Andrews Government slashes TAC premiums for taxi drivers

MELBOURNE taxi operators stand to save thousands of dollars in fees after the Andrews Government announced a huge cut to Transport Accident Commission premiums.

TAXI premiums will be slashed by the Andrews Government under new reforms to Transport Accident Commission charges.

Operators in Melbourne are set to save thousands each year when annual TAC premiums drop from $2586 to $510.

The state government will introduce the changes from July 1 in a move to cut costs for cab owners and level the playing field with competitors in the industry.

UBER SURGE PRICING TIMES FOR MELBOURNE

TAXI DRIVER LOSES HOME AFTER COMPENSATION SCHEME PAYOUT

VICTORIAN TAXI FARE HIKE FEARS UNDER RADICAL INDUSTRY SHAKE-UP

Taxi drivers will receive some relief with their TAC premiums being drastically reduced. Picture: Jay Town

The changes will also impact regional taxi operators, with charges outside Melbourne to be reduced from $1289 to $396.

Public Transport Minister Jacinta Allan said cutting operational costs would help reduce fares and improve services.

“We’re providing a level playing field by allowing the taxi industry to compete with new entrants and giving passengers more choice,” she said.

Operators in Melbourne are set to save thousands each year. Picture: Jay Town

More than 20,000 taxi driver applications have been approved in Victoria since September 2017, including 166 new wheelchair taxi licences.

The state government has provided $400 million to more than 3000 taxi and hire car licence holders to support reforms to the industry after the rise of ridesharing operators.

The Andrews Government has answered the protests of taxi drivers from last year. Picture: Nicole Garmston

Under the changes, Uber and other companies were legalised in Victoria and a $1 levy was added to all trips to cover the costs of deregulation.

Several other ridesharing operators have launched in the past year, including Taxify, Scooti and Ola.