The state government in Queensland intends to will phase out registration stickers for light vehicles by October 2014.
Transport Minister Scott Emerson said the move will save up to $A3.5 million a year in printing and postage costs.
"Using a kitchen knife to pry off an old label and trying to stick on the new label without bubbles will be a thing of the past," he said in a statement.
"Abolishing labels will also benefit delivery companies and car rental companies with large vehicle fleets."
The minister said checks on whether a car is registered can be made by using number plate recognition technology.
But AAP reports vehicles weighing more than 4.5 tonnes will still be required to have registration stickers.