The state government says such laws are based on "misconceptions" about the elderly.
Transport Minister Troy Buswell said he had approved an amendment to the regulation following a review that showed a high proportion of people in that age bracket were fit to drive without medical conditions endorsed on their licences.
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"Given the ageing population, the state government is changing the regulations to lessen the unjustified imposition on senior drivers as well as the health system," he said.
Mr Buswell said research by the government in 2006 indicated older drivers were not disproportionately represented in crash statistics.
He said mandatory reporting of long-term or permanent medical conditions or driving impairments for all licence holders was introduced in 2008, and identified potentially high-risk drivers of all ages.
"The requirement to medically assess 75 and 78-year-olds has been in place since 1975, and it's important we continue to monitor current evidence around this issue, rather than maintain outdated regulations that are potentially based on misconceptions or stereotypes," Mr Buswell said.
The current regulations require licence holders aged 75, 78, 80 and annually thereafter to complete a driver's licence renewal declaration and undergo a medical assessment.
Those aged 85 and older must also pass an annual seniors on-road practical driving assessment.
When the regulations are amended, licence holders aged 80 to 84 will still be required to undertake a medical assessment, and requirements for those aged 85 and above will not change.
The changes are expected to be implemented within in the next six months.