Victorians may not know they owe parking fines and speeding tickets, with significant IT problems potentially leaving the state more than $300 million out of pocket.
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The problems with Fines Victoria's database means people who haven't paid their fines at a court have missed out on reminder notices.
The state government insists the debt payment system is still operational and Victorians should pay their fines as normal - if they're aware of them.
But local councils say they're owed millions of dollars in outstanding fines due to problems with Fines Victoria's IT systems.
"We know that the new IT system has fallen short of what was contracted and what Victorians expect," a government spokeswoman said on Tuesday.
"The attorney-general ordered a full-scale review of issues in relation to Fines Victoria earlier this year and conversations in relation to contractual agreements are ongoing."
Fines Victoria manages the collection of parking tickets, speeding fines and other debts issued by the courts.
The Victorian government confirmed a $328 million increase in "the provision for the possibility of not being able to collect a range of debts, mostly fines".
But a government spokeswoman says the state still expects to recover that money.
"Our council is currently owed $21.8 million in unrecovered debt from outstanding fines, which Fines Victoria is responsible for collecting and this balance continues to increase each month," Port Phillip Council mayor Dick Gross said.
Shadow attorney-general Ed O'Donohue said this was the latest in a long line of IT disasters in Victoria.
"Every state government service that relies on this revenue, council services, the justice system are all now in jeopardy because this is a fundamental failure that goes to the heart of government," he said.
Shadow treasurer Louise Staley said this had the potential to wipe out Victoria's thin budget surplus, after the state also committed to fixing dodgy cladding on high-rise buildings.
Ruth Parker, principal lawyer at Galbally Parker, has clients who couldn't pay fines in time to comply with court orders due to "significant delays".
"I cannot think of a case in the past 12 months that a client has received a fine promptly," she told AAP.
"You cannot pay a fine until you receive it.
"There are people who are actually at risk of breaching their sentences because Fines Victoria has not sent the fines."
Victoria has a bad history with its fines computer systems.
From 2007 to 2015, it paid $59.9 million to Tenix Solutions to build a new system but the contract was eventually terminated with no software delivered.
The state then bought the VIEW system off the shelf from England but it now faces lengthy delays.
Australian Associated Press
