The issue of driver licences, alongside the regulation and enforcement of road use, are all managed by state and territory governments.

Since 1997, nationwide uniform arrangements have been in place for the regulation of full drivers licences for motor vehicles, as well as their renewal.

[2] Australia's lack of identity cards has led to driving licences becoming the de facto photo ID used in everyday situations.

[4] The medical standards for drivers of commercial vehicles are set by the National Transport Commission and Austroads.

In Queensland and Western Australia, 'A' condition holders – including those with unrestricted licences – must take a manual vehicle driving test to remove the restriction.

In all states and territories, the condition will not be applied to moving interstate and overseas drivers who don't have an equivalent licence restriction.

The driving age in the Australian Capital Territory is 17 years, but after obtaining a licence, a driver is subject to restrictions during a three-year probationary period.

Using this method, provided the driver has held their Learner's licence for at least 6 months, they may book with RTA for the practical driving test.

To remove the restriction before 12 months, the provisional driver must pass the practical driving exam in a manual transmission vehicle.

[14] Provisional drivers must display red on white "P Plates" for three years unless: (a) they take an additional road safety program Road Ready Plus after six months of obtaining the Provisional Licence; or (b) they are over 26 years of age and held their licence for six months.

[14] Provisional licence holders who have taken the Road Ready Plus (RRP) course, (commonly called a "P-off" course), or are over 26 years of age also get an additional four demerit point allowance.

Learner drivers may not use a mobile phone and must be supervised by a full licence holder and may not drive faster than 80 km/h.

[22] Provisional drivers need to comply with all road rules and traffic laws and other restrictions: eg., the speed limit is 100 km/h, The Blood Alcohol Concentration (BAC) must be zero, provisional drivers are not permitted to use a mobile phone in any form whilst driving, including hands-free devices and texting.

For inbuilt devices, they are allowed to briefly touch it to adjust navigation settings, climate controls and audio functions while driving.

The "A" condition can be lifted anytime during the probationary period by taking a practical drive test in a manual transmission vehicle.

They must not operate, look at, or touch any portable devices, unless if it is mounted where they can only be used for navigation and playing audio provided that it is set up before the trip.

Probationary drivers are now permitted to drive any vehicle manufactured after 1 January 2010 that does not have a power-to-mass ratio of greater than 130 kilowatts per tonne, and does not have a modified engine for increased performance.

Refer[40] Drivers who have accrued 12 or more demerit points can choose to continue driving on a 12-month Good Behaviour Period.

Licences and photo cards are hologrammed, and contain a photograph, signature, the holder's address, and date of birth.

[42] South Australia became the first state to officially roll out digital driver's licences via its mySA GOV smartphone app in October 2017.

[43] The Digital Driver Licence[44] was first trialled in Sydney's Eastern Suburbs, Dubbo and Albury before being rolled out statewide in October 2019.

Drivers will continue to receive a physical licence card for backup purposes in addition to interstate and overseas usage.

[48] The Queensland Government announced plans to host another trial in Townsville in 2022[49] and was rolled out statewide from 1 November 2023.

The differences in state laws have generated much confusion to visiting drivers, with many pushing for uniform federal road rules.

[55] Interstate visitors on their L or P plates must follow the licence conditions set of their home state rather than conditions placed upon licence-holders of the state which they are visiting i.e., a driver holding an SA provisional licence who is visiting New South Wales is able to legally drive at 100 km/h, whereas a NSW P1 driver is restricted to 90 km/h.

For example, a Victorian learner driver who moves to NSW may be eligible to sit the driving test to obtain a P1 licence.

An alternative to initially accepting the suspension, a driver can apply for a "good behavior" period of 12 months.

These generally include offences for driving under the influence of alcohol or other drugs, or for greatly excessive speed.

In some circumstances, driver's licences can be cancelled, either immediately or by court order, such as for anti-social driving activity, popularly known as hooning.