A new $2 levy on every taxi and ride-sharing trip from 2018 has been denounced by local cab operators.
The additional charge is part of a State Government plan to establish a single registration system for taxis, hire cars and ride-share services, which will involve deregulating taxi fares and eliminating taxi licenses.
The new fee has been introduced to help compensate operators ahead of renewed market competition, with Uber and other ride-sharing services to be legalised.
Premier Daniel Andrews said operators would be able to apply the levy however they saw fit, but local service providers say it is an unfair impost on customers.
“I think it (the $2 levy) is a disgrace on their part, they shouldn’t be charging the customer for their stuff up,” Moe taxi operator Alistair Smith-Stevens said.
“They’re making them pay for something the government should have looked after.”
Mr Smith-Stevens said the additional $4 round trip fee may prove a hurdle for pensioners and those with fixed incomes who use taxis for excursions such as grocery shopping.
“We (transport) a lot of elderly, I’m not sure what their finances are like… and they’re going to have to wear the cost; I’m not sure how it’s going to affect them,” he said.
“It might affect our business (too), it might slow it down a bit.”
The government plans to provide $378 million to help existing licence holders through the transition, and set up a $75 million ‘fairness fund’ to help those hit hardest by the changes, bankrolled by the $2 levy over eight years.
About $25 million will be allocated to ensure people with a disability receive suitable access to services.
Taxi licenses will be paid out by the government at $100,000 and $50,000 for second licenses with no further compensation for any additional licenses.
Mr Smith-Stevens said he did not expect regional operators to see the full buyback value.
“I think the regional taxis won’t get $100,000 for their licenses,” he said.
“Everyone should be on an even playing field.”
Morwell operator Carmen Giddens said the taxi industry was still coming to terms with the proposed changes.
“We’re all trying to work our way through the proposed legislation and work out what it actually means and where it’s going to go,” Ms Giddens said.
“We’re not happy about the $2 levy that customers are going to have to wear, I just don’t know why they’ve done that.”
Mr Andrews said the changes would create 3500 jobs, give Victorians greater transport choices and better security for drivers.
Ride-sharing service Uber is yet to reach the Latrobe Valley, but has begun operating in Warragul.
