Key Points
- A think tank says Australia must follow Finland on a fair fines system.
- The Australia Institute says the current system “criminalizes poverty”.
- Under this alternative, lower-income drivers would pay lower fines and higher-income drivers would pay more.
A new report says Australia’s current road fine system “criminalizes poverty”, calling for speeding fines to be proportional to a driver’s income.
Amid pressure on the cost of living, earning a traffic fine can mean that low-income earners are forced to choose between essentials or paying the fine – whereas for high-income earners it can be an inconvenience – according to the Australian Institute.
Under the current system, any driver caught speeding in Australia is issued the same fine, depending on the state or territory in which they committed the offense, regardless of their income.
However, NSW offers a 50 per cent reduction on certain fines for people receiving government benefits.
A new think tank report calls for a fairer Finnish model of road fines to be implemented in Australia.
It’s unfair that a billionaire pays the same $200 fine for speeding as a low-income earner, said Alice Grundy, the institute’s research director and co-author of the report.
“Australia’s regressive speeding fine system effectively criminalizes poverty,” she said.
The Australia Institute’s plan proposes a fixed fine based on the speeding range, with drivers earning more depending on their income and whether they have dependents.
NSW drivers currently pay a $361 fine if they are caught speeding between 10km/h and 19km/h over the limit, but under the proposal drivers could receive a fine ranging from $75 to $885 depending on their income.
The report claims that the accumulation of unpaid fines can trigger a vicious chain of events, in which the cancellation of the driver’s registration or license could lead to a reduced ability to work and pay the fines.
“While they are essentially a mosquito bite for the rich, they can be life-altering for the poor,” said Zyl Hovenga-Wauchope, chief executive of Financial Counseling Victoria.
In 2014, while in custody because she was unable to pay $1,000 in fines related to minor (non-traffic) incidents involving police.
In 2016, WA Coroner Ros Fogliani recommended ending the practice of locking people up due to unpaid fines. In 2020, WA changed legislation so state police could not detain people who could not pay their fines.
The Australia Institute report notes that income-based fines are aimed at fairness rather than changing driver behavior, suggesting that warning signs and physical changes to roads are more effective.
Here is what the Australia Institute considers to be a fairer payment model:
New South Wales: Between $75 and $885 (The current fine is $361)
Victoria: Between $75 and $850 (The current fine is $330)
Queensland: Between $75 and $829 (The current fine is $266)
Western Australia: Between $75 and $917 (The current fine is $200)
South Australia: Between $75 and $750 (The current fine is $406)
Tasmania: Between $75 and $804 (The current fine is $150)
ACT: Between $75 and $750 (current fine is $489)
Northern Territory: Between $75 and $849 (The current fine is $300)
