cover image: Refining fines - Addressing the inequality of traffic penalties in Australia

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Refining fines - Addressing the inequality of traffic penalties in Australia

14 Oct 2024

If a driver in the highest income bracket exceeded the speed limit by more than 10km/h on Macpherson Street in the exclusive Sydney suburb of Mosman, as is on the record in the NSW speeding fine data, their fine in the day-fine model would almost triple to $889. [...] However, exceeding the speed limit by more than 20 km/h is considered a traffic crime, and attracts a day fine relative to the driver’s income.15 The name “day fine” comes from the idea of the fine representing a day’s income. [...] (The original implementation was based around the idea of calculating how much income a worker would forfeit if they spent a day in prison instead of working.)16 The level of a day fine is calculated via a formula that takes into account the driver’s net monthly income of the driver, as well as the number of dependents for whom the offender provides. [...] The Finnish police calculate the value of a day fine based on the drivers’ latest tax returns.45 ACCESS TO INCOME TAX DATA The most efficient means of determining a person’s income for the purposes of a proportional fine is access to their most recent income tax return. [...] In New South Wales in 2022 to 2023, regulatory fees and fines (traffic and otherwise) represented 0.75% of the state’s total revenue and the government has budgeted a decrease in revenue for the coming years following the reintroduction of warning signage.48 Under a proportional fine system, states would likely devote less resources chasing up fine defaulters since drivers in the lower quintiles o.

Authors

Olivia Chollet

Pages
22
Published in
Australia

Table of Contents