It's been that way for a few years at least.
The sellers change of ownership form (the three peice fold-up bit of cardboard you mail back) outlines the situation as such.
"I'm gonna get to the bottom of this, and I dont give a fuck if you're at the top!!!"
He rang the LTSA last night and chatted to them about it. Might be a bit of info for the anyone who runs into this problem.
When you send away the seller notifying of disposing a motorvehicle letter thing, the LTSA register that and send the current owner a letter stating they they should change the ownership within the next 14 days or there will be a $1000 to $1500 fine issued to them, she also mentioned she thought the car also gets removed from the LTSA database in 3 months rather than the 12months as per usual. The seller is sent a "sellers notification letter" which states the car was sold and such and such a date and that you are no longer liable for fines or outstanding rego fees. But you must present this letter whenever contesting fines with the issuer.
The main thing to remember is that you must phone the LTSA to action this letter and have it sent to you if you havent seen a change of ownership in a month, otherwise they just leave it and you continue getting notices and fines.
To every man upon this earth
Death cometh sooner or late
And how can a man die better
Than facing fearful odds
For the ashes of his fathers
And the temples of his Gods
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