Driver licences, an every day essential for commuters across the country are ready for a change in the coming times in New Zealand. Getting a full driver’s licence will soon be cheaper and simpler, with the Government confirming it will scrap the second practical test and cut the overall cost of a class one car licence by $80.
“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,” Transport Minister Chris Bishop said.
Details of the changes, first released for public consultation last year, were confirmed on 3 February by Minister Bishop. The changes will take effect from January 25, 2027. Until then, people will continue to follow the current licensing requirements.
Under the new system, the total cost of obtaining a class one licence will fall from $362.50 to $282.50, largely due to a sharp reduction in the full licence fee, dropping from $98.90 to $25.90.
Bishop said the reforms followed more than 4100 public submissions and marked the most significant changes to New Zealand’s graduated driver licensing system since 2011.
“Taken together, the changes will make it significantly cheaper to get a full driver licence,” he said.
“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."
However, the changes also introduce stricter requirements for younger drivers.
Drivers under 25 will now need to spend 12 months on a learner licence, double the current six-month minimum. However, 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.
The restricted licence period will be set at 12 months for drivers under 25 and six months for those aged 25 and over. Completing a defensive driving course will no longer shorten this stage.
Restricted licence holders who receive demerit points will have their restricted period extended by six months. Demerit offences are infringements issued by a police officer.
“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,” Bishop said.
Bishop said the Government had adjusted several proposals following feedback, 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 removal of the full licence test will apply only to class one licences.
Other changes include extending the zero-alcohol limit, currently for drivers under 20, to all learner and restricted licence holders, regardless of age.
Eyesight checks will be required only at the first licence application and at renewals, rather than at each licence stage. This change will apply to class one and class six motorcycle licences.
The hazard perception test, currently part of the full licence assessment, will move to the restricted licence test.
Waka Kotahi NZ Transport Agency will also gain new powers to oversee and suspend driver training course providers and will review learner and restricted tests to ensure they are “fit for purpose”.
There will be no changes to licensing requirements for overseas drivers or senior drivers.
The Ministry of Transport is expected to review the impact of the changes on road safety and employment outcomes three years after implementation. More information is available on NZTA website.
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