The Road Transport Authority (RTA) will introduce new laws which prohibit vehicles from being lowered or raised any more than 5cm, along with all modifications requiring the approval of an RTA engineer.
The current law states that a car may be lowered up to 5cm without approval and up to 15cm with approval.
New South Wales Roads Minister Michael Daley says while drivers may think a lowered car looks "cool" it really is dangerous and any adjustment of more than five centimetres doesn't belong on the road.
"I don't want to see young hoons putting their lives or the lives of others at risk, just because they think their car looks better 15 centimetres closer to the ground," Mr Daley said.
"Raising or lowering a vehicle's height can put the driver, passengers and other road users at risk.
"It can affect handling, braking and safety features such as electronic stability control."
All vehicles lowered after August 1st will be required to carry a certificate of authorisation.