Compensation claims for damage caused by damaged, uneven, and unsafe roads over the last two years have a 1.4 per cent success rate in Victoria.
In 2023 and 2024, the Victorian Government received 1709 damage claims stemming for the poor condition of the state’s road network.
Of those claims, only 23 resulted in a settlement, leaving around 98.6 per cent of damage notices unfulfilled.
Data obtained by the ABC reveals a flawed system with the Victorian government creating a difficult application process and a low level of fulfilment.
The responsibility for road maintenance in Victoria is split between local councils and the state, depending on the type of road.
The Victorian government manages around 15 per cent of the state’s road network by distance, leaving 85 per cent of the network maintained by local councils.
With major freeways, arterial links and major roads falling under the responsibility of the state, the maintenance of upkeep of roads that carry the majority of Victoria’s traffic volume falls to the state.
Vehicle owners who sustain damage as a result of poor road conditions on state-managed roads can apply for compensation through the Victorian government, but the process is difficult, and the first $1680 worth of damage on any claim must be covered by the applicant.
Of the 1709 applications received by the Victorian Government between January 2023 and December 2024, over two-thirds were for pavement or surface defects.
Potholes, uneven surfacing and rutting, material separation, and cracks, along with other imperfections caused by ageing road surfaces, increased traffic volumes, or weather and environmental damage, have created a deteriorating road network.
1246 claims related to surface condition, 250 were for obstructions or debris in traffic lanes, 60 related to issues with surface markings, 47 were for claims relating to trees, shrubs, or grassed areas.
The government also received 53 claims with no description provided and 37 for other causes.
In an attempt to remedy the issues, the Victorian Government has pledged $976 million to road maintenance from 2025 to 2026, with the majority allocated to the upkeep of regional roads.
The suburb of Pakenham saw the highest number of claims with 64 applications for compensation over the last two years, followed by Glenburn (31) and Seymour (25) in the top three.
The government data claims the State Government was not liable in 79 per cent of the applications it received.
Of those claims, the government denied 47 per cent of applications for not meeting the $1680 damage threshold, accounting for a combined total of $257,292 – despite the cost average per claim coming in at over three times the threshold.
The Victorian Government website states that a person may be entitled to compensation for injury, loss, or damage as a result of the poor condition of a road or road-related infrastructure.
Kez Casey migrated from behind spare parts counters to writing about cars over ten years ago. Raised by a family of automotive workers, Kez grew up in workshops and panel shops before making the switch to reviews and road tests for The Motor Report, Drive and CarAdvice.
