At Carroll & O'Dea Lawyers, we are experts in compensation for motor vehicle accidents. In this ongoing series, we are highlighting important topics that road users in New South Wales (NSW) might find helpful and should be aware of. While many of these topics will focus on compensation for motor vehicle accidents, we will also explore broader issues, such as changes to road laws, safety updates, and legal reforms that affect drivers, passengers, cyclists, and pedestrians.
A key part of staying safe and compliant on NSW roads involves understanding your rights and responsibilities, and Carroll & O'Dea is committed to keeping you informed about developments that could affect you.
The NSW Government, in collaboration with the Australian Border Force (ABF), is taking decisive action to close a loophole that has allowed a small minority of overseas licence holders to evade road penalties and demerit points. Due to weaknesses in the system, some individuals have been able to fraudulently nominate others to take the blame for traffic offences. The crackdown follows discoveries of widespread fraudulent practices, particularly among drivers using international licences. The measures now being implemented aim to ensure the integrity of the demerit point system and uphold road safety standards for all motorists.
The scope of the problem
The scale of the issue was brought to light by the Demerit Point Integrity Taskforce, a joint initiative comprising representatives from Transport for NSW, NSW Police, and Revenue NSW. Since May 2022, over 125,000 penalties associated with 256,000 demerit points were issued to drivers identified as holding international licences. Upon review, an estimated 40,000 of these cases involved fraudulent nominations.
Among the most egregious abuses were instances where drivers accumulated astronomical demerit points—one individual racked up over 1500 points before the authorities intervened. This group also included individuals who exploited loopholes to avoid repercussions, such as nominating drivers who were not in Australia at the time of the alleged offence or using counterfeit documentation to apply for licences.
In some cases, international licence holders were found to be Australian citizens or permanent residents holding concurrent Australian licences. This dual-licence system allowed them to shield their Australian records by attributing offences to their international licences.
Collaborative action to tighten loopholes
Recognising the urgent need for reform, the Taskforce has undertaken several initiatives:
1) Stricter verification processes
The French Consulate in Sydney has stepped in to assist with verifying the legitimacy of French documents submitted by those applying for NSW licences. Applications are now scrutinised by the Transport for NSW Licence Integrity & Security team, with counterfeit documents swiftly identified and rejected.
2) Support from border force
The ABF has introduced an innovative approach to identifying fraudulent nominations. By cross-referencing passport records, authorities can determine whether a nominated driver was in Australia at the time of an alleged offence. This ensures that responsibility for traffic violations is returned to the actual offender, effectively dissuading future attempts at deception.
3) Targeted enforcement
The Taskforce has already suspended more than 50 licences associated with repeat offenders, including individuals connected to a single address in Rosebery, where 30 licence holders collectively accumulated over 2000 demerit points. Such enforcement actions send a clear message that fraudulent practices will not be tolerated.
4) Upcoming reforms to strengthen compliance
The NSW Government is also introducing additional regulatory changes aimed at curbing such abuses. From 1 March 2025, all long-term temporary visa holders who arrived in NSW before 1 July 2023 will be required to obtain an NSW driver licence. This change eliminates the dual-licence loophole and ensures that all drivers on NSW roads meet the state's stringent road safety requirements.
5) A broader commitment to road safety
The Demerit Point Integrity Taskforce is finalising a set of recommendations to address systemic weaknesses and improve the state's capacity to enforce traffic laws. These efforts not only aim to hold offenders accountable but also ensure that NSW roads remain safe for all users.
The misuse of international licences represents a direct threat to the fairness and efficacy of the demerit point system. By addressing this issue, the NSW Government and its partners are reaffirming their commitment to the rule of law and public confidence in the state's road safety framework.
With the strengthened measures now in place and further reforms on the horizon, offenders who attempt to abuse the system will find themselves facing the full force of the law.
At Carroll & O'Dea Lawyers, we are dedicated to helping you navigate the legal complexities of road use in NSW. Our expertise in compensation claims for motor vehicle accidents means we can support you through the process of making a claim, ensuring you receive the compensation you are entitled to. We have the knowledge and experience to provide you with the legal representation you need.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
