The Government will this week introduce a Bill to Parliament proposing amendments to the Traffic Act to address anti social driver behaviour.
Transport Minister, Kon Vatskalis, said the changes were needed to allow police to adequately deal with illegal driving, commonly referred to as hooning.
"Our suburban streets and highways are for driving, not burnouts and illegal street racing," he said.
"The proposed amendments to the Traffic Act are a direct response to community concern over illegal and dangerous motoring activities, and will introduce tough new measures eventually leading to the impounding or forfeiture of vehicles for repeat offenders."
Mr Vatskalis said the proposed amendment include:
First offence - issue of infringement notice for prescribed hooning behaviour;
Second offence - Police can apply to courts to make order to impound vehicle for 48 hours;
Third offence - Police can apply to courts to make order to impound vehicle for period up to three months;
Fourth offence - Police can apply to courts to make order to have vehicle forfeited to the Territory.
"We need to send a message to drivers - especially our youth - that reckless stunts will not be tolerated on our roads," said Mr Vatskalis.
"The Government and Territory Police appreciates there is a strong young car culture in the community, which is why Police launched the new "Beat the Heat" initiative at Hidden Valley last week, encouraging drivers to take on a drag car in a controlled track environment."
Mr Vatskalis said the amendments will be introduced to Parliament on Wednesday.