Generally, you're allowed to drive in Australia with an overseas drivers license translated if you're a temporary visitor. But laws and driving regulations differ from state to state.
Jump to your state:
ACT
For temporary visa holders: You can drive on a current overseas drivers licence. You must carry a formal English translation or International Drivers Permit.
For permanent visa holders: Overseas holders of a full driver licence moving to the ACT are required to obtain an ACT driver licence within six months of taking up residency in the ACT.
For further details click ACT.
QLD
For temporary visa holders: You can drive on a current overseas drivers licence. You must carry a formal English translation or International Drivers Permit.
For permanent visa holders: You will need to apply for a Queensland driver licence:
a) if you are an Australian citizen with an interstate licence and you have been residing in Queensland for 3 months;
b) if you are not an Australian citizen, but before you took up residence in Queensland you were given a resident visa and you have now been residing in Queensland for 3 months;
c) are not an Australian citizen, but after you took up residence in Queensland you were given a resident visa and you have now been residing in Queensland for 3 months since getting the visa.
For further details click QLD.
Victoria
For temporary visa holders: You can drive on a current overseas drivers licence for less than 6 months. You must carry a formal English translation or International Drivers Permit.
For permanent visa holders: You can drive on your current overseas licence for 6 months from the date you entered Australia (if the visa was issued before arrival); or, you can use a current overseas licence for 6 months after the date your visa was issued (if it was issued after you arrived in Australia).
For further details click VIC.
NSW
For temporary visa holders: You can drive on a current overseas drivers licence. You must carry a formal English translation or International Drivers Permit. For permanent visa holders: you're able to drive in NSW on an overseas licence for 3 months. Within this 3 month period you'll need to visit a service centre and transfer your overseas licence to a NSW driver licence. You cannot use NAATI translation if you want to apply for an Australian licence in New South Wales. Unfortunately, the NSW Road & Maritime Safety Authority only accepts translations that are done by the Community Relations Commission (see http://www.rms.nsw.gov.au/licensing/newtonsw/international_drivers.html). However, NAATI translation is OK if you want to drive in NSW, rent a car, etc. For further details click NSW.
Northern Territory
You can drive in the Northern Territory (NT) with your interstate or overseas licence for up to three months. If you're staying in the NT for a continuous period of more than three months, you must transfer your licence. For further details click NT.
South Australia
For temporary visa holders: You can drive on a current overseas drivers licence. You must carry a formal English translation or International Drivers Permit.
For permanent visa holders: If you become a permanent resident of South Australia, you must get your South Australian driver's licence within ninety days.
For further details click SA.
Western Australia
For temporary visa holders: You can drive on a current overseas drivers licence. You must carry a formal English translation or International Drivers Permit.
For permanent visa holders: You must get a driver’s licence once you have resided in WA for three months since being granted a permanent resident visa.
For further details click WA.
Tasmania
For temporary visa holders: You can drive on a current overseas drivers licence. You must carry a formal English translation or International Drivers Permit.
For permanent visa holders: You must get a Tasmanian licence within 3 months of a permanent residency visa being issued.
For further details click TAS.
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