Making the announcement in Auckland on Tuesday, Transport Minister Chris Bishop said the current system was “expensive, outdated and no longer works as well as it should”.

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. This applies to Class 1 (car) licences only.
• Longer time spent on learners for under 25s: There will be a 12-month learner period for under 25s, an increase of six 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. This applies to Class 1 and Class 6 (motorcycle) licences.
• 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.