Traffic fines in Australia hit low-income earners disproportionally hard. One potential solution to this problem is traffic fines that are proportional to the income of the offender. This discussion paper outlines one way of applying this model – drawn from Finland – to Australia, including a breakdown for states.

With cost of living already pushing many Australians into financial difficulties, traffic fines can force low-income people into choosing between essential spending and paying fines. By contrast, traffic fines are a minor annoyance for Australia’s high-income earners.

This paper outlines a more equitable model for speeding fines based on a Finnish proportional fine system.

Key points

• Finland has a minimum fine amount but otherwise calculates a fine based on a driver’s income and whether they have dependents
• This is better for equality, and sometimes catches headlines when really big fines are issued to billionaires
• Australian states are already moving in this direction: in NSW there is already a Centrelink discount.