WELLINGTON, Aug 14 NZN - The policy, announced on Monday, also includes civics education becoming part of the curriculum in all high schools as a way of tackling young voter decline.
"Having a driving license so you can get to work, knowing how to fit into a workplace, knowing how to manage your money and knowing how to take your place in the community - these are all important skills in adult life and we need to do more to ensure our young people are equipped with them," Labour leader Jacinda Ardern said.
Labour previously promised in 2015 to give students practical skills in a school leavers' toolkit.
At the time, education spokesman Chris Hipkins said students must be prepared for "life beyond school".
The school leavers' toolkit announced by Ardern is expected to cost $50 million a year.
It will include offering five hours free driving lessons, a defensive driving course and free license testing before students leave school.
A further part of the policy would see every school get a trained careers adviser, costing $30 million a year.
It will be funded from the $4 billion Labour has set aside for education.