The licence loophole that could land drivers in jail
Buying or selling demerit points is a criminal offence with penalties of up to 10 years' imprisonmentThe News
As authorities increase scrutiny of motorists trading demerit points online, legal experts are warning the practice is far more serious than many drivers realise, with offences potentially attracting significant fines, criminal convictions and prison sentences of up to 10 years.
The Key Details
- Demerit point trading is a criminal offence, not a traffic loophole
- Offenders can be prosecuted under multiple NSW laws
- Penalties range from fines to 10 years' imprisonment for fraud
- Investigators can access messages, bank transfers and social media evidence
- NSW's Demerit Point Integrity Taskforce is targeting online point trading
The Finer Details
Principal lawyer at Astor Legal, Avinash Singh, said motorists who buy or sell demerit points can face criminal charges under both the Road Transport Act 2013 and Crimes Act 1900.
Under Section 188(2) of the Road Transport Act 2013, falsely nominating another person to accept demerit points is an offence, as is accepting responsibility for an infringement you did not commit.
Maximum penalties reach $11,000 for individuals and $22,000 for corporations, although lower infringement notices are often issued in the first instance.
The consequences become more serious if a statutory declaration is involved. Singh said making a false declaration during the nomination process can trigger offences under the Oaths Act 1900, carrying penalties of up to five years' imprisonment.
Repeat offenders may face even harsher consequences.
"If a person repeatedly takes demerit points for other drivers, they could be charged with an offence of fraud," Singh said.
That offence carries a maximum penalty of 10 years' imprisonment.
Authorities are also able to build cases using a broad range of evidence, including text messages, bank records and social media activity. Singh said prosecutions often rely on proving the nominated driver could not have been behind the wheel, such as when they were overseas or in another state at the time of the offence.
The Road Ahead
The warning comes as the NSW Demerit Point Integrity Taskforce continues targeting fraudulent activity within the state's demerit point system, including the sale of points through online marketplaces and social media platforms.
The taskforce, which includes NSW Police, Revenue NSW and the Australian Border Force, was established following a high-profile case involving a French national who accumulated more than 200 demerit points.
Singh said the consequences of demerit point trading can extend well beyond driving penalties.
A criminal conviction may affect employment opportunities, professional licences and future travel, particularly where offences involving dishonesty are concerned.
"Buying and selling demerit points can create legal consequences that are far more serious than most Australians realise," he said.
Related: Vic Police arrest 'demerit dodgers'
Related: NSW makes demerit-point return scheme permanent
Related: The six driving crimes you may be guilty of
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