Millions of Victorians could soon pay significantly more if they miss a fine payment, with the state government planning steep increases to late-fee penalties in a bid to boost revenue and cover enforcement costs.

Under a proposal from the Department of Justice and Community Safety, late-payment charges – applied to unpaid tolls, speeding tickets, and other infringements – would jump by up to 73 per cent next year. The penalty reminder notice fee would rise from $29.20 to $50.40, while the final demand notice would climb from $151.50 to $186.80.

The government argues the move is needed to offset the growing cost of chasing unpaid fines, insisting that residents already have several opportunities to pay or appeal before penalties apply. The changes are forecast to increase annual fine revenue by around $40 million, pushing the total to approximately $160 million – enough, officials say, to fund the full cost of enforcement.

However, community legal services have slammed the proposal, warning it will disproportionately affect Victorians already struggling with rising living costs. In a comment to The Age, Shifrah Blustein, managing lawyer at Inner Melbourne Community Legal, described the policy as a “tone-deaf cash grab,” saying her office was “inundated” with people seeking help to manage mounting fines.

“This is just going to make life harder for many people,” Blustein said. “It’s the people who can’t afford to pay who will get penalised.”

The government considered an alternative option to reduce fees for concession cardholders but rejected it, saying the change would fail to recover enough revenue.

Last financial year, the Allan government collected nearly $946 million in fines, including those issued for speeding, toll evasion and other statutory breaches. Officials say the new measures won’t affect those who pay or contest fines promptly and stress that flexible repayment options remain available for people in special circumstances.

Still, critics note that unpaid tolls can quickly spiral – with a missed $10 toll sometimes ballooning into hundreds once additional charges are applied. Similar measures have been discussed in Queensland, where the state faces about $160 million in unpaid fines and has considered tougher collection tactics.

Public feedback on Victoria’s proposed fee hikes is now open through the government’s online consultation portal.