An Australian pensioner who drove his car and caravan some 12km in the wrong direction on a busy highway has lost his licence.

The 81-year-old Ronald Jackson, who apparently passed a driver refresher course shortly before the incident in Melbourne in February, has now been banned from driving.

CCTV footage of the incident shows Jackson trying to make his way through oncoming traffic, with other vehicles being forced to take evasive action.

According to his lawyer, Jackson's only previous offence was a speeding ticket some 30 years ago. The pensioner was also said to have recently suffered a stroke.

"He'd never driven badly before. He was under some health issues and he won't be driving again in Victoria," the lawyer said.

Watch the footage below.