Motorists in New South Wales will soon be permanently rewarded for safe driving, with the state government moving to lock in its demerit point reward program as a lasting feature of the licensing system.
The reform, first introduced as a trial in 2023, has now been put before parliament to become a permanent part of the state’s road safety framework. If passed, eligible drivers will be able to remove one demerit point from their licence after completing 12 consecutive months without committing a traffic offence.
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How the Demerit Reward System Works
Under the proposed permanent scheme, unrestricted licence holders who maintain a clean driving record for a full year will automatically have one active demerit point scrubbed from their record.
The program applies only to drivers who currently have demerit points. It does not benefit motorists with completely clean records, and it excludes learner and provisional (P-plate) drivers.
The initiative was originally introduced as a three-year trial. During that period, more than two million demerit points were removed from licences across the state. Government figures estimate that around 1.7 million drivers were eligible to benefit from the scheme while it operated on a temporary basis.
A Shift from Punishment to Incentive
NSW Premier Chris Minns said the reform reflects a broader shift in road safety strategy.
According to Minns, penalties and enforcement alone are not enough to improve driver behaviour. The reward-based approach is designed to encourage motorists who may have accumulated demerit points in the past to improve their conduct and rebuild their driving record.
He described the system as offering both a “carrot and stick” approach — maintaining firm enforcement while also giving drivers a tangible incentive to adopt safer habits behind the wheel.
Enforcement Remains in Place
NSW Roads Minister Jenny Aitchison stressed that the reform does not weaken road law enforcement.
She emphasised that the state remains committed to maintaining strict road safety standards. Police operations, fines and penalties will continue to apply as usual. The reward program is intended to complement enforcement, not replace it.
Authorities argue that education, accountability and positive reinforcement must work together to improve long-term road safety outcomes.
Who Is Eligible — and Who Is Not
The scheme is limited to unrestricted licence holders. That means full licence drivers can benefit, provided they complete 12 months offence-free.
However, learner drivers and provisional (P1 and P2) drivers are excluded from the program. These licence categories already operate under stricter demerit thresholds, and the government has chosen not to extend the reward system to them.
Drivers with no active demerit points also receive no direct benefit under the program. The reward is specifically designed for motorists who have points on their licence but demonstrate sustained improvement in their driving behaviour.
Broader Changes to Driver Incentives
The permanent demerit reward program follows other recent adjustments to NSW driver incentive schemes.
In 2024, the government ended the “Fair Go for Safe Drivers” program, which previously offered a 50 per cent discount on licence renewal fees for motorists with strong safety records. Instead of renewal fee discounts, the focus has shifted toward direct behavioural incentives within the demerit system itself.
In addition, some drivers may be eligible for a caution rather than a fine for certain minor speeding offences, depending on their record. Long-term safe drivers may also receive insurance discounts from private insurers, though these are separate from government programs.
The Scale of the Reform
The broader road safety initiative, valued at $2.8 billion, represents one of the largest transport policy investments in the state. The government says the demerit reward program is only one component of a wider safety strategy that includes infrastructure upgrades, education campaigns and enforcement measures.
By making the reward system permanent, the government aims to embed behavioural incentives into everyday driving culture rather than treating them as a temporary experiment.
What It Means for NSW Motorists
For drivers carrying demerit points, the reform offers a practical pathway to reducing risk of licence suspension — provided they can maintain a clean record for 12 months.
The message from the government is clear: safer driving will be recognised and rewarded, not just demanded through penalties.
While critics may debate whether one point per year is a strong enough incentive, early trial figures suggest significant uptake. With more than two million points already removed during the trial period, the scheme appears to have resonated with a large portion of NSW motorists.
If parliament passes the legislation, the demerit reward program will become a permanent fixture of the NSW licensing system — marking a shift toward a more balanced approach that combines accountability with encouragement.
