as Simplify Day. The simplify bill amends 26 acts of parliament and repeals 11 redundant ones. The contents of this bill represent changes that are not all necessarily major reforms, but nonetheless make a real and lasting difference to business people in our state.

I would like to touch upon a couple of large reforms contained within this bill: the removal of heavy vehicle registration label requirements and the digital licensing reforms. The removal of the requirement for heavy vehicles to have registration labels affixed is an important reform and one that was called for by the heavy vehicle industry.

The heavy vehicle industry was inconvenienced by this requirement. It meant that truck drivers would have to take vehicles off the road in order to fulfil an unnecessary requirement to have a registration sticker affixed. We got rid of this requirement for light vehicles long ago. Now this process is being abolished, heavy vehicle companies do not have to worry about this loss of productivity over some red tape. They also do not have to worry about keeping track of their vehicles to avoid fines for trucks without stickers on them. It is a very practical and common sense reform and I am pleased to see it contained within the bill.

The other aspect of the bill I would like to mention is the changes to facilitate the use of electronic licences. This reform allows for the issue of licences, permits and other authorisations or documents, such as proof of age cards and driver's licences, without causing doubt over which document (physical or electronic) is valid.

The changes will also allow documents to be issued through an approved information system such as an app, meaning that licences will reflect up-to-date information rather than just a snapshot in time when a physical licence was printed. The technology will also allow for reminder notifications when licences are due for renewal, helping people to accurately maintain their licences and personal details in a modern user-friendly format.

Lots of work is currently underway to develop this technology. A trial was conducted on a newly created mySA GOV app, which commenced in mid-2016 and was well received by many South Australians. The government is working with cyber security and technology companies, and with the support of SAPOL, to ensure the security of the app technology and the protection of personal information.

It is envisaged that this new system would commence with the introduction of things like boat licences and land agent licences at the outset. It is important to note that physical licences will remain available once the digital version is enabled; this would be an 'opt in' system. Eventually, this app could include digital driver's licences.

The introduction of an electronic licensing system is a big red-tape reduction measure, creating a much more accessible system for updating and renewing licences and holding them on a secure, real-time digital platform. This is keeping up with technology in today's society as we move towards apps on our smartphones and tablets.

Overall, this bill is a great example of this government's proactive stance on cutting red tape. The government wants to make sure we are getting rid of unnecessary burdens to business wherever we can, attracting even more businesses to come and set up shop in South Australia. I commend the bill to the house.

The Hon. J.M. GAZZOLA (12:04): I rise to speak on the Statutes Amendment and Repeal (Simplify) Bill 2016. As I get older, I like to and hope to simplify my life, therefore I support the bill. I want to speak on several aspects of the bill, in particular surrounding licensing. This bill contains a number of changes that will substantially reduce red tape for the industry of second-hand vehicle dealers. The government is seeking to remove the requirement for second-hand vehicle dealers to seek approval to trade at locations other than their registered premises. This means that for events like car shows, these dealers are able to trade elsewhere for that relatively short time frame without having to put in an application to seek approval to do so.

This bill also removes what is effectively a duplication of the practice of second-hand vehicle dealers having to ensure their premises are appropriate for doing business in order to gain approval to register their business. In practice, the Commissioner for Consumer Affairs checks the premises has council approval. This is a clear duplication of process where the local government approval is sufficient. It also removes a compliance obligation for businesses that can cause delays in commencing trade.

Reforms to the second-hand car dealer industry are also proposed from the consumer perspective in terms of the Second-hand Vehicle Dealer Compensation Fund. This fund provides compensation for customers who have a valid claim against a dealer and where they have no other avenue for recovering that claim. At the moment, the Magistrates Court administers this process. This amendment would mean that the commissioner would manage the claims process with a right for the consumer to appeal to the Magistrates Court rather than going directly to the Magistrates Court.

The commissioner already determines much larger applications for compensation from the Agents Indemnity Fund. This would provide efficiency for consumers in lodging their claims as well as taking some burden of the court system. Through this bill, the government is looking at ways to reduce unnecessary costs for business. An example of this is the removal of penalties for late lodgement of licence renewals with Consumer and Business Affairs for holders of occupational licences and registrations. Instead of being issued a fine for failure to renew on time, as is currently the practice, under this reform Consumer and Business Services would issue a final notice prior to the cancellation, reducing costs for business and red tape in government.

This bill also seeks to reduce burdensome requirements on business partners in the area of building work, plumbing, gas fitting or electrical work. In these business partnerships, one business partner may not be active in the trade itself; that is, perhaps a family member does the accounts while the other does the building work. Currently, even those non-active partners are required to hold their own contractor's licence. This licence is generally between $217 and $422 each year, depending on the type of licence, plus the time the partnership loses in having to go about the renewal process.

The bill allows those non-active partners to apply for an exemption, which may be made subject to conditions. This is an example where we have achieved a reduction in annual costs and paperwork but have maintained appropriate regulatory arrangements by retaining the flexibility to regulate against unsuitable persons who may seek to enter these industries.

The bill also looks at reducing duplication in the bookmaker industry. Currently, bookmakers have to hold a licence in their own right and must also obtain permits for each particular event. In practice, the Liquor and Gambling Commissioner approves permits on the basis of recommendations from the proprietors of racing venues. Irrespective of whether a permit has been issued, racing venue proprietors can decide whether or not to allow a bookmaker to operate at any of their events. Accordingly, the issue of a permit, as it currently occurs, is a redundant regulatory measure.

The bill includes a reform to an obscure inconsistency for conveyancers. Currently, if you are an individual conveyancer, you are registered to carry on business in partnership. However, if you are a body corporate conveyancer you have to apply for approval from the Commissioner for Consumer Affairs to carry on business in partnership. The bill seeks to remove this inconvenience for body corporate conveyancers to align with the same registration as individual conveyancers.

I also want to briefly mention the large amount of future considerations that were identified in the process of preparing for Simplify Day 2016. The government received many great ideas from business and the community about how we can reduce red tape through last year's consultation process. Some of the ideas were ones that could be committed to straight away, and form part of the bill we are debating today. Others required further consideration or longer term processes. There was a range of commitments to consider in the transport sector, including a few that are already progressing, including:

the Segway trials now occurring along the River Torrens in the CBD;

establishing a conditional registration scheme for historic and second-hand vehicles; and

reforming bus lane access for private bus companies, increasing their access. A red tape reduction for the tourism industry.

Outside the transport sector there is the potential to:

simplify building work contractors' licensing arrangements to only two types of licence;

conduct a review into incorporated associations laws and removing any unnecessary or burdensome practices;

change South Australian procurement policy to reflect recent amendments to the commonwealth competition legislation, extending protections against unfair contract terms for small businesses;

consideration towards removing the requirements placed on particular commercial property owners to have a real estate licence;

a review of public notifications and community notices to streamline and update requirements and explore the benefits of using electronic media;

a consideration of distraint laws—the law allowing a landlord to remove a tenant's belongings in certain circumstances where a tenant is behind in rent—in terms of potential modernisation and harmonisation with other jurisdictions across Australia;

reviewing the need for indemnity insurance in some low-risk circumstances for non-habitable structures, such as garages or tennis courts.

As you can see, there is a broad program of work already underway for the 2017 Simplify Day process, in addition to the consultation process to harness additional ideas. This government is committed to making things easier for business, and one way we can do that is by cutting red tape where it is unnecessary and over-burdensome.

This bill is a great step in focusing us on red tape reduction to an even greater extent and I look forward to its passage through the council and to the introduction of the 2017 Simplify Day later this year. I commend the bill to the house.

Debate adjourned on motion of Hon. J.E. Hanson.

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