1.1 These Terms and Conditions form the basis of EZToken Rewards program. They are intended to protect both Members and EZTrade Holdings Pty Ltd ACN 624 153 804 (‘EZTrade’), the operator of the program. It is the Member's responsibility to read and understand them.
1.2 These Terms and Conditions are effective as at the date specified above and may be amended by EZTrade from time to time. The current Terms and Conditions are those available at this website. Members will be provided with access to the Terms and Conditions at the time of joining EZToken Rewards.
1.3 Every Member is bound by these Terms and Conditions.
2.1 In these Terms and Conditions unless the context otherwise requires:
'Active Member' at a point in time, means a Member who has earned or redeemed EZToken on their Membership Account within the previous consecutive 12 whole month period from that point in time;
'Earning Tables' means the tables headed as such, which are located at www.eztoken.io;
'Base Rate' means the number of EZToken earned by a Member on a transaction at the applicable 'Base Rate' specified in the Earning Tables, not including any bonus;
'Benefits' means any of the facilities, discounts, services or arrangements offered or available to a Member as a result of membership in EZToken Rewards including earning and redeeming EZToken;
'Card' means the EZToken Rewards Membership card that EZTrade may issue to the Member, and which can be accessed via participating retailers or the EZToken App;
'EZToken Customer Service' means a centre operated by EZTrade where membership information is processed and EZToken Rewards are administered;
'Member' means a person who is a member of EZToken Rewards;
'Membership' means membership of EZToken Rewards;
'Membership Account' means the record of a Member's Membership, which is available to the Member online at www.eztoken.io or via the EZToken App;
'3rd Party Partner' means an entity with whom EZTrade has entered into an agreement to provide for Members to earn EZToken when acquiring certain goods or services (or as otherwise agreed with EZToken) or to redeem EZToken for certain goods or services, or both;
'EZToken' means EZT crypto-tokens awarded to Members in EZToken Rewards pursuant to these Terms and Conditions unless otherwise stated;
'EZTrade' means EZTrade Holdings Pty Ltd ABN 11 624 153 804;
'EZToken Rewards' means the reward program operated by EZTrade;
'www.eztoken.io' means EZToken Reward program’s internet site; and
'Terms and Conditions' means these EZToken Rewards Terms and Conditions.
3. Changes to EZToken Rewards
3.1 Subject to clause 3.2, EZTrade reserves the right to make any changes (whether material or otherwise) to EZToken Rewards and the Terms and Conditions, including:
a) changes to:
the ways in which EZToken are earned and redeemed;
EZToken earning rates;
service charges and other fees;
b) changes to 3rd Party Partners, or the products and services offered by any of those parties on which EZToken may be earned; c) changes to any 3rd Party Partner participation including restrictions on earning and/or redeeming EZToken.
3.2 EZTrade will give 30 days’ advance notice by email of any material change, but if the change is required urgently to protect EZTrade, Members or 3rd Party Providers, EZTrade is not required to give advance notice.
4. Termination or Suspension of EZToken Rewards
4.1 EZTrade gives no warranty as to the continuing availability of EZToken Rewards. EZTrade may terminate or suspend EZToken Rewards at any time. EZTrade will give at least one month’s notice to Members of such termination or suspension, except if EZTrade becomes insolvent, in which case EZToken Rewards will cease immediately.
4.2 If EZTrade terminates or suspends EZToken Rewards, Members will be able to redeem EZToken during the notice period with participating merchants in accordance with these Terms and Conditions, except where EZTrade is ceasing to operate a business and/or has gone into liquidation or other form of administration, in which case EZTrade may terminate the ability to redeem with participating merchants immediately without notice.
5.1 Membership of EZToken Rewards is open only to individuals. Membership is not open to families, groups, companies, trusts, partnerships, other entities, government departments or agencies.
5.2 Persons wishing to become Members must apply for Membership. Membership is offered at the discretion of EZTrade. EZTrade has the right to accept or reject any application for Membership.
5.3 Each Member may have only one EZToken Rewards account.
5.4 Members may, at any time, cancel their Membership by contacting EZToken Rewards. EZToken Rewards will cancel the relevant Membership. At the time of requesting cancellation, the Member will be advised by email they have 60 days to spend their remaining EZToken with a 3rd Party Partner. If no transaction is made within 60 days of the cancellation, accumulated EZToken in that Member's account may be forfeited to EZToken Rewards. Accordingly, EZTrade recommends that Members carefully plan all cancellations to avoid forfeiture of accumulated EZToken.
6. Use of the Digital Card and Benefits
6.1 Members will have access to a physical Membership Card, or a digital Membership Card via the EZToken App or Web App. By using the Card or claiming any Benefit, the Member agrees to be bound by the Terms and Conditions and provides the consents specified in clause 13 relating to personal information. EZToken may only be earned and/or redeemed in accordance with these Terms and Conditions as amended from time to time.
6.2 The Card is valid for use only by the Member and are not transferable in any circumstances.
6.3 EZTrade reserves the right at any time to require the Member to produce their Card in order to earn EZToken in connection with a transaction with any 3rd Party Partner or redeeming EZToken with any 3rd Party Partner.
6.4 In the event of loss, theft or unauthorised use of a Card or account, it is the Member's responsibility to advise EZTrade as soon as possible. The Member is liable for all use of the Card or account until EZTrade is notified of the loss, theft or unauthorised use.
7. Member obligations and responsibilities
7.1 Members must not:
(a) act in any way which breaches these Terms and Conditions; or
(b) abuse or misuse EZToken Rewards, any Rewards, Benefits, facilities, services or arrangements accorded to the Member as a result of Membership including by:
(i) engaging in illegal or fraudulent activities; or
(ii) supplying or attempt to supply false or misleading information, or making a misrepresentation to EZTrade or 3rd Party Partners.
7.2 Each Member is responsible for ensuring that they have sufficient EZToken to redeem when making a redemption request.
7.3 Each Member is responsible for regularly checking their Membership Account and must:
(a) notify EZTrade of any omissions, incorrect entries or other discrepancies within three months of the applicable transaction;
(b) notify EZTrade or the applicable partner (as specified by EZTrade) of any omissions, incorrect entries or other discrepancies within three months of any other transaction (or such other period specified by the partner).
Note: Partners will require the Member to present their Card, EZToken Rewards App or quote their mobile number at the time of transaction and will not accept retrospective claims for EZToken. Members should check with the individual partner on their requirements.
EZTrade and each 3rd Party Partner reserves the right to require proof of earning from the Member, including copies of receipts or similar documentation.
8. Suspension or Termination of Membership
8.1 If a Member has committed a material breach of any of the Terms and Conditions, then EZTrade may do any one or more of the following:
(a) suspend or terminate the Member's Membership
(b) reverse or cancel the Member's EZToken or any part thereof to the extent the Member’s holding of the EZToken is attributable to that breach.
8.2 If EZTrade intends to take action under clause 8.1, it will notify the Member of its intention and the reason for that action.
8.3 Membership will terminate automatically on the death of a Member. EZToken earned but not yet redeemed or transferred prior to the death of the Member will be transferrable to the next of kin. EZTrade will close the Member's account on notification of the Member's death. EZTrade will not be liable for any loss or damage whatsoever suffered by any person as a result of such cancellation. If the next of kin do not claim the EZToken allocation within twelve months of the termination of the membership, ownership of the EZToken will revert to EZTrade.
9. Earning EZToken
9.1.1 To earn EZToken via EZToken Rewards, Members must show their Membership Card or EZToken App or quote their mobile number, or for online transactions enter their EZToken Rewards membership number when transacting.
9.1.2 A Member may earn EZToken only in relation to eligible transactions entered into after the Member's enrolment date. Except as provided elsewhere in these Terms and Conditions, or as otherwise specified by EZToken Rewards, EZToken may be credited only to the account of the Member who has acquired the eligible goods or services, or entered into an eligible transaction.
9.1.3 EZToken will not be awarded in relation to any transactions that are cancelled, refunded or returned. EZTrade may cancel or deduct any EZToken that have been awarded in relation to cancelled and/or refunded transactions.
9.2 EZToken validity
9.2.1 Except as otherwise provided in these Terms and Conditions, EZToken never expire.
9.3 Earning EZToken
9.3.1 EZToken may be earned for 3rd Party Partner transactions and other EZToken Rewards activities. The number of EZToken earned will differ depending on the 3rd Party Partners and the market value of EZToken at the time of earning.
9.6 Earning EZToken from 3rd Party Partners
9.6.1 EZToken has arrangements with 3rd Party Partners in relation to the awarding of EZToken to Members. Such arrangements may change from time to time and may include the awarding of EZToken for participation in loyalty schemes or promotions, as purchasing incentives and as performance incentives. EZTrade may, from time to time, participate in other such arrangements or approve other ways in which Members may earn EZToken and additional terms and conditions applicable to earning those EZToken will be made available by the applicable partner and/or at or through the EZToken website.
10. Account Information
10.1 Members may access account information without charge at www.eztoken.io and via the EZToken Rewards App, including EZToken earned and EZToken redeemed.
11.1 EZToken can be transferred between different EZToken Rewards accounts without restriction.
12. Redeeming and Exchanging EZToken
12.1 EZToken can be redeemed at 3rd Party Partners at the time of transaction via the EZToken Rewards App. The Member must inform the 3rd Party Partner of the fiat currency amount of EZToken they wish to redeem, and scan the QR Code via the App or Web App to complete the transaction.
12.2 In addition to the EZToken required, Members must pay any other amounts quoted at the time of redemption.
12.3 EZToken earn and redemption (trades) may be subject to personal income or other tax assessment. Members are advised to check with their accountant or tax adviser for further information. A summary of certain Australian income tax considerations is provided at the end of these terms & conditions.
12.4 Members must have in their account at least the number of EZToken required to redeem the chosen fiat currency amount at the time the redemption is processed.
12.5 Any credit or refund made to a Member under these Terms and Conditions will be made:
(a) in EZToken to the extent that the Member redeemed EZToken as part of the transaction; and
(b) in money refunded to the Member's Accepted Payment Card to the extent that the Member paid money as part of the transaction, less any applicable fee.
13. Personal Information
13.1 It is a condition of Membership that a Member consents and authorises EZTrade to collect, use and disclose the information on their application form and other information that EZTrade collects in relation to the Member for the purposes described in this clause, and disclose such information to 3rd Party Partners and any other person (including related bodies corporate, agents and contractors) for the purposes of:
(a) EZTrade or any of its related bodies corporate, providing products or services, including the awarding of EZToken to Members;
(b) EZTrade or any of its related bodies corporate improving customer service, including by means of research, marketing, product development and planning;
(c) EZTrade marketing its products or services or the products or services of third parties; and
(d) any third party providing services to EZTrade, any of its related bodies corporate or Members in connection with the administration of EZToken Rewards.
This information may be transferred to or from Australia for these purposes. If all or any part of the requested information is not provided by the Member, the services provided to that Member by EZTrade may be affected.
13.2 It is a condition of Membership that a Member consents to EZTrade collecting, using, disclosing and sharing the Member's personal information so that EZTrade and other third parties can generate consumer insights about the Member and for EZTrade to offer the Member its and its partners' products and services that may be of interest to the Member. EZTrade and other third parties may also disclose the Member's personal information to parties who assist them to promote their products and services.
In order to generate consumer insights about Members, EZTrade may collect and combine personal information about the Member from third parties or public sources (eg Census data) and EZTrade may disclose and share that personal information. This includes being able to better understand a Member's preferences and interests, personalise their experience, enhance the products and services they receive, and to tell them about products and services.
14.1 EZTrade acknowledges that certain laws imply terms, conditions or warranties into contracts for the supply of goods or services that cannot be excluded. To the extent permitted by law, EZTrade limits its liability under such terms, conditions and warranties to the maximum extent permitted by law. For example, for consumers, services come with non-excludable warranties under the Australian Consumer Law that they will be provided with due care and skill and be reasonably fit for their purpose. EZTrade limits its liability for breach of such warranties to supplying the service again or the cost of supplying services again (at EZTrade’s election).
14.2 EZTrade and any of their officers, employees or agents are not liable for any loss or claim of any kind (including, without limitation, consequential or economic loss or loss of profits), arising under or in connection with these Terms and Conditions or EZToken Rewards, including, without limitation, any changes to the Terms and Conditions or EZToken Rewards, save to the extent that such loss or claim arises from the negligence or wilful misconduct of EZToken, or any of their officers, employees or agents, or from breach of terms, conditions or warranties referred to in 14.1.
15.1 Interpretation: In these Terms and Conditions, unless the contrary intention appears:
(a) the singular includes the plural and vice versa;
(b) dollars or '$' means Australian dollars;
(c) unless otherwise stated, all dollar amounts include any applicable GST;
(d) dates or times are Universal Time Code (or GMT) dates or times; and
(e) a reference to 'include' or 'including' means 'including but not limited to'.
15.2 Governing Law: The Terms and Conditions and membership in EZToken Rewards are governed by and will be construed in accordance with the laws of the State of New South Wales, Australia irrespective of where the application for Membership has been completed by the Member or submitted to EZToken Rewards. In any action or other legal process with respect to any matter or thing in connection with these Terms and Conditions or Membership, the Member submits to the non-exclusive jurisdiction of the State of New South Wales.
15.4 Nothing in these Terms and Conditions affects any rights a Member may have and which by law cannot be excluded, including under the Competition and Consumer Act 2010 (Cth) and under State and Territory consumer protection legislation.
15.5 If part or all of any clause of these Terms and Conditions is illegal, invalid or unenforceable then it will be read down to the extent necessary to ensure that it is not illegal, invalid or unenforceable, but if that is not possible, it will be severed from these Terms and Conditions and the remaining provisions of these Terms and Conditions will continue to have full force and effect.
Last updated: 25th June 2018
The following is a summary of certain Australian income tax considerations, including capital gains tax, relating to the earning and redemption or sale of EZTokens by members, as at 25 June 2018.
This summary is relevant to individual members who participate in EZToken Rewards as private consumers, and who do not pay an amount or provide other consideration (either directly, or indirectly through paying a higher price for goods or services) for receiving EZTokens. It is not exhaustive and, in particular, it does not deal with the position of certain classes of members, including, without limitation:
- members who are resident outside Australia (or temporarily resident in Australia),
- members who purchase EZTokens for use in carrying on a business, or
- members who earn EZTokens while purchasing goods for resale or business use or are otherwise carrying on a business.
The following summary is a general guide and should be treated with appropriate caution. This summary has been prepared by King & Wood Mallesons for EZTrade Holdings Pty Ltd. It is not intended to be, nor should it be construed as, legal or tax advice to any particular member. Members should be aware that the summary is provided to assist members in understanding the potential tax implications of their participation in EZToken Rewards, but it does not take into account the individual circumstances of any particular member, and should not be relied upon in any way. Members are solely responsible for all taxation obligations in connection with earning, holding and using EZTokens, and members should seek their own professional advice.
Under Australian law, ordinary income (such as wages and business income) and capital gains can be subject to income tax. Normal rates of income tax apply to capital gains, and capital losses can only be offset against capital gains. Excess capital losses may be able to be carried forward to offset against future capital gains.
If an amount received is both ordinary income and a capital gain, it is taxed as ordinary income and generally the capital gain would be reduced by the amount taxed as ordinary income. However, the rules applying to capital gains include some exceptions and concessions. As a result, if a person receives capital proceeds in relation to an asset sold by them and such proceeds do not give rise to the derivation of ordinary income, a taxable capital gain may not necessarily arise.
In the circumstances to which this summary is relevant (as described above and set out in more detail below), earning and redeeming EZTokens generally would not be expected to give rise to ordinary income, and although the EZTokens are capital gains tax assets, any capital gains arising from the redemption of EZTokens should be disregarded for capital gains purposes.
Tax on earning EZTokens
Earning EZTokens should not of itself give rise to a taxable event for members. The earning of EZTokens is not a taxable event for the purposes of the capital gains tax provisions, and should not result in the derivation of ordinary income when the EZTokens are earned in connection with the purchase of goods or services for private use.
Capital gains tax on disposal of EZTokens
The disposal of EZTokens, whether by redemption with a participating retailer, or sale on the EZToken Exchange, is prima facie a taxable event for capital gains purposes. Capital gains are broadly calculated by valuing the property received in exchange for the EZTokens (including cryptocurrencies, as well as goods or services), and reducing that value by any cost incurred in acquiring the EZTokens. In circumstances where no amount has been paid for the EZTokens, either directly or indirectly (through paying a higher price for the same goods or services in order to earn EZTokens), members are unlikely to be able to identify any cost of acquisition to reduce the capital gain.
Personal use assets exemption
However, an exemption may be available to exclude a capital gain from a member’s taxable income, where the EZTokens are considered to be a personal use asset. An asset which is used or kept mainly for your personal use or enjoyment is a personal use asset for capital gains purposes. Capital gains on personal use assets are disregarded where the amount paid (or value of property given) to acquire the asset (combined) was $10,000 or less. Therefore, if the EZTokens are held by the member mainly for personal use or enjoyment, any gain or loss on the disposal will be disregarded on the basis that the EZTokens are personal use assets for that member.
Whether the EZTokens are held by the member mainly for personal use or enjoyment will depend on a number of factors including the member’s intention over the time that the EZTokens are held, as demonstrated by the member’s individual circumstances.
Where a member exclusively redeems EZTokens for goods or services, and those goods are services are for that member’s personal use or enjoyment (for example, household goods, clothing or leisure activities), the member’s EZTokens should be personal use assets and therefore capital gains tax would not be expected to apply.
However, in (and not limited to) circumstances where members:
- tend to hold most of their tokens on a long term basis rather than redeeming them (whether in the member’s account or a private wallet); or
- mainly sell their EZTokens on the EZToken Exchange,
it would be expected that that member’s EZTokens will not be taken to be personal use assets.
If the member’s EZTokens are not personal use assets, members will be subject to capital gains tax on any amount received on the sale of EZTokens (or the value of cryptocurrency received), and the value of goods or services received on redemption with a retailer. A capital gains tax discount may be available for Australian resident individuals if the member has held the relevant EZTokens for at least 12 months. Where the requirements for the discount are met, the discount rate applicable to individuals is 50%.
Ordinary income on disposal of EZTokens
The disposal of EZTokens should not be taxable outside of the capital gains tax regime for most members of the character to which this disclosure applies. However, members who:
- sell significant quantities of EZTokens,
- regularly buy or sell EZTokens,
- acquire EZTokens as part of a profit-making scheme;
- hold EZTokens on a long-term basis, or
- earn or purchase EZTokens in connection with any business,
may be treated as having derived ordinary income from their transactions involving EZToken, and may therefore be required to pay income tax on the full value of all EZTokens received and sold, less any applicable deductions.
In all circumstances, members should seek their own professional tax advice.