Permanent Residents need to sort out their driving licence within 3 months of becoming resident, some States do not need you to take the theory test, while others do, here is some info to help.

Info and links for the relevant States on transferring your UK Car licence to an Australian one.
This info is valid as at 11 May 2005

NSW & ACT
No theory test required
As from 17 January 2005 customers are exempt the car driver knowledge test if they hold an acceptable car licence from the UK or one of the other recognised countries.
The RTA reserves the right to require customers to undertake a knowledge test or driving test, and may not issue a licence until it is satisfied that the overseas licence is valid.

If you have held your driver licence for less than 12 months, you will be issued a NSW provisional P1 licence. If you have held your driver licence for more than 12 months but less than three years, a provisional P2 licence will be issued.
http://www.rta.nsw.gov.au/licensing/newton...al_drivers.html

WA
No theory test required
If you are the holder of a licence from a 'recognised country', you are not required to sit the road rules theory test or the motorcycle theory test (if applicable). However, you are still required to sit the heavy vehicles theory test if you are applying for the equivalent WA classes.
If you are under 19 or have held your overseas licence for less than two years, you will get a probationary WA licence. A probationary licence means that you will be required to display 'P' plates when driving until the probationary period expires. While you are on 'P' plates it is illegal to drive with a blood alcohol level of 0.02% or above.

http://www.dpi.wa.gov.au/licensing/mylicence/overseas.html



VIC
No theory test required
If you are an existing licence holder from a recognised country, no tests are required to apply for a car or a motorcycle licence in Victoria

Probationary period: The probationary period is 3 years. This may be reduced if you have held an interstate or overseas licence after your 18th birthday.
http://www.vicroads.vic.gov.au/

QLD
Theory Test is required.
The test consists of 30 general questions for a motor vehicle licence.
http://www.transport.qld.gov.au/qt/LTASinf...estion1#licence

SA
Theory Test is required.
You will have to pass a written test on the Australian Road Rules

An applicant obtaining a Provisional Licence is required to hold the Provisional Licence until they turn 19 years of age or for two years, whichever period is longer.
http://www.transport.sa.gov.au/licences_ce...s_residents.asp

NT
I assume that a Theory test is required, but I can't find any info on the website.
http://www.ipe.nt.gov.au/whatwedo/mvr/licensing/index.html

TAS
Theory Test is required.
A customer must pass a knowledge test on the Tasmanian road rules.

If an applicant for a Tasmanian licence holds an overseas provisional licence, the Tasmanian provisional conditions will apply. If the overseas licence is non provisional, the applicant will be issued with a non provisional Tasmanian licence
http://www.transport.tas.gov.au/licence_in...as_licence.html