Despite a range of public transport options across most metropolitan areas, there’s no denying traffic congestion remains a big problem in Australia.
And while local authorities continue to work on finding ways to reduce gridlock, this European country is finding a creative, albeit tempting, way to get drivers off the road.
According to Malta’s Department of Transport, the country will pay young drivers – under the age of 30 years old – €25,000 (approximately AUD$42,000) to surrender their licence for five years.
The ‘Driving Licence Surrender Scheme’ – introduced in January 2026 – will pay eligible drivers €5000 per year (about AUD$8300) and is open on a first-come first-serve basis.
The program is open to local motorists aged 30 years old and younger, who have been a resident of Malta for at least seven years and have held a legal Category B licence for at least 12 months.
The transport authority said the five-year program aims “to reduce the number of persons holding a driving licence and, consequently, the number of vehicles circulating in the Maltese roads”.
According to satellite navigation company TomTom's 2025 Traffic Index – which measures key traffic data such as congestion and average travel time across different countries and cities – Malta was the most congested European country last year ahead of other larger countries such as Greece and Ireland.
Between January and December 2025, Malta recorded a 45.1 per cent congestion level, meaning travel times in the country nearly doubled due to traffic, in comparison to free-flowing conditions.
In 2025, the average congestion level – the median additional time lost to traffic congestion – in Malta's capital of Valletta was a whopping 50.3 per cent, with local motorists losing 94 hours or the cumulative equivalent of three days and 22 hours in gridlock last year.
Malta's transport authority said the licence scheme will be subject to a €5 million annual budget (roughly AUD$8.3 million), allowing about 1000 applicants per year to apply.
The €5000 will be sent as a yearly payment on the anniversary of the grant approval. For example, if an applicant is successful on 19 February 2026, they will receive their first payment on the day, and the second payment on 19 February 2027, and so on.
And though it may be tempting to get subsidised for surrendering your licence, it's worth noting the stipulations around the grant are heavily restricted and can lead to serious financial penalties.
For example, if a driver changes their mind and wants to have their licence reinstated before the five-year deadline, they must pay the remaining balance of the grant before they’re allowed to drive back on the roads.
This means, if a driver wants to get their licence back after 13 months, they must pay a €20,000 (approximately AUD$33,484) penalty.
This reduces to €15,000 (AUD$25,111) after 25 months, then €10,000 (AUD$16,740) after 37 months, before scaling down to €5000 on the 49th month after initial approval.
Successful applicants will also not be “entitled to drive neither in Malta nor in any other country”.
Even after they've finished the five-year period, applicants must once again reapply for their licence, meaning they must accrue at least 15 hours of driving at a “licensed motoring school”.
Drivers caught disobeying the program’s terms and conditions can be financially penalised with a range of offences including driving without a licence. Additionally, offenders must pay the remaining grant balance and a further €5000 “administrative penalty”.
What do you think? Should Australia adopt a similar grant for young drivers? Vote down below and let us know your thoughts in the comments.
Ethan Cardinal graduated with a Journalism degree in 2020 from La Trobe University and has been working in the fashion industry as a freelance writer prior to joining Drive in 2023. Ethan greatly enjoys investigating and reporting on the cross sections between automotive, lifestyle and culture. Ethan relishes the opportunity to explore how deep cars are intertwined within different industries and how they could affect both casual readers and car enthusiasts.
