Government Overhauls Driver Licensing System to Cut Costs and Improve Access

Transport Minister Chris Bishop says the reforms modernise an outdated system that no longer reflects how people learn to drive or the role a licence plays in everyday life.

The Government has announced the first major overhaul of New Zealand’s Graduated Driver Licensing System (GDLS) since 2011, introducing changes designed to make getting a driver licence cheaper, simpler and more accessible — particularly for young people — while maintaining a strong focus on road safety.

Transport Minister Chris Bishop says the reforms modernise an outdated system that no longer reflects how people learn to drive or the role a licence plays in everyday life.

“Driver licences are essential for accessing jobs, education and healthcare,” Mr Bishop says. “For many young New Zealanders, getting a licence is a rite of passage, but the current system is expensive, inefficient and no longer works as well as it should.”

Removing Barriers While Keeping Safety Front and Centre

A central change is the removal of the second practical driving test required to progress from a restricted licence to a full licence — a requirement that makes New Zealand an international outlier.

“Internationally, New Zealand is unusual in requiring a second practical test,” Mr Bishop says. “Removing it reduces unnecessary cost and complexity, while still ensuring drivers demonstrate safe behaviour before progressing.”

Under the new system, safe driving — rather than repeated testing — will be the primary measure for moving to a full licence.

Key Changes to the Graduated Driver Licensing System

The updated GDLS includes a package of reforms:

• No full licence practical test for Class 1 (car) licences, saving drivers time and money.

• Longer learner period for under-25s, increasing from six to 12 months to support earlier skill development.

• Option to reduce learner period back to six months by recording practice hours or completing an approved practical course.

• New restricted licence periods: 12 months for under-25s and six months for over-25s, with no option to shorten via defensive driving courses.

• Lower overall cost, with the total price of a Class 1 licence dropping by $80.

• Stronger incentives for safe driving, with an additional six months on restricted licences for drivers who incur demerit points.

• Reduced eyesight screening requirements, limited to first application and licence renewals.

• Expanded zero-alcohol limit, applying to all learner and restricted drivers regardless of age.

• Stronger oversight of driver training providers, with NZTA gaining new monitoring and suspension powers.

The hazard perception component currently assessed at the full licence stage will be moved to the restricted licence test, and NZTA will review learner and restricted tests to ensure they remain fit for purpose.

There are no changes to licensing processes for overseas or senior drivers.

Cheaper, More Efficient Pathway to a Full Licence

Under the current system, the total cost of obtaining a Class 1 car licence is $362.50. Under the new system, the cost will fall to $282.50.

“Taken together, these changes make it significantly cheaper to get a full licence,” Mr Bishop says. “Drivers who demonstrate safe, responsible behaviour won’t be held back by unnecessary testing.”

Strong Public Support and Ongoing Review

The reforms follow public consultation in 2025, which attracted more than 4,100 submissions and showed broad support for change. Feedback led to refinements, including extending learner periods, adjusting demerit consequences, and retaining existing suspension thresholds.

A formal review will be undertaken three years after implementation to assess impacts on road safety, employment and economic outcomes.

Implementation Timeline

Most changes will come into force on 25 January 2027, with the expanded zero-alcohol rule progressed separately. Until then, current licensing requirements will remain in place.

“Our young people and new drivers deserve a licensing system that is fair, accessible, and keeps them — and everyone else — safe on the road,” Mr Bishop says.

More information is available on the NZ Transport Agency website.