All drivers licences are required to contain a microchip that is recognised by the car. The chip would include information on licence status and wouldn't allow a disqualified driver to start the car. If lost, the card could be cancelled and replaced.
All new licences will come with a microchip (similar to a credit card) and all new cars will come with a card reader. Before starting a car, the drivers licence would need to be recognised by the car. If a driver has had his licence cancelled or disqualified the car won't start. The microchip would also contain information on demerit points and unpaid Department of Transport fines.
There would be a roll-out period (i.e. 5 year for car roll-out) and the information carried on the microchip can be updated every time the card is read by a car.