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A Bill is an Act in draft form. It is proposed law as it passes through Parliament. After the bill receives Royal Assent it becomes an Act (from NSW Parliamentary glossary of terms).
Explanatory notes (EN) explain the purpose of the Bill and outline the provisions of the Bill. In NSW this document is called an explanatory note, in the Commonwealth parliament it is called an explanatory memorandum.
For more information see NSW Legislative process explained (NSW Parliament website)
Explanatory Notes have been issued for many, if not most, New South Wales bills since about 1964.
Before that period, very brief Explanatory Notes were attached to bills such as money bills. One of the earliest occurrences found was for the Birds and Animals Protection (Amendment) Bill (No.2) 1922. These Explanatory Notes have varied from a few paragraphs to a page in length, though from the 1980s they have become longer. From 1987, a separate annual volume of Explanatory Notes has been issued; before then, the Explanatory Notes were attached to the front of bills. Available online from 1990. (This information comes directly from the National Library of Australia - Gov Pubs website)
Explanatory notes and second reading speeches are often referred to by legal practitioners when they need further clarification of a piece of legislation.
After the first reading, the member introducing the bill (known as the 'mover') makes a speech outlining the principles of the bill (the second reading speech). During the second reading debate, members of Parliament express their opinions about the principles of the bill. (Bills glossary, NSW Parliament.)
