New Zealand Overhauls Driver Licensing to Make It Cheaper and Safer by 2027

The Government is updating New Zealand’s Graduated Driver Licensing System (GDLS) to make it cheaper and easier for young people to get their driver’s licence, Transport Minister Chris Bishop says.

These will be the first major changes to the driver licensing system since 2011, when the learner licence age was increased from 15 to 16, Mr Bishop says.

Driver licences are essential for helping people access jobs, education, and healthcare. For many young Kiwis, gaining a licence is a rite of passage, but the current system is expensive, outdated and no longer works as well as it should.

Internationally, New Zealand is an outlier in requiring a second practical driving test when moving from a restricted licence to a full licence.

We’re making practical, common-sense improvements to the driver licensing system to ensure it is accessible, efficient, and affordable, while keeping road safety front and centre.

Key changes: No more full licence test: Drivers will no longer need to sit a second practical test to move from the restricted to full licence, saving time and money.

Longer time spent on learners for under 25s: There will be a 12-month learner period for under 25s, an increase of 6 months.

Option to reduce learner period: There will be an option for under 25s to reduce their 12-month learner period back to six months by recording practice hours or completing an approved practical course.

New restricted periods: the restricted period will be 12 months for under 25s and six months for over 25s, with no option to reduce it with a defensive driving course.

Cheaper to get a full licence: The total cost of getting a Class 1 (car) licence will reduce by $80 under the new system.

Encouraging safe driving: Drivers on their restricted licence will face a further six months on their restricted if they get demerits.

Fewer eyesight screenings: Eyesight screenings will only be required at the first licence application and at each renewal.

Zero-alcohol rule expanded: All learner and restricted drivers, regardless of age, will be subject to a zero-alcohol limit.

Stronger oversight of training providers: NZ Transport Agency (NZTA) will gain new powers to monitor and suspend driver training course providers.

The removal of the full licence test will apply to Class 1 (car) licences only.

Changes to eyesight screenings apply to Class 1 and Class 6 (motorcycle) licences.

NZTA will review the existing learner and restricted tests to ensure they are fit for purpose. The hazard perception part of the current full licence test will be moved to the restricted licence test.

There are no changes to licence processes and requirements for overseas drivers or senior drivers.

The Ministry of Transport will undertake a review three years after implementation to assess the impact of the changes on road safety, employment and economic outcomes.

Most changes will take effect from 25 January 2027. The expanded zero-alcohol limit will be progressed separately.

More information is on the NZTA website: www.nzta.govt.nz/car-licence-changes Taken together, the changes will make it significantly cheaper to get a full driver licence, Mr Bishop says.

Under the current system, the total cost of getting a Class 1 car licence is $362.50. Under the new system, the total cost will be $282.50, a saving of $80.

Removing the second practical test reduces costs and makes it easier to progress to a full licence, provided drivers demonstrate safe driving behaviour while on their restricted licence. Changes to the learner and restricted periods will support young drivers to gain more experience early on, without extending the overall time they spend in the system.

These changes were informed by public consultation in 2025 and refined to ensure the system strikes the right balance between access and safety.

Over 4,100 submissions were received during that consultation, showing overall support for the proposed changes, Mr Bishop says.

The Government carefully considered the feedback from submitters and agreed to a number of refinements to the original proposals, including extending the learner period, extending the restricted period by six months for drivers who get demerit points rather than resetting it entirely, and keeping the existing demerit threshold for licence suspension for restricted drivers.

These changes strike the right balance between cost, efficiency, and road safety. Drivers are still expected to prove they can drive safely and responsibly, including maintaining a clean demerit record, before progressing to a full licence.

The new system will take effect from 25 January 2027. Until then, people will continue to follow the current licensing requirements.

Our young people and new drivers deserve a licensing system that is fair, accessible, and keeps them and others safe on the road.

Notes to the editor: The removal of the full licence test will apply to Class 1 (car) licences only.

Changes to eyesight screenings apply to Class 1 and Class 6 (motorcycle) licences.

NZTA will review the existing learner and restricted tests to ensure they are fit for purpose. The hazard perception part of the current full licence test will be moved to the restricted licence test.

There are no changes to licence processes and requirements for overseas drivers or senior drivers.

The Ministry of Transport will undertake a review three years after implementation to assess the impact of the changes on road safety, employment and economic outcomes.

Most changes will take effect from 25 January 2027. The expanded zero-alcohol limit will be progressed separately.

More information is on the NZTA website: www.nzta.govt.nz/car-licence-changes