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Putting passengers first

More choice, better service and improved safety

The Victorian Government is reforming the taxi and hire car industry, including rideshare, to meet the needs of Victoria’s growing population and adapt to the challenges of changing technology.

Putting passengers first PDF, 2.3 MB

What's changing?

The new legislation will deliver more choice and safer services for passengers. It will help meet the needs of Victoria’s growing population and adapt to the challenges of changing technology.

Reforming the taxi and hire car industry, including rideshare, will see reform program changes gradually phased in over time. This allows licence holders to receive financial assistance before any changes to licences are made.

The existing industry will then be automatically transitioned to new licence arrangements.

When licence transition is complete, new vehicle licences will be made available for purchase.

Existing taxi and hire car services can continue to operate while industry reforms gradually take place.

Taxis

  • Existing drivers – no change.
  • New drivers require accreditation.
  • Preserving rank and hail work.
  • Simplifying licence classifications.
  • Existing taxi licences will be transitioned to new licence arrangements.
  • New low cost vehicle licences will be available.

Hire cars including rideshare

  • Abolishing zones for hire cars.
  • Simplifying hire car licence classifications.
  • Classifying rideshare vehicles as a hire cars, not permitted to do rank and hail work.
  • Rideshare vehicles not accredited for accessible services under the Multi Purpose Taxi Program.
  • Existing hire car licences will be transitioned to new licence arrangements.
  • Not permitted to do rank and hail work.

Booking Service Providers

  • Network Service Providers become Booking Service Providers.
  • Hire car booking businesses (including rideshare) must be accredited as Booking Service Providers.
  • The Taxi Services Commission will initially focus on accrediting high volume booking providers. Smaller booking service providers need to be accredited in the future.
  • Operators managing their own bookings do not need to be accredited.

Accessible services

Industry reforms include:

  • a new Commissioner to focus on accessibility matters
  • a $25 million package for accessible services.

Transition Assistance: for the industry

The new legislation delivers various support packages for eligible taxi and hire car licence holders.

Transition Assistance payments will be made as part of the package. Transition Assistance is automatically calculated and paid to eligible licence holders as part of the government’s $494 million assistance package. Transition Assistance is calculated based on the number and type of licences owned.

To receive Transition Assistance, licence owners must have owned eligible licences on 15 August 2016 and retained their licence ownership throughout the eligibility period, which ended on 14 July 2017.

Transition Assistance examples:

Case 1: George

George has four metropolitan taxi licences which he owned on 15 August 2016 and still owns today.

George is entitled to receive $100,000 for his first licence, $50,000 for the second, $50,000 for the third, and $50,000 for the fourth.

George will receive $250,000 in Transition Assistance.

Case 2: Rosa

Rosa owns a regional Wheelchair Accessible Taxi licence and a country Wheelchair Accessible Taxi licence. She held these licences on 15 August 2016 and still holds them today.

Rosa is entitled to a payment of $50,000 for her regional Wheelchair Accessible Taxi licence and $7,500 for her country Wheelchair Accessible Taxi licence.

Rosa will receive $57,500 in Transition Assistance.

Case 3: Sanjeet

Sanjeet has one metropolitan taxi licence and one regional taxi licence. The regional taxi licence has been held for over five years and is eligible for a Transition Assistance payment.

He purchased the metropolitan taxi licence in December 2016. It’s outside the eligibility period for Transition Assistance. Sanjeet will receive a $50,000 payment for his regional taxi licence only.

Sanjeet will receive $50,000 in Transition Assistance.

What’s happening next?

More legislation will follow to complete the reforms, establishing a single commercial passenger vehicle industry. This includes introducing a per trip industry levy, to be introduced in 2018, to cover the cost of providing financial assistance.

More information

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