Motorists across New South Wales could soon benefit from a permanent road safety reform that rewards safe driving with the removal of demerit points. The NSW Government has moved to formally enshrine its demerit point reward program into law, turning what began as a 2023 trial into an ongoing feature of the state’s licensing system.
If legislation currently before Parliament passes, eligible drivers will be able to remove one demerit point from their licence after completing 12 consecutive months without committing any traffic offences.
The move marks a shift in how road safety policy is structured in NSW, combining enforcement with incentives aimed at encouraging long-term behavioural change.
How the Permanent Demerit Reward Scheme Works
Under the proposed reform, unrestricted licence holders who maintain a clean driving record for a full year will automatically have one active demerit point removed from their licence.
Key eligibility criteria include:
- Must hold a full, unrestricted NSW driver’s licence
- Must complete 12 months without any traffic offences
- Must have at least one active demerit point on record
Importantly, drivers with no active demerit points will not receive additional credits. The scheme is specifically designed to help motorists reduce existing demerit totals, rather than build bonus points.
Learner drivers and P-plate holders are excluded from the program.
From Trial to Permanent Policy
The demerit reward initiative was first introduced in 2023 as a limited trial. At the time, the NSW Government estimated around 1.7 million drivers could qualify to have a demerit point removed if they maintained a clean record.
Since its launch three years ago, more than two million demerit points have reportedly been wiped from licences across the state. The government says this demonstrates strong participation and measurable behavioural improvement among motorists.
Premier Chris Minns described the reform as a “carrot and stick” approach, arguing that enforcement alone is not enough to improve road safety outcomes. Instead of relying purely on fines and penalties, the government wants to provide a clear incentive for drivers to correct risky habits.
What This Means for NSW Drivers
For motorists carrying demerit points, the change provides a structured path to restoring their driving record without waiting for points to expire naturally.
In NSW, demerit points typically remain active for three years. Accumulating too many within that period can result in licence suspension.
The reward scheme effectively shortens that burden for responsible drivers.
Current NSW Demerit Thresholds
| Licence Type | Demerit Point Limit Before Suspension |
|---|---|
| Unrestricted (Full Licence) | 13 points |
| Professional Drivers | 14 points |
| P2 Licence | 7 points |
| P1 Licence | 4 points |
| Learner Licence | 4 points |
Only unrestricted licence holders qualify for the new reward mechanism.
Enforcement Still Remains a Priority
NSW Minister for Roads Jenny Aitchison emphasised that the reform does not signal weaker enforcement. Speed cameras, police patrols, and penalty structures will remain unchanged.
Instead, the government frames the policy as a complementary tool. Drivers who repeatedly offend will continue to face penalties, while those who demonstrate sustained safe behaviour gain a small but meaningful benefit.
This balance reflects a broader road safety philosophy that combines deterrence with education and behavioural incentives.
What About Other Safe Driving Benefits?
The demerit reward program replaces previous incentive-based policies introduced in NSW.
In 2024, the government scrapped the Fair Go for Safe Drivers scheme, which had provided a 50 percent discount on licence renewal fees for motorists with clean records.
Under the current framework, safe drivers may still benefit in other ways:
- Some drivers may receive cautions instead of fines for certain low-level speeding offences
- Long-term clean records can assist with lower car insurance premiums
However, the demerit reward program is now positioned as the primary behavioural incentive within the licensing system.
Why This Matters in 2026
Road safety remains a major issue in NSW, with authorities continuing to target speeding, drink driving, and mobile phone use behind the wheel.
By making the reward scheme permanent, the Minns Government is embedding behavioural incentives into the system long term rather than treating them as temporary experiments.
For drivers sitting close to suspension limits, even one demerit point removed can provide critical breathing space.
For example:
- A driver with 12 demerit points who avoids offences for 12 months could drop to 11 points
- This reduces immediate suspension risk and encourages ongoing compliance
While one point may seem modest, the psychological impact of a clear recovery pathway could influence driving habits more broadly.
Who Benefits Most?
The scheme primarily benefits:
- Drivers who made past mistakes but are now driving responsibly
- Motorists approaching demerit limits
- Professional drivers who rely on maintaining their licence for employment
It does not benefit:
- Drivers with zero active demerit points
- Learner drivers
- P-plate holders
The focus is on rehabilitation rather than reward accumulation.
Key Takeaways
- NSW plans to permanently introduce its demerit point reward program
- Full licence holders can remove one demerit point after 12 offence-free months
- Over two million demerit points have already been scrubbed since 2023
- Learner and provisional drivers are not eligible
- Enforcement and penalties remain unchanged
- The reform replaces the former licence renewal discount scheme
The legislation is expected to pass, cementing the program as a standing feature of NSW road policy.
For drivers looking to restore their record, the message is clear: maintain a clean licence for 12 months, and you’ll earn back one point.