Quick Quote
One simple enquiry form gives you fast access to quotes and rate comparisons from Australia's leading and best known debt consolidation specialists.
All quotes are supplied to you free and without any obligation. We respect your privacy.
Knowledgebase
Debt Consolidation:
Taking advantage of lower interest rates that may be available by the grouping of multiple loans into one, lower interest rate loan.
Debt Consolidation Australia :: News
SHARE

Share this news item!

NSW Takes Decisive Steps Against Unlawful Merchant Fee Practices

NSW Takes Decisive Steps Against Unlawful Merchant Fee Practices

NSW Takes Decisive Steps Against Unlawful Merchant Fee Practices?w=400
The New South Wales (NSW) Government is taking robust measures to rectify years of unlawful merchant fee surcharges on customer transactions.
Despite ongoing legal concerns, these fees persisted for nearly a decade, a legacy of policy directives laid out by the former Liberal-National government.

During a review of the 2023-24 financial statements, the NSW Auditor-General highlighted the issue of unauthorized fee surcharges. The revelations were surprising, bringing the matter forcefully to the notice of the current administration.

For years, legal advice from the Crown Solicitor's Office, beginning in February 2016 through December 2022, consistently warned against the unlawful imposition of merchant fees by Service NSW. Despite such advice, over 92 million transactions incurred charges close to a whopping $144 million. The surcharges, conceptualized as cost recovery for transaction fees by payment providers, were initially sanctioned by NSW Treasury in 2012.

The spotlight is on mini transactions such as 30 cents for a driver's licence renewal, 29 cents for a marriage certificate, and a $1.92 fee to renew a small car registration. These seemingly small fees added up, creating a significant financial burden on the public.

With this information now public, the current government, led by the Minns Labor administration, has moved swiftly, creating a dedicated incident management taskforce to stem these unauthorized charges and to mitigate future occurrences.

Notably, customers affected by these charges are urged to register for updates regarding the government's corrective measures through Service NSW channels either online at the official website or via their service hotline.

The Ministers for Customer Service, Digital Government, and Finance, have sought an independent inquiry by requesting the NSW Ombudsman to investigate potential maladministration. The department's Secretary has also escalated the case to the Ombudsman and the Independent Commission Against Corruption, highlighting concerns over ignored legal advice.

A proactive approach by the new taskforce has successfully shut down over 80% of unlawful surcharges in Service NSW transactions and more than 90% of online payments. For now, all other remaining transaction fees, including those from in-person credit card terminals, are being rapidly phased out. To accommodate citizens, Service Centres are offering surcharge-free payment alternatives, such as cash payments.

Amid ongoing remedial undertakings, the NSW government has instructed all departments to audit their merchant fee practices by the end of November to ascertain legal oversight and compliance, echoing Minister for Finance Courtney Houssos’s comments: “Families, households, and businesses expect governments to act within the confines of the law.”

Minister Jihad Dib also emphasized the urgency, stating: “Our priority has been to halt these charges swiftly.” He underscored the ethical need for transparency regarding the past continuation of these fees despite the legal advisories.

 

Published:Monday, 4th Nov 2024
Source: Paige Estritori

Share this news item:

Finance News

Overheads on Enhanced Vetting Could Ratchet Up Wholesale Fund Costs Overheads on Enhanced Vetting Could Ratchet Up Wholesale Fund Costs
07 Nov 2024: Paige Estritori

The prospect of intensified scrutiny in confirming wholesale investor status could potentially tip the balance of competitiveness away from wholesale funds. According to recent commentary from the Financial Services Council (FSC), implementing added verification processes might impact these funds' ability to compete effectively. - read more
RBA Chief Under Fire: Decision on Rate Cuts in the Spotlight RBA Chief Under Fire: Decision on Rate Cuts in the Spotlight
07 Nov 2024: Paige Estritori

Reserve Bank of Australia (RBA) Governor Michele Bullock is set to face intense scrutiny over the central bank's conservative approach to cutting interest rates, as apprehensions about inflation persist in Australia. During a regular parliamentary session, Bullock’s policies will draw pointed questions from lawmakers. - read more
The Dwindling Australian Dream: Home Ownership Beyond Reach? The Dwindling Australian Dream: Home Ownership Beyond Reach?
06 Nov 2024: Paige Estritori

Recent insights from PropTrack have painted a bleak picture of Australian housing affordability, reaching unprecedented lows. In a market where a typical household makes just over $112,000 annually, a mere 14% of homes sold are within their budget. This dwindling accessibility starkly highlights the challenges for would-be homeowners today. - read more
CFS Launches New Advisory Initiative with Viridian CFS Launches New Advisory Initiative with Viridian
05 Nov 2024: Paige Estritori

Colonial First State (CFS) is reshaping personal finance support by engaging with Viridian Advisory. This initiative aims to aid FirstChoice superannuation, pension, and investment members seeking guidance without ongoing financial advisement. The collaboration brings a novel approach to receive one-time, topic-focused advice tailored to individual needs. - read more
NSW Takes Decisive Steps Against Unlawful Merchant Fee Practices NSW Takes Decisive Steps Against Unlawful Merchant Fee Practices
04 Nov 2024: Paige Estritori

The New South Wales (NSW) Government is taking robust measures to rectify years of unlawful merchant fee surcharges on customer transactions. Despite ongoing legal concerns, these fees persisted for nearly a decade, a legacy of policy directives laid out by the former Liberal-National government. - read more


Articles

Busting Myths: The Misunderstanding About Debt Consolidation and Debt Reduction Busting Myths: The Misunderstanding About Debt Consolidation and Debt Reduction
Welcome to our comprehensive guide where we aim to debunk common myths surrounding debt consolidation and debt reduction. This blog post serves as a beacon of clarity for those who find themselves navigating through the choppy waters of financial jargon and conflicting information. - read more
The Reality of Debt Consolidation: Does it Affect Your Ability to Borrow in Future? The Reality of Debt Consolidation: Does it Affect Your Ability to Borrow in Future?
Welcome to a comprehensive guide aimed at dismantling the common myths that cloud the concepts of debt consolidation and debt reduction. Amidst widespread financial stress, debt consolidation emerges as a popular strategy for Australians in search of relief from their monetary burdens. - read more
Managing Your Credit Card Debt Wisely in Tough Economic Times Managing Your Credit Card Debt Wisely in Tough Economic Times
In light of the current economic challenges facing many Australians, managing credit card debt has become more crucial than ever. With rising living costs and financial uncertainty, accruing debt on high-interest credit cards can quickly escalate from a manageable inconvenience to a stressful financial burden. - read more
How to Avoid Falling Back into Debt: Post-Consolidation Best Practices How to Avoid Falling Back into Debt: Post-Consolidation Best Practices
Welcome to our guide on how to avoid falling back into debt after consolidating your debts. Debt consolidation can be a fantastic way to manage multiple financial obligations, combining them into a single, more manageable payment plan. But the journey doesn’t end there. - read more
The Ultimate Guide to Achieving Financial Freedom Through Debt Restructuring The Ultimate Guide to Achieving Financial Freedom Through Debt Restructuring
Financial stability is a common aspiration, yet many Australians find themselves weighed down by the burden of debt. Whether it’s due to loans, credit cards, or unexpected financial emergencies, the struggle to stay afloat is a reality for countless individuals striving to achieve their dreams of a secure, debt-free future. - read more
Managing Your Credit Card Debt Wisely in Tough Economic Times Managing Your Credit Card Debt Wisely in Tough Economic Times
In light of the current economic challenges facing many Australians, managing credit card debt has become more crucial than ever. With rising living costs and financial uncertainty, accruing debt on high-interest credit cards can quickly escalate from a manageable inconvenience to a stressful financial burden. - read more
How to Craft a Foolproof Financial Strategy for Debt Management How to Craft a Foolproof Financial Strategy for Debt Management
Managing debt is a crucial aspect of maintaining financial well-being, yet it can often feel like a daunting task. Understanding how debt works and its potential impact on your life is the first step toward gaining control of your finances. In this section, we will delve into the intricacies of debt and outline why a solid financial strategy is essential for effective debt management. - read more