The Government is introducing harsher penalties to punish drivers who fail to license and register their vehicles.
From 1 May, police will have the power to issue demerit points to drivers on top of being fined.
Transport Minister Steven Joyce says points can act as a stronger deterrent than fines, as repeat offenders will face the loss of their driver's licence.
The new law will also include people who drive while their licence is on hold and if they fail to fix the licence label to their windscreen.
