The changes, to be in place by early 2012, were needed because the current system was confusing and out of step internationally, he said.
"Research shows changing the rules could reduce relevant intersection crashes by 7 per cent."
Currently traffic turning left must give way to right turning traffic. That will change so left turning vehicles have the right of way.
Changes are also planned at uncontrolled T-intersections where two vehicles are turning right. The current rule will be reversed so traffic turning right off the through road will have right of way.
Mr Joyce said an extensive education campaign would ensure drivers knew about the changes before they came into force.
The changes would be included in a draft Road User Amendment Rule and were part of the Government's Safer Journeys strategy.
The Automobile Association has long lobbied for the rule to be changed and blames it for 2560 intersection crashes, and one or two deaths and a lot more driver-side impacts each year.
AA spokesman Mike Noon said a change to the "ridiculous" rule would require a $2m driver education programme and engineering changes, such as rephasing lights and changing road markings in some places, which could cost $1m.
However, he welcomed the change.
"It's more simple that the current rule. We find people don't obey the rule and some don't know what to do."
Mr Joyce also announced changes today aimed at improving motorcycle safety.
They included making motorcycle licence tests harder and motorcycle specific, removing the option for reduced time on a restricted licence, requiring all novice motorcyclists be subject to the same minimum time requirements, introducing a power-to-weight restriction for novice riders and promoting the benefits of wearing high visibility clothing.
Moped riders would be required to complete a basic handling skills test as well as motorcycle learner theory.
Refresher training courses for returning riders would also be developed, Mr Joyce said.
Motorcycle deaths had increased 68 percent since 2004, he said.
"Motorcyclists are 20 times more at risk of being involved in a fatal or serious injury crash than car drivers per kilometre driven. With more new riders every day, these steps are vital to keep riders safe on the road."
The changes for motorcycle riders would be included in a Driver Licensing Amendment Rule and consultation was due to start shortly.
