Assessing and granting licences will remain the responsibility of driver licensing agents.
Today's announcement came after Labour in August suggested making driver licensing part of secondary education or NCEA.
The party's Future of Work discussion document called for more focus on skills and knowledge, rather than subjects and exams.
Associate Transport Minister Craig Foss, who made today's announcement with Ms Parata, said employers had reported 16-24-year-olds being held back by not having a licence.
"Removing barriers that some young people face in gaining their licence is an ongoing focus for the Government."
Michael Barnett, chief executive of the Auckland Chamber of Commerce, said the changes would help address a skills shortage in industries, such as trades and transport, where the only entry barrier was a lack of a full driver licence.
"We have worked closely with the Ministry of Education and it is great to get a result as quickly as this."
- NZ Herald