Key Points
- A think tank says Australia needs to follow Finland on an equitable fines system.
- The Australia Institute says the current system “criminalises poverty”.
- Under its alternative, lower-income drivers would pay lower fines and higher-income drivers would pay more.
A new report says Australia’s current system for traffic fines is “criminalising poverty”, calling for speeding fines to be made proportional to a driver’s income.
Amid cost of living pressures, earning a traffic fine can mean lower-income earners are forced to choose between essentials or paying off the fine — while for high-income earners, it may be an annoyance — the Australia Institute says.
Under the current system, every driver caught speeding in Australia is given the same fine, relative to the state or territory they committed the offence in, regardless of their income.
However, NSW offers a 50 per cent discount on some fines for people on government benefits.
A new report from the think tank is calling for a more equitable Finnish traffic fine model to be implemented in Australia.
Having a billionaire pay the same $200 speeding fine as a low-income earner is unfair, the institute’s research manager and report co-author Alice Grundy said.
“Australia’s regressive speeding fine system effectively criminalises poverty,” she said.
The Australia Institute’s plan proposes a flat fine based on the speeding range, with drivers accruing more based on their income and whether they have dependants.
NSW drivers currently pay a $361 fine if caught speeding between 10km/h to 19km/h above the limit, but under the proposal, drivers could receive a fine ranging from $75 to $885 based on their income.
The report argues that accruing unpaid fines can trigger a vicious chain of events, where having the driver’s car registration or licence cancelled could lead to a reduced ability to work and pay fines.
“While they are basically a mosquito bite for the wealthy, they can be earth-shattering for the poor,” Financial Counselling Victoria executive officer Zyl Hovenga-Wauchope said.
In 2014, while in custody because she was unable to pay $1,000 in fines related to minor (non-traffic-related) incidents involving police.
In 2016, WA coroner Ros Fogliani recommended ending the practice of locking up people because of unpaid fines. In 2020, WA changed legislation so that police in the state could not lock up people who could not pay their fines.
The Australia Institute report notes that income-based fines are aimed at fairness, rather than changing driver behaviour, suggesting warning signs and physical road modifications are more effective.
Here’s what the Australia Institute says would be a fairer payment model:
NSW: Between $75 and $885 (Current fine is $361)
Victoria: Between $75 and $850 (Current fine is $330)
Queensland: Between $75 and $829 (Current fine is $266)
Western Australia: Between $75 and $917 (Current fine is $200)
South Australia: Between $75 and $750 (Current fine is $406)
Tasmania: Between $75 and $804 (Current fine is $150)
ACT: Between $75 and $750 (Current fine is $489)
Northern Territory: Between $75 and $849 (Current fine is $300)
