When your business runs a fleet of vehicles or even just one company car, you already have a lot on your plate: payroll, compliance, client management, and endless emails. But there’s one small piece of paper that can cause big problems if ignored: the Penalty Notice.
In New South Wales, if a driver in a company vehicle commits a camera-recorded traffic offence, Revenue NSW sends a Penalty Notice to the company. It becomes the company’s legal obligation to nominate the driver responsible for the offence within 21 days. This might seem straightforward, but when things slip through the cracks, the consequences escalate quickly and dangerously.
Camera-detected offences such as speeding or running a red light are tied to the vehicle’s registration. If that vehicle is registered to a business, the Penalty Notice will go directly to the company, not to the individual driving at the time.
This is why the law places the onus on the company to identify the driver.
Common reasons Penalty Notices are missed:
If a company fails to nominate the driver within 21 days, Transport for NSW initially responds by issuing increased fines for failing to nominate. Here’s where it gets serious:
At this point, you’re not just dealing with paperwork and admin headaches — you’re facing a potential fine of up to $22,000 per offence in court.
A CAN is a formal legal document requiring you to appear in court to answer for the offence of Fail to Nominate a Driver. It shifts the matter from an administrative penalty to a criminal one. And yes, that means a magistrate gets involved.
Consequences of ignoring or mishandling a CAN:
Fail to Nominate offences aren’t just about paying a fine — they’re about legal processes, timing, and detail. And in some cases, companies may have a legitimate defence.
At Ainsley Law, we understand that even the most diligent companies can be overwhelmed by admin, particularly when it comes to traffic notices that feel like background noise — until they explode into something more serious.
We’re not just about reducing your fines — we’re about preventing repeat problems.
In situations where multiple people may have access to a company vehicle, it can be genuinely difficult to pinpoint who was behind the wheel at the time of the offence. However, the law still requires you to make a reasonable and genuine effort to identify the driver. This includes reviewing rosters, delivery logs, vehicle tracking data, or speaking with staff who may have used the car that day. If, after these efforts, you still cannot determine who was driving, and you can show that your investigation was thorough and sincere, you might have a valid legal defence.
Courts understand that companies are not infallible, but they do expect diligence. A lawyer can assist you in identifying whether you might have this defence available and preparing the documentation needed to support this defence and help you explain your position in court in a way that maximises your chances of avoiding a conviction or reducing the penalty.
Importantly, moving forward it’s ideal to have a system that keeps track of who is using company vehicles at any given time so a nomination can be made if required. This both reduces the risk of failing to nominate and also shows diligence should one slip through the cracks.
If your company never received the original Penalty Notice, it may feel unfair to be penalised for failing to act. The good news is that there are specific legal requirements around how and when a Penalty Notice must be served. If Revenue NSW did not follow these procedures correctly, you may have grounds to challenge the fail to nominate charge. Courts will expect evidence to support your claim. This is where having a lawyer on your side becomes critical — we can help you assess whether the notice was lawfully served, gather the appropriate documentation, and build a strong case. Don’t assume you're stuck just because a CAN has been issued — there may still be a path forward.
Once the nomination period has passed, the opportunity to nominate another individual — such as the employee who was actually driving — may no longer be available through the standard administrative process. Revenue NSW usually locks in the offence against the company at this point. However, not all hope is lost.
In some cases, we may be able to convince Revenue NSW to accept a late nomination. The key is to act as early as possible. Delaying further reduces your options and increases the risk of harsh penalties. If you have identified the responsible driver and they accept responsibility that can help — but it needs to be handled the right way, with legal guidance.
If your business has received a Court Attendance Notice (CAN), you are legally required to appear in court — there's no option to just pay a fine and move on at this stage. That said, while court might sound intimidating, the process doesn't have to be a nightmare. With the right legal representation, the hearing can often be managed efficiently and with minimal disruption to your business. A good traffic lawyer can appear on your behalf in many cases, help you to prepare the required documents, and guide you through the process. In some situations, we can even negotiate with the prosecutor beforehand to reduce the seriousness of the matter or avoid a recorded conviction. What’s critical is that you don’t ignore the CAN or delay getting advice. The sooner you act, the more options you’ll have to reduce the fallout — both financially and in terms of your company’s reputation.
Potentially, yes — especially if your business relies heavily on vehicles for day-to-day operations, such as in delivery, transport, logistics, or on-site services. Fail to Nominate offences can result in hefty fines that place a strain on cash flow, and repeated offences may even trigger deeper scrutiny from Revenue NSW or other regulatory bodies. In extreme cases, ongoing non-compliance could risk vehicle registration suspensions. But beyond the legal risks, there’s also the operational and reputational cost — missed deadlines, client delays, or internal inefficiencies caused by unmanaged traffic matters. Fortunately, most of these impacts can be avoided or significantly reduced with early legal intervention. At Ainsley Law, we help companies not only deal with the current problem but also implement systems that protect your business long term. Don’t wait for things to snowball — act now to safeguard your operations.
We know that Fail to Nominate charges feel like an admin nightmare, but they can spiral into a legal and financial disaster if ignored. Whether you’re dealing with a one-off slip-up or a systemic issue, we can help you get back on top.
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For expert advice, visit Ainsley Law.