NSW Demerit Points: Safe Drivers to Have Points Wiped Under New Law

The New South Wales government has introduced a bill to parliament to permanently enshrine its Demerit Point Reward Program, offering eligible drivers the chance to have one demerit point removed for each year of offence-free driving. The move, announced on February 10, 2026, builds on a trial program initiated in 2023 and represents a $2.8 billion investment in road safety, according to a ministerial release.

Under the proposed legislation, unrestricted licence holders who avoid traffic infringements for a continuous 12-month period will be eligible for the demerit point reduction. Learner and provisional drivers will remain excluded, consistent with the existing Graduated Licensing Scheme, which maintains stricter demerit thresholds for newer drivers. Drivers must as well maintain an active licence throughout the 12-month period to qualify.

The program’s permanent adoption follows a successful trial period during which over two million demerit points were removed from the records of NSW motorists. The scheme was initially slated to conclude in January 2024, but was extended to January 31, 2026, due to its popularity. According to Premier Chris Minns, the program is about rewarding those who have “turned a corner and improved their safety.”

The government emphasizes that the demerit point reward program is not intended to replace existing enforcement measures. Penalties, fines, licence suspensions, and police action will continue to be applied to dangerous and repeat offenders. Instead, the program aims to incentivize safer driving habits by offering a “carrot and stick” approach, as described by Minns. “History has shown that enforcement and penalties alone, aren’t enough to keep our roads safe,” he stated.

Roads Minister Jenny Aitchison has described the move as a “commonsense” approach to recognizing and reinforcing responsible behaviour. More than 1.7 million licence holders have had a point scrubbed since the trial began, with the process allowing for a point to be expunged from a licence after a year, a timeframe that would otherwise require three years.

The bill is scheduled for introduction to the NSW parliament in early February 2026, with the government anticipating bipartisan support for the legislation. The program’s future hinges on parliamentary approval.