NSW government to pay hundreds of thousands of dollars in interest on invalid COVID fines

4 February 2025

The payment of interest, which was recently confirmed by the NSW Government, means those affected could each receive between $30 and $1300 in interest for the invalid fines.

This latest development comes just months after the NSW Government agreed to withdraw and repay more than 23,000 COVID fines totalling approximately $15 million.

The total amount of interest to be paid is expected to be in the hundreds of thousands of dollars, but the exact amount will depend on the size of the fine and when it was paid.

According to Maurice Blackburn’s calculations, a person who paid a $1000 fine could receive from $30 to up to $170 in interest, while a person who paid a $5000 fine could get up to $850 in interest.

Quotes attributable to Jennifer Kanis, Principal Lawyer, Maurice Blackburn Lawyers

“This news will be welcomed for those people who have been left out of pocket by paying these invalid fines.

“We are pleased the New South Wales Government has agreed to not only repay the invalid fines, but also the interest accrued.

“People paid the fines in good faith, based on the penalty notices they received. However, these notices were not actually valid under the law.

It is only fair that the government pay interest on money they received and have had the benefit of because of an error on their part.

“Courts have previously ruled that interest should be paid when one party receives and retains money from another person without justification.

“We understand the government is now working to process both the repayments and interest payments, and look forward to receiving more information on the mechanics of the repayment.”

Quotes attributable to Samantha Lee, Supervising Solicitor, Redfern Legal Centre

“This is a welcome decision, but it was long overdue.

“In November 2022, the government admitted before the NSW Supreme Court that some COVID fines were invalid and withdrew 33,000.  Despite ongoing advocacy by Redfern Legal Centre, the NSW Government did not withdraw all 55,000 fines or commit to repaying interest.  In December 2024, the NSW Government finally withdrew the balance of the COVID fines and has now committed to repayment of interest.

“We know these fines were disproportionately issued to marginalised communities, imposing a financial burden on those who can afford it the least.

“This case focused on ensuring procedural fairness and upholding the rule of law. It is crucial, even in times of crisis, that the Government ensures the law is applied and administered fairly.”