New initiatives to improve Victoria's taxi services
The Victorian Government has announced a range of new initiatives to improve services in the taxi industry. These initiatives have been developed with consideration to the Essential Services Commission's recommendations in its recent independent review of the taxi fares and the industry.
Information on this page
About the package
The package includes:
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.
The package is a clear commitment by the Government to improve taxi services for the community, and support the industry's viability and sustainability.
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Fact sheets
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Frequently asked questions: Fare increase and licences
Why are fares increasing by 6.1 per cent when they have already been increased this year?
The decision to increase fares by 6.1 per cent is in line with recommendations made by the Essential Services Commission in its final report on taxi fares.
The increase is 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 this year, the ESC determined that a 6.1 percent fare increase was appropriate. It is recommended as the price setting model for future increases.
The 4.2 per cent fare increase earlier this year 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 will the fare increase come into effect?
13 December 2008
Why are 200 new metropolitan taxi licences being 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 will the 200 licences be located?
There will be 200 new unrestricted taxi licences released in the metropolitan, Frankston and Dandenong taxi zones.
Will 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 will licences be issued?
Under section 143A of the Transport 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 will be issued by public tender, commencing early 2009.
Why are 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 has a draft model bailment agreement been 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.
A draft agreement has been developed in consultation with industry stakeholders and the government is now seeking further industry feedback to ensure both driver and operator rights are protected.
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Frequently asked questions: Multi Purpose Taxi Program and Wheelchair Accessible Taxi services
Why are these changes being 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 (03) 9320 4300 or 1800 638 802 (toll free for country callers) for details on your membership
What are the timelines for these changes?
The new Multi Purpose Taxi Program subsidy caps will increase pro-rata from 13 December 2008.