Source : http://www.rms.nsw.gov.au/roads/licence/moving-to-nsw.html
Exemptions from knowledge and driving tests
You may be exempt from knowledge and/or driving tests if:
You have held an Australian driver licence that expired within the last five years, and this can be verified with the issuing authority
You hold a current New Zealand licence (not a learner or paper licence)
You hold a current overseas licence (not a learner), or one that expired within the last five years, from a recognised country.
Source:
http://www.rms.nsw.gov.au/roads/licence/moving-to-nsw.html#recognised_countries
Recognised countries
Roads and Maritime Services recognises car and rider licences from certain countries. There are two categories of recognised countries – A and B.
If you are applying for a heavy vehicle licence (classes LR, MR, HR, HC or MC) you must pass the relevant knowledge and driving tests, even if you hold an equivalent class licence from a recognised country.
Recognised Country A: If you hold a licence from one of these countries, you do not have to pass knowledge and driving tests when applying for a NSW car (class C) or rider (class R) licence:
Austria, Belgium, Bosnia and Herzegovina, Canada, Croatia, Denmark
Finland, France, Germany, Greece, Guernsey
Ireland, Isle of Man (licences issued since 1 April 1991), Italy, Japan, Jersey, Luxembourg
Malta (licences issued or renewed since 2 January 2004), Netherlands, New Zealand, (except for paper licences), Norway, Portugal
Singapore, Spain, Sweden, Switzerland, United Kingdom, United States of America