NSW Government Takes Swift Action After Unlawful Merchant Fees Charged to Customers

The NSW Government is addressing a significant issue after it was revealed that unlawful merchant fee surcharges were applied to tens of millions of customer card transactions. This occurred despite repeated legal advice during the previous Liberal-National government’s term, indicating the practice was unlawful.

The problem was identified by the NSW Auditor-General during the settlement of the Department of Customer Service (DCS) financial statements for 2023-24, bringing it to the attention of the current government.

Further investigation, led by DCS Secretary Graeme Head, revealed that Service NSW had been unlawfully charging merchant fees, despite receiving multiple warnings through legal advice from the Crown Solicitor’s Office between February 2016 and December 2022. Despite the advice, these fees continued to be passed onto customers.

Merchant fee surcharges are typically levied to recover transaction costs imposed by payment providers, such as banks. The practice was initially directed by NSW Treasury in 2012. Common surcharges include:

30 cents for a 1-year licence renewal,
29 cents for a marriage certificate, and
$1.92 to renew registration for a small car.

It is estimated that since 2016, approximately 92 million transactions across Service NSW and Revenue NSW unlawfully incurred about $144 million in merchant fees.

The Minns Labor Government has responded swiftly, establishing an incident management taskforce to halt the unlawful charging of merchant fees and explore remediation options. Affected customers are encouraged to register for updates at Service NSW or call 13 77 88.
Investigations and Taskforce Actions

The Treasurer, Minister for Customer Service and Digital Government, and Minister for Finance have formally requested the NSW Ombudsman to investigate possible serious maladministration. The DCS Secretary has also referred the matter to the Ombudsman and the Independent Commission Against Corruption (ICAC), citing the failure to act on legal advice provided in 2016.

In response to the discovery, the taskforce led by DCS has successfully:

Stopped merchant fees on more than 80 per cent of Service NSW transactions.
Turned off fees directly charged by Revenue NSW and the Rental Bond Board.
Eliminated merchant fees on over 90 per cent of online payments, including major transactions like driver licence and vehicle registration renewals, as well as fine payments.

Efforts to switch off fees on all remaining transactions, including thousands of credit card terminals in Service NSW Service Centres, are ongoing. These transactions span multiple technology platforms and involve several agencies. In the interim, customers are encouraged to use alternative payment methods, such as cash payments in Service Centres or over-the-counter support for online payments, which do not incur surcharges.

In light of these findings, all government departments have been instructed to report to NSW Treasury by 30 November on whether they charge merchant fees for services and to confirm their legal authority to do so.
Statements from Government Officials

Minister for Customer Service and Digital Government, Jihad Dib, said:

“Our most immediate priority has been to stop these charges as quickly as possible. It is deeply concerning that this practice continued, despite legal concerns being raised. While the individual amounts charged may seem small, they were charged unlawfully. The community deserves an explanation for how this was allowed to go on for so long under the previous government.”

Minister for Finance, Courtney Houssos, added:

“We have acted swiftly to establish a taskforce to deal with this issue. Our immediate efforts are focused on switching off the payment methods that charge these fees. We are committed to finding out what happened and why millions of people were unlawfully charged. Families, households, and businesses expect governments to act lawfully, and we are ensuring all agencies examine their processes.”

Historic Agreement Signed Between NSW Government and PSA for Child Protection Caseworkers

The NSW Government and the Public Service Association (PSA) have signed a landmark reform agreement that will deliver significant pay increases and improved conditions for over 2,000 public sector child protection caseworkers. These caseworkers, who play a crucial role in protecting vulnerable children across the state, will benefit from a series of measures aimed at better supporting their work.

Key features of the agreement include:

A 4 per cent pay increase for child protection caseworkers, backdated to 1 July 2024, along with a 0.5 per cent superannuation increase, bringing the total increase to 8 per cent over the first two years of the Labor Government.
The starting salary for new caseworkers in 2024-25 will rise by $8,283, which includes the 4 per cent pay increase.
For the first time in NSW history, a standalone child protection worker classification will be established, distinct from the general classification structure that currently covers nearly 80,000 workers.
A reform process between the NSW Government and the PSA will be initiated to update role descriptions and review specific working conditions, such as safe working allocation guidelines.
A three-year pay agreement will be introduced from 2025-26 under a new Child Protection Award at the conclusion of the reform process.

This agreement marks a major step in delivering on the NSW Government’s commitment to supporting the state’s child protection workforce and ends the former Coalition Government’s public sector wages cap.
Reforming the Child Protection System

The NSW Government is also undertaking significant structural reforms to the child protection system, following years of neglect. Among the major changes, the government will ban the use of unaccredited emergency accommodation for vulnerable children in the foster care system starting in March 2025. Since November 2023, the government has already achieved a 72 per cent reduction in the use of such arrangements.

As part of the 2024-25 NSW Budget, $224 million has been allocated to improve foster care and child protection services. The funding will allow the Department of Communities and Justice (DCJ) to:

Re-enter the foster care market as a provider and expand recruitment of DCJ emergency foster carers to include long-term carers.
Introduce government-run intensive and professional foster care models.
Establish government-run residential care for children where non-government providers are unable to offer stable placements.
Ensure children in residential care are supported by high-quality, accredited providers.
Recruit family time workers and additional caseworkers to assist with carer authorisation assessments.

These measures aim to rebuild the state’s broken out-of-home care system and ensure more children grow up in safe, stable, and loving homes.
Minister for Families and Communities, Kate Washington, said:

“Child protection caseworkers have one of the most challenging and important jobs in the world—keeping vulnerable children safe.
When we came into government, we inherited a broken child protection system with a workforce walking out the door because they hadn’t felt valued in years.
I have seen firsthand the incredible difference these workers make to children and families, and I hope this agreement will encourage more caseworkers to take up positions with DCJ.
I thank the PSA and their hardworking members for their advocacy and commitment to keeping children in NSW safe.”

NSW Government Seeks AI and Technology Solutions to Improve Planning Assessments

The Minns Labor Government is inviting proposals from technology and Artificial Intelligence (AI) innovators to enhance the NSW Planning Portal, with the aim of accelerating development assessment timeframes and facilitating the delivery of more homes, jobs, and infrastructure.

The NSW Planning Portal handles the processing of Development Applications (DAs), Complying Development Certificates (CDC), and Concurrence and Referrals (C&R) for DAs requiring state agency advice. To further enhance these processes, the NSW Government has launched two Requests for Proposals (RFPs), calling for cutting-edge solutions to be integrated into the Next Generation NSW Planning Portal Ecosystem.
First Request for Proposals

The first RFP seeks products and services that can:

Improve the quality and assessment times of DAs and integrate seamlessly into the existing Planning Portal.
Use AI to provide data analytics and spatial insights.
Enhance cybersecurity measures, improve user privacy, and protect document integrity from forgery.

Second Request for Proposals

A second RFP is focused on enhancing the core platform functionality of the Planning Portal. This includes:

Upgrading the legacy platform to improve efficiency in assessment and implementation planning.
Improving security through better data processing, document migration, and validation.
Enhancing the core platform to improve reliability and the overall user experience.

These initiatives follow the NSW Government’s $5.6 million investment in AI for the planning system, which has already seen 16 councils trial AI solutions through the AI Early Adopter Grant Program.
How to Submit Proposals:

NSW Planning Portal – Pega Upgrade (SR00252): Submissions are due by 3pm on Friday, 1 November via buy.nsw.
Next Generation NSW Planning Portal Ecosystem (SR00132): Submissions are due by 3pm on Monday, 4 November via buy.nsw.

Minister for Planning and Public Spaces Paul Scully said:

“The NSW Planning Portal services millions of people, so it should be utilising the best technological platforms available to us. AI can assist planners in determining DAs faster, leading to quicker housing assessments across NSW. We’re also looking to improve the core technology of the portal to enhance the user experience.”

He added:

“The Minns Labor Government is bringing the planning system into the 21st century. Our Early Adopter AI Grant Program has already enabled 16 councils to trial technology that helps planners streamline their work, freeing up time and energy to improve assessment times. This next round of enhancements will bring us closer to the future of digital planning assessments.”