REPORT OF THE REVIEW INTO PUBLIC TRANSPORT TICKETING COMPLIANCE AND ENFORCEMENT MAY 2016 Disclaimer The information contained in this report is provided for general guidance and assistance only and is not intended as advice. You should make your own enquiries as to the appropriateness and suitability of the information provided. While every effort has been made to ensure the currency, accuracy or completeness of the content we endeavour to keep the content relevant and up to date and reserve the right to make changes as required. The Victorian Government, authors and presenters do not accept any liability to any person for the information (or the use of the information) which is provided or referred to in the report. Authorised by the Victorian Government Department of Economic Development, Jobs, Transport and Resources 1 Spring Street Melbourne Victoria 3000 Telephone (03) 9651 9999 May 2016 ISBN 978-1-925466-92-8 (Print) ISBN 978-1-925466-91-1 (pdf/online) © Copyright State of Victoria 2016 Except for any logos, emblems, trademarks, artwork and photography this document is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. This document is also available in PDF and accessible Word format at economicdevelopment.vic.gov.au/transport/rail-and-roads/ public-transport REPORT OF THE REVIEW INTO PUBLIC TRANSPORT TICKETING COMPLIANCE AND ENFORCEMENT 3 CONTENTS Glossary and abbreviations 5 Report summary 8 Context 8 Current arrangements for fare compliance and enforcement 10 Behavioural aspects of fare evasion 12 Issues raised by stakeholders 12 Analytical assessment 17 Developing a fairer policy framework 22 Operational reforms to support the fairer policy framework 23 Part A CONTEXT 27 Background 28 Why is this review taking place and what is being examined? 30 Review framework and process 31 Structure of this report 31 Current system of fare compliance and enforcement 33 Victoria’s ticketing law framework 33 Responsibilities for maximising fare compliance 35 Overview of compliance strategy 37 Behavioural aspects of fare evasion 41 4 REPORT OF THE REVIEW INTO PUBLIC TRANSPORT TICKETING COMPLIANCE AND ENFORCEMENT PART B: WHAT NEEDS TO BE IMPROVED 44 Issues raised by stakeholders 45 Issues raised during the consultation processes 45 Analytical assessment of the ticketing compliance and enforcement regime 59 Key elements of the analytical framework 61 Assessment of the current regime against the analytical framework 64 Conclusion: identifying opportunities for improvement and reform 69 Part C: OPPORTUNITIES FOR REFORM 70 Developing a fairer policy framework 71 the need for a policy framework 71 What should the policy framework aim to achieve? 72 Towards greater transparency 73 Summary of policy-related recommendations 76 Operational reforms 77 Changes to the two-tier enforcement approach 77 Ticketing and other system improvements 79 Modifications to the infringements system 81 Measures to improve training and support for authorised officers 86 Appendix A: Compliance and enforcement models i In other jurisdictions and portfolio areas 89 Public transport ticketing compliance and enforcement overseas 89 Public transport ticketing compliance and enforcement in other Australian jurisdictions 96 Victorian compliance and enforcement models in other portfolio areas 108 Appendix B: Related references 113 5 GLOSSARY AND Fare evasion Infringement notice Travelling without a valid ticket A notice provided to an ABBREVIATIONS and travelling on a concession individual who has committed ticket when an individual is not an alleged offence on the public Authorised officer entitled to do so. transport system. In Victoria, an A person who is employed by infringement notice is issued by public transport operators and Farebox DEDJTR following the receipt of authorised by the Victorian Also known as fare revenue, a valid report of non-compliance Government to check tickets and the total amount of revenue from authorised officers. provide customer information. collected from public transport fares. Fare revenue forms part Internal review Concession entitlement of consolidated revenue. A process stipulated under Concession (ie, reduced) fares the Infringements Act 2006, apply throughout Victoria. Free tram zone by which an authority determines Only a customer who is eligible A free tram zone operates within if an infringement should be for concession may use the Melbourne central business upheld or dismissed, withdrawn, a concession ticket. district. Tram users are not or replaced by a warning. required to touch on their myki The following customers cards if travelling entirely within Infringements Act 2006 are eligible to travel using this zone. The piece of legislation that sets a concession ticket: out the standard framework ‘Gaming’ of the system for managing the issuing • asylum seekers; This term refers to people of infringements and their • Australian Pensioner deliberately taking a calculated enforcement in Victoria. Concession Card holders; risk to fare evade, based on a rationalised cost benefit analysis Infringements Court • children 16 years and under; including the likelihood and cost A division of the Magistrates’ • eligible primary, secondary of being caught or penalised. Court, which deals with the and tertiary students; processing and enforcement ‘High risk’ fare evaders of infringement notices and • holders of a Health Care Card People who regularly and penalties. In relation to public with a Victorian address; intentionally travel on the transport infringements, the public transport system • Victorian and interstate Infringements Court issues without a valid ticket despite Seniors Card holders; enforcement orders and being able to afford to travel infringement warrants to enforce • war veterans/war widows. with a valid ticket. unpaid fines. It also decides CCTV on applications for revocation Closed circuit television, also (applications to have an known as video surveillance, enforcement order cancelled) and is the use of video cameras payment orders (orders setting to transmit a signal to a out the terms of a payment plan specific place, on a limited on an enforcement order set of monitors. or infringement warrant). DEDJTR Department of Economic Development, Jobs, Transport and Resources 6 REPORT OF THE REVIEW INTO PUBLIC TRANSPORT TICKETING COMPLIANCE AND ENFORCEMENT Infringement system myki money ‘On-the-spot’ penalty fare scheme Refers to the administrative and Pay as you go form of myki Introduced on the Victorian legal processes and actions using pre-paid value stored metropolitan public transport that enforce an infringement on the card. The cost of each network in August 2014, a penalty notification. The infringement trip is deducted from the balance fare may be offered for ticketing system includes the issuing of on the myki card. offences as an alternative to the fines, internal reviews, appeal well-established infringements processes, reminder notices and myki touch on/off system. The penalty fare is $75 Magistrates’ and Infringements The myki ticketing system has to be paid by credit/debit Court proceedings. requires users to touch on to card on the spot, and no personal validate their ticket and to touch details are taken. The penalty Magistrates’ Court off at the end of their journey fare does not provide the right If an appeal of an infringement (subject to the mode of transport to an internal review. is rejected by the internal and zones travelled). Users are review process, an individual required to touch on/off on Public Transport can elect to refer the matter to machines on bollards, or gates, Ombudsman (PTO) the Magistrates’ Court. At the or pole mounted machines. The PTO was established Magistrates’ Court, the appellant in 2004, as a not for profit, will be required to plead guilty Negative balance independent dispute resolution or not guilty or request a myki tickets have the ability body, providing a free, fair, diversion. The prosecution acting to go into negative balance informal and accessible service on behalf of DEDJTR has to to allow a transport user to for the resolution of complaints prove that an authorised officer complete a journey on a single about Victorian public transport believed and had reasonable mode of transport. However, operators, who are members grounds to believe that an a myki with negative balance of the PTO scheme. The PTO is offence has been committed. becomes invalid for any further independent from the transport The Magistrate will determine if legs of a multi-modal trip. operators and government. the infringement is upheld or not OECD and the applicable fines. Public Transport Victoria (PTV) Organisation for Economic Co- Established under the Transport myki operation and Development Integration Act 2010, PTV is the The electronic public transport subordinate statutory authority Official warning ticketing system used for that acts as part of the transport Used in infringement systems public transport system portfolio under DEDJTR, across jurisdictions and in Melbourne and regional with the primary objective of agencies, an official warning commuter corridors. planning, coordinating, providing, is sometimes issued in place operating and maintaining a of a penalty for a first offence, myki pass safe, punctual, reliable and usually based on a prior record A myki pass can be bought for clean public transport system of good compliance behaviour. 7 consecutive days of travel, consistent with the vision or anywhere between 28 and 365 statement and