New South Wales is ramping up efforts to tackle illegal demerit point trading with a bold new initiative targeting those exploiting the system. Authorities are zeroing in on individuals fraudulently nominating drivers, particularly international licence holders, to dodge fines and licence suspensions.
Demerit Point Scams in the Spotlight
The practice of transferring demerit points to foreign nationals—many of whom have never even set foot in Australia - has long plagued the state.
Recent investigations revealed that between May 2022 and January 2025, tens of thousands of penalties were handed down to individuals nominated on international licences. Shockingly, over 40,000 of these drivers had no record of ever being in Australia.
Transport for NSW (TfNSW), NSW Police, and Revenue NSW have partnered with the Australian Border Force (ABF) to crack down on this illegal trade. The ABF will now verify if nominated drivers were outside the country when offences occurred, swiftly reassigning penalties to the real offenders.
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Take me thereA System Exploited by a Few
Authorities uncovered extreme cases of fraud, such as a single property linked to over 2,100 demerit points across 30 licences. Social media platforms, particularly Facebook Marketplace, have become hotbeds for demerit point trading, with individuals offering cash in exchange for taking penalties.
NSW Roads Minister John Graham emphasized the severity of the issue:
“Allowing people to remain on the road while accumulating demerit points like confetti is a threat to road safety. We’re showing zero tolerance for this minority exploiting our systems.”
New Rules and Penalties
In March 2024, NSW introduced stringent rules requiring foreign licence holders residing in the state for over six months to convert to a NSW licence. The move aims to close legal loopholes that allowed overseas drivers to rack up points without facing penalties.
Those caught illegally transferring demerit points now face fines of up to $22,000. Authorities hope this steep penalty will deter further misuse.
A Broader Black Market
The crackdown has exposed a broader issue: an online black market for demerit points. Dozens of posts across Sydney offer cash payments for drivers willing to take on fines. Police have warned that participating in such schemes could lead to criminal charges and hefty penalties.
Protecting Road Safety
NSW authorities remain committed to protecting law-abiding drivers and ensuring road safety. With the ABF’s involvement and stricter regulations, the state is sending a clear message: there is no tolerance for exploiting the system.
As NSW works to eliminate dodgy practices, drivers are reminded to follow the rules and avoid engaging in illegal activities. The consequences are severe, and the risks are simply not worth it.
Dylan Gow
