Road Transport Legislation Amendment (Demerit Point Integrity Taskforce) Bill 2026

Hansard ID: HANSARD-1323879322-167805

Hansard session: Fifty-Eighth Parliament, First Session (58-1)

Road Transport Legislation Amendment (Demerit Point Integrity Taskforce) Bill 2026

Second Reading Debate

Debate resumed from 13 May 2026.

Mr MARK COURE (Oatley) (15:20:50):

On behalf of the Opposition, I contribute to debate on the Road Transport Legislation Amendment (Demerit Point Integrity Taskforce) Bill 2026. The Liberals and The Nationals will be supporting the bill, and I thank the Minister for bringing the important issue before the House. We support the bill because the integrity of the demerit point system is fundamental to maintaining road safety in New South Wales. The demerit point system exists for a reason. It is designed to deter dangerous behaviour, identify repeat offenders and ensure that those who continually disregard the road rules face appropriate consequences. For the overwhelming majority of motorists across our State, the system works as intended. Millions of drivers obey the law every day, drive responsibly and accept the consequences when they do the wrong thing.

The bill seeks to address the serious loopholes and deliberate abuses that have emerged in recent years which undermine public confidence in the fairness and effectiveness of the system. The Demerit Point Integrity Taskforce uncovered extraordinary examples of misconduct. We saw cases involving individuals accumulating hundreds, and in some instances more than 1,000, demerit points while continuing to drive on our roads. We saw examples of unverifiable foreign licence details being used repeatedly to avoid penalties. We saw evidence of advertisements on social media where individuals were offering to take demerit points for others in exchange for money. That is not merely an administrative issue; it is also a road safety issue.

If dangerous drivers are able to manipulate the system, avoid licence suspensions and continue offending with zero consequences, then the purpose of the demerit point scheme is fundamentally undermined. The bill contains a number of sensible and targeted reforms designed to close those loopholes. A key reform relates to the nomination of overseas drivers for camera-detected and parking offences. At present, insufficient identifying information is required to verify many overseas driver nominations. According to the data available, Revenue NSW receives on average 2,000 nominations every month where no records can be matched with Australian Border Force data. That is clearly unacceptable.

The bill strengthens the process by requiring additional identifying information, including passport details and the country of issue, when a foreign licence holder is nominated as the responsible driver. Those are reasonable measures designed to ensure that nominations can be properly verified and that individuals cannot simply hide behind false or unverifiable identities. The bill also introduces new offences relating to false disputes and fraudulent nominations. Again, the reforms are practical and reinforce the principle that individuals must be accountable for their conduct on our roads.

Importantly, the bill also addresses a longstanding loophole involving parking offences that incur demerit points, particularly in school zones. Currently, if a company vehicle commits one of those offences, there is no effective mechanism to ensure the driver responsible receives the associated demerit points. Between July 2022 and June 2024, nearly 5,000 demerit points linked to parking offences were never recorded against the offending drivers. That undermines fairness and accountability. The Opposition supports measures that ensure the driver responsible for an offence receives the appropriate penalty. The community rightly expects that road rules apply equally to all drivers, regardless of whether they are driving a private vehicle, a company car or a vehicle registered overseas.

The bill also makes changes to the operation of good behaviour periods. The existing framework has allowed some individuals who have accumulated extraordinarily high numbers of demerit points to elect a good behaviour option. That clearly goes beyond what the original policy was designed to achieve. We accept that the bill introduces more structured thresholds and clearer limits. Under the reforms in the bill, unrestricted licence holders with up to 24 points may still elect a good behaviour period, while those with between 25 and 30 points may apply on hardship grounds. Drivers who exceed 30 points within a three-year period will no longer be eligible, as these people clearly demonstrate a complete disregard for their safety and the safety of others, and so they should be taken off the roads.

The changes recognise an important balance. Good behaviour provisions should exist to support otherwise responsible motorists who may have made mistakes, particularly where losing a licence may create significant hardship. But those provisions should not become a shield for repeat offenders who repeatedly endanger others on the road. The bill also addresses technical issues relating to suspensions, disqualifications and appeals to ensure that sanctions are properly served and cannot be circumvented through administrative loopholes. Again, the reforms are practical and are aimed at ensuring consistency, fairness and integrity in the operation of the system.

The Opposition notes that the reforms are targeted at a very small minority of drivers. According to the Government's figures, the changes affect approximately 0.005 per cent of the State's seven million drivers. That is important context. The overwhelming majority of motorists in New South Wales are responsible drivers who obey the law and do the right thing. The reforms are directed squarely at those who repeatedly offend or deliberately attempt to manipulate the system to avoid accountability. Road safety must always remain the priority of this Parliament. We know that far too many people are dying on our roads, and we know that the numbers are increasing and not decreasing. Every life lost on our roads is a family and a community changed forever. The Parliament must use every measure at its disposal to strengthen compliance, improve accountability and remove dangerous drivers from our roads.

To close, the Opposition believes that motorists rightly expect the demerit point system to operate fairly, consistently and with integrity. They expect that repeat offenders cannot simply exploit loopholes, use false identities or manipulate administrative processes to escape the consequences of dangerous behaviour. This bill represents a targeted attempt to restore confidence in that system. While the Opposition will continue to scrutinise all road safety legislation carefully, we recognise that the measures contained within this bill, along with the amendments that we moved in the other place last night, are directed toward preserving the integrity of a system that plays a critical role in protecting road users. For those reasons, the Liberals and The Nationals support the bill.

Ms ANNA WATSON (Shellharbour) (15:29:43):

The good news just keeps on coming from the Minns Labor Government. I acknowledge that the Minister for Roads is in the Chamber to listen to this important debate. I thank her for all her hard work. She works tirelessly to improve not only road transport but also road infrastructure across New South Wales. I support the Road Transport Legislation Amendment (Demerit Point Integrity Taskforce) Bill 2026. This is an important and sensible piece of legislation that strengthens the integrity of the New South Wales demerit point system and reinforces the principle that drivers who break the law on our roads should be held properly accountable.

People in my electorate are delighted about this legislation. People who do the right thing should be recognised. The demerit point scheme exists for a reason and is one of the most important road safety tools we have. It encourages safer driving behaviour, deters repeat offending and helps remove dangerous drivers from our roads before lives are lost. But for the scheme to work effectively, the penalties must be applied to the correct person and the system itself must be fair, transparent and resistant to exploitation. That is exactly what this bill seeks to achieve.

The legislation implements recommendations from the Demerit Point Integrity Taskforce, which was established by the New South Wales Government in July 2024 to examine weaknesses in the current system and identify opportunities to improve enforcement, accountability and public confidence. Importantly, the taskforce included representatives from Transport for NSW, Revenue NSW and the NSW Police Force, ensuring a coordinated approach to protecting the integrity of the scheme. This bill responds directly to concerns that loopholes and weaknesses in the current framework have undermined the effectiveness of demerit point enforcement and, ultimately, road safety outcomes.

One of the key reforms in this bill strengthens the requirements around overseas driver nominations. Under the current system, there have been concerns about improper or unverifiable nominations being used to avoid demerit point penalties. The bill introduces stronger identification requirements, including requiring passport numbers and country‑of‑origin details when overseas drivers are nominated for offences. This is a practical reform that helps ensure that nominations are genuine and enforceable, while supporting the accurate attribution of offences. The bill also clarifies liability when a nomination is disputed by the nominated person. This is an important safeguard to ensure that individuals are not penalised unfairly for offences they did not commit, while also ensuring there are clear processes for investigating and resolving disputes.

Another significant reform relates to parking offences that attract demerit points. This bill makes clear that when a demerit point parking offence occurs, the person responsible for the vehicle at the time of the offence must be nominated. Again, this is about accountability. If someone is responsible for a vehicle involved in an offence, there must be a mechanism to identify that individual accurately and fairly. The bill also addresses situations where demerit points may have been removed but the associated licence sanction was never fully served. Under these reforms, demerit points may be reinstated when a suspension period has not been completed. This closes another loophole and ensures that drivers cannot avoid the consequences of serious offending through technicalities or administrative gaps.

Importantly, the legislation also reinforces the requirement that drivers who receive suspensions for speeding or drug- and alcohol-related offences must serve the full suspension period imposed. That is entirely appropriate. Offences involving excessive speed or impaired driving are among the most dangerous behaviours on our roads. They place at risk not only the driver but also every other road user, pedestrian and family travelling alongside them. The community expects these penalties to be meaningful, and this bill ensures that they are. The legislation also places reasonable restrictions on repeat offenders accessing the good behaviour provisions of the demerit point scheme.

Good behaviour provisions exist to provide flexibility and encourage improved driving habits, but they should not become a revolving door for offenders who repeatedly put others at risk while on our roads. These changes strike an appropriate balance between fairness and community safety. The Minns Labor Government prioritises community safety. We must always remember that road safety is not abstract—every statistic represents a person, a family or a life changed forever. Every reform that improves compliance, strengthens enforcement and increases accountability has the potential to prevent injury, trauma and death on our roads. The Minns Labor Government has made it clear that road safety remains a priority.

This bill is another important step in supporting safer roads and restoring integrity to the systems designed to protect the public. This legislation is measured, practical and evidence based. It improves information sharing, strengthens compliance processes, closes loopholes and ensures the demerit point system continues to function as intended. For those reasons, I commend the bill to the House.

Mr EDMOND ATALLA (Mount Druitt) (15:35:52):

I support the Road Transport Legislation Amendment (Demerit Point Integrity Taskforce) Bill 2026. I acknowledge the Minister for Roads is in the House. In July 2024 the New South Wales Government established the Demerit Point Integrity Taskforce to investigate fraudulent behaviour within the demerit point scheme. This followed a particularly concerning case involving an overseas licence holder who offended repeatedly while exploiting weaknesses in the system to avoid accountability. I understand that the individual concerned has since left Australia. However, the case highlighted vulnerabilities that demanded attention. It is essential that we learn from incidents such as these and strengthen our legislative framework to ensure they cannot be repeated.

The taskforce uncovered several deeply troubling examples of abuse. One of the most alarming involved a single residential address in New South Wales that was linked to 30 licence holders—predominantly French nationals—who collectively accumulated 974 penalty notices, more than $322,000 in fines and over 2,100 demerit points. That level of abuse is simply unacceptable. It undermines public confidence in the integrity of the demerit point scheme and compromises the fairness of a system that is designed to improve road safety. That is why the New South Wales Government is acting. Consistent with the recommendations of the taskforce, the bill amends the Road Transport Act 2013 and related legislation to close identified loopholes and strengthen the integrity of the demerit point scheme.

The key reforms include requiring overseas drivers nominated for camera‑detected offences to provide their passport number and country of origin, enabling authorities to better verify their identity and their presence in Australia at the time of the offence; clarifying the process for disputing a nomination and introducing penalties for making false disputes; extending nomination requirements to demerit point parking offences, closing a loophole that has enabled offenders to evade responsibility; reinstating demerit points that were previously removed when a licence suspension is withdrawn before it has been fully served; ensuring drivers serve the full intended suspension period when that suspension is interrupted by a disqualification imposed for another offence; and strengthening the good behaviour licence provisions by restricting eligibility for drivers who have accumulated between 25 and 30 demerit points, while making those with more than 30 points ineligible to apply.

These are practical and sensible reforms that reinforce the integrity of the scheme while ensuring that repeat offenders are held appropriately accountable. The purpose of the demerit points scheme has always been clear: to improve road safety by deterring dangerous driving behaviour. Demerit points apply to offences that place road users at risk, including speeding, failing to give way, making illegal turns, disobeying traffic signals, using a mobile phone while driving and failing to wear a seatbelt correctly. The scheme complements financial penalties by creating meaningful consequences for persistent offenders.

Drivers who accumulate 13 or more demerit points within a three-year period face licence suspension, a significant deterrent designed to encourage safer behaviour on our roads. Many of these offences are detected through the extensive network of road safety cameras operating across New South Wales. In those cases where the registered operator of a vehicle was not the driver at the time of the offence, the effectiveness of the system depends upon the operator accurately identifying the person responsible.

For company-owned vehicles, the legislation already provides a strong incentive for compliance. The initial penalty issued to a company is five times the amount payable by an individual. Once the actual driver is nominated, the standard penalty can then be issued to that person. This framework discourages companies from shielding drivers from demerit points and the licence sanctions that may follow. The overwhelming majority of motorists and vehicle owners do the right thing. They obey the road rules and meet their legal obligations when nominating drivers. Unfortunately, there remains a small minority who deliberately seek to manipulate the system for personal advantage. It is precisely those individuals that this bill is designed to address.

These reforms will strengthen the integrity of the demerit point scheme, improve enforcement and ultimately contribute to safer roads for everyone in New South Wales. They send a clear message that attempts to evade responsibility for traffic offences will not be tolerated and that those who repeatedly place others at risk will be held accountable. I am proud that the New South Wales Government has taken decisive action to protect the integrity of our road safety laws and to enhance the safety of all road users across our State. I commend the bill to the House.

TEMPORARY SPEAKER (Mr Clayton Barr):

I call the member for Leppington.

Mr Geoff Provest:

It is what I have been waiting for.

Mr NATHAN HAGARTY (Leppington) (15:43:17):

I have got a crowd. Members have come to hear me after my incredible contribution earlier in relation to the justice amendment something—

Mr Michael Daley:

Stick to the Henry VIII clauses.

Mr NATHAN HAGARTY:

I make what I am sure some members hope will be a brief contribution in relation to the Road Transport Legislation Amendment (Demerit Point Integrity Taskforce) Bill 2026, or as I will refer to it for the remainder of this speech, DPIT.

Mr Geoff Provest:

Did Henry VIII do that?

Mr NATHAN HAGARTY:

No Henry VIII clauses are in this one. The main purpose of this bill is to amend road transport and fine enforcement legislation to provide for efficiencies in the demerit points scheme and the supporting processes of the penalty notice life cycle, particularly those issued for camera-detected offences where a driver must be nominated. The proposals put forward by the bill follow a review by the DPIT, established by the Government in 2024 to investigate the operations of the demerit points scheme to see areas where improvement could be achieved.

That is what this Government is about: continual process improvement. We are on the road to perfection. I will be humble and admit we are not quite there, but we are on the road. If there are improvements to be made, we will look for them, we will find them and we will bring them to this House. This bill before the House is a joint proposal developed following ongoing consultation with Transport for NSW, Revenue NSW, the Department of Communities and Justice, and the police. I do thank those agencies for their input and their contribution in crafting this fine bill. The taskforce creation stemmed from activities that were occurring with respect to certain individuals, and particular drivers licensed in another country, who were attempting to exploit the system for personal advantage by avoiding sanction for repeated driving offences.

There was quite a bit of media focus prior to the taskforce commencing its work. To the shock and horror of our friends in Paris, it revolved around some French nationals who were reported as having accrued over 200 demerit points, with subsequent investigations into their activities. Similar cases did highlight where the current legislative framework could be improved. Temporary overseas visitors to the State can drive on our road network using their overseas licence. That is a privilege provided to Australians when they travel overseas, which is a sensible arrangement.

However, if a person plans to stay longer than six months, then that person must obtain a New South Wales driver licence if they wish to continue driving in our great State. Again, that is another sensible idea. We looked at Transport records of demerit points for demerit offences committed in this State and had a look at offences committed by overseas drivers. Due to system limitations, overseas licence details are not consistently available to Transport and not all drivers have an existing driving record. This French gentleman and his friends were exploiting those limitations and using them for nefarious purposes.

What we found was that Transport records for the demerit records were not being recorded. If the same overseas licence holder was identified as a repeat offender, a driving record could be established, and Transport may sanction the driver by issuing a notice advising them that their visiting driver privileges were to be withdrawn. Once visiting driver privileges have been withdrawn, that person is deemed the same as any other unlicensed driver and faces further penalties if detected without a valid licence. Once the withdrawal period has ended, an Australian driver licence must be obtained to lawfully drive in New South Wales again.

If we look at the stats—we all love the stats—during the period between May 2022 and January 2024 there were 125,000 penalties carrying 256,000 demerit points issued to drivers identified by Revenue NSW as international drivers. However, when this data was validated with Australian Border Force, records showed that 73 per cent of these international drivers nominated were either Australian citizens, at 2 per cent; were not known or record not found, at 32 per cent; or were permanent residents of Australia, at 38 per cent. The data also revealed that, on average, 2.8 demerit points are avoided for each penalty. Almost 2,800 customers in this period accrued more than 12 demerit points, which was enough to cause a demerit suspension to be commenced. Forty-seven customers accrued more than 100 demerit points. Four accrued more than 200 points. That is pretty outrageous, when you think about it. The highest was 237 demerits, enough to suspend a licence almost 20 times over. That is pretty extraordinary stuff.

Obviously, this bill seeks to close those loopholes and ensure that when people have the privilege of coming to this country, and when they have the additional privilege of driving in this State, they do not exploit our laws and also drive safely. Every single one of us understands that having a driver licence is a privilege. We are not entitled to it, and when we are on the roads, we have to drive safely. That is why we have the demerit system in place. The analysis and the data demonstrate that system was being exploited. People were using it, as I said, to either drive dangerously or for pretty nefarious purposes.

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