NSW RegStar program resets as DCS exits key workstream

A multi-million-dollar government program to upgrade NSW’s licensing and registration systems has hit a roadblock, as the Department of Customer Service (DCS) quietly withdraws from a core stream of the project.

DCS had been supporting the transformation of Transport for NSW’s 33-year-old Driver Vehicle System (DRIVES) by helping migrate Learner Driver Licences (LDL) to the newer Licence NSW platform - part of what’s known as the RegStar Program.

However, last month, DCS exited the project, citing “delivery challenges” and “updated timelines,” according to an internal email sent to staff.

Transport for NSW will now oversee all future RegStar initiatives, backed by $53.5 million allocated in the recent NSW Budget.

According to a statement attributed to a NSW government spokesperson, the LDL project was in the proof-of-concept stage when DCS “decided not to continue with the initiative after mid-delivery evaluations”.

“While the proof-of-concept did not progress to scaled implementation and was concluded, it provided valuable insights and lessons learned which continue to inform the broader RegStar program, including how driver licensing and vehicle registration are managed in NSW,” the spokesperson said.

“Elements” from the LDL program are “being retained or repurposed” for future efforts to replace the DRIVES system, the spokesperson added.

A difficult but necessary decision

The DRIVES system first went live in 1991 and holds over 6.2 million driver's licences and more than 7 million vehicle registrations.

An audit [pdf] labelled DRIVES “end-of-life,” noting that its user interface "has the look and feel of a system built 33 years ago… being wholly text-based with green font on a black background.”

As of August 2023, the system was supported by 130 TfNSW employees and 52 contractors, with maintenance costs totalling $146.6 million over five financial years (FY19 to FY23).

The audit also criticised TfNSW’s failure to produce a “robust business case” for DRIVES’ replacement, despite engaging three consultancy firms at a total cost of $14 million.

Although the agency had spent at least $36 million on modernisation efforts since 2019, it had yet to deliver a clear plan, the audit added.

In 2021, TfNSW launched a renewed push under the RegStar program, securing $55 million in funding over two years to replace DRIVES.

By 2023, the agency had begun viewing the DCS not just as an "arms-length" service provider, but as a delivery partner, according to the audit report.

The DCS Government Technology Platforms (GTP) division subsequently began work on a proof-o-concept to migrate Learner Driver Licences to the whole-of-government Licence NSW platform, which uses Calytera’s Amanda.solution.

This was understood to be the first phase of a broader plan to transition other licences and registrations to Licence NSW.

However, last month, an internal DCS newsletter confirmed “the closure of our involvement in the RegStar Learner Driver Licences (LDL) program, a difficult but ultimately necessary decision.”

“Several factors played a role in the steering committee making this decision, including delivery challenges, updated timelines, insights from the DCS Assurance process, and [a] market scan,” it continued. “Together, these led to a reassessment of its viability.”

The email, seen by iTnews, added that DCS is “working closely” with impacted staff to “ensure smooth redeployment pathways”.

“The LDL journey surfaced important lessons in cross-sector mobilisiation... It played a meaningful role in maturing our approach to co-delivery, especially in complex multi-agency environments,” it added.

“This isn’t a hard stop, it’s a pivot.”

Another reset

Despite the setback, the NSW government has confirmed the RegStar program is still active and that “transformation of the DRIVES platform remains a key priority.”

However, the 2025–26 state budget signals a significant reset. The $53.5 million in funding is now directed toward early-stage work, focused on “planning and development" [pdf] rather than system delivery.

Indeed, the budget refers to “executing a comprehensive project plan, delivery model, implementation plan and an updated business case”.

Budget papers also state the funding will support “targeted scheme delivery,” strengthened project planning, and improved case management through CRM [customer relationship management] and CSM [customer success management] systems, underpinned by advanced analytics and business intelligence tools.

“DRIVES is a complex system which is over 30 years old and has grown over time to meet changes in technology, regulations and policy,” the NSW government said.

“It is an important asset for the NSW government but has reached end-of-life, which is why the RegStar program has been commenced to design and deliver a new platform.

“The RegStar program is not simply about upgrading the DRIVES system; rather, it is about designing a new system that will meet the current and future requirements.”

iTnews understands that no data has been migrated to the Amanda platform, and all information remains within the DRIVES system under the management of Transport for NSW.

Unspent funds from the Learner Driver Licence project are expected to be reabsorbed by the government.