Adelaide Companies Absorb Traffic Fines, Shield Drivers from Demerits

In Adelaide, a corporate provision is allowing nearly 100 drivers per week to avoid demerit points. This occurs when companies opt to pay traffic fines directly, rather than identifying the individual driver of a company vehicle caught by cameras. This practice prevents the driver from incurring both the fine and demerit points.

Financial Impact and Scope

Over a six-month period, businesses paid a total of $6.2 million after declining to name the driver for camera-detected offenses. This amount includes an additional $1,800 corporate levy imposed to discourage the practice.

Government data indicates 2,582 such offenses since July 1, equating to approximately 14 instances daily where a motorist avoided demerits.

The provision has no cap on frequency of use and no restriction based on company size.

Expert Concerns and Levy's Impact

Charles Mountain of the RAA expressed concerns about drivers not receiving demerit points for offenses. He emphasized driver accountability and recommended companies maintain vehicle logbooks.

The corporate levy was increased from $300 to $1,800 in 2019, which has since led to a more than 50% reduction in annual cases of demerit avoidance.

Vehicles involved in these incidents include semi-trailers, delivery vans, utes, sedans, and motorcycles. Offense hotspots are concentrated in industrial and freight-heavy suburbs, with Regency Park, Hindmarsh, Torrensville, Darlington, and Gepps Cross recording the highest numbers. Of the $6.2 million paid, $1.6 million covered base fines, and $4.6 million originated from the corporate levy itself. Most infringements occurred between 11 am and 1 pm.

Broader Picture and Industry Perspective

Across all corporate vehicle offenses during the same six-month period, including cases where drivers were identified, total fines reached $48,143,664. Speeding constituted the largest portion at $17,197,897, followed by mobile phone offenses at $14,749,056.

Steve Shearer, executive officer of the SA Road Transport Association, stated that:

"Routinely absorbing fines would be financially unfeasible for most operators due to typical profit margins of 2 to 3 percent."

He noted that such instances would be rare exceptions, possibly to retain a valuable driver.

A state government spokesman affirmed that