Liberal Party in bid to stop $2 taxi levy

THE state Opposition has indicated it will try to block a $2 levy on taxi and Uber fares that would provide compensation for industry deregulation.

Taxi licence holders disgruntled by the government’s deregulation are planning to blockade Tullamarine Freeway next Monday in a repeat of last week’s Bolte Bridge protest.

THE state Opposition has indicated it will try to block a $2 levy on taxi and Uber fares that would provide compensation for industry deregulation.

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A Bill to deregulate the taxi industry, legalising ride-sharing services like Uber and allowing drivers to set their own fares, will be introduced in state parliament today.

The government wants to bring in a $2 levy per trip, from 2018, to finance compensation and the costs of the changes.

Operators would decide on whether to pass on all or some of this to consumers.

Opposition public transport spokesman David Hodgett said this would be “a new tax on everyone who uses taxis and Uber”.

Opposition public transport spokesman David Hodgett. Picture: Valeriu Campan

“(Premier) Daniel Andrews’ new tax will mean higher fares for all taxi and Uber passengers and it will particularly affect those living in the regions and the elderly that use taxis to get to and from medical appointments,” he said.

“Anything that makes transport more expensive for Victorians is not a good outcome. Victorians are already struggling with cost of living pressures and another new tax will make life even tougher for many,” Mr Hodgett said.

The Opposition could seek to amend the Bill with the support of the Greens and other crossbenchers. Conversely, if the Greens and two crossbenchers support the government plan, the levy may pass.

Blocking the levy would punch a $388 million black hole in the deregulation plans.

Public Transport Minister Jacinta Allan. Picture: Ellen Smith

Public Transport Minister Jacinta Allan said it was “time for the Liberals to get on board or get out of the way”.

Greens transport spokeswoman Samantha Dunn said her party had concerns about the fairness and funding of compensation and wanted a parliamentary inquiry before the Bill was voted on.

Sex Party MP Fiona Patten said the levy should have an end date.

“An indexed, indefinite levy already raising more than needed sounds like a massive revenue-raising measure to me,” she said.

Meanwhile, taxi licence holders disgruntled by the government’s deregulation are planning to blockade Tullamarine Freeway next Monday, in a repeat of their Bolte Bridge protest last week.

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