Driving in Australia: The Basics for New Arrivals
Australia drives on the left side of the road. Speed limits are in kilometres per hour. Road rules are broadly consistent across states but with meaningful variations — Victoria has specific rules on mobile phone use, pedestrian crossings and cyclist overtaking distances that differ from New South Wales or Queensland. Understanding Victorian road rules before driving is not optional; traffic cameras and enforcement are extensive and fines are substantial.
For new arrivals, the first practical question is usually whether your overseas licence is valid in Victoria and for how long. The second is whether to buy or lease a vehicle. This guide addresses both, plus the costs, the road rules that most commonly catch new drivers, and the process of converting an overseas licence to a Victorian one.
Melbourne's CBD introduces two driving rules that are unique in Australia and confusing for visitors: the hook turn (mandatory at most CBD intersections) and strict tram lane rules. Both are enforced.
Using an Overseas Licence in Victoria
If you hold a current overseas licence from a country where the licence is in English (or you carry an International Driving Permit alongside it), you can drive in Victoria for up to three months from your arrival date. After three months, you must obtain a Victorian licence. Overseas licence holders from certain countries can convert directly to a full Victorian licence without retesting — these countries include the UK, USA, Canada, New Zealand, the Netherlands, South Africa and others under reciprocal recognition agreements. Drivers from countries not on the recognised list must complete the full licence process.
| Your Situation | What You Need | Steps Required |
|---|---|---|
| Recognised country licence holder | VicRoads identity check + surrender overseas licence | Visit VicRoads service centre, pass knowledge test, receive full licence |
| Non-recognised country licence holder | Knowledge test + hazard perception + driving test | Learner permit → restricted licence → full licence |
| International Driving Permit only | Must obtain Victorian licence after 3 months | Depends on home country recognition status |
Melbourne-Specific Road Rules You Must Know
The Hook Turn
At most major CBD intersections, turning right from the left lane is required — you position your vehicle in the left lane, wait for the light on the road you are turning into to change to green, then complete the turn. This prevents right-turning vehicles from blocking the tram tracks. Hook turn signs are posted at relevant intersections. Failing to execute a hook turn correctly is a common mistake by new drivers in the CBD.
Tram Rules
When a tram stops to allow passengers to board or alight and there is no safety zone, all vehicles behind the tram must stop and remain stopped until passengers have cleared the road. Overtaking a stationary tram at a tram stop is illegal. Driving in a tram lane (marked with a T) is illegal unless turning. These rules are enforced by fixed and mobile cameras.
Speed Cameras and Fines
Victoria has the most extensive speed camera network in Australia — fixed cameras, mobile cameras, point-to-point cameras measuring average speed over a distance, and red light cameras at major intersections. Speeding fines start at $230 for exceeding the limit by less than 10km/h and increase steeply. Demerit points apply and accumulate — 12 points within 3 years triggers licence suspension for most adult drivers.
Buying a Car in Australia
| Car Type | Age | Price Range | Running Costs |
|---|---|---|---|
| Reliable used (Toyota Corolla, Mazda 3) | 5–10 years old | $12,000–$22,000 | $200–350/month all-in |
| Mid-range used (SUV) | 3–7 years old | $22,000–$42,000 | $350–550/month |
| New small car | New | $22,000–$32,000 drive away | $400–650/month (with finance) |
| New mid-size SUV | New | $38,000–$58,000 drive away | $700–1,000/month (with finance) |
| Electric vehicle (BYD, Tesla, MG) | New | $38,000–$75,000 | $400–900/month + fuel savings |
Ongoing Costs of Car Ownership
- Registration: Victorian vehicle registration includes compulsory third-party (CTP) personal injury insurance. Annual cost varies by vehicle type and location: approximately $800–$1,100 for a standard passenger vehicle. Registration is renewed annually through VicRoads.
- Comprehensive insurance: Required by most lenders if you have car finance. Annual cost: $900–$1,800 depending on vehicle value, driver age and history. Comparison at comparethemarket.com.au.
- Fuel: Petrol prices fluctuate with the oil price cycle. In Melbourne, unleaded 91 averages $1.75–$2.10 per litre in 2026. Melbourne's fuel price cycle runs on a weekly rhythm — prices are lowest mid-week and highest at weekends. The GasBuddy app tracks live prices by suburb.
- Servicing: Log book services at recommended intervals — typically every 10,000–15,000 km or 12 months. Dealer service for a standard sedan: $250–$450. Independent mechanics: $150–$300.
- Tolls: CityLink and EastLink tolls apply on major freeway routes. Register through Linkt for automatic billing. Unregistered use results in infringement notices with significant additional fees.
Frequently Asked Questions
Do I need a car to live in Melbourne?
Not if you live in the inner suburbs — roughly the area within 12 kilometres of the CBD. Tram, train and cycling infrastructure in the inner ring is sufficient for daily commuting and most household errands. Car-sharing services (GoGet, Flexicar) and app-based taxis (Uber, DiDi) fill the gap for occasional larger trips. In the middle and outer suburbs, a car becomes progressively more useful, and in the outer suburbs it is effectively necessary. The decision depends on where you live, where you work and your lifestyle — many Melbourne households manage with one car rather than two, with one partner using public transport for the daily commute.
What are the best platforms for buying a used car in Australia?
Carsales.com.au is the dominant platform for private and dealer used car sales. Drive.com.au and Autotrader also carry significant inventory. Facebook Marketplace lists private sales and occasionally good deals on older vehicles but requires more due diligence. For new arrivals without Australian credit history, private sales are simpler as they do not involve finance assessment. Before purchasing any used vehicle, obtain a PPSR check (Personal Property Securities Register) at ppsr.gov.au — this confirms whether the vehicle has outstanding finance, has been written off or is listed as stolen. Cost: $2. This check is not optional.
How does the Victorian demerit points system work?
Full licence holders accumulate demerit points for traffic offences. 12 or more points within a 3-year rolling period triggers a licence suspension — the duration depends on the number of points exceeded. Serious single offences (speeding over 25km/h above the limit, drink driving, dangerous driving) carry immediate higher penalties including automatic licence suspension. Demerit points expire after 3 years if no further offences are committed. Points attach to the driver's record, not the vehicle — driving someone else's car does not protect you from demerit points. New Victorian licence holders from overseas start on a full licence with the full 12-point threshold unless they have a history of serious offences.