'High-priority': Overseer of QLD demerits system implores government to act

The man who oversaw the rollout of Queensland's licensing and registration system in the 1990s says the government is staring at a "cybersecurity flaw" in the wake of revelations about demerit points being traded for cash.

The 7.30 investigation revealed widespread trading on black markets after a 27-year-old woman was charged with fraud. It's alleged she had accumulated 1,150 demerit points and more than $600,000 in fines.

Peter Grant is a veteran of the state's public service and oversaw its most complex IT systems as chief information officer; he says risks have changed dramatically since then.

"During the 90s, there was no social media. They didn't have to defend against this," Mr Grant told 7.30.

"[But] if you've got people who are manipulating your business processes to actually do fraudulent behaviour, you have a cybersecurity breach."

Mr Grant characterises the manipulation as a "cybersecurity breach" because, he says, it compromises the integrity of a government business process.

"These people are visible in the system over a long period of time — what we have here are people who are gaming the system, and they've created a cyber breach," Mr Grant said.

"The Queensland government has got to demonstrate that people can't get away with fraud and I would have thought that would have been a high-priority initiative.

"For the integrity of the system, this would start to get to the top of the list for me."

Dr Katie Williams, a former KPMG partner and senior lecturer in business information systems at the University of Queensland's Business School, says she would expect to see the government review its systems around control gaps and pain points.

"A system that is set up correctly in the first place and regularly monitored and capable of tweaking makes it harder for fraud to remain undetected," Dr Williams said.

"Based on what we're seeing in other parts of Australia, there's an opportunity to perhaps consider, at a really detailed level, the enabling legislation."

7.30 was told police have raised the detection issue with the agencies responsible for administering the system — Queensland's Revenue Office and Department of Transport and Main Roads — and remain frustrated by inaction. 

When asked by 7.30 government agencies described their processes for detecting fraud as robust.

On Monday afternoon the Queensland Treasurer's Office told 7.30 in a statement:  "New measures have already been implemented and ...  we will continue to strengthen the system we inherited from the former government, if needed, to stamp out fraud."

The statement said those measures were implemented in late 2025 as part of a new fines and integrity framework.

Queensland Premier David Crisafulli told 7.30: "I think [the] loophole has been closed" but said if there are other loopholes "then of course we will look at it".

A consequence of the 'cash for demerit points' schemes is that authorities have not been able to confirm how many drivers may have escaped licence suspensions through fraudulent demerit point transfers.

Revelations from the investigation have caused concerns for police, road safety and motorist advocacy groups, including RACQ.

"We don't know the size of the problem, but we should know the size of the problem in Queensland, and that is the key thing here," said Michael Kane, RACQ's executive manager of public policy. 

"There's no point having stronger laws to make our roads safer if people simply can find a way around the consequences.

"It needs to be addressed, and there needs to be some urgency to it."

NSW trying to close loopholes

In New South Wales, similar abuses prompted a dedicated taskforce and proposed legislative changes supported by both major parties.

Launched in 2024, the Demerit Point Integrity Taskforce uncovered "extraordinary examples of misconduct", NSW opposition roads spokesman Mark Coure told parliament, including people accumulating hundreds — and in some cases more than 1,000 — demerit points while continuing to drive. 

"If dangerous drivers are able to manipulate the system, avoid licence suspensions and continue offending with zero consequences, then the purpose of the demerit point scheme is fundamentally undermined," Mr Coure said.

"We saw examples of unverifiable foreign licence details being used repeatedly to avoid penalties. We saw evidence of advertisements on social media where individuals were offering to take demerit points for others in exchange for money."

The taskforce resulted in proposed reforms that would require passport details and the country of issue when an overseas licence holder is nominated as the responsible driver and introduce new offences relating to false disputes and fraudulent nominations.

NSW Minister for Roads, Jenny Aitchison, said the proposed legislation would crack down on international licences being nominated for fines.

"Revenue NSW systems are being integrated with Australian Border Force data to verify if a nominated overseas driver was actually in the country when an offence occurred," she said.

"The bill forces an individual who nominates an overseas driver for a demerit-carrying offence to provide the nominee's passport number and country of origin."

A spokesperson from Transport for NSW said its taskforce saw the licences of 50 repeat offenders suspended, and resulted in 190 vehicle registrations being cancelled. 

The department told 7.30 that its proposed reforms are "designed to support a fair, consistent, and safety-focused licensing system in NSW".

But while those changes are being deliberated, it hasn't stopped other schemes from establishing.

Among the purported services 7.30 uncovered was a website bearing a striking resemblance to the official Service NSW portal. Its contact button redirected 7.30 to WhatsApp.

In messages, the person claiming to be offering the service said they had "certain access to live dummy accounts" registered under Service NSW, and knew "how to get it accepted straight away and keep it all automated."

When asked how much a $434 fine and 3 points would cost to wipe, the person said, "ill [sic] do it for $500 total if sorting it today … I just need penalty notice number, date of offence and full name it's in and it will take 3 minutes … you only pay after you can see it's sorted."

NSW Police said it is aware of "reports concerning websites and online services claiming to facilitate the removal of demerit points in exchange for payment".

"The NSW Police Force does not comment on specific investigations; however, any information alleging criminal conduct is assessed and investigated where appropriate." 

"Demerit point fraud is a serious offence that undermines the integrity of the licensing system and road safety."

'Courage' needed from government

RACQ says Queensland authorities need to "get much tougher" and consider policy intervention, legislation intervention, and police action.

Mr Kane told 7.30 the government needs to demonstrate that it understood the problem and was addressing it.  

Griffith cybersecurity expert Dr David Tuffley says a taskforce could determine the number of people actively exploiting the state’s loopholes. 

"That's going to take some courage from the government, to basically take a deep breath and run the query and just see how bad it is," he told 7.30.  

"I'd be very surprised if it didn't amount to many thousands."

Mr Crisafulli acknowledged the infringement and demerits scheme is "an important part of justice," but avoided answering if his government would commit to a review or taskforce. 

"You will never make a system bulletproof, but you can make it better," he said.  

"We will continue to do all we can to make sure we have systems that are strong.

"If people have done the wrong thing, then they should have to pay their dues."

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