Reforms to boost fairness, transparency and hardship support in fines system

Under the first reform towards a fairer fines system, individuals would have a 21-day ‘cooling off period’ during which they could withdraw their decision to contest a fine in court.

Once legislated, these changes will take 12 months to roll out, while Revenue NSW makes the necessary upgrades to their systems.

Currently, once a person elects not to pay a fine, and instead dispute it in court, there is no process to reverse or withdraw it. Proceeding to challenge a fine in court means that a person risks a criminal conviction and more substantial penalties, including higher fines. These matters also take up court time.

In an Australian first, the proposed 21-day cooling off period will give fine recipients time to seek legal advice and information about the risks and implications of going to court and give them an opportunity to withdraw their court election.

Changing their mind could result in a better outcome for the individual, as well as a reduced burden on the court system.

The Minns Labor Government will also make changes to the Hardship Review Board to play an improved role in supporting people experiencing financial hardship. Under the reform, the Hardship Review Board’s membership will be expanded, and individuals, families and households struggling with cost pressures will have increased access.

The Hardship Review Board reviews decisions made by Revenue NSW where individuals are unable to pay fines, fees or taxes. It can recommend a range of alternatives to payment, including the withdrawal of debts due to hardship.

Under the proposals, the Board would have its membership expanded from three to five, with two new members appointed by the Minister for Finance. This will provide the Board with more diverse expertise to inform their decisions.

The Board would also take on a new advisory role, providing recommendations to the Minister for Finance on opportunities for policy reform.

Individuals would also have greater access to payment plans, and those in hardship notified of their rights to apply to the newly expanded Hardship Review Board.

These new initiatives complement Revenue NSW’s existing support options available for vulnerable members of the community to manage and resolve their fines. This includes diversion pathways away from the fines system and specialised support for those affected by financial abuse.

These reforms are part of the Minns Labor Government’s commitment to improve fairness and transparency in the fine system and build on last year’s changes to bring back on-the-spot notifications for parking fines.

Quotes attributable to Minister for Finance Courtney Houssos:

“Cost of living pressures are impacting everyone. These reforms are about making sure we have the right supports in place for people doing it tough.

“Choosing to contest a fine in court shouldn’t be taken lightly. Giving people a 21-day cooling-off means people can get additional legal advice and make a more informed decision about how to deal with their fine.

“This is an Australian-first initiative, and a commonsense change. It will reduce the stress and financial burden for individuals and families and take pressure off the court system.

“Expanding the Hardship Review Board ensures we have the right voices at the table when making decisions that impact vulnerable members of our community.

“This is part of a range of initiatives we have introduced, including our reforms to re-introduce physical notifications for parking fines, which makes the system fairer and more transparent.”