NSW Drivers Can Remove a Demerit Point Under New Scheme

New South Wales (NSW) drivers are set to benefit from the state's Demerit Point Return Scheme, allowing eligible motorists to have a demerit point removed from their license. Designed to promote road safety, the initiative rewards drivers who maintain a clean driving record. In 2026, over 1.4 million NSW drivers are expected to qualify for this incentive.

💡

You'd be surprised how much you could save on a new car. Find out more!

How to Qualify for the Demerit Point Removal

To be eligible for the scheme, drivers must meet the following requirement:

No Traffic Offenses: Drivers must remain completely offence-free between January 17, 2025, and January 31, 2026. This includes avoiding speeding fines, mobile phone violations, seatbelt infractions, and other traffic-related offenses. Any infringement during this period disqualifies the driver.

Key Changes to the Qualifying Period

Starting in 2026, the NSW government has extended the eligibility period to January 31. This change aims to reinforce safe driving habits during the high-risk holiday season, a period historically associated with increased road accidents.

Who is Eligible?

The demerit point removal scheme is available to:

Unrestricted License Holders: Drivers with a full, unrestricted NSW driver's license.
Professional Drivers: Those holding professional licenses, such as bus and truck drivers.
Drivers with Active Demerit Points: Only those with existing demerit points qualify. If a driver has a perfect record, they won’t receive a point removal but are already recognized for their safe driving.

Current Eligibility Status

As of 2025, 1,483,926 NSW drivers are on track to receive a demerit point removal if they maintain an offence-free record until January 31, 2026.

Why This Scheme Matters

Demerit points can quickly accumulate, leading to license suspensions and increased insurance costs. This scheme provides a real incentive to prioritize safe driving, helping motorists avoid unnecessary penalties. For professional drivers, maintaining a clean record is crucial, as it directly impacts their ability to work.

Success of the Program

The program has already demonstrated significant success. In its second year, over 1 million NSW drivers had a demerit point removed for maintaining safe driving practices. Over 420,000 drivers have successfully benefited for two consecutive years.

Additional Road Safety Measures

The Demerit Point Return Scheme is part of a broader road safety initiative aimed at reducing accidents and fatalities on NSW roads. This includes stricter enforcement of traffic laws, improved driver education, and additional penalties for reckless driving.

Official Statements

NSW Premier Chris Minns emphasized the scheme’s safety-first approach, stating:

"The number one aim of rewarding drivers with a demerit point removal is safety."

Minister for Roads John Graham added:

"From 2026, the trial period will now end on January 31. This was a very deliberate decision to place even more emphasis on road safety during the critical summer holiday period."

CarExplore's Thoughts

The NSW Demerit Point Return Scheme offers a meaningful incentive for drivers to adopt safer driving habits while also reducing the risk of license suspensions. As road safety remains a top priority, initiatives like this play a crucial role in encouraging responsible driving behaviors across the state.

💡

Thousands of unbeatable car deals are waiting for you at CarExplore.

Let our experts do the hard work so you can drive away with the best price. Start exploring today. Find out more!