In Victoria there is a demerit point system for driving offence under which offenders accrue points for breaking certain road or driving rules. Various numbers of demerit points are awarded for about 30 different driving offences (e.g. using a handheld phone whilst driving may result in a maximum of three demerit points, exceeding the speed limit by 45 km per hour or more has a maximum of eight demerit points).

If you hold a full driver's licence and you receive twelve or more demerit points within any three-year period you will be sent a notice. If you hold a learner's permit or probationary driver's licence and you receive five demerit points within one year or 12 or more points within three years, you will also be sent a notice. Within 21 days of receiving that notice, you can elect to extend the demerit point period for another twelve months (the notice contains instructions as to the method to be used including an automated phone system).

If, during those twelve months:

you receive one or more demerit points, the effect varies according to whether or not you have ever held a full driver's licence. If you hold a full driver's licence or hold a learners permit or probationary driver's licence and also hold, or have held, a full driver's licence, your licence will be suspended for six months plus an extra two months for every four demerit points over the twelve you had when the notice was issued. However, if you hold a learner's permit or probationary driver's licence and do not hold, and have never held, a full driver's licence, the permit or licence will be suspended for six months in respect of the first five demerit points recorded against you; and an additional two months for each four demerit points in excess of five recorded against the person as at that date. Please note that demrit points are allocated according to the date the offence is committed and not the date on shich the matter is finalized (eg at court). Also, a court has no power to prevent demerit points being incurred (eg by imposing no conviction).

you record no additional demerit points,VicRoads will disregard all demerit points and you start back at zero.

If you elect not to extend the demerit point period, your licence will be suspended for three months and an extra one month for each four demerit points over the twelve you had when the notice was issued. If the licence in question is a learner's permit or probationary licence the penalties may differ. Contact VicRoads for further information (see also Find a service section).

While your driver's licence or permit is suspended you must not drive or apply for a licence or permit. The penalty for driving whilst suspended is very severe (including mandatory gaol for a second/subsequent offence).

It is also an offence:

You have the right to appeal if your licence is suspended, but only for limited reasons (such as Vicroads having allocated demerit points to you in error).