Starting July 2025, a series of new driving laws will take effect across Australia, impacting drivers in all states and territories. These changes aim to improve road safety, adapt to modern vehicle technologies, and introduce stricter penalties for repeat offenders. Motorists, commercial vehicle operators, and even cyclists must understand the updated rules to avoid fines, demerits, or license suspensions.
Stricter Penalties for Mobile Phone Use and Speeding
One of the most notable updates is the nationwide uniformity in penalties for using a mobile phone while driving. The fine for being caught handling a mobile device without a hands-free setup has increased to $1,000 with a minimum of 4 demerit points. For P-platers and learner drivers, the consequences are more severe and could lead to immediate suspension.
Speeding fines have also been revised. Repeat offenders within a 12-month period will now face double demerit points automatically, along with increased fines. Authorities have also announced more mobile speed cameras and AI-assisted enforcement systems in urban areas.
Mandatory Driver Monitoring Systems in New Vehicles
From July 2025, all newly sold vehicles in Australia must include a Driver Monitoring System (DMS) as standard. These systems detect drowsiness, inattention, or distracted behavior and can trigger alerts or even limited vehicle intervention. This aligns Australia with international safety standards, especially in preparation for semi-autonomous driving technologies becoming more common.
New Rules for Cyclist Safety and Overtaking Distance
To improve safety for cyclists, new rules mandate a minimum overtaking distance of 1 metre in speed zones under 60 km/h and 1.5 metres in zones over 60 km/h. This change is now uniform across all states, replacing previously inconsistent state-by-state regulations. Failure to comply will lead to a $400 fine and 3 demerit points.
Driving Law Changes Starting July 2025 – Overview
| Law Update | New Rule/Change | Penalty (if violated) |
|---|---|---|
| Mobile phone use while driving | $1,000 fine, 4 demerit points | License suspension for L & P drivers |
| Speeding penalties | Increased fines, double demerits for repeat offences | Up to $2,000 and 8 demerit points |
| Driver Monitoring System (DMS) | Mandatory in all new vehicles sold | Not applicable to current vehicle owners |
| Cyclist overtaking distance | Minimum 1–1.5 metre rule enforced nationwide | $400 fine, 3 demerit points |
| Autonomous driving tech | Level 2 systems allowed with hands-on monitoring | Stricter rules coming in future |
What Drivers Should Do Now
All drivers are urged to review the changes and ensure their vehicles and habits comply with the new laws. Installing a proper phone cradle, understanding new overtaking distances, and staying informed about technology in your vehicle can help avoid serious penalties. For new car buyers, confirming that the vehicle includes DMS features will be essential from July onward.
Each state will roll out public awareness campaigns, but ultimately, the responsibility lies with individual drivers to stay compliant and ensure road safety for all users.