More than $100m in bad debt wiped from SPER books

Millions of dollar owed to Queensland taxpayers has been lost after the state’s debt collection agency wiped a massive amount unpaid penalties from its books.

More than $100m in unpaid fines and tolls have been torn up in the past year amid a massive increase in debts owed to Queensland taxpayers being written off.

But it comes as the state’s debt collection agency beefs-up its enforcement activities, putting it on track to haul in a record $300.4m this financial year alone.

In the nine months to March 31, the State Penalties Enforcement Registry (SPER) wrote off $105.8m in debts sitting on its books – almost triple the $37.4m that had been written-off the year prior.

About $72.4m of the written-off debts were older than five years – where no contact could be established with the debtor, and the debtor had not incurred any further fines.

Another $3.2m was owed by people who had died, while the remaining $30.2m was owed by companies that had since been deregistered.

Millions of dollars in fines have been torn up.

The write-off rate has rapidly escalated in recent years, with only $7.9m in unpaid fines and tolls written-off just two years ago during the 2019-20 financial year.

The last time more than $100m in SPER debts were written-off in a single year was in 2012-13, when $102m was taken off the books.

Treasurer Cameron Dick confirmed, though, that SPER was projected to reach an “all-time high” recovery rate in 2021-22 worth $300.4m – up from the $266.3m collected the year prior.

“The evidence is clear – the sooner debt recovery is initiated, the better the chance of achieving full recovery,” he said.

“That’s why we are beefing up SPER processing and enforcement to commence recovery as soon as possible after a fine default.”

Mr Dick suggested that by reviewing old and “irrevocable” debts, officials were ensuring SPER could focus on the debts where it had the greatest chances of recovering unpaid money.

The Treasurer warned though that those debtors who had their fines written-off would not be let off the hook, with the State holding an ongoing legal right to recover what it is owed.

“When it comes to recalcitrant debtors, SPER will never forget and it will never forgive,” he said

The government anticipates new laws currently before the parliament that will move more of the fine recovery functions into Treasury will ensure the enforcement process is streamlined further.

SPER debts written-off

2021-22 – $105.8m (to March 31)

2020-21 – $37.4m

2019-20 – $7.9m

SPER debts collected

2021-22 – $300.4m projected ($229.3 to March 31)

2020-21 – $266.3m

2019-20 – $269.4m