A shake-up for the driver licensing system is on its way, with changes the government says will make it a lot cheaper for those looking to get their licence.

The changes include no longer needing to sit a second practical test to get a full licence, an increased learner period for those under 25, fewer eyesight screenings and an expanded zero-alcohol rule.

Making the announcement in Auckland on Tuesday, Transport Minister Chris Bishop said the current system was "expensive, outdated and no longer works as well as it should".

The changes will mean it's "significantly cheaper" to get a full driver licence, Bishop said.

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