Support package for taxi and hire car licence holders

In August 2016, the Victorian Government announced comprehensive reforms to the taxi, hire car and ride-share industry that will create a level playing field for all industry participants once all of the changes are in place in 2018.

The Victorian Government recognises the reforms will have a range of impacts on existing licence holders, and is providing financial support to those affected during the transition period.

The Government is funding a revised support package, which now includes:

  • Transition assistance payments to perpetual and fixed term licence holders where the licence fee was paid upfront, extended to licence holders that own third and fourth licences and made over two years
  • Rebates to existing annual fee paying licence holders whose licence fees were paid or due to be paid in 2016-17 financial year and any future renewals
  • A Fairness Fund to provide targeted support for licence holders that may experience financial hardship as a result of the changes, and to support the provision of accessible services

Licence holders may apply for both of these forms of support.

Fairness Fund

The Victorian government's Fairness Fund is now open for applications.

The Fairness Fund is needed because proposed reforms to the commercial passenger vehicle market, while benefitting customers, are also affecting people who own a taxi or hire car licence. $50 million has been allocated to the Fund to provide targeted financial support to those licence holders who need it most.

For more information and to apply see Fairness Fund.

Industry Transition Assistance

Licence holders will also have access to an Industry Transition Assistance package from 2017.

Following consultation with the taxi and hire car industry, the Government has made the Industry Transition Assistance package larger, with payments to be made sooner than previously announced. This will provide more targeted and immediate assistance for all affected licence holders.

Assistance payments

On 30 November 2016, the Government announced that transition assistance payments would be extended to third and fourth licences, and made over two years (instead of eight) to provide more substantial support, sooner.

To be eligible for the payments below, the licence holder must:

  • have held the licence on 15 August 2016, and
  • continue to hold the licence.

The Taxi Services Commission will be writing to all eligible license holders in 2017 to validate their licence holdings before issuing transition assistance payments.

Taxi licence typesExpiryZoneFirst licenceSecond, third and fourth licence
M50 – Metro Taxi WATPerpetualMetropolitan$100,000$50,000
M51 – Metro Taxi WATPerpetualMetropolitan$100,000$50,000
M80 – Metro Taxi WATPerpetualMetropolitan$100,000$50,000
MT – Metro TaxiPerpetualMetropolitan$100,000$50,000
UT – Urban Taxi prior 2003PerpetualUrban$100,000$50,000
UT5 – Urban Taxi WATPerpetualUrban$100,000$50,000
UT5 – Urban Taxi WAT prior 2003PerpetualUrban$100,000$50,000
RT – Regional Taxi prior 2003PerpetualRegional$50,000$25,000
RT5 – Regional WAT prior 2003PerpetualRegional$50,000$25,000
RT5 – Regional WAT TaxiPerpetualRegional$50,000$25,000
C50 – Country WATPerpetualCountry$15,000$7500
C50 – Country WAT prior 2003PerpetualCountry$15,000$7500
CT – Country TaxiPerpetualCountry$15,000$7500
CT – Country Taxi prior 2003PerpetualCountry$15,000$7500
MF – Metropolitan Fixed TermFixed TermMetropolitan$33,750$16,875
UF – Urban Fixed TermFixed TermUrban$33,750$16,875
MF5 – WAT Metropolitan Fixed TermFixed TermMetropolitanAnnual fee rebate
UF5 – Urban WAT Fixed TermFixed TermUrban
UT5F – Urban Taxi WAT Fixed TermFixed TermUrban
RT5F – Regional WAT Fixed TermFixed TermRegional
RTF – Regional Taxi Fixed TermFixed TermRegional
C50F – Country WAT Fixed TermFixed TermCountry
CTF – Country Taxi Fixed TermFixed TermCountry
MTA – Metro Taxi AnnualAnnualMetropolitan
MTA5 – Metro Taxi WAT AnnualAnnualMetropolitan
UTA – Urban Taxi AnnualAnnualUrban
UTA5 – Urban Taxi WAT AnnualAnnualUrban
RTA – Regional Taxi AnnualAnnualRegional
RTA5 – Regional Taxi WAT AnnualAnnualRegional
CTA – Country Taxi AnnualAnnualCountry
CTA5 – Country Taxi WAT AnnualAnnualCountry
PS – Peak ServicePeak ServiceMetropolitan
Hire car licence typesExpiryZoneFirst licenceSecond third and fourth licence
MH – Metropolitan Hire Car LicencePerpetualMetro/Urban$25,000$12,500
CH – Country Hire Car LicencePerpetualRegional/Country$12,500$6250
SV – Special Purpose Vehicle LicencePerpetualNA$1250$625

Rebates to annual and peak service licence holders

Renewals of existing licences

Existing annual fee paying licence holders (including peak service licence holders and fixed term licence holders who pay an annual instalment) with annual licence fee renewal payments due from 1 July 2016 onwards will be provided with a rebate for the license fee over the transition period.

If a licence holder has already paid their annual fee since 1 July 2016, they will be contacted by the Taxi Services Commission shortly and a rebate will be arranged.

If a licence holder has received a renewal notice but has not yet paid the renewal fee, an updated notice will be provided shortly which provides the rebate.

If a licence is due to be renewed during the transition period, licence holders will receive an invoice reflecting the application of the rebate when the licence is due to be renewed.

New annual licences

If a licence holder has purchased a new annual licence between 1 July 2016 and 23 August 2016, a rebate will also be made available to the licence holder for this licence. The rebate does not apply to the licence application fee. The licence holder will also be eligible for a rebate when the licence is due to be renewed.

Rebates do not apply to administrative fees associated with licence renewal. These payments will still need to be made to the Taxi Services Commission to ensure the licence remains valid.

There is no limitation on the number of licences a licence holder can receive the rebate for.

Taxi Reform Hardship Fund

The Victorian Government established the $4 million Taxi Reform Hardship Fund to assist perpetual taxi licence owners experiencing severe financial distress as a result of reforms following the 2012 Taxi Industry Inquiry.

Applications to the Fund have now closed, and all applicants have now been advised of the outcome of their application.

Frequently Asked Questions

Fact sheets

Page last reviewed on 17 March 2017

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