Following the Government’s announcement in August there remains a great deal of confusion as to the status of various licence types and the fees associated with taxi licences. Whilst legislation to effect the Government’s reforms is yet to be introduced, several interim changes to licencing have been made by the TSC.
The below information presents the facts as they currently stand and is being supplied here, and through various other communication channels, in an attempt to keep the industry up to date. This should not be taken as meaning the VTA supports, endorses or accepts the information this email contains. A statement on the VTA’s perspective on the changes can be found at the end of this email.
Proposed industry transition assistance payments
The announced transition assistance payments are intended as a form of compensation to holders of perpetual taxi and hire car licences when the announced changes to licensing are introduced. On 30 November 2016 the Government made further announcements about transition assistance. Learn more here.
In the meantime, holders of perpetual taxi licences will still need to pay administrative fees associated with licence renewal to ensure the licence remains valid.
Taxi operators are still required to operate under a valid taxi licence. Those currently assigning perpetual plates will either need to maintain their assignment until changes are made or take up a new Government licence for the full rate of $23,017 in the metropolitan zone.
Rebates
Information released by Government at the time of the August announcement noted rebates would be available to operators currently operating licences leased by Government.
Existing annual fee paying licence holders (including peak service licence holders and fixed term licence holders who pay an annual instalment) with annual licence fee renewal payments due from 1 July 2016 onwards will be provided with a rebate for the license fee over the transition period.
The Government intended to effect the announced changes in 2 phases of legislation. The first was intended to be processed by the end of 2016 which was to include a reduction in hire car licence prices to essentially legalise ride sharing. Legislation is yet to be introduced into Parliament but the decision to offer rebates on Government licences was made in an attempt to ensure taxi licence holders did not flock to the new virtually free hire car plates when they become available.
More details about the rebates is available on the Department’s website.
Rebates do not apply to administrative fees associated with licence renewal. These payments will still need to be made to the Taxi Services Commission to ensure the licence remains valid.
There is no limitation on the number of licences a licence holder can receive rebates for.
WAT licensing
There will be no short-term changes to WAT licensing. Anyone wishing to take up a new annual WAT licence will need to pay the full rate of $19,250 per annum.
Fairness fund
In addition to the transition payments outlined above, the Victorian government has also set up a $75 million Fairness Fund; with $50 million to be allocated to help those in financial distress as a result of the reforms.
On 30 November, applications for the Fairness Fund opened. Find out more about the Fairness Fund here.
Timing
We have received many questions as to why any rebates or changes to fees have been introduced prior to any legislation being passed. The rebates have been introduced in an attempt to prevent taxi operators flooding to cheaper hire car plates once available. However, progress to date has not proceeded in line with the timelines the Government announced and this has fuelled uncertainty and confusion.
VTA perspective
The VTA has been clear that the reforms announced in Victoria are by far the most progressive of any State or Territory in Australia and uniquely seek to address the true nature of the fundamental shift which has occurred in the provision of commercial passenger vehicle services in the past years.
However, I want to assure you that we are all too aware of the pain and anguish that the announced changes to licensing, most of all, have caused for so many. The short term decisions which have been made to facilitate the ‘transition’ to the new regulations have sharpened this pain, created confusion and furthered inequality amongst operators.
The VTA believes that this pain can only be mitigated by implementation of fair and sensible reform in a single piece of legislation which makes just provision for those that have invested in our industry in good faith whilst also offering certainty and equality for everyone involved in delivering taxi services.
We continue to speak with Government, MPs and other stakeholders to express the concerns of licence holders and operators created by the proposed transition package and interim decisions and fight for both a fair outcome for those that have invested in our industry as well as operational and commercial equality amongst providers in the future.