Better business reforms

What are the Better Business Reforms?

The Better Business Reforms aim to create opportunities for small businesses by reducing costs and complexity without reducing consumer protections.

The reforms also increase transparency and protections in consumer transactions, without overly burdening businesses.

Most of the Better Business Reforms were contained in the Fair Trading Legislation Amendment (Reform) Act 2018 and the Fair Trading Legislation Amendment (Miscellaneous) Act 2018 which were passed by the NSW Parliament in late 2018.

What's happened so far?

The reforms resulted from a comprehensive review of legislation in the Better Regulation portfolio, in consultation with business and the wider community.

In July 2018, the NSW government released the Easy and Transparent Trading Consultation Paper. Feedback was sought on an extensive set of consumer and small business reforms designed to cut red tape while improving consumer protection.

The Better Business Reforms Implementation Options Paper was released in November 2018 to consider implementation options.

Most of the reforms have now been implemented in various stages over the past 2 years.

Latest updates

On 31 October 2018 these reforms started

  • dissolving redundant Ministerial Advisory Councils and the Products Safety Committee
  • enabling documents to be served electronically (across all Better Regulation laws) and removing requirements for using registered post
  • removing advertising restrictions duplicated by the Australian Consumer Law
  • enabling documents to be signed and executed by certain organisations without the need for an official seal
  • repealing the uncommenced Regulatory and Other Legislation (Amendments and Repeals) Act 2016 and Workers Compensation Legislation Amendment Act 2000.

On 28 February 2019 these reforms started

Void terms in non-disclosure agreements

Any terms in a non-disclosure agreement that limit a consumer’s ability to make a complaint to NSW Fair Trading are now void. Consumers must be informed of their ongoing right to lodge a complaint with Fair Trading either before or at the time of entering into a non-disclosure agreement.

Architects' age restriction

The minimum age requirement of 21 years of age to register with the NSW Architects Registration Board has been removed. This allows suitably qualified individuals to be registered as an architect, regardless of age.

Architects online lodgement

It is no longer banned for registration documents to be submitted online. This will help streamline and modernise the registration process.

Display of licence numbers in advertising

The requirement for motor dealers, repairers and recyclers to display licence numbers in all advertising has been removed. Licence number details will still need to be displayed at business premises and can also be obtained by searching the online register.

Time period for restoring licences for motor dealers, repairers and recyclers

NSW Fair Trading now has the discretionary power to restore a licence or a tradesperson certificate under the Motor Dealers and Repairers Act 2013 beyond the standard 3 month cut off date.

Keeping records of ex-employees

Conveyancers and real estate agents are no longer required to maintain records of ex-employees, after their employment ceases.

Associations exemptions and information sharing

The ability to exempt an association from financial reporting requirements and to enter into information sharing arrangements has been clarified.

Information standards

Fair Trading can now prescribe information standards for the supply of any goods or services, due to a general regulation-making power in the Fair Trading Act 1987. This reform also includes an offence provision for non-compliance.

On 1 July 2019 these reforms started

Changes to Starr-Bowkett Societies and Co-operative Housing Societies

The formation or registration of new Starr-Bowkett societies can no longer occur and new members cannot be admitted to existing Starr-Bowkett societies. Existing societies can continue to operate under the current legislation.

The formation or registration of new Co-operative Housing Societies can no longer occur. However, existing societies can continue to operate under the current legislation and new members may still be admitted.

Repeal of the Innkeepers Act 1968

The Innkeepers Act 1968 has been repealed and relevant provisions that are to have an ongoing effect have been transferred and retained in the Fair Trading Act 1987. Click here for further details.

Repeal of the Prices Regulation Act 1948

The redundant Prices Regulation Act 1948 has been largely repealed. Click here for further details.

Repeal of the Landlord Tenant (Amendment) Act 1948

The Landlord Tenant (Amendment) Act 1948 has been repealed but will continue to apply to any remaining ‘protected tenants’ under savings provisions inserted in the Residential Tenancies Act 2010. Click here for further details.

Repeal of the Rural Workers Accommodation Act 1969

The Rural Workers Accommodation Act 1969 has been repealed, however, relevant provisions that are to have an ongoing effect are retained in the Work Health and Safety Act 2011. See SafeWork website for further details.

Trust Account Audits for Conveyancers and Real Estate Agents

Licenced conveyancers and real estate agents will no longer have to submit a copy of their audit report to NSW Fair Trading. This report will only need to be submitted by their auditor. All trust account audits can now be lodged with Fair Trading through a new online platform called Auditors Report Online . To access the portal, please visit the trust account auditors page.

On 1 February 2020 these reforms started

Trading out of external administration

Commissioner of Fair Trading now has the discretion to not cancel a licence or disqualify an individual licence holder where a business has entered into external administration. A new external administration notification form is also made available for applicants or licensees under the below Acts:

  • Home Building Act 1989
  • Tattoo Parlours Act 2012
  • Conveyancers Licensing Act 2003
  • Pawnbrokers and Second-Hand Dealers Act 1996
  • Property, Stock and Business Agents Act 2002

Please visit the individual licensing pages on the Fair Trading website for further details.

Notification of Motor Dealer trade locations

Motor vehicle dealers, recyclers and repairers will no longer have to pay a fee to add/ remove premises to their licences. They will only need to notify NSW Fair Trading of the premises from which they intend to trade.

Motor vehicle dealers, recyclers and repairers can now also complete sales at trade shows.

Changing approval processes for required forms

Previous prescribed forms which were embedded in each relevant Regulation have been extracted out and changed into approved forms. The approved forms have been digitised to allow for electronic completion and filing to increase accessibility.

On 1 July 2020 these reforms started

Extending and harmonising licence durations and restoration periods

Licence holders can now choose from 1, 3 or 5 year licences across a wide range of categories. A uniform 3 month restoration window is also in place for licence holders who don't renew on time.

Notice of key terms in consumer contracts

Businesses are now required to disclose key terms of consumer contracts that may substantially prejudice the interests of the consumer.

Disclosure of commissions and referral fees

Businesses are now required to disclose commissions or referral fee arrangements with third parties.

Exemptions from tow truck licensing requirements

New classes of exemptions have been introduced in the tow truck industry.

Streamlining uncollected goods regulation

The laws regarding uncollected or abandoned goods have been streamlined and modernised.

Find out more at Uncollected Goods

Online portal of registers

Consistent details about licence holders will be able to be made publicly available online.

Conduct a search using the Licence Check Portal

Reforms yet to start

New specialised classes for motor vehicle repairers will commence on 1 September 2020.

For more information visit Motor Vehicle Tradespeople.

A small number of the Better Business Reforms have not yet started, due to a range of administrative and IT issues.

It's unclear at this stage when the following reforms will commence:

  • ongoing licences for 13 home building trades
  • caravan/Recreational Vehicle LP gas and electrical licence category
  • rental bond rollover scheme and bond surety products
  • new duration options and restoration provisions for surveyors

More information

Prev Changes to ticket reselling
Next Gas and electricity (consumer safety) laws