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Does New Zealand's fines and penalties system need an overhaul?

Does New Zealand's traffic fines and penalties system need an overhaul?

Does our traffic fines system need an overhaul?

We investigate whether drivers who commit traffic offences are getting off too lightly.

Fines and penalties are an important road safety instrument and setting them at effective levels is a balancing act. Too high risks people feeling unjustly treated and unpaid fines will cause problems for an already stretched justice system. Too low, there is a risk of road users ignoring the rules because the consequences are insignificant.

When New Zealand last looked at fines and penalties for road rules in 1999 Britney was on the airwaves with her debut single Baby One More Time, Jenny Shipley was clearing out her desk to make way for Helen Clark and the median weekly income before tax was $520.

Because New Zealanders’ median weekly income has since increased 158% ($1,343 in 2024 according to Statistics NZ), AA Road Safety spokesperson Dylan Thomsen says a review of fines and penalties for driving offences is overdue. 

AA Road Safety spokesperson Dylan Thomsen says a review of fines and penalties for driving offences is overdue.
AA Road Safety spokesperson Dylan Thomsen says a review of fines and penalties for driving offences is overdue.

“Back in 1999 getting pinged $30 for a low-level speeding infringement or $150 for not wearing a seatbelt was a significant bite out of your paycheck, but the deterrent has eroded when you consider the growth in wages.”

The AA is in favour of adjusting fines for inflation to restore them to the same real value as 1999 and wants to see them automatically inflation-adjusted so constant revisions become unnecessary. 

“Adjusting fines for inflation would help restore the deterrent value quickly and easily. Influencing behaviour is the key goal here, and combining fines with things like demerit points would add extra incentive to stick to the rules,” Dylan says. 

He says penalties should not only be high enough to act as a deterrent but should also recognise the severity of an infraction.

Drunk and drugged driving, not wearing seatbelts, speeding and distractions like cellphones are common factors in many crashes and are behaviours targeted by Police in road safety. The AA believes the penalties for these offences should be better aligned to the potential harm they can cause. After an inflation adjustment, that would be a good place to start a review of offences that might need higher sanctions, to improve their deterrent effect.

A good place to start would be a review of offences that might need higher sanctions, to improve their deterrent effect.
A good place to start would be a review of offences that might need higher sanctions, to improve their deterrent effect.

“Along with education and policing strategies, linking stiffer fines to offences that are involved in many fatal and serious crashes is part of the equation in curbing unwanted behaviour.”

Dylan says New Zealand’s fines and penalties are out of touch, with offences like driving without a registration incurring demerit points yet getting caught not using a seat belt does not.

“Right now, it’s a bit of a mess. We have high-risk offences with pretty light consequences, while the repercussions for some lower-risk offences are very tough.”

A rethink of how and when demerit points are applied would be an effective way of discouraging dangerous behaviour on the roads. The AA is also in favour of more severe penalties during holiday periods and for repeat offenders.

What the AA wants included as part of a review:

  • Increase fines to reflect inflation rates since they were last reviewed.
  • Have higher fines and penalties for higher-risk offences.
  • Review penalties so higher-risk offences that don’t currently incur demerit points attract demerits. 
  • Apply a multiplier to demerit points on traffic offences during holiday periods.
  • Consider alternative penalties alongside traditional penalties.
  • Introduce a ‘good behaviour’ bond.
  • Investigate increasing penalties for repeat offences.
  • Make first offence drink drivers eligible for alcohol interlocks.
  • Expand alcohol and other drug treatment courts.

What AA Members say

This year the AA undertook two surveys to better understand Members’ experiences and views on fines and penalties for unsafe driving. Over 4,000 Members took part in the surveys which found widespread concern that current penalties are outdated, ineffective, and inconsistently enforced.

The perception among the majority of AA Members was that fines are not effective. Just 38.6% of participants explicitly labelled fines as being effective for offences relating to speed, seatbelt non-compliance, drink driving, drugged driving and cellphone use.

A consistent theme in Member commentary was that they thought fines were too low to act as a deterrent for unsafe behaviour.

By contrast, 59% thought demerit points were effective at preventing unsafe driving. Many Members were of the view that the prospect of losing your licence was a better deterrent than a financial penalty, with some suggesting more offences should incur demerit points.

Survey results

Read more about AA Members' views on fines and penalties

Fines, demerits and penalties for unsafe driving are important tools for  supporting enforcement of road rules, but less than half of AA Members believe current fines are working.

 

Explore the full results from the AA Research Foundation survey here.

This story is from the Spring 2025 issue of AA Directions magazine.

Matt Tso

By Matt Tso
Matt Tso is a Communications Advisor on the AA’s Motoring Affairs team.