Taxi and hire vehicle reform
A major 17-point taxi and hire vehicle reform package was implemented over the six years to 2008.
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Key achievements
Since the initial reform package was announced in 2002, significant changes to the operation and delivery of taxi and hire vehicle services in Victoria were implemented to the benefit of passengers, operators and drivers.
Taxi industry reforms
- A new accreditation scheme for drivers of commercial passenger vehicles, including taxi drivers, began in July 2007.
- A new taxi industry accreditation scheme began at the start of 2008, introducing clear standards and accountability measures to ensure that taxi services meet the expectations of the Victorian travelling public. The scheme has been supported by a significant increase in Victorian Taxi Directorate staff and compliance activity.
- Peak service taxi licences were introduced from 2002, with the latest release of 100 in October 2008 taking the total number to 600.
- A 20 per cent tariff was introduced in 2004 to apply between midnight and 5am in the metropolitan taxi zone, encouraging more taxis on to the roads during the late night and early morning periods. This tariff is payable entirely to the driver.
- A Country Taxi Services review in 2006 identified measures for improving the long term viability of taxi services in regional Victoria and the supported recommendations have been progressively implemented since September 2006. For a copy of the review report and the Department's response, please contact the VTD.
- The Taxi Industry Safety Taskforce was established in 2006, leading to a series of initiatives to improve driver safety and well-being. Two major driver safety reforms followed in 2008: introduction of mandatory pre-payment of fares from 10pm to 5am, and a subsidised scheme to compel taxi operators to make protection screens available in all cabs so they are readily available to all drivers who want them.
- A series of upgrades to the training course in taxi driving has been implemented, trebling the training requirement from 40 to 120 hours and introducing a new Knowledge of Melbourne test in 2008.
- A new regulatory scheme began in 2006 for taxi licence brokers, who act as intermediaries in the transfer or assignment of tradeable taxi licences. The scheme was designed to provide a regulated, fair and transparent system for dealing in taxi licences.
- A taxi services customer charter was launched, setting out the rights and obligations of passengers and drivers.
- Formal reviews of taxi fares by the Essential Services Commission were introduced, providing independent advice on fare levels to the Minister for Public Transport.
- Entry barriers to the hire vehicle industry were relaxed and hire vehicle standards were widened to increase competition.
Why the reforms are needed
The 17-point reform package was developed in the wake of a Federal Government Competition Policy requirement that all Australian States and Territories review the regulation of their taxi and hire vehicle industries.
Victoria took this process as an opportunity to look more broadly at the entire industry and extended the review to consider whether the regulations at that time were producing:
- a service that meets customer expectations
- an industry that is competitive and sustainable in the long term and
- adequate career opportunities for taxi drivers and operators.
The review found that the structure and focus of the Victorian taxi and hire vehicle industries had significant room for improvement.
The aim of past and future reforms is to achieve:
- cleaner and safer taxis
- more responsive and reliable taxi services, particularly late at night
- better trained drivers
- improved career opportunities and remuneration for drivers
- more equitable access to taxis for people with disabilities and people living in regional and outer metropolitan areas and
- greater financial certainty for taxi operators.
Current and future reforms
Reform of the Victorian taxi and hire vehicle industry is ongoing.
As part of the comprehensive overhaul of Victoria's transport legislation, a new Taxi and Hire Vehicle Bill will be developed in consultation with industry stakeholders and the traveling public.
Most recently, in response to the findings and recommendations of an Essential Services Commission fare review, the a further package of reforms was announced to:
- improve the affordability and availability of taxi services for people with disabilities
- release additional wheelchair accessible and conventional taxi licences into the metropolitan zone, and
- introduce various strategies aimed at protecting driver income.