A regional Victorian council will refund drivers after discovering it had been issuing parking fines above the legally permitted amount for more than a decade.

Mansfield Shire Council, located north-east of Melbourne, confirmed it is developing a refund scheme after identifying that some parking infringements issued between 2009 and 2019 exceeded the default penalty allowed under state legislation, reported Nine News Australia.

Under the Road Safety Act 1986, local councils must issue parking fines at the prescribed default amount – $41, equivalent to 0.2 penalty units – unless a formal council resolution is passed authorising a higher rate.

The report said that Mansfield Shire had issued fines of up to 0.5 penalty units, or $102, for 11 different types of infringements during the period in question, despite no formal resolution being in place.

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The council estimates that approximately $34,588 was collected above the default rate, affecting around 765 fines dating back as far as 2009. An additional $10,000 may have been paid in late fees or legal costs linked to those infringements.

In a statement the council said the requirement for a formal resolution had not been clearly communicated to Victorian councils when guidelines were updated in 2009 and again in 2019.

Mayor Steve Rabie described the discrepancy as regrettable but said the council was committed to correcting the issue.

“We are not scared to address errors. We’ve identified an issue and we will fix it,” Rabie said. “If this has affected anybody – we are sorry.”

He added that the situation was “disappointing because it’s an avoidable situation”, but noted the total amount involved was relatively small when spread over many years.

“Mansfield Shire Council has not sought to make money on parking fines – we use fines to ensure fair use of parking resources for the community as a whole,” Rabie said.

The council has sought legal advice to confirm the exact amount overpaid and said eligible motorists will be contacted directly regarding refunds.