Reforms Supporting Drivers And Passengers

24 April 2018

The Labor Government will provide further support to Victoria’s taxi operators by slashing their TAC costs under changes designed to ensure a level and fairer playing field with other commercial passenger vehicles.

From 1 July, the changes will cut the annual TAC premium for taxis from $2586.10 to $510.40 in metropolitan Melbourne – a saving of more than $2000 per year – while regional taxi operators will have their premiums reduced from $1289.20 to $396.

The removal of a specific, higher-charge category for TAC charges for taxis builds on earlier reforms which have slashed the cost of operating a taxi in Victoria.

Cutting the cost of running each taxi by up to $2000 a year will help taxi companies improve services and cut fares.

The Labor Government will ensure that any future reforms to TAC charges will maintain a level playing field for taxis, hire cars and ridesharing providers.

Both passengers and drivers are benefiting from the Andrews Labor Government’s commercial passenger reforms, with more support on the way for taxi drivers.

With ridesharing operators Didi and Ola now accredited along with Uber and Taxify, four of the biggest ridesharing companies in the world are now able to offer services to Victorian passengers.

The taxi industry is also benefitting from the reforms with over 20,000 driver applications being approved since September 2017. Importantly, 166 new wheelchair taxi licence applications have been approved, to improve services for people who rely on taxis the most.

Around $400 million in financial support has been provided to over 3000 former taxi and hire licence holders.

Victorians can look forward to better services and cheaper fares when the full reforms come into effect in July.

Quotes attributable to Minister for Public Transport Jacinta Allan

“We’re providing a level playing field by allowing the taxi industry to compete with new entrants and giving passengers more choice.”

“Cutting the cost of running a taxi will mean reduced fares and improved services for passengers.”

Reviewed 19 August 2020

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