Victoria's driving licences could soon go digital and be stored on mobile phones, punting plastic cards to the kerb.
The hi-tech move could save motorists money on licence renewals and time in long queues at service centres.
News Corp Australia can reveal VicRoads will analyse technology that produces digital licences in the next few months.
It is understood VicRoads would keep physical licences available and build in safeguards against identity theft and fraud.
NSW, which became the first state to make some licences digital, expects its motorists to have their driver's licences on their smartphones within three years.
VicRoads registration and licensing acting executive director Glen Madeira said it was working with providers to "develop and leverage" the best technology.
"VicRoads is aware of technology being developed which enables digital driver's licences," he said.
"VicRoads has no immediate plans to roll out digital licences, but plans to assess the product in the first half of the year. We will work with other government agencies, such as Victoria Police, to explore opportunities to introduce this technology."
The first of its licences to go digital have been fishing, gambling and responsible service of alcohol licences
VicRoads would also expect to save money from the scheme. It has already done away with registration stickers to cut red tape and save millions of dollars.
But motorists have not seen any consequent drop in the cost of vehicle registration.
VicRoads has also vowed to look into introducing quarterly payments of the ever increasing cost of car registration, which was $771.60 last year.
Under the NSW system, smartphones are used to display, update and renew licences with real-time information.
Among the first of its licences to go digital have been fishing, gambling and responsible service of alcohol licences.
Computer problems have plagued VicRoads.
These have led to almost 1500 motorists being wrongly sent fines for driving an unregistered vehicle; drivers being able to illegally hold multiple licences; drivers' details not being updated, leading to toll fines being sent to wrong addresses; motorists being wrongly issued with demerit points; and the repayment of more than $860,000 as a result of the overcharging of truck drivers over a period of 20 years because of the application of the incorrect Transport Accident Commission levy.
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