Initiatives to improve Victoria's taxi services

A range of initiatives have been introduced to improve services in the taxi industry. These initiatives were developed with consideration to the Essential Services Commission's recommendations in its 2008 independent review of the taxi fares and the industry.

Information on this page

• About the package
• Fact sheets
• Frequently asked questions: Fare increase and licences
• Frequently asked questions: Multi Purpose Taxi Program and Wheelchair Accessible Taxi services
  

About the package

The package included:

• a 6.1 per cent fare increase
• the release of 330 wheelchair accessible taxis
• doubling the Multi Purpose Taxi Program's trip and annual caps
• an additional 200 metropolitan taxis to address demand, and
• a draft model bailment agreement for drivers and operators
  

New performance quotas and booking system will make sure that wheelchair accessible taxi (WAT) services are being dedicated to wheelchair work, and increased lifting fees for drivers, making WAT work of equal value as conventional taxis.

The fare increase will improve driver remuneration, and assist taxi operators in addressing higher operating costs and funding new mandatory safety measures such as driver protection screens.

Fact sheets

• Fact sheet – Improving Victoria's taxi services (PDF, 90 KB, 2 pp.)
• Fact sheet – What do the changes mean for Victoria's taxi drivers? (PDF, 84 KB, 1 p.)
• Fact sheet – Accessibility for all (PDF, 92 KB, 2 pp.)

Frequently asked questions: Fare increase and licences

• Why did fares increase in December 2008 by 6.1 per cent when they had already been increased in 2008?
• When did the fare increase come into effect?
• Why were 200 new metropolitan taxi licences released?
• Where were the 200 licences be located?
• Were peak service taxis be converted to 24 hour licences as part of this package?
• How were licences issued?
• Why were the licences being issued by public tender?
• Why was a draft model bailment agreement developed?
  

Why did fares increase in December 2008 by 6.1 per cent when they had already been increased in 2008?

The decision to increase fares by 6.1 per cent was in line with recommendations made by the Essential Services Commission in its final report on taxi fares.

The increase was to ensure drivers are adequately remunerated as well as assisting taxi operators with higher operating costs and funding safety measures including driver protection screens.

This figure has been calculated based on a composite price model that uses input costs to determine the changes in operating costs.

After providing for a reasonable operator margin and accounting for the 4.2 per cent fare increase earlier in 2008, the ESC determined that a 6.1 percent fare increase was appropriate. It was recommended as the price setting model for future increases.

The 4.2 per cent fare increase earlier in 2008 was introduced to account for a dramatic increase in gas prices. Although these costs have recently reduced, fluctuation in input costs is to be expected and the ESC price setting model has been designed to factor this in.

When did the fare increase come into effect?

13 December 2008

Why were 200 new metropolitan taxi licences released?

The Government's objective in releasing more licences is to stabilise licence values so that small investors can continue to be part of the taxi industry in Melbourne.

Additional taxi licences will improve taxi availability and service levels.

Where were the 200 licences be located?

There were 200 new unrestricted taxi licences released in the metropolitan, Frankston and Dandenong taxi zones.

Were peak service taxis be converted to 24 hour licences as part of this package?

Peak service taxis licences are not covered as part of this package.

The peak service taxis are in the final planned year of release, with expressions of interest for last 100 licences still being sought.

How were licences issued?

Under section 143A of the Transport (Compliance and Miscellaneous) Act 1983 the Government can specify whether licences are issued at a fixed price or determined by tender.

The 200 conventional unrestricted licences and the 330 WAT licences were issued by public tender, commencing early 2009.

Why were the licences being issued by public tender?

To provide an opportunity for small investors, mums and dads, to purchase a taxi licence and address the scarcity issue that has seen licence prices escalate in recent years.

Why was a model bailment agreement developed?

Bailment is the term used to describe the contract under which taxi operators lease (bail) the taxi to the driver

The agreement will provide a consistent and formal way of dividing taxi income between drivers and operators.

Frequently asked questions: Multi Purpose Taxi Program and Wheelchair Accessible Taxi services

• Why were these changes made?
• How will the additional 330 wheelchair accessible taxis improve current service levels?
• What will the wheelchair accessible taxi quota be?
• How do I know if I have an annual cap?
• What was the timelines for these changes?
  

Why were these changes made?

The Multi Purpose Taxi Program supports over 185,000 Victorians who have a severe and permanent disability and cannot access public transport independently by providing subsidised taxi travel.

Many of the program's members often rely on wheelchair accessible taxis to visit family and friends, attend appointments, and stay connected with the community.

These members are entitled to receive the same level of customer service that is provided to everyone else and be given financial support to pay for their taxis.

Doubling the existing financial caps will enable members of the MPTP to enjoy greater access to their program benefits and increasing number of WATs will bring down waiting times to make taxi travel more attractive and useable.

The taxi industry will also benefit from the changes through the flow-on effects of increased patronage and more opportunities to build strong, sustainable businesses on this client base, and guidance through adherence to workable business and service standards.

How will the additional 330 wheelchair accessible taxis improve current service levels?

The extra 330 wheelchair accessible taxis (WAT) plus the increased trip and annual caps for the Multi Purpose Taxi Program mean that people with a disability will be able to travel further and more often, and enable them to be connected with their family and community.

Program improvements are being made, such as a new performance based booking and payment system for network service providers and a quota system to ensure those operating WAT vehicles treat wheelchair work as a priority

These improvements will ensure the current WAT fleet is more effectively utilised, and the additional licences have an impact on responsiveness and quality of service in this specialised part of the market.

What will the wheelchair accessible taxi quota be?

The quota will set a minimum number of wheelchair trips to be done by each WAT vehicle per quarter. It will be the responsibility of the operator to ensure quotas are met and sanctions will apply for non-compliance.

Quota numbers will initially be based on the current WAT fleet and adjusted as new WAT taxis come on line.

How do I know if I have an annual cap?

Contact the Multi Purpose Taxi Program team on 1800 638 802 for details on your membership

What was the timelines for these changes?

The new Multi Purpose Taxi Program subsidy caps will increase pro-rata from 13 December 2008.