Reforms To Taxi And Hire Car Services For Victoria

Reforms To Taxi And Hire Car Services For Victoria

Victoria Premier Daniel Andrews

Victoria Leads The Way With Safer, Simpler, More Flexible Trips

Victor P Taffa

The Andrews Government is leading the nation by establishing a single commercial passenger industry that will create 3,500 jobs, give Victorians greater transport choices and better security for drivers.

“This is a comprehensive and fair transformation of taxi and hires car services, which responds to new technology that is changing the way people travel.” Victoria Premier Daniel Andrews said.

“We’re levelling the playing field for the whole industry while ensuring consumers have safe and reliable access to transport services.”


Over the next two years, the current licensing regime will be replaced by a single registration system that will ensure high standards for all commercial passenger vehicles, including taxis, hire cars and ride share services.

The reforms to the commercial passenger industry will see:

  • $378 Million made available to provide fair and reasonable assistance to licence holders to help them transition to the new legislative framework.
  • A $75 Million Fairness Fund to provide targeted support to industry participants experiencing immediate financial hardship as a result of these changes, including $25 Million to improve access to convenient, reliable point-to-point transport for people with a disability.
  • All commercial passenger vehicle providers charged a levy equivalent to $2 per trip to fund the transition to the new system including support for existing licence holders during the transition.
  • All existing licences removed to allow for more flexible fares to drive competition and reduce the cost of travel for passengers.
  • All drivers accredited by the Taxi Services Commission which will include passing Police, medical and driving history checks and all drivers will be subject to ongoing criminal data matching.
  • An Australian first of a dedicated Commissioner for disability services to the Taxi Services Commission.
  • Rank and hail work only open to those providers that meet stringent requirements including cameras and fare meters.
  • The ineffective, inefficient and costly Knowledge Test abolished and replaced by a simple system of industry accountability for all drivers.

Government will work with Victoria Police to ensure the continued safety of all passengers.

Draft legislation to be introduced into Parliament this year which will reduce the hire car licensing fee to zero. A second piece of legislation will be introduced into Parliament next year which will enable the long term reform.

“We’re changing the way Victorians travel by giving them more choice, shorter wait times and safer travel.” Minister for Public Transport Jacinta Allan said.

“For Victorians that have a disability Taxis are often their only means of transport which is why we’re ensuring with these reforms that they will have more choice and funding support than ever before.”

Changes will open the door for more ridesharing and taxi services to hit the road and drive innovation, to provide more choice and better services for passengers.

The Government will continue to consult closely with industry participants on the details of industry transition, accreditation and safety requirements, and the implementation of the levy.