Skip to main content
Home
  • The Legislative Assembly meets on 16/04/2024 (01:00 PM)
    Assembly sit 16/04/2024
  • The Legislative Council meets on 16/04/2024 (01:00 PM)
    Council sit 16/04/2024
  • The Public Administration meets on 08/04/2024 (10:00 AM)
    Committee meet 08/04/2024

Parliamentary Questions


Question On Notice No. 644 asked in the Legislative Council on 24 March 2022 by Hon Martin Aldridge

Question Directed to the: Minister for Regional Development representing the Minister for Energy
Parliament: 41 Session: 1


Question

I refer to recent Synergy bills issued, stating that from 1 March 2022, merchant service fees will be charged for all card payments, and I ask:
(a) was Ministerial approval sought and given for the application of merchant fee cost recovery;
(b) what are the applicable merchant fee rates from 1 March 2022;
(c) what were the applicable merchant fee rates prior to 1 March 2022;
(d) what is the expected revenue from merchant fee cost recovery to Synergy; and
(e) did Government contemplate delaying such a decision given the rising cost of living pressures and the likelihood customers may become more reliant on credit cards to settle essential bills such as these?

Answered on 11 May 2022

(a)       Ministerial approval is not required for merchant fee cost recovery.

The application of card payment surcharges was introduced by the Barnett Government in 2014.  As a result of By-law amendments made by the McGowan Government in 2017, Synergy’s complies with the Reserve Bank of Australia’s Surcharging rules per Standard No. 3 of 2016, and passes through only the actual charges it incurs.

(b)-(c)  The applicable merchant fee rates are provided in the table below. The only changes introduced from 1 March 2022 were rate reductions for three of the five applicable Schemes.

 

From 1 March 2022

Prior to 1 March 2022

Change

Visa Credit     

0.89%

0.89%

0.00%

Visa Debit

0.38%

0.39%

-0.01%

MasterCard Credit

0.73%

0.76%

-0.03%

MasterCard Debit

0.31%

0.33%

-0.02%

American Express

0.84%

0.84%

0.00%

(d)       During the 2021/22 financial year, Synergy expects to recover $3,255,420 in merchant fees.

(e)       The Government does not have a role in approving merchant fee cost recovery changes.

However, the State Government and Synergy are committed to supporting customers experiencing bill payment difficulties, with a range of programs and payment arrangements available. Impacted customers are encouraged to contact Synergy directly.