Expiring learner and restricted driver licences will automatically renew amid concerns about how many of the nearly 144,000 due to expire in the next two years will actually be renewed.
The previous Government introduced a rule in 2014 that meant restricted and learner licences expired after five years.
Now, the licences will be renewed for an additional two years while the Government looks for a more lasting solution.
Young people on youth benefits or in care will have the costs of getting a driver licence met in a new scheme, Youth Driver Licence Project announced by Prime Minister Jacinda Ardern, Social Development Minister Carmel Sepuloni and Associate Transport Minister Julie Anne Genter.
Associate Transport Minister Julie Anne Genter described the step as "pragmatic".
"The extension is a pragmatic, short-term measure to avert the potential for thousands of drivers becoming unlicensed over the next two years."
The changes will apply to drivers who hold a learner or restricted car or motorbike licence, expiring between 1 December 2019 and 1 December 2021.
The Government says that more than 144,000 of these licences are due to expire in the next two years, with 67,000 expiring in the 12 months from 1 December 2019 and a further 77,000 in the next year.
Restricted and learners' licences currently expire after five years.
Genter said that while limiting the time licences are valid for made sense in theory, renewals were low.
We also need to acknowledge that people without the resources, training, or support to pass these tests risk becoming unlicensed when time's up.
"Whether people are unaware their licence is time limited, or for other reasons, the current rate of learner or restricted drivers progressing to the next licence stage is too low."
The Government will review the Graduated Driver Licensing System, launch a campaign to help licence holders understand the changes, and develop programmes to help disadvantaged young drivers access licensing.
It will also expand access to driver training and resources in schools and increase the capacity of testing sites.
Genter advised licence holders to renew quickly.
"My message to licence holders in this situation is - don't wait. Book your test now. If cost is an issue talk to Work and Income about the financial assistance on offer," she said.
