Friday 11 April 2014

Fairer fare for a better taxi industry

  • Daytime fares to rise by an average of$1, for trips up to 40 kilometres
  • First fare increase in six years, ensuring Victoria still offers some of the cheapest fares in Australia
  • Victorian Coalition Government reforming taxi industry –better drivers and better services

An additional cost for taxi passengers will be introduced to deliver a better taxi service across Victoria, Minister for Public Transport Terry Mulder announced today.

Mr Mulder said that the taxi fareincrease across Victoria will support the industry and help deliver better customer service.

“The taxi industry has not had a fare increase in six years and Victoria can still lay claim to some of the cheapest taxi fares in Australia,” Mr Mulder said.

“On average, daytime fares will only rise by a little over $1 per trip, for trips of up to 40 kilometres.”

“We want to support the industry in transforming, and we realise that if we want better drivers and better services, we need to fairly compensate those providing these services.”

Mr Mulder said the increase in fares was part of wider taxi and hire car reforms currently being implemented in Victoria.

“The Victorian Coalition Government has already implemented a number of reforms that have provided real benefits to passengers, like slashing the fee for paying with a card from 10 to 5 per cent,” Mr Mulder said.

The new structure announced today is in accordance with a determination by the Essential Services Commission (ESC) following an extensive review.

Under the new arrangement, there will be three price structures (or ‘tariffs’) that will mean passengers pay lower fares to travel during the day and higher fares during peak periods and overnight:

• Tariff 1 ‘Day’- 9am to 5pm;

• Tariff 2 ‘Overnight’ - 5pm to 9am, excluding peak; and

• Tariff 3 ‘Peak’ - 10pm to 4am Friday and Saturday nights.

Chair of the Taxi Services Commission Graeme Samuel said the change in fares is about balancing the interests of the industry, drivers and passengers.

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“What the ESC has achieved is a structure that will address many of the fundamental flaws in the current pricing system,” Mr Samuel said.

“Higher rates at peak times will provide more incentive for cars to be on the road when they are needed the most, while cheaper day rates will mean minimal impact on daytime users and increased patronage to support the industry.

“Passengers trying to get home late on Friday and Saturday nights will pay more, but will be better serviced by the availability of taxis. Those planning their travel for quieter times during the day will experience a much smaller increase.

“Drivers will stand to earn more, which is important for keeping experienced people in the industry and also attracting new drivers. Combined with our new Knowledge Test and a fairer driver agreement, these changes mean better drivers in our taxis.

“A new flat rate of $14 will apply to high-occupancy vehicles carrying four or more passengers – which means more Wheelchair Accessible Taxis will be available,” Mr Samuel said.

“From 1 July 2014, competition within the taxi industry will be enhanced even more, with the restrictions on taxi licences being lifted. This will make it easier to enter the industry and will put a stop to many of the monopolies that have been allowed to rule this industry for far too long,” Mr Samuel said.

“We have also opened up the hire car industry and increased competition by making it easier to get into the industry.

The new taxi fares take effect from 19 May 2014. This will allow time for taxi meters to be reprogrammed and in-cab stickers to be updated prior to commencement.

Further information is available from

Media contact: Larissa Garvin 0427 669 628

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