Any piece of agricultural machinery that uses the public roads for less than 50 per cent of its operating time will be exempt from paying the road user levy.

Transport Minister Parveen Kumar says this is an issue of basic fairness and will be a significant benefit to farmers.

This measure and other regulatory changes are the result of a report on the land transport industry issued by the Ministry of Justice and Anti-Corruption.

Kumar adds deregulation of the rental car business, including vehicles for hire, is also addressed in the new regulations, putting industry processes on a fast track.

In addition, proposed legislation to be put before the Parliament later this week abolishes the capacity of the Land Transport Authority to issue demerit points for traffic offences.

Under the proposal, demerit points will only be imposed by the courts when a vehicle owner or operator is convicted of an offence that warrants demerit points.