Safe drivers in Australia’s most populous state are set to be rewarded for their years of caution on the road, with the state government moving to make its demerit point reward scheme permanent.

The program, which has been operating on trial since 2023, allows eligible drivers to have one demerit point removed from their licence if they remain offence-free for 12 months. 

Since its introduction, approximately two million demerit points have been removed from NSW licences.

The NSW government will introduce legislation to parliament on Thursday to entrench the scheme in law. If passed, unrestricted licence holders will continue to be eligible for the annual reduction.

“For too long, road safety has relied almost entirely on penalties and enforcement,” Minister for Roads Jenny Aitchison said.

“And while those tools remain absolutely essential, on their own, they don’t always change behaviour for the long term.

“We believe the best approach is a clear carrot and stick – strong penalties for dangerous behaviour, combined with a real incentive for drivers who do the right thing and stay offence-free.”

Aitchison said sustainable improvements in road safety require a shift in attitudes, not just repeated punishment.

Road safety advocates have previously called for reforms to enforcement strategies, as Australia grapples with a rising road toll.

Peter Frazer OAM has warned that cultural change is critical to improving outcomes.

“The very first thing that we need to do is to flip everything on its head and start dealing with the reality of risk on our roads,” he told Yahoo News last year.

Under current rules, demerit points generally remain active for three years.

The reward scheme reduces that period to one year for eligible drivers who remain offence-free.

In NSW, only drivers holding unrestricted licences qualify for the program. Learner and provisional drivers are excluded under the Graduated Licensing Scheme, reflecting their higher crash risk and lower demerit thresholds.

To receive a reduction, drivers must maintain an active licence and avoid committing relevant offences during the 12-month period.

“Most drivers want to do the right thing. This program gives people who’ve made mistakes in the past a real reason to change their behaviour and keep doing better,” Aitchison said.

“If you break the rules, the penalties apply – fines, points and suspensions are still there.

“But if you slow down, follow the rules and drive safely over time, that effort is recognised, and we think that balance gives us the best chance of changing behaviour and saving lives.”

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