Minns government claims unlawful merchant fees were imposed by the previous Liberal-National administration, impacting millions of transactions

The New South Wales (NSW) government has revealed that nearly $145 million in fees were improperly charged to residents since 2016, raising significant concerns about fiscal accountability and governance. The allegations, brought forward by the Minns government, assert that the former Liberal-National government imposed merchant fees through Service NSW and Revenue NSW from February 2016 until December 2022.

According to the state government, more than 92 million transactions incurred a staggering $144 million in merchant fees. These surcharges, which are typically levied to recover costs from payment providers, included specific charges such as a 71-cent fee for a three-year licence renewal, a $1.92 surcharge for registering a basic vehicle like a Toyota Corolla, and a 29-cent fee for obtaining a marriage certificate.

The situation is further complicated by revelations that the Crown Solicitor’s Office had informed the former administration on three separate occasions that these fees were unlawful. Despite these warnings, the previous government allegedly continued to impose these surcharges on residents, prompting questions about compliance and oversight within the state’s financial practices.

While merchant fees themselves are not illegal, the context in which they were charged raises significant legal issues. Government agencies are required to have a specific legal authority to levy such fees on card transactions, which the former administration seemingly lacked.

Jihad Dib, the Minister for Customer Service and Digital Government, expressed grave concern over the ongoing practice, stating, “It is deeply concerning that this practice has been ongoing, despite legal concerns being raised.” He underscored the current government’s commitment to halting these charges “as quickly as possible,” emphasising a need for immediate corrective measures to protect residents from further financial burdens.

The revelation has ignited discussions about the integrity of government financial practices and the importance of transparent operations. As the Minns government moves forward with efforts to address this issue, it remains to be seen what steps will be taken to rectify the situation and reimburse affected residents.