Why Victorians may soon be slugged more for taxis

Victorians may be forced to pay more for taxi rides under a new proposal that would raise prices by more than 20 per cent over three years.

Victorians could be slugged more for taxi rides under a new proposal that would see prices hiked by more than 20 per cent over three years.

The Essential Services Commission has recommended maximum taxi fares for rides hailed from the street or at a cab rank increase by 5.7 per cent, bumping up the cost of a trip from Melbourne’s CBD to Tullamarine airport by $3.22.

The commission’s draft decision comes after two years of price hikes, with the maximum fare for unbooked taxi trips jumping by 11.2 per cent in 2022 and 4.1 per cent in 2023.

If this year’s proposed 5.7 per cent increase is successful, the average fare for a trip from the CBD to Melbourne Airport will have risen by $11 to about $80 in just three years.

The proposal covers trips starting in metropolitan Melbourne, Frankston, Dandenong, the Mornington Peninsula, Geelong, Ballarat and Bendigo and does not apply to rideshare operators or pre-booked fares.

The Essential Services Commission has recommended maximum taxi fares for rides hailed from the street or at a cab rank increase by 5.7 per cent. Picture: Tony Gough

A statement by the commission said the increased prices reflected a 3.75 per cent increase in the minimum wage announced by the Fair Work Commission earlier this month and higher vehicle and insurance costs.

The review also considered the maximum surcharge that applies to fares paid with non-cash options.

The decision, however, recommended that the maximum surcharge for payments made by credit or debit card remain at 4 per cent and 6 per cent for charge cards like Cabcharge.

The Commission’s Executive Director of Price Monitoring and Regulation Marcus Crudden said the draft decision struck the right balance.

“We heard in submissions that taxi operators and drivers were comfortable with the methodology we used to arrive at our draft decision to increase maximum fares by 5.7 per cent and keep the caps on non-cash payment surcharges on hold,” said Mr Crudden.

“Victorians’ transportation needs continue to evolve post-pandemic, and although demand for taxis is still to fully recover, the industry is working hard to ensure taxis remain a viable option for consumers, passengers and operators alike.”

Consultation is now open on the Engage Victoria website until 12 July 2024.

The commission will release its final decision in September 2024.

Dodgy taxi touts touts are targeting travellers at Melbourne Airport. Picture: Josie Hayden

Melb Airport travellers warned to beware of scam

Melbourne Airport taxi touts are continuing to hassle and rip off unsuspecting travellers, flouting the threat of hefty fines, security patrols and repeated warnings.

Dodgy drivers claiming to be taxi operators or even private chauffeurs are approaching passengers, often inside the terminals, offering rides which turn out to be at highly inflated rates.

The airport now has erected warning signs outside the terminals and also updated the public announcements broadcast inside the terminals which alert travellers of the fake taxi scourge.

“If you were approached for a taxi or a ride, do not accept for your own safety,’’ the warning says. “These drivers are unauthorised”.

The touts usually drive unmarked vehicles and target international tourists or weary passengers, some of whom are intercepted trying to navigate their way to the taxi or rideshare ranks.

A sign at Melbourne Airport warns travellers about unauthorised taxi drivers. Picture: Supplied

Travellers have been slugged with fares at double or even triple the regular fees.

Recent rip-off examples include a couple who were charged more than $300 to travel to Albert Park, a woman who had to pay $108 for her trip to the city and a man who was hit with a $468 bill for his ride home to Berwick.

It’s also believed many cases go unreported because passengers are unaware or too embarrassed to raise a complaint.

Tough new taxi touting laws were introduced in 2019 after constant reports of dodgy drivers harassing travellers in the baggage claim areas. Touting can incur fines of more than $11,500.

Safe Transport Victoria officers patrol the airport precinct looking for potential law breakers who are trying to solicit business.

Victorian Taxi Association director Peter Valentine said Safe Transport Victoria needed to throw more resources at the problem.

“Touting is illegal. That’s it. It’s not good for the state, not good for the city, not good for the airport and it’s certainly not good for the traveller,’’ Mr Valentine said.

Mr Valentine said airport security should also help and throw touts off the site.

Travellers have been slugged with fares at double or even triple the regular fees by taxi touts. Picture: Josie Hayden

A Melbourne Airport spokeswoman said it worked with Safe Transport Victoria to address issues with the behaviour of a small number of taxi drivers illegally touting for business around the terminals.

“Passengers should not accept lifts from drivers who approach them at the airport – only use approved taxis and rideshare vehicles from the designated ranks.

“We have updated terminal announcements and signage to advise passengers not to accept lifts from these drivers.’’

Drivers who broke the rules risked being banned from the airport for up to 12 months, the spokeswoman said.

Safe Transport Victoria was contacted for comment.