The most significant change involves a reversal of the current situation where traffic turning left must give way to right turning traffic on the opposite side of intersections.
Changes are also planned at uncontrolled T-intersections where two vehicles are turning right. The current rule would be reversed so traffic turning right off the through road would have right of way.
Announcing the changes, Transport Minister Steven Joyce said they would be publicly consulted on next year and were likely to be in place by early 2012.
They were needed because the current system was confusing and out of step internationally, he said.
The AA has been lobbying for the changes, and spokesman Mike Noon said they would make intersections safer.
He said the give way to your right when turning left rule was not well complied with in New Zealand, which is the only country where it still applies.
"There are also risks, such as when someone has a left-turning indicator on because they have forgotten to turn it off -- anyone turning right across their path will get a very nasty surprise," Mr Noon said. "Police attend 40 to 50 injury crashes of this type a year."
He said AA research had found the current give way rules were a factor in 6 percent to 7 percent of intersection crashes, and one or two deaths each year.
Mr Noon said the new rules would be better both for tourists travelling here, and New Zealanders driving in other countries.
Mr Joyce said an extensive education campaign would ensure drivers knew about the changes before they came into force.
"I think it's very important that the change is well managed, which is why we've decided to certainly take our time to do it."
Mr Joyce also announced changes yesterday aimed at improving motorcycle safety.
They include 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 along with motorcycle learner theory.
