The government estimates people will avoid about $4 million in late fees each year. Penalty notices for offences such as speeding will now be delivered in "plain English" to make the consequences of non-payment clear. Unpaid fines, for example, will be topped with the words: "pay your fine now, or lose your licence, possessions, or money from your bank account".
Those with overdue land tax bills will be told "more than eight out of 10 people pay their land tax on time, making you one of a small minority who has required us to take further action". The government is also researching how to apply the theory to encourage the use of private health insurance or return to work after injury.
It was advised by a global "nudge unit" known as the Behavioural Insights Team, which was set up by the British government. The international director of the team, Rory Gallagher, said humans were ''social beings and we are heavily influenced by what others do''.
NSW Council of Social Services chief executive Alison Peters said many people could not afford to pay fines on time and that nudge tactics would make them "feel more anxious".
This article was originally published in the Sydney Morning Herald