With the likes of Uber and AirBnb gaining popularity across the country, rather than resisting change, the New South Wales government is looking to embrace it.
The NSW Innovation minister Victor Dominello announced today that his state government will be embracing and looking to develop a framework for the “collaborative economy”.
This comes after new estimates that those services contributed over $500 million to the economy in the last year.
The announcement is the second big step NSW has taken this year in this area, after legalising Uber X and other ride-sharing services.
Research commissioned from Deloitte Access Economics estimates that 45,000 people in the state earned an income through the collaborative economy in the last year. Most of this came from Uber, AirBnB, financial services such as Kickstarter and online marketplaces such as Gumtree.
All up, it was found that it added around $504 million of value to the NSW economy.
Dominello will also be releasing a position paper which outlines five guiding principles that the government will be following.
These include: supporting a culture of innovation; fit-for-purpose regulation in the digital age; customer protection and safety; promoting competition; and agile government procurement.
The government claims that it will work with the industry to “make it easier for start-ups to do business in NSW” and will take a “digital-first approach” in its attitude towards legislation.
Sam Mcdonagh, AirBnB’s Australian boss said that:
“This is great news for New South Wales and the everyday people – mums and dads and working families – who list their homes on Airbnb.”
“We applaud the state government for outlining how it will welcome the sharing economy and recognising the tremendous economic contribution it provides.”
Chris Noone, CEO of Australian peer-to-peer car rental service DriveMyCar also added:
“Itâ€™s encouraging to see the NSW government supporting innovation through the growth of sharing economy services, but this was almost inevitable as consumers have been leading the charge to embrace these services. Our governments are racing to catch up.”