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A Bill is a proposed law. After a bill passes both Houses of Parliament and receives assent, it becomes an act.
Explanatory notes explain the purpose of the Bill and outline the provisions of the Bill. They are attached to the First Print of a bill.
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 New South Wales bills since about 1920s. Not every Bill has explanatory notes.
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.
When a bill is introduced to Parliament it needs to go through several stages before becoming law. One of the stages is the Second Reading.
During the second reading debate, members express their opinions about the principles of the bill in plain language. At the conclusion of the debate, a vote is taken on the question "that this bill be now read a second time". If the House agrees, the bill proceeds to either the consideration in detail stage (LA / committee state (LC) (if there are amendments to be considered) or directly to the third reading stage (LA) or with the concurrence or previous agreement of the House (LC). If the House disagree, then the bill is defeated. (from the NSW Parliament Bills glossary).
For more information about Second Reading speeches.