Getting a full driver's licence will cost $80 less under changes confirmed by the Government today, with the second practical test to be scrapped entirely.
Confirmed details of the overhaul, first put out for submissions last year, were revealed today by Transport Minister Chris Bishop's office.
The changes are set to take effect from January 25, 2027 - pushed back from the originally proposed date of July 2026.
The total cost of obtaining a class one car licence will drop from $362.50 to $282.50 - predominantly because the cost of getting a full licence will fall from $98.90 to $25.90.
Bishop said the changes followed consultation that drew more than 4100 submissions and would make the first major updates to the graduated 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 come with trade-offs for younger drivers.
Under-25s will now spend 12 months on their learner licence - double the current six months - though this can be reduced by recording supervised practice hours or completing an approved driving course.
The restricted licence period will be set at 12 months for under-25s and six months for those 25 and over. Finishing a defensive driving course will no longer shorten this period.
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.
He added that the Government had refined several proposals following feedback.
New changes included "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."
Until January 25, 2027, people will continue to follow the current licensing requirements.
The removal of the full licence test will apply to class one licences only.
Other changes
The zero-alcohol limit currently applying to drivers under 20 will be extended to all learner and restricted licence holders, regardless of age.
The Government’s proposing having only one practical test to get a full licence. (Source: 1News)
This change requires legislative changes and will come into effect at a later date.
Eyesight checks will be reduced to the first licence application and subsequent renewals only, rather than at each licence stage. Changes to eyesight screenings apply to class one and class six motorcycle licences.
The hazard perception test, currently part of the full licence assessment, will also move to the restricted licence test.
Waka Kotahi NZTA would also gain new powers to oversee and suspend driver training course providers. The transport agency would also be tasked with reviewing the existing learner and restricted tests to ensure they are "fit for purpose".
There are no changes to licence processes and requirements for overseas drivers or senior drivers.
It was expected the Ministry of Transport would review the changes' impact on road safety and employment outcomes three years after implementation.
'Good balance' - Automobile Association
The Automobile Association (AA) welcomed the licensing overhaul, saying the overall package of changes "struck a good balance".
AA road safety spokesperson Dylan Thomsen said extending the default learner period would encourage "more meaningful practice" and was a change from the Government’s original proposal.
“Time alone doesn’t make safer drivers - experience does," he said in a media release.
"The new system will encourage learners wanting to quickly gain a restricted licence to have to put in more practice.
"A longer learner period, combined with incentives to gain real driving experience or undertake professional training, gives young drivers a much better chance of developing the skills and judgement they need to be safer on the road."
He added: "Most comparable countries have automatic progression to a full licence but require learner drivers to log a minimum number of supervised hours, complete professional training, or both.
"Bringing New Zealand more into line with these proven approaches is a sensible move."
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