How we decide to take disciplinary action

About disciplinary action

NSW Fair Trading can take different types of disciplinary action against a current or former holder of a licence, certificate or other authority. Under some laws, NSW Fair Trading can take disciplinary action against directors and supervisors of businesses.

The purpose of taking disciplinary action against an individual or business is to protect, rather than to punish. Our goal is to:

• protect the public
• protect the industry
• protect the interests of the individual or business.

These are considered during the disciplinary process.
 

The types of disciplinary actions include one or more of the following:

• caution or reprimand the person
• a direction to the person requiring them to give an undertaking, or take specified action relating to the conduct of business or the exercise of functions under a licence or certificate of registration
• a monetary penalty
• imposing a condition on the person’s licence or certificate of registration
• suspending the person’s licence or certificate of registration for a period
• cancelling the person’s licence or certificate of registration
• declaring the person to be a disqualified person either permanently or for a specified period
• disqualifying the person from being involved in the direction, management or conduct of the business of a licensee, either permanently or for a specified period.

NSW Fair Trading prioritises the most serious financial, safety and other harms to the public. 

Reasons for taking disciplinary action include:

• the person has contravened a provision of a law administered by the Minister
• the person has, in respect of the person’s conduct of business or exercise of functions under the licence or certificate of registration, contravened the Competition and Consumer Act 2010 of the Commonwealth
• the person has contravened a condition of the licence or certificate of registration
• the person has, in the course of carrying on business or exercising functions under the licence or certificate of registration, acted unlawfully, improperly, unfairly or incompetently
• the person is a disqualified person or is otherwise not eligible under section 14 of the Property and Stock Agents Act 2002 (NSW) to hold a licence or certificate of registration
• the person is not a fit and proper person to be involved in the direction, management or conduct of the business of a licensee
• the person has failed to pay any part of a contribution or levy that is due and payable to the Compensation Fund
• the person has breached an undertaking they have given to the Secretary, in respect of the person’s conduct of business or exercise of functions under the licence or certificate of registration
• the person has failed to comply with a direction given to the person by the Secretary pursuant to the taking of disciplinary action
• the person has failed to pay a monetary penalty imposed on the person by the Secretary pursuant to the taking of disciplinary action
• the issue of the person’s licence or certificate of registration was obtained by fraud or mistake.

Notice to Show Cause (NTSC)

The DAU will decide if there is sufficient grounds for taking disciplinary action, and if there is evidence to support it. If this occurs, a NTSC will be issued to the licence or former licence holder.
In some circumstances, a NTSC may also be issued to a director or nominated supervisor of the company.

A NTSC sets out the evidence and will provide an opportunity for the licence holder or former licence holder to respond.

A licence holder or former licence holder may obtain legal advice or representation. They may make submissions (either orally or in writing) to:

• explain why disciplinary action should not be taken against them
• make an admission of guilt
• propose an appropriate penalty
• outline any mitigating factors that should be considered.

In some circumstances, immediate disciplinary action might be taken if it’s in the public’s interest. A NTSC may not be issued to the licence holder, or a licence holder may be suspended when the NTSC is issued. This means the licence holder is unable to trade.

NSW Fair Trading actions taken against a business or individual may be published on the NSW public register and in public data and statistics.
 

Avenues for appeal

All PIN's can be requested for a review via Revenue through to the Reviewable Decisions Unit. You can apply to dispute your fine in court. Once you start the court process, it will replace your fine and cannot be stopped. It will be up to the court to decide the outcome. If you're found guilty, you may have to pay a penalty plus court costs.

If the licence holder or former licence holder isn’t satisfied with the disciplinary decision, they may request an internal review.

These reviews are conducted by the Reviewable Decisions Team within Better Regulation. They determine whether to affirm, vary or revoke the decision.

A business or individual issued with a disciplinary action decision may:

• request an internal review of that decision
• submit an application for review by the NSW Civil and Administrative Tribunal (NCAT) if they are not satisfied with the internal review decision.
   

Relevant legislation to be considered

• Conveyancers Licensing Act 2003(NSW)
• Motor Dealers and Repairers Act 2013(NSW)
• Paintball Act 2018(NSW)
• Pawnbrokers and Second-hand Dealers Act 1996(NSW)
• Property and Stock Agents Act 2002(NSW)
• Tow Truck Industry Act 1998 (NSW)