Sometimes we think the Americans are messing with English just to confuse the rest of us. If you can legally drive in the US, for example, you’ll be a ‘licensed driver’ and have a ‘driver license’.
Over here, though, we care enough to distinguish between nouns and verbs, so make sure you know how to use the terms ‘license’ and ‘licence’ correctly in Australian English!
License (Verb)
While ‘license’ (with an ‘s’) is the noun and verb form in American English, it’s only used for the verb in Australian English. As such, it would appear in a sentence like this:
The pub is licensed to serve drinks until midnight.
Usually, this refers specifically to giving (or having been given) an official permit to do something. However, ‘license’ can also be used more generally to mean ‘permit’ or ‘allow’.
Licence (Noun)
In Australian English, the correct noun form of this word is ‘licence’ (with a ‘c’). This refers to a document or permit granting permission to do, own or use something:
I left my driver licence at home.
It can also be used more loosely to describe having the freedom to do something:
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The teacher gave us licence to write about whatever we wanted.
In either case, ‘licence’ is always a noun (i.e. a word that names a thing, not an action).
License or Licence?
As explained above, this all depends on what you’re describing. If you’re writing about an action (i.e. the act of authorising something), the correct term is the verb ‘license’.
However, if you’re talking about a thing (i.e. a permit to do something), the correct word is the noun ‘licence’. This distinction is made in British English, too. Remember:
License (verb) = Grant permission or authorise
Licence (noun) = A permit to own, use or do something