BankWest update

"The ACCC was concerned that BankWest had sent letters to its merchants stating that it would pass on a full 10 per cent increase due to the Goods and Services Tax. This conduct was potentially misleading and in breach of the Trade Practices Act 1974 since BankWest had said that its initial analysis of the impact of the New Tax System on merchant fees had not addressed all necessary matters.

"BankWest has since advised the ACCC that it has completed its reassessment of the impact of the New Tax System on fees charged to merchants. BankWest has stated that it will be adjusting merchant fees to ensure that it complies with the ACCC's Guidelines.

"The ACCC is continuing its investigation and discussions with BankWest to ensure that merchant fees are adjusted properly to fully account for New Tax System benefits.

"The ACCC is pleased that BankWest has taken steps to ensure that New Tax System savings will be passed to merchants. The bank has also undertaken to conduct a further pricing review after the implementation of the New Tax System changes".