One-dollar levy to pay for Uber red tape and compensate taxi licence holders

THE new $1 levy slapped on every taxi and Uber ride will pay for red tape as well as compensating taxi ­licence holders.

THE new $1 levy slapped on every taxi and Uber ride will pay for red tape as well as compensating taxi ­licence holders.

Uber will finally be legalised in Victoria after a deal was struck to pass the Andrews Government’s laws deregulating the tax/ride-share industry.

BECOMING AN UBER DRIVER NOT AS EASY AS YOU THINK

A $2 fee on every trip was originally intended to compensate taxi owners whose licences — some bought for $400,000 each — had plummeted in value due to the arrival of ride-sharing services.

As part of negotiations with the crossbench, the government agreed to halve the levy in return for being able to also use it to fund the cost of regulating the industry.

The Bill passed both Houses of parliament late on Thursday. The government said a $2 levy was needed to collect the money for the taxi licence compensation over eight years.

Sex Party MP Fiona Patten said she agreed to allow broader use of the levy as long as it was halved to $1.

Sex Party MP Fiona Patten. Picture: Jake Nowakowski

“We first introduced a private member’s Bill in June 2016, so we are very relieved that in August 2017 we have ­affected legislation for the ride-share industry,” she said.

Public Transport Minister Jacinta Allan called the new laws the “most comprehensive taxi and hire car reforms in the country”, giving a level playing field. But Opposition public transport spokesman David Hodgett slammed the levy as a “tax on every taxi”.

“The legislation creates a level playing field for taxi operators, and is backed by the biggest industry assistance package in the country – providing proper support to the taxi industry through these significant changes,” Ms Allan said.

Transport Minister Jacinta Allan. Picture: Sarah Matray

Opposition public transport spokesman David Hodgett slammed the new laws, saying Victorians would be “taxed on every new taxi and ridesharing trip they take”.

“This new tax will impact vulnerable Victorians, who rely on taxis and ridesharing services, the hardest,” Mr Hodgett said.

“Elderly Victorians and those with special needs after today will need to pay Daniel Andrews’ tax on every taxi and ridesharing trip they take.

“Daniel Andrews has also ensured that funds raised from this new tax will be paying for new public servants rather than a fair compensation package for taxi licence holders.”