Govt Proposes Overhaul of Driver Licensing to Cut Costs and Boost Access

Government Proposes Major Reforms to Driver Licensing System to Improve Access, Cut Costs, and Maintain Road Safety.

The New Zealand Government has announced a sweeping set of proposed reforms to the Graduated Driver Licensing System (GDLS), aimed at making the process of obtaining a driver's licence more accessible, affordable, and streamlined, while maintaining strong safety measures. The announcement was made by Transport Minister Chris Bishop, who said the current system is outdated and inefficient, and needs modernisation to better serve Kiwis.

“Getting a driver's licence is very important for many New Zealanders. It opens the door to employment opportunities, education, healthcare, and social participation,” said Bishop. “Yet, around one million adults in New Zealand still don’t have a full driver's licence, and almost half of them don’t have any licence at all. This is a barrier we need to break down.”

Key Proposed Changes to the GDLS:

1. Scrapping the Second Practical Test

The centrepiece of the proposal is the removal of the requirement for a second practical driving test to progress from a restricted licence to a full licence. Currently, drivers must pass two separate practical tests—once to obtain their restricted licence and again to gain their full licence. The full licence test alone costs nearly $100, contributing to a minimum total cost of $362.50 to complete the process from learner to full licence.

New Zealand is one of the few countries that still require two practical tests. Other nations, including Australia, manage road safety with alternative measures such as extended learner periods, reduced demerit thresholds, and mandatory logged driving hours.

“This change will reduce unnecessary duplication in the process and lower costs for Kiwis, without compromising safety,” Bishop said.

2. Stronger Safety Requirements Instead of Full Test

To compensate for the removal of the final practical test, the Government is introducing tougher safety-related conditions for restricted licence holders:

• Clean Driving Record Requirement: Restricted licence holders must maintain a clean driving record for 18 months (for drivers under 25), or 12 months if they complete an approved advanced driving course.

• Zero Offence Tolerance: Any driving offence within this period will restart the clock.

• Lower Demerit Threshold: The demerit point threshold for learner and restricted drivers will be halved—from 100 to 50 points—meaning faster penalties and potential suspensions for unsafe driving.

• Zero Alcohol Limit: A zero-alcohol limit will be enforced for all learner and restricted drivers, regardless of age, expanding on the current rule that only applies to drivers under 20.

These initiatives aim to ensure that novice drivers gain real-world experience while staying accountable to high safety standards.

3. Reduced Frequency of Eyesight Testing

The current system requires up to three eyesight tests between the learner, restricted, and full licence stages. This is seen as excessive, especially for those progressing through the licensing system quickly.

Under the proposed changes:

• Drivers would only be required to complete an eyesight test when applying for their first licence and again upon renewing their licence after the age of 45.

• At other stages, drivers would be asked to self-declare whether their eyesight has changed.

“Data shows there is little evidence that repeated eyesight tests between stages improve road safety. Reducing unnecessary testing will simplify the process,” Bishop added.

Eyesight testing requirements for heavy vehicle licences, professional endorsements, and people over 75 will remain unchanged.

4. New Hazard Perception Test Being Considered

To further support safe driving, NZTA is exploring the introduction of a hazard perception test at the end of the learner licence stage. This computer-based assessment would measure a driver's ability to anticipate and react to potential dangers, aligning New Zealand with international best practice in driver education.

Implementation Timeline and Public Consultation

The proposed reforms would not take effect until July 2026, allowing time for policy design, system updates, and public feedback. Until then, all drivers must continue to follow the current rules and requirements.

Public consultation on the proposed changes opened on 14 April 2025 and will close on 9 June 2025. The Government is encouraging all New Zealanders, especially learner and restricted drivers, educators, employers, and road safety advocates, to have their say.

“We believe these changes strike the right balance—making it easier and more affordable to get a licence, while ensuring new drivers are still well-prepared and responsible,” said Bishop.

Further details on how to submit feedback can be found on the official NZTA and Ministry of Transport websites.