A lot of newcomers assume converting a driver’s licence is just paperwork. In 2026 that assumption got a lot more expensive for some nationalities, a major exemption scheme was scrapped, meaning drivers from certain countries now need to sit both a written and practical test they wouldn’t have needed a year earlier.
Quick answer: Temporary visa holders can generally keep driving on a valid overseas licence. Permanent residents and citizens must convert within 3-6 months of becoming a resident (the exact deadline depends on your state). Whether you need to sit a test depends on your licence’s country, following the removal of the Experienced Driver Recognition scheme in 2025-2026.
First: Are You a Temporary Visa Holder or a Permanent Resident?
This distinction changes everything. If you’re on a temporary visa (working holiday, student, temporary skilled), you can generally keep driving on your valid overseas licence for as long as it remains current, with Victoria being especially permissive here. The Northern Territory is the exception, with a 3-month limit even for visitors.
Once you become a permanent resident or citizen, the clock starts. You’ll typically have 3-6 months to convert, depending on your state:
- NSW: 3 months
- Queensland: 3 months (from when you’ve lived there 3+ months on a resident visa)
- Victoria: 6 months
- Tasmania: 6 months
The Big 2026 Change: EDR Is Gone
Until recently, the Experienced Driver Recognition (EDR) scheme let drivers from a longer list of countries convert their licence with no testing at all, based purely on driving experience. EDR was phased out across Australian states between April 2025 and February 2026, and it hasn’t been replaced with anything equivalent for the affected countries.
List A vs List B: Does Your Country Need a Test?
Licence conversion now generally splits into two groups:
- List A (Recognised Countries): includes the UK, USA, Canada, New Zealand, Japan, Singapore, and most of Western Europe. If your licence is current (or expired within the last 5 years), you typically convert with no knowledge or driving test at all.
- List B: countries previously covered by EDR but not on the core recognised list, including Taiwan, Hong Kong, South Korea, and South Africa. Drivers from these countries must now pass both a knowledge test and a full practical driving test, regardless of years of driving experience.
Always check your specific state transport authority’s current list, since exact country groupings can shift.
What the Process Actually Looks Like
1. Visit your state’s transport authority in person (Service NSW, VicRoads, TMR Queensland, or the equivalent elsewhere), some states allow booking an appointment online first
2. Bring your overseas licence, passport, and proof of address
3. If required, sit the knowledge test and/or practical driving test
4. Pay the licence issuance fee
What It Costs
- Licence issuance fee: roughly $50-250 depending on state and licence duration
- Test fees (if required): from around $73 in Victoria (cheapest, with free first attempts on some tests) up to $350+ in South Australia, where practical tests are conducted by private assessors
If you’re on List B and need both tests, budget $200-400 all-in once issuance and test fees are combined.
Don’t Forget Insurance
Whatever stage you’re at in the conversion process, make sure your car insurance is sorted properly, insurers sometimes ask questions specifically about overseas licences and conversion status. See our full guide on car insurance and driving in Australia as a new resident for what to check before you get behind the wheel.
Final Thoughts
The biggest mistake right now is assuming the old EDR rules still apply, if your country was previously exempt from testing, it’s worth double-checking your current status before assuming you can just walk in and swap your licence. For the most current requirements, always check your specific state’s official transport authority website before booking anything.
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*This article is for general informational purposes only and does not constitute legal advice. Licence conversion rules vary by state and change periodically, always confirm current requirements with your state’s transport authority.*