More than 100 cars have been impounded and 500 number plates seized since the state government cracked down on car hoons last year.
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Premier Barry O'Farrell said the message to "lunatics who treat our streets like racetracks is simple - if you want to keep your car, slow down and obey the law".
"A driver who has shown a deliberate lack of regard for the safety of others needs to know they will lose their car or their ability to drive it for three months," he said.
People caught driving more than 45 km per hour over the speed limit, street racing, doing burn-outs or being involved in a police chase face losing their car or number plates for three months under laws introduced in July last year.
Those who drive during their three-month suspension can have their car permanently confiscated.
Deputy Police Commissioner Catherine Burn said 123 vehicles have been impounded and 513 sets of number plates have been seized for three months since the laws were introduced last year.
