Fair Comment 8th edition
Welcome to the eighth edition of Fair Comment, the e-newsletter for NSW Fair Trading.
Fair Comment has been missing in action for a while, going through a makeover (with help from the Fair Comment subscriber survey) to ensure that you are kept up-to-date with the information that matters to you.
In fact, it’s not just Fair Comment that has a brand new look, but all of Fair Trading. You may have noticed we have a new logo and are now simply called NSW Fair Trading. Our number one priority remains, as always, to achieve fairness for all in the marketplace.
In this issue we look at:
Find out about our other e-newsletters
Unsubscribe from Fair Comment.
Changes to incorporated associations laws
With over 35,000 incorporated associations across NSW, chances are that you or someone you know is a member of a club, a group or an organisation that will be affected by recent changes to the associations law. The new Associations Incorporation Act 2009 will come into effect during late 2009. Until then associations need to keep following the current requirements.
The new laws will help associations run more effectively by streamlining administrative procedures and allow for more flexibility. The changes are designed to modernise the law and allow associations to meet their obligations more easily.
Associations should keep in mind that most of the day-to-day procedures and operations will not be directly affected by these reforms, but it will impact on the following:
Accompanying the new Act will be a set of regulations that will help associations apply the new laws. The regulations are being developed in consultation with the community; this gives the community a voice in the application and interpretation of the new laws. The regulations will be released for public comment in the coming months, check the Fair Trading website for updates.
Before the new laws commence, NSW Fair Trading will be undertaking an education and information campaign to help associations clearly understand what the new reforms mean for them. An email subscription service will also be available so you can stay up to date with the reforms.
For more information, visit Changes to associations legislation page of the Fair Trading website or call 1800 502 042. Alternatively you can contact the Registry of Cooperatives & Associations on 6333 1400.
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Co-operatives - growing way to run your business
Co-operatives play an important role in our community, operating in industries as diverse as publishing, tourism, catering, dairy produce, taxis, housing, recycling and child care.
New South Wales has one of the largest co-operative sectors in Australia, which is regulated by the Registry of Co-operatives & Associations, part of NSW Fair Trading.
Co-operatives are owned by members and run for their benefit, and provide a structure which many enterprises find meets their values and needs.
The Sydney Energy Co-operative is one such example. It was founded in June 2007 by a small group of enthusiastic students from the photovoltaic and renewable energy engineering program at the University of NSW. The founders wanted to use their technical knowledge and skills to provide practical solutions to help people access efficient and environmentally friendly power in their homes.
They specifically chose to set up a co-operative because of their values and unique features offered by the structure. They wanted an organisation which had a structure that was open and transparent, and would allow them to freely build a broad community membership base. They felt the not-for-profit co-operative model was right for their needs and would support an environment of innovation.
Since the Co-operative was formed in June 2007 it has generated a good deal of interest among local councils, environmentalist and community groups and its membership has now grown from 20 to 184 members.
One of the main thrusts of their work has been developing and promoting solar energy options for individual installation. Recently they initiated a pilot promotion in Newcastle to install more than one hundred solar panel electricity installations in several short months. These solar electricity units power just about everything in the family home, providing access to cheap, clean and environmentally friendly electricity.
The co-operative has used its bulk buying power to establish strategic partnerships with wholesalers that are prepared to offer significant discounts. Through these measures the co-operative has been able to reduce the cost of installation of its solar electricity units on family homes by 55% from $4,000 to $1,800 (this includes a government subsidy of $8,000 per installation).
The future for the Sydney Energy Co-operative certainly looks bright. It has a number of exciting projects in the pipeline including developing solar powered outdoor cinemas and promoting wind turbine technology as a source of green power. It also encourages other environmentally energy focused groups to form their own co-operative enterprises with the vision, ultimately, to have a network of linked energy co-operatives operating Australia-wide.
Back to top
CTTT offers new online services
The Consumer, Trader and Tenancy Tribunal (CTTT) is there to help you resolve disputes if you are a tenant, landlord, trader or consumer. Over the past year the CTTT has revamped its website to deliver a quicker and better service.
The latest statistics speak for themselves with an increase in visitors to the website of close to 45% over the last year.
The website now allows consumers and traders to lodge their applications online through the e-lodgement system on the website 24 hours a day. This saves time and in most cases will generate a listing date to inform the application where and when the dispute will be heard. Applicants can monitor their application's progress at any time using the system. Online applications account for 42% of all applications lodged in 2008/09.
Planning a trip to your nearest CTTT Registry is now made easier with the new website offering interactive maps and public transport guides. You can even see hearing lists in 'real time', meaning you can see what hearings are being held at CTTT Registries or the 70 other hearing venues around the State.
The CTTT website offers easy to access information and resources on:
Back to top
Fitness centres targeted in Operation XTrainer
Operation XTrainer involved a targeted blitz on 60 fitness centres across Sydney. Each year Fair Trading receives about 350 complaints against fitness centres and this program was aimed at raising awareness and compliance with statutory provisions and the Fitness Code.
Fair Trading found that many contracts were in small print and hard to read, most contracts included penalties for membership cancellation and a number of providers were unaware of their requirement to comply with the Fitness Code.
Operation XTrainer provided a greater understanding of the issues within the industry and will allow Fair Trading to develop an education program for industry and consumers, to stamp out problems in the fitness industry.
Back to top
Finance broker caught breaching law
A Chatswood finance broker who cheated 83 clients has been placed on a 2-year good behaviour bond and fined $183,600. Armond Shoostovian, sole Director of Save Finance Pty Ltd (formerly known as the Loan Enquiry Centre) was prosecuted for 137 offences under s4C of the Consumer Credit Administration Act.
When entering into brokerage agreements, Mr Shoostovian withheld vital information from clients that would have allowed them to make an informed decision whether or not to enter into an agreement. Mr Shoostovian collected an average $8,000 commission from each client who agreed to use Save Finance's services. Mr Shoostovian was prosecuted rather than the company because he knowingly authorised or permitted the company to breach the Consumer Credit Administration Act.
To protect yourself from being caught in a similar situation when dealing with finance brokers, always insist on receiving the brokerage agreement in writing. The brokerage agreement should specify the following:
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News in brief
Financial Counselling Services Program - increase in funding and extension of funding period
The Premier has announced an additional $1.6 million to be allocated to the Credit Counselling Program from 1 July 2009 bringing the total value of the Financial Counselling Services Program to $5.4 million for 2009/10. The increased funding was provided to existing and new services to provide direct financial counselling and support services to alleviate increasing client demand. Additionally, the Minister approved the extension of the Program from 30 June 2010 to 30 June 2012 to provide stability for the community to access services.
Pilot Building Contractors Advisory Service
Fair Trading has provided $80,000 to fund a free, confidential telephone advice service focusing on business management, insolvency issues and dispute resolution relating to residential building matters in NSW. The 12-month pilot scheme is being operated by CRS Warner Kugel from 1 May 2009 to 30 April 2010. For more information visit the Building contractor advisory service page or call 1300 100 285.
Publications
The following publications have been updated in the last 6 months. The publications below are provided in PDF format.
To view and order copies, visit our Publications page.
Back to top
Welcome to the eighth edition of Fair Comment, the e-newsletter for NSW Fair Trading.
Fair Comment has been missing in action for a while, going through a makeover (with help from the Fair Comment subscriber survey) to ensure that you are kept up-to-date with the information that matters to you.
In fact, it’s not just Fair Comment that has a brand new look, but all of Fair Trading. You may have noticed we have a new logo and are now simply called NSW Fair Trading. Our number one priority remains, as always, to achieve fairness for all in the marketplace.
In this issue we look at:
- upcoming changes to associations laws and how it will affect you
- how the CTTT is using their website to improve their services
- latest compliance actions and investigation results
- an important prosecution against bad business practices.
Find out about our other e-newsletters
Unsubscribe from Fair Comment.
Changes to incorporated associations laws
With over 35,000 incorporated associations across NSW, chances are that you or someone you know is a member of a club, a group or an organisation that will be affected by recent changes to the associations law. The new Associations Incorporation Act 2009 will come into effect during late 2009. Until then associations need to keep following the current requirements.
The new laws will help associations run more effectively by streamlining administrative procedures and allow for more flexibility. The changes are designed to modernise the law and allow associations to meet their obligations more easily.
Associations should keep in mind that most of the day-to-day procedures and operations will not be directly affected by these reforms, but it will impact on the following:
- associations constitutions
- meetings and resolutions
- official address
- use of common seal
- financial accountability
- public officer and committee members duties
- signatory of the association.
Accompanying the new Act will be a set of regulations that will help associations apply the new laws. The regulations are being developed in consultation with the community; this gives the community a voice in the application and interpretation of the new laws. The regulations will be released for public comment in the coming months, check the Fair Trading website for updates.
Before the new laws commence, NSW Fair Trading will be undertaking an education and information campaign to help associations clearly understand what the new reforms mean for them. An email subscription service will also be available so you can stay up to date with the reforms.
For more information, visit Changes to associations legislation page of the Fair Trading website or call 1800 502 042. Alternatively you can contact the Registry of Cooperatives & Associations on 6333 1400.
Back to top
Co-operatives - growing way to run your business
Co-operatives play an important role in our community, operating in industries as diverse as publishing, tourism, catering, dairy produce, taxis, housing, recycling and child care.
New South Wales has one of the largest co-operative sectors in Australia, which is regulated by the Registry of Co-operatives & Associations, part of NSW Fair Trading.
Co-operatives are owned by members and run for their benefit, and provide a structure which many enterprises find meets their values and needs.
The Sydney Energy Co-operative is one such example. It was founded in June 2007 by a small group of enthusiastic students from the photovoltaic and renewable energy engineering program at the University of NSW. The founders wanted to use their technical knowledge and skills to provide practical solutions to help people access efficient and environmentally friendly power in their homes.
They specifically chose to set up a co-operative because of their values and unique features offered by the structure. They wanted an organisation which had a structure that was open and transparent, and would allow them to freely build a broad community membership base. They felt the not-for-profit co-operative model was right for their needs and would support an environment of innovation.
Since the Co-operative was formed in June 2007 it has generated a good deal of interest among local councils, environmentalist and community groups and its membership has now grown from 20 to 184 members.
One of the main thrusts of their work has been developing and promoting solar energy options for individual installation. Recently they initiated a pilot promotion in Newcastle to install more than one hundred solar panel electricity installations in several short months. These solar electricity units power just about everything in the family home, providing access to cheap, clean and environmentally friendly electricity.
The co-operative has used its bulk buying power to establish strategic partnerships with wholesalers that are prepared to offer significant discounts. Through these measures the co-operative has been able to reduce the cost of installation of its solar electricity units on family homes by 55% from $4,000 to $1,800 (this includes a government subsidy of $8,000 per installation).
The future for the Sydney Energy Co-operative certainly looks bright. It has a number of exciting projects in the pipeline including developing solar powered outdoor cinemas and promoting wind turbine technology as a source of green power. It also encourages other environmentally energy focused groups to form their own co-operative enterprises with the vision, ultimately, to have a network of linked energy co-operatives operating Australia-wide.
Back to top
CTTT offers new online services
The Consumer, Trader and Tenancy Tribunal (CTTT) is there to help you resolve disputes if you are a tenant, landlord, trader or consumer. Over the past year the CTTT has revamped its website to deliver a quicker and better service.
The latest statistics speak for themselves with an increase in visitors to the website of close to 45% over the last year.
The website now allows consumers and traders to lodge their applications online through the e-lodgement system on the website 24 hours a day. This saves time and in most cases will generate a listing date to inform the application where and when the dispute will be heard. Applicants can monitor their application's progress at any time using the system. Online applications account for 42% of all applications lodged in 2008/09.
Planning a trip to your nearest CTTT Registry is now made easier with the new website offering interactive maps and public transport guides. You can even see hearing lists in 'real time', meaning you can see what hearings are being held at CTTT Registries or the 70 other hearing venues around the State.
The CTTT website offers easy to access information and resources on:
- the CTTT - its functions and divisions
- application process
- fees and charges
- dispute resolution process - conciliation and hearings
- decisions and orders
- publications
- video - Getting it sorted and We're talking your language translated in Arabic, Cantonese, Mandarin, Greek, Korean, Spanish and Vietnamese.
Back to top
Fitness centres targeted in Operation XTrainer
Operation XTrainer involved a targeted blitz on 60 fitness centres across Sydney. Each year Fair Trading receives about 350 complaints against fitness centres and this program was aimed at raising awareness and compliance with statutory provisions and the Fitness Code.
Fair Trading found that many contracts were in small print and hard to read, most contracts included penalties for membership cancellation and a number of providers were unaware of their requirement to comply with the Fitness Code.
Operation XTrainer provided a greater understanding of the issues within the industry and will allow Fair Trading to develop an education program for industry and consumers, to stamp out problems in the fitness industry.
Back to top
Finance broker caught breaching law
A Chatswood finance broker who cheated 83 clients has been placed on a 2-year good behaviour bond and fined $183,600. Armond Shoostovian, sole Director of Save Finance Pty Ltd (formerly known as the Loan Enquiry Centre) was prosecuted for 137 offences under s4C of the Consumer Credit Administration Act.
When entering into brokerage agreements, Mr Shoostovian withheld vital information from clients that would have allowed them to make an informed decision whether or not to enter into an agreement. Mr Shoostovian collected an average $8,000 commission from each client who agreed to use Save Finance's services. Mr Shoostovian was prosecuted rather than the company because he knowingly authorised or permitted the company to breach the Consumer Credit Administration Act.
To protect yourself from being caught in a similar situation when dealing with finance brokers, always insist on receiving the brokerage agreement in writing. The brokerage agreement should specify the following:
- amount of credit to be obtained
- term of the loan
- repayment arrangement
- interest rate
- when the credit is to be obtained
- a statement from the broker that their recommendations will be drawn from a wide range of sources
- name and address of the broker
- the Australian Company Number
- the amount of commission payable
- when and how that commission is to be paid.
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News in brief
Financial Counselling Services Program - increase in funding and extension of funding period
The Premier has announced an additional $1.6 million to be allocated to the Credit Counselling Program from 1 July 2009 bringing the total value of the Financial Counselling Services Program to $5.4 million for 2009/10. The increased funding was provided to existing and new services to provide direct financial counselling and support services to alleviate increasing client demand. Additionally, the Minister approved the extension of the Program from 30 June 2010 to 30 June 2012 to provide stability for the community to access services.
Pilot Building Contractors Advisory Service
Fair Trading has provided $80,000 to fund a free, confidential telephone advice service focusing on business management, insolvency issues and dispute resolution relating to residential building matters in NSW. The 12-month pilot scheme is being operated by CRS Warner Kugel from 1 May 2009 to 30 April 2010. For more information visit the Building contractor advisory service page or call 1300 100 285.
Publications
The following publications have been updated in the last 6 months. The publications below are provided in PDF format.
- Consumer building guide
- Fair Trading - What we can do for you
- Fitness services - Tips for business
- Funerals
- Getting your car repaired
- Good business matters
- Gym memberships - 10 things you should know
- Mobile phones
- Shopping, refunds and warranties
- Starting a business - Indigenous
- Strata living
To view and order copies, visit our Publications page.
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