Andrews Government sent to unveil plans to legalise Uber

EVERY taxi or Uber car ride in Victoria will soon include a $2 levy per trip to help fund the biggest industry shake-ups in decades.

EVERY taxi or Uber car ride in Victoria will soon include a $2 levy per trip to help fund the biggest industry shake-ups in decades.

Taxis will be able to set flexible funds as part of the changes that will legalise Uber and similar services.

The levy money will go into a $378 million fund to help compensate taxi drivers

As revealed by the Herald Sun, there will be a licence buy out for taxi drivers who own plates.

The payout will reduce depending on how many licenses are held by operators.

New laws will be put to parliament later this year in a bid to enable the changes.

Premier Daniel Andrews said the reforms were the most wide-reaching in Australia.

“This is a comprehensive and fair transformation of taxi and hire car services, which responds to new technology that is changing the way people travel,” he said.

The Herald Sun revealed last week that the government was prepared to buy back taxi licences to create a more level playing field in Victoria after the rise of low-cost ride provider Uber.

This is to be partly paid for by the new levy.

Premier Daniel Andrews in Parliament. Picture: Nicole Garmston

Public Transport Minister Jacinta Allan presented to colleagues the plan last week, and the Cabinet submission was sent to the government’s expenditure review committee.

Most ministers spoke in favour of the reforms during last week’s meeting, with a recognition that technological changes meant holding back services such as UberX — where ­passengers book using an app and the price per ride varies depending on demand — was impossible.

“We can’t go back to where Uber didn’t exist,” one minister said.

The government is expected to announce protections to ensure sufficient disability taxis are kept on the road once the market is deregulated, and measures to ensure safety.

Safety regulations including criminal checks for drivers and minimum vehicle standards will remain in place.

In 2013, the coalition introduced massive reforms to the industry, including three new fare tiers depending on the time of day. But the rise of US-based Uber has seen the taxi industry thrown into crisis.

The value of taxi licences has plummeted from as much as $515,000 last decade to about $150,000 today, angering some owners who bought plates as a retirement income.

The industry is preparing to react to the announcements with media events scheduled for this afternoon.

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Originally published as Andrews Government sent to unveil plans to legalise Uber