Despite withdrawing over 23,000 invalid fines issued during the pandemic, the New South Wales government is allocating some of the money to be refunded back to itself.
On Tuesday it was announced the fines from the lockdowns during the pandemic - valued by a legal firm at $15 million - would be withdrawn and repaid by the New South Wales government.
The announcement came after more than 33,000 COVID-19 fines were already thrown out by the NSW Supreme Court after they were declared invalid in late 2022.
The campaign, led by Redfern Legal Centre (RLC) and Maurice Blackburn Lawyers, will see people who have paid a withdrawn fine receive repayment, and comes after Maurice Blackburn notified the NSW Government this month of its intention to file a class action if Revenue NSW didn't withdraw and refund the remaining COVID fines.
"The goal has always been to seek justice for all people in NSW who were issued with an invalid fine," Supervising Solicitor at Redfern Legal Centre, Samantha Lee, said on Tuesday.
"The impact of COVID fines on marginalised communities and on children – was disproportionate, unreasonable, and unjust."
Ms Lee added: "Added to this was the unfairness of fines being unclear about what offence the person was alleged to have committed."

Despite this, a statement on the NSW Revenue website says: "Revenue NSW may re-allocate the money you paid to any other unpaid fine in your name which has not been withdrawn."
"Any money that cannot be re-allocated will be refunded to you."
A report in May found disadvantaged and First Nations children in NSW were targeted by police during the COVID-19 pandemic, with fines up to $5000 being issued, pushing families into financial hardship.
The Department said whilst there was a "clearer explanation of the offences" for which they were issued than the 33,000 invalid ones previously withdrawn, they said "since receiving legal representations and further considering the descriptions in the remaining penalty notices it is appropriate to withdraw" the remaining fines.
"Ultimately, the Commissioner of Fines Administration considers the Covid-19 related penalty notices contained insufficient details which may render them technically deficient and place their validity in doubt," the Department said.
Aboriginal Legal Service (ALS) NSW/ACT Principal Solicitor, Lauren Stefanou, said they welcomed the NSW Government's decision, noting the ALS had long advocated for justice for the communities they serve who were "disproportionately policed, punished and fined during the pandemic."
However, Ms Stefanou said the ALS was "concerned" Revenue NSW may seek to "reallocate COVID fine payments towards other fines".
"This falls short of real justice for our clients who were issued unfair, unequal and unlawful COVID fines, overwhelmingly in over-policed communities who already shoulder a disproportionate burden of fine debt," she said.
"All amounts paid towards withdrawn COVID fines should be refunded in full without exception."
On LinkedIn, RLC said they were of the view the "Commissioner of Fines may not have the power to reallocate and that such an action is in bad faith", arguing the fines should never have been issued "in the first place".
"They were disproportionately imposed on socio-economically disadvantaged individuals, families, and communities," RLC said.
"This is yet another unjust decision in a series of actions that have led to the government being forced to withdraw and refund these fines."
Ms Stefanou said the ALS was also concerned about the "scores of people" who elected - "irreversibly" - to challenge their fines in court and accrued a criminal conviction, as well as more serious penalties, as a result.
"Global action must be taken to provide redress and to reform the law to allow for court elections to be withdrawn," she said.
"Fines are a blunt and unequal tool which exacerbate poverty and disadvantage. We applaud the Government's decision to withdraw all remaining COVID fines and urge further action to deliver a fairer fines system for NSW."