Victorians owe $1.2 billion in unpaid fines from warrants, with the state's watchdog warning that a large number of offenders are not being held accountable.
Victorian Ombudsman George Brouwer said there was "little deterrent" for not paying fines and road safety was being compromised.
The watchdog's investigation into unenforced warrants, which was tabled in State Parliament on Thursday, found that around $866 million in unpaid fines had been "written off" since 2005 due to warrants expiring.
The Ombudsman said there were not enough sheriffs to serve an escalating number of warrants issued for unpaid traffic, public order, industry regulation and environment protection fines.
"There are 172 Sheriff's Officers to enforce warrants. If the number of unenforced warrants to be executed were shared equally amongst the Sheriff's Officers then this would average 20,400 each, an impossible task."
He said written-off debt continued to rise despite concerns about uncollected fines being raised for almost a decade in reports by the offices of the Auditor-General and the Ombudsman.
Mr Brouwer said staffing shortages, outdated IT and data-sharing problems had made it difficult for the Sheriff's Office to keep pace with a large number of warrants.
He said Victorian sheriffs were not utilising powers to seize money from offender's salaries and assets, and making company directors liable for debts.
The state's top 10 offenders racked up more than $1.7 million in unpaid fines between them.
The Ombudsman made 23 recommendations including negotiating with the Commonwealth to restrict air travel for offenders with outstanding infringement warrants, hiring more sheriffs and ensuring the Sheriff's Office use its available powers.
Attorney-General Robert Clark today said that the report "sets out in stark detail yet another problem area left behind by the former Labor government that the Coalition government is now having to fix."
Mr Clark said the state government was spending $34.5 million on overhauling the fine collection and warrants system.