NSW Demerit Point Return Scheme Extended: Are You Eligible in 2025?

Updated Thursday 15th May, 2025

KEY TAKE OUTS:

• From April 2024, New South Wales drivers were able to remove one demerit point from their record if they did not commit any driving offences for 12 months.
• After positive feedback, the Demerit Point Return Scheme has been extended into 2025 and 2026, continuing to reward safe driving behaviour.
• The second year of the scheme concluded on 16 January 2025, a time when many drivers travelled during the summer holiday period.
• Additional road safety measures introduced in 2024 and 2025 include average speed cameras for light vehicles, expanded mobile speed camera sites, seatbelt detection via mobile phone cameras, and stricter licence rules for overseas drivers.

NSW’s Demerit Point Return Scheme: Rewarding Safe Drivers

The NSW Government has fast-tracked and expanded a program designed to reward safe drivers sooner. Originally announced during the 2023 state election, the Demerit Point Return Scheme began on 17 January 2023.

Under this scheme, eligible drivers who maintain a clean record for 12 months are rewarded with one demerit point removed from their licence — rather than waiting the standard three years for that point to expire.

Premier Chris Minns stated:

“It’s time we put safety back at the centre of our road rules, not revenue raising. Reducing the road toll and rewarding safe driving across the state is the aim of this trial, and we hope it gives drivers that little bit of extra incentive to achieve a spotless record.”

Minister for Roads, John Graham, also noted:

“Drivers in NSW are very much used to the stick approach, so this demerit trial is an important carrot for them to maintain a clean record over a 12-month period to the benefit of all motorists, pedestrians, and communities.”

Following its success, with almost 1.5 million drivers eligible and just over one million remaining offence-free by the end of the second year, the NSW Government has extended the initiative through to 31 January 2026.

Who is Eligible?

The demerit point initiative applies to:

• Unrestricted and professional licence holders who have incurred demerit points but remained offence-free for the qualifying 12-month period.
• Drivers who do not obtain any new driving offences during the eligible year.

It does not apply to:

• Learner licence holders
• Provisional P1 or P2 licence holders

These drivers remain subject to stricter conditions under the Graduated Licensing Scheme.

How Does it Differ from Existing Demerit Point Rules?

Normally, demerit points expire after three years from the date of the offence. Under these standard rules, drivers must wait for the full period before those points are removed from their record.

However, this scheme provides a faster alternative — eligible motorists can actively remove one point after just one year without committing any further offences. This earlier “reset” is a reward for consistently safe driving and differs from the automatic three-year expiry system.

Double Demerits in NSW

While not part of the return scheme itself, it’s important to remember that NSW also enforces double demerit periods during key holiday times, including:

Christmas and New Year
Easter
Long weekends and public holidays
During these periods, penalties for common offences such as speeding, mobile phone use, or not wearing a seatbelt are doubled. This includes double demerit points, making it even more critical to maintain a clean driving record.

You can check the latest announcements for upcoming double demerit periods via the NSW Police News website.

New Road Safety Measures Introduced

Alongside the continuation of the demerit point initiative, the NSW Government has introduced several additional road safety reforms in 2024 and 2025, including:

• Trial of Average Speed Cameras for Light Vehicles: From 2025, average speed cameras will not only monitor heavy vehicles but will also apply to light vehicles across designated road corridors.
• Expansion of Mobile Speed Camera Enforcement: An additional 2,700 roadside enforcement sites have been added across the state where mobile speed cameras can operate.
• Seatbelt Enforcement via Mobile Phone Cameras: Existing mobile phone detection cameras are now authorised to detect and fine drivers and passengers not wearing seatbelts.
• Mandatory Licence Conversion for Foreign Licence Holders: All motorists driving on an overseas licence must now convert to a NSW driver’s licence within six months of residing in the state.
• Enhanced Drug and Alcohol Testing: Mandatory drug and alcohol testing now applies to all drivers and riders involved in crashes that cause grievous bodily harm.
• $518 Million Road Safety Infrastructure Program: The NSW and Australian Governments have jointly invested to enhance road safety measures statewide through to 2026.

The overarching aim remains clear:

“We need everyone to work together to create a safer driving environment and ultimately push road trauma to zero.”

Need Assistance with Driving Offences?

At Coutts, we understand the importance of maintaining a clean driving record and the serious implications that demerit points and driving offences can carry. With the extension of this initiative to reward safe drivers, it is more important than ever to stay informed and understand your rights on the road.

If you find yourself facing driving offences or require guidance on how this new system may impact you, our team is here to help. Navigate the ever-evolving road rules and regulations with confidence alongside Coutts. Reach out to our expert legal team today at 1300 268 887. Your safety and legal standing on the road are our top priority.