A landmark administrative error by Merri-bek City Council in Melbourne has led to the overcharging of thousands of motorists on parking fines over the past decade. The council is now set to refund up to $12 million to affected drivers, with a dedicated Parking Fines Refund Scheme launching in July 2025. This article explores the background, scale, and implications of the error, as well as details about the refund process and its broader impact on the community.
Eligible Parking Infringement Types
The following table details the 11 types of parking offences eligible for a refund under the Merri-bek City Council Parking Fines Refund Scheme:
| Eligible Infringement Type | Description |
|---|---|
| 1. Parked for period longer than indicated | Exceeded permitted parking time |
| 2. Parked fail to pay and obey instructions on sign | Did not pay or follow parking sign instructions |
| 3. Stopped contrary to a No Parking sign | Stopped where No Parking sign is posted |
| 4. Stopped on a bicycle parking area | Parked in a designated bicycle parking area |
| 5. Stopped on a motor bike parking area | Parked in a designated motorcycle parking area |
| 6. Parked contrary to requirement of parking area | Did not comply with parking area requirements |
| 7. Parked not at an angle of 45 degrees | Did not park at required 45-degree angle |
| 8. Parked not at an angle of 90 degrees | Did not park at required 90-degree angle |
| 9. Parked not completely within a parking bay | Vehicle not fully within marked parking bay |
| 10. Parked long vehicle exceed minimum number of bays | Long vehicle parked across more bays than permitted |
| 11. Parked wide vehicle exceed minimum number of bays | Wide vehicle parked across more bays than permitted |
Background of the Error
The Penalty Unit System in Victoria
In Victoria, the cost of fines is determined using a penalty unit system. For the 2024-2025 financial year, one penalty unit is valued at $197.59. The amount of a parking fine is calculated by multiplying the relevant penalty unit value by the number of units prescribed for the offence.
How the Error Occurred
Merri-bek City Council, formerly known as Moreland City Council, incorrectly applied a weighting of 0.5 penalty units to certain parking offences between July 1, 2013, and June 11, 2025. According to Victorian law, the default penalty for these offences is 0.2 penalty units, with a higher rate of 0.5 units only permitted if a specific council resolution is passed. No such resolution was ever enacted in Merri-bek, rendering the higher penalties invalid.
Scale and Impact of the Error
Number of Fines and Financial Impact
The council estimates that more than 250,000 parking fines were issued with the incorrect penalty weighting during the 12-year period. With many motorists receiving multiple fines, the total overcharge is estimated at $12 million. Individual motorists were overcharged between $43 and $59 per fine, depending on the value of penalty units at the time.
Affected Offences
The error impacted 11 specific parking offences. The council maintains that the underlying parking infringements remain valid; only the penalty amount was incorrectly calculated.
Parking Fines Refund Scheme
Launch and Duration
The Merri-bek City Council Parking Fines Refund Scheme will launch in early July 2025 and remain open for 12 months. Motorists who paid a parking fine during the affected period will need to apply for a refund.
How to Apply
Affected motorists must provide either the infringement number or their vehicle registration, along with proof of ownership at the time the fine was issued. The council will not proactively contact those impacted; instead, individuals must initiate the refund process themselves.
Refund Amount
The refund will cover only the overcharged portion of the fine—not the entire amount. For example, if a motorist was fined $100 but should have been fined $60, they will receive a $40 refund.
Implications for Motorists and the Council
No Overturning of Fines
The council has clarified that the validity of the parking infringements themselves is not in question. Only the penalty amount was incorrect. Therefore, the refund scheme will not overturn the fines but will reimburse the overcharge.
Enforcement and Outstanding Payments
Any outstanding infringement payments will be put on hold while the refund scheme is in place. No additional loading or late fees will be applied during this period, according to Fines Victoria.
Broader Community Impact
The council has acknowledged the error and apologized for the inconvenience caused. All revenue from parking fines is used to fund local services and facilities. The $12 million refund may impact council budgets, potentially affecting service provision or ratepayer costs in the future.
Eligible Parking Infringement Types
The following table details the 11 types of parking offences eligible for a refund under the Merri-bek City Council Parking Fines Refund Scheme:
How to Pay or Dispute a Parking Fine in Victoria
Paying a Fine
Motorists can pay parking fines online, by phone, by post, or in person at council customer service centers. Payment methods include Visa, MasterCard, EFTPOS, cheque, money order, and cash.
Disputing a Fine
If you believe a fine was issued in error, you can request a review from the issuing council or, if necessary, take the matter to the Magistrates’ Court.
Frequently Asked Questions (FAQs)
Q1: Will my parking fine be overturned if I receive a refund?
A: No, the refund scheme only reimburses the overcharged portion of the fine; the underlying infringement remains valid.
Q2: How do I apply for a refund?
A: You must provide your infringement number or vehicle registration and proof of ownership. The council will not contact you directly; you need to initiate the process.
Q3: How much will I be refunded?
A: You will receive the difference between what you paid and what you should have paid (the overcharge), typically between $43 and $59 per fine.
The Merri-bek City Council’s Parking Fines Refund Scheme marks a significant response to a long-standing administrative error. While the council maintains the validity of the parking infringements, the overcharged amounts will be refunded to affected motorists. The scheme demonstrates the importance of transparency and accountability in local government, and serves as a reminder for councils to regularly review their processes to avoid similar errors in the future.