The measure will only apply to on-the-spot fines and will not affect fines imposed by the courts or by the municipalities, e.g. parking penalties.
At present people who are fined receive an order to pay. If they fail to do so, they are subpoenaed to appear in a police court.
Under the new arrangement unpaid fines that are not subject of an appeal will be settled via the income tax system. In future the fine will either be added to the money you owe the taxman or deducted from the money that is being returned to you.
It's not quite clear when the measure is being introduced. The package of anti-fraud measures will be put to the new Prime Minister and it will be his or her job to ensure that the measure becomes law.