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Hello Jack, When my Grandfather taught me to drive he said it was illegal to hang things from the review mirror. Fluffy dice back then. : )
I see the logic in this, it's a distraction for one. I see people driving with all sorts of things hanging from their review mirror. Even a crystal that must blind you when it catches the light!
Is it illegal? Thanks, Maria.

Below is taken from the New Zealand rode code.

In summary, it is not illegal unless it becomes a distraction and it is not part of a warrant of fitness inspection.

Operation of a vehicle

A driver must not operate a vehicle in a condition or manner that could cause:

• injury to any person or animal
  
• annoyance to any person
  
• damage to any property
  
• distraction to the driver.

  Driver distractions

• Anything that takes a driver's attention away from the road can be a potential hazard.
  
• You should avoid or minimise the following distractions when you are driving:
  
• looking at things on the roadside
  
• looking at scenery
  
• talking on a hands free cellphone
  
• talking to passengers
  
• noisy children
  
• pets
  
• eating food
  
• lighting a cigarette
  
• adjusting radio or climate controls
  
• daydreaming
  
• tiredness
  
• reading maps
  
• objects moving in the vehicle
  
• electronic gadgets
  
• reaching for items in the glovebox
  
• cleaning the inside of the windscreen.