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The department’s preferred option to revamp the fines regulations would increase fee revenue by almost $40 million to about $160 million – a figure that would cover the full cost of enforcing fines – and would come into effect next year.
The government considered another option that would allow concession cardholders to pay lower fees, but concluded this option would not recover enough costs, according to a regulatory impact statement published this week.
The Allan government collected about $946 million in total fine revenue last financial year, which includes revenue taken from road safety cameras, toll evasions, on-the-spot infringements and other statutory infringements.
Blustein said the government had failed to consult on what impact increasing late fees would have, or to understand the reasons people might not pay on time.
She said the legal centre was overwhelmed with people seeking help with their fines – people who often had to make the choice of skipping meals or missing rent payments to pay them.
“This is how they treat people; they just want to bring the money in,” she said.
“We think, economically, they would do much better by reducing waste – stopping chasing fines they are never going to recoup and instead let people pay a smaller amount from the beginning.”
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A report by a government-commissioned fines advisory board in 2020 recommended that further consideration should be given to the introduction of a concessional penalty rate for fine recipients in financial hardship. The government supported this recommendation in full.
Toll fines can become particularly difficult for people to manage, as one unpaid $10 fee can quickly become hundreds of dollars once penalties are added.
People who need to regularly use toll roads could then accumulate many of those fines and quickly end up with debts in the tens of thousands of dollars.
Earlier this year, The Age revealed that the 20 people with the largest unpaid fines in the state owed almost $6 million collectively. Toll fees were the driving force behind Victoria’s largest unpaid fines, including one debt of $406,931.
Peninsula Community Legal Centre chief executive Jackie Galloway said the organisation was disappointed the government wanted to increase fine penalties so significantly, especially in the current economic climate.
She has seen people get stuck with escalating toll debts for a wide range of reasons, including apprentices on minimum wages having to travel to the other side of the city, or people on benefits needing to get to health appointments.
“We certainly believe that an amnesty on the penalty component of the outstanding fines is the right thing to do,” she said.
“Most people could pay off the actual toll fees if given the opportunity.”
A state government spokesperson said the proposed changes would not affect most Victorians who pay fines, or deal with them, on time before receiving a reminder.
They said the government was reviewing the regulations to ensure people who didn’t pay their fines on time paid their fair share.
“There are multiple opportunities for people to ask for a review of their fine in addition to being able to take it to court, and flexible arrangements for people in special circumstances or without the ability to pay,” the spokesperson said.
Details of the fee-increase plan are contained in a regulatory impact statement that the government is currently seeking feedback on online.
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The Liberal opposition declined to comment on the proposal.
Greens economic justice spokesperson Aiv Puglielli said people on low incomes and without stable housing were most likely to miss payments and would be hit hardest.
“It’s completely backwards that instead of looking at reasonable revenue-raising measures, Labor would prefer to pile more costs onto the people who can least afford it,” he said.
The government’s move to increase fine fees comes alongside a string of other policies and taxes.
This week, legislation was introduced to parliament that would dramatically increase a tax on CBD car parks and expand its boundaries to inner-city suburbs. But the government could struggle to pass the legislation needed to enact the changes, with key crossbenchers wavering in their support.
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