Different schemes have different ways of handlign complaints. Some want to issue a warning or even three before issuing a Notice To Comply …But a Notice To Comply IS a warning. It says “you have breached a by-law and if you don’t stop we’ll take it further.”
It’s not a fine … it’s a threat.
Many people would say issuing one less formal warning initially is reasonable, followed by a Notice To Comply. Just passing on complaints is not doing anything other than being a mailman. Only a Notice To Comply can progress to action at NCAT so anything short of that is effectively doing nothing.
I’d say press on with this and demand immediate action.