Assigning a taxi-cab licence

Sections of the Commercial Passenger Vehicle Industry Act 2017 relating to commercial passenger vehicle licences are now law. Information about the changes is available on the Industry reforms page.

The below information may be out of date as this page is currently under review.

The licence holder of an eligible taxi licence may apply for authority to assign the right to operate a vehicle under the taxi licence (unless the licence conditions attached to the licence prior to 30 June 2014 state that the licence cannot be assigned). This right can only be assigned to an accredited operator.

There is no longer a requirement that assignments must be 3 years or less. There is no maximum period for an assignment. Licence holders and operators are encouraged to seek independent legal advice before entering into or terminating a taxi assignment agreement.

Along with the information on this page, the fact sheet for download below sets out some basic information about what is an assignment agreement and what it means for the parties to the agreement. It gives you tips on what you can do in the event that the agreement breaks down and where to go for help.

Information on this page

How to apply

To apply to assign an eligible taxi-cab licence, the following documents must be submitted:

Licence assignment agreement

It is recommended that you use the TSC endorsed assignment agreement which is available for licence holders to use when assigning a taxi-cab licence.

The assignment agreement is a legal document. When the agreement has been signed by both the assignor and assignee, the content of the agreement will come into effect. The agreement must stipulate the:

  • date of agreement
  • licence number
  • assignment period (if applicable)
  • monthly assignment price and vehicle sale price (vehicle sale price only applicable if assignee is purchasing the existing taxi on the licence).

If you have any concerns about this assignment agreement, you should seek independent legal advice before signing it.

Terminations of assignments

Where parties agree to terminate

Where both parties agree to an early termination of their assignment, both the licence holder and operator must notify the TSC by submitting Attachment 1 of the Application to Commence or Terminate a Taxi-Cab Assignment PDF, 591.4 KB that they have consented to the termination of the assignment.

As the assignment is a civil legal binding contract between both parties, the TSC cannot record that an assignment has been terminated unless there is evidence that the assignment has been legally terminated.

Where parties do not agree to terminate

Under certain circumstances an assignment may be terminated without the consent of both parties before its expiry date. If either a licence holder or permit holder is in breach of the assignment, this breach can be demonstrated to the TSC, and the TSC  can confirm the assignment has been legally terminated, the assignment may be noted as terminated before its expiry date with the TSC.

Steps involved:

  1. The licence holder or operator who has terminated the assignment agreement notifies the TSC in writing that the assignment has been terminated.
  2. The licence holder or operator who has terminated the assignment agreement provides the TSC with written evidence of the termination. Evidence of the termination can be a copy of the letter served on the other party, advising them that the assignment has been terminated in accordance with the assignment agreement.
  3. The TSC will write to the other party regarding the claimed termination, granting them 14 days to provide evidence that they have instituted court proceedings disputing the assignment termination at VCAT.
  4. Unless the party disputing the termination provides evidence to the TSC within 14 days of receiving the TSC's letter that it has instituted proceedings in a court disputing the claimed termination, the TSC will update its records to show that the assignment has been terminated. If such action has been taken in a court, the TSC will not update its records unless and until a court has determined whether the agreement has been lawfully terminated.

Amendments to assignment

During the period of an assignment, the licence holder and operator may elect to include or remove certain sections of an agreement or vary sections of the current agreement such as the assignment fee. Both parties must agree in order for the assignment to be varied during the assignment period.

Parties who wish to change the terms of their assignment agreement by mutual consent, may consider to do one of the following:

  1. The current assignment agreement can be terminated and replaced by a new agreement signed by the operator and licence holder.
  2. Changing assignment fees: the licence holder and operator can vary the agreement either in accordance with the variation procedures set out in the agreement, or if there are none, by completing a deed of variation amending the assignment price. This may be done by completing a Deed of Variation - Assignment of Taxi-cab Licence Agreement Template PDF, 1.6 MB. The TSC will update its records after authorising the variation.

Nominating a representative

If you intend to use a third party in assisting with an assignment then you must lodge a 'Nominated Representative' form with the application to enable the TSC to transact with the party accordingly. Where individuals are acting on your behalf they will be required to provide one certified copy of primary identification.

Payment options

The application fee is listed on the fees and charges page.

Payment can be made by:

  • Bank Cheque or money order: made payable to the 'Taxi Services Commission'
  • Payment Authorisation in Section 7 of the Assignment application form.

Accessibility

The Taxi Services Commission is committed to creating online resources that are accessible to all. Some documents on the page may not be fully accessible at this stage and we are working towards achieving this. If you are having difficulty accessing any content please contact us.