The driving age will be raised by a year to 16 and the restricted licence test toughened in a set of policies approved by Cabinet today.
Transport Minister Steven Joyce said this morning that the policies could come into force by the end of the year after going through parliamentary processes.
The move requires a law change and the Government was talking to its support partners, ACT and the Maori Party.
Mr Joyce said the Government looked at what overseas countries, particularly Australia, had done in making its decision.
"Young Kiwis have a 60 per cent higher fatality rate on the roads than young Australians. We have looked to what has worked in Australia in choosing to progress these measures," he said.
Other policies approved by Cabinet today include:
* Investigating vehicle power restrictions for young drivers.
* Allowing approved courses (Defensive Driving and Street Talk) to be undertaken in the learner licence phase.
* Investigating whether tougher penalties should be introduced for breaches of restricted licences.
The Automobile Association's Mike Noon said having more difficult tests before young drivers could to drive on their own was a welcome change.
"Learner drivers being supervised by their parents are the safest drivers on the road. Then the next day they're the most risky - if they haven't had the experience."
The hope was they would get practice over a longer period of time before getting their restricted licence, he said.
The association had found many young drivers only had 25 hours of driving experience before getting their restricted and driving on their own - and that was being generous, Mr Noon said.
Parents should get their children on learner licences to drive every time they went out together, rather than using driving practice as a treat.
The changes should be pushed through without delay, he said. "I think we're all ready - don't you?"
However, Federated Farmers transport spokesman Donald Aubrey said the Cabinet's decision to raise the driving age was "a huge disappointment" because rural New Zealanders would be affected most by the change.
The number of extra hours rural parents would have to drive their children around to events would balloon, Mr Aubrey said.
It was the other changes that would improve road safety, he said.
It would be more beneficial to link driving education to schools to properly train young drivers, and that was easier to do with a lower driving age, he said.
"There's no question that this will affect rural New Zealand far more than in towns where there are alternatives available."
Mr Aubrey said Federated Farmers would likely make a submission during the Select Committee process.
Mr Joyce said further policy changes about alcohol and driving would be discussed by Cabinet soon. This will include a zero-limit for youth blood alcohol.
Cabinet approves driving age of 16
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