NSW Drivers Fall For This Costly Mistake

Authorities Target Illegal Licence Nomination Scheme

New South Wales is taking decisive action against fraudulent demerit point transfers, cracking down on drivers who attempt to dodge fines by falsely nominating others, particularly international licence holders, to take the hit.

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The Demerit Point Scam Exposed

For years, some NSW drivers have exploited a loophole by shifting their demerit points onto foreign licence holders, many of whom have never even been to Australia. This illegal practice allows repeat offenders to keep their licences while others take the fal, on paper.

Recent investigations found that between May 2022 and early 2025, tens of thousands of fines were attributed to international licence holders. Shockingly, over 40,000 of these drivers had no record of ever entering the country.

To combat this, Transport for NSW (TfNSW), NSW Police, and Revenue NSW have teamed up with the Australian Border Force (ABF). The ABF will now verify whether nominated drivers were in Australia when offences occurred, ensuring penalties land on the actual offenders.

Fraudsters Exploiting the System

Authorities have discovered extreme cases, including a single address linked to more than 2,100 demerit points spread across 30 different licences. Social media platforms like Facebook Marketplace have become hubs for illegal demerit point trading, with individuals offering cash in exchange for taking penalties.

NSW Roads Minister John Graham condemned the practice, stating:

“Keeping repeat offenders on the road by dodging demerit points is a major road safety risk. We’re taking a zero-tolerance approach to those exploiting the system.”

New Rules and Harsh Penalties

To close loopholes, NSW introduced new laws in March 2024 requiring foreign licence holders who reside in the state for over six months to convert to a NSW driver’s licence. This move aims to ensure all drivers face appropriate consequences for traffic violations.

Drivers caught illegally transferring demerit points now face fines of up to $22,000, with authorities hoping the steep penalties will act as a deterrent.

A Thriving Black Market for Demerit Points

The crackdown has exposed a broader issue: a growing online black market for demerit points. Numerous posts across Sydney offer cash to those willing to take on fines. Authorities warn that engaging in this scheme could lead to criminal charges and severe financial penalties.

Protecting NSW Roads

By collaborating with the ABF and tightening regulations, NSW authorities are making it clear that demerit point fraud will no longer be tolerated. The message is simple: if you break the rules, you will face the consequences.

As enforcement ramps up, drivers are urged to stay on the right side of the law. The risks of engaging in illegal demerit point trading far outweigh the rewards, and getting caught could cost far more than just a fine.

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