By Karl Hoerr -
Repeated legal advice that merchant fee surcharges were unlawful, failed to stop NSW Government agencies engaging in the practice, according to the current government.
A statement from Customer Service Minister Jihad Dib and Finance Minister Courtney Houssos, says it’s estimated that 92 million transactions unlawfully incurred $144 million in merchant fees from 2016.
The transactions involved Service NSW and Revenue NSW. The government says the practice had been flagged as unlawful in legal advice from the Crown Solicitor’s Office between 2016 and 2022.
The issue was first picked up by the NSW Auditor-General.
Agencies issued the surcharges, as a way of recouping transaction fees charged by banks and other providers.
The individual amounts were small, such as 30 cents for a one-year licence renewal or 29 cents for a marriage certificate.
The government says merchant fee surcharges have now been switched off for more than 90 per cent of online payments.
It says the legal advice was issued while the Liberal-Nationals government was in power.
“It is deeply concerning that this practice has been ongoing, despite legal concerns being raised,” says Dib.
Houssos says the government has set up a taskforce to deal with the issue.
“Families, households and businesses expect governments to conduct themselves lawfully. That’s why all agencies have been instructed to examine their own processes,” she says.
