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Structure of the hire vehicle industry

This page outlines the three components of the hire vehicle industry in Victoria.

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Hire vehicles

Photo of a stretch limousine

A stretched limousine.
(Photo courtesy of Lygon Limousines)

Hire vehicles are modern luxury sedans or stretched limousines. They can only operate after being previously booked from the place of business of the owner.

Hire vehicles do not have meters; charges are negotiated between the driver and customer. They cannot accept direct hirings from ranks or public areas. 

A one-off fee of $60,500 (including GST) is payable for the issue of a new hire vehicle licence to operate in the Melbourne metropolitan area. In addition, licence applicants must show that they are of good character, financially stable and qualified to operate a hire vehicle service.

As at 1 April 2011, there are 937 hire vehicle licenses in Victoria, 861 of which are based in Melbourne.

Restricted hire vehicles

Restricted hire vehicles are similar to hire vehicles except that limited vehicle types qualify for this licence, such as:

  • Vehicles manufactured at least 25 years prior to the date of the licence application
  • Vehicles which, by nature of their construction or fittings, can provide a service not available through standard hire vehicles (for example, motorcycles, off-road four-wheel drive and adventure or tour vehicles).

As at 1 April 2011, there are 702 restricted hire vehicle licences in Victoria.

Special purpose vehicles

Special purpose vehicles are similar to hire vehicles except that they are licensed for specific purposes such as weddings or tours. As at 1 April 2011, there are 988 of these licences operating in Victoria.

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