The New South Wales Government is putting its demerit point scheme under a microscope as it aims to crack down on motorists selling and swapping points.

    Transport for NSW, NSW Police, and Revenue NSW are all working on a three-month taskforce set up by the Minns Labor Government to crack down on drivers exploiting the demerit point system.

    Under the system, someone who receives an infringement notice can nominate another driver to receive the penalty.

    For example, if the registered owner of the vehicle lent it to somebody else who then received a speeding fine, this allows the owner to nominate this driver and avoid being penalised for the offence themselves.

    However, this system is ripe for abuse, and the Government says a recent high-profile case involving a French national racking up more than 200 demerit points was a catalyst for the taskforce.

    The taskforce will look at drivers racking up unusually high numbers of demerits, and aim to deter those selling demerit points on online platforms such as Facebook Marketplace.

    A search by CarExpert on Marketplace found several sellers in and around Sydney taking payment in exchange for accepting demerit points.

    The Government says it’s looking at a tiny fraction of the state’s 6.9 million driver’s licence holders – just 0.005 per cent – who have 20 or more demerit points.

    The Taskforce is also looking at how police can better enforce where someone owns a vehicle and doesn’t drive it but it still receives infringements.

    Additionally, the Taskforce will review the suitability of current penalties and suspensions, as well as who is eligible to opt for a good behaviour period in lieu of a suspension.

    It aims to determine if there are any additional measures it can employ to deter people from racking up demerits.

    Currently, individuals can receive fines of up to $11,000 for falsely nominating another driver.

    The Government notes somebody with 13 demerit points receives the same five-month licence suspension as a driver with 20 or more.

    It also notes there are some loopholes drivers can exploit under the current system.

    For example, in certain circumstances drivers are able to drive in between suspensions, while car hire companies can’t access the demerit point or driving history of renters.

    The Minns Labor Government says it has already closed a loophole whereby motorists could continue driving for more than six months on a foreign licence.

    “The NSW Government is committed to identifying and addressing any opportunities for exploitation that affect the operation of the scheme and put road users at risk,” said Jenny Aitchison, Minister for Regional Transport and Roads.

    “Acts like falsely claiming to be the driver and taking points for a fee are criminal and the Taskforce will examine ways to help identify and punish unscrupulous people who take advantage of the system.”

    Minister for Roads John Graham noted the demerit point system in the state was designed more than 50 years ago and has been a “key plank” in improvements enhancing road safety during that time.

    “The NSW Government has zero tolerance for anyone trying to subvert the system. There is one set of road rules and they apply equally to all,” he said.

    “This is the right time for Police, Transport for NSW and Revenue NSW to come together to review the demerit point scheme and make sure it remains completely robust.”

    William Stopford

    William Stopford is an automotive journalist based in Brisbane, Australia. William is a Business/Journalism graduate from the Queensland University of Technology who loves to travel, briefly lived in the US, and has a particular interest in the American car industry.

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