New South Wales Consolidated Acts

FITNESS SERVICES (PRE-PAID FEES) ACT 2000 - SECT 11

11 Pre-paid fees to be held in trust account where supplier has not commenced to provide agreed service

(1) If a supplier receives money for any pre-paid fee for any fitness service to be provided under a fitness service agreement at, or in connection with, a fitness centre, the supplier must:

(a) hold the money exclusively for the consumer of the service until the supplier commences to provide the agreed service, and

(b) ensure that the requirements of this section and the regulations under this section are complied with in relation to the money.

(2) Money received on behalf of a consumer of a fitness service by the supplier of the service must be paid to the credit of a general trust account at a branch of an authorised deposit-taking institution in New South Wales and be kept in accordance with the regulations.

Note: Section 21 (1) of the Interpretation Act 1987 defines "deposit-taking institution" to mean an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth.

(3) A trust account under this section must be kept exclusively for the purpose of money received on behalf of all consumers of fitness services to be provided by the supplier in respect of whom subsection (1) applies.

(4) A supplier in respect of whom subsection (1) applies must keep accounting records in respect of money received on behalf of a consumer of a fitness service.

(5) Such accounting records must:

(a) disclose at all times the true position concerning the money received, and

(b) be kept at the principal place of business of the supplier in New South Wales, and

(c) be otherwise kept in accordance with the regulations.

(6) The regulations may make provision for the administration of trust accounts under this section and, in particular, the keeping of documents and records by suppliers of fitness services.

(7) A supplier of a fitness service must not contravene a provision of this section or the regulations under this section.

Maximum penalty (subsection (7)): 1,000 penalty units.