Victorian Government’s Commercial Passenger Vehicle Industry Bill 2017 Introduced Amidst Controversy

Monday 13 March 2017 @ 12.30 p.m. | Legal Research

The Victorian Government has introduced their controversial bill to reform the commercial passenger vehicle industry by removing licence fees and implementing a new $2 levy on every ride.  The Commercial Passenger Vehicle Industry Bill 2017 was introduced into the Legislative Assembly on 22 February 2017.  The Bill has passed the Assembly without being amended, and is currently being considered by the Legislative Council.

The Andrews Government had announced it was considering introducing a levy last year, but the Bill’s introduction comes prior to the release of an inquiry by the Economy and Infrastructure Committee that is due to report on 16 March 2017.  For more information about the inquiry, see TimeBase’s previous article.

Overview of the Bill

A media release issued at the same time as the Bill said:

“The Bill introduced today will replace Victoria’s complex licencing regime with a single registration system that will ensure stronger standards, safer services and create 3,500 local jobs. By stripping away complexity and red tape, the reforms will encourage new providers – improving services and, through operators like London Rides, making it easier for people with disabilities to catch a taxi. 

The Bill also introduces $494 million in assistance for the existing taxi and hire car industry – the largest transition and support package in Australia.  Through this package perpetual metropolitan licence holders will receive $100,000 for their first licence and $50,000 per licence for up to three more. Ninety-eight per cent of owners have four licences or less.

The package also includes $50 million in targeted assistance for industry participants experiencing significant financial hardship, $25 million to ensure services continue to be provided for passengers with disabilities, and a rebate for annual licence fees.

A $2 per trip levy will be introduced as part of the Bill, although it will not come into effect until next year.  The levy will fund the support package and replace annual licence fees – currently up to $23,000 – considerably reducing the cost of operating a taxi, paving the way for more competition and cheaper fares for passengers.”

Reaction to the Bill

The proposed Bill has been extremely controversial.  Taxi drivers have staged a number of protests against the legislation, including  an attempt to enter the Victorian Parliament last week and a number of rolling convoys that have been held throughout the city.  The Victorian Taxi Association has called the levy “unworkable” and says it is not the best way to respond to the growth of ridesharing companies such as Uber.  According to ABC News, the taxi association is also displeased with the amount of compensation being offered to buy back their licences, arguing that licence-holders should be paid $250,000 for each taxi licence.

Uber is also opposed to the introduction of a $2 levy.  According to ABC News, Uber has sent an email to its Victorian users asking them to sign a petition opposing the levy, calling it “the highest tax of its kind in Australia”.

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