Victoria’s system for collecting fines is failing on a massive scale, leaving a hole of nearly $330 million in the state’s finances.

The software system used by Fines Victoria to collect court fines and infringements for parking, red-light camera and speeding offences does not work, leading to a massive backlog of infringement notices that cannot be enforced by the Department of Justice.

Authorities insist that the fines system is still functioning and that the onus remains on users to pay their fines, even if they have not received reminder notices.

There is a massive backlog of infringement notices. Credit:Craig Sillitoe

The debacle has left a hole in the state's budget of $328 million. The income, which the government booked for the 2018-2019 financial year, is now reclassified as “doubtful debts” and looks set to also hit state revenue hard in the current financial year.