Uber legal in Qld from September

Premier Annastacia Palaszczuk has announced a date for “sweeping reforms” to create a level playing field.

Sam Bool, Uber general manager, Queensland promotes the benefits for users of Uber.

Ride-sharing service Uber will be legal in Queensland from next month, sparking a $100m compensation package for taxi owners.

Transport Minister Stirling Hinchliffe acknowledged the government had overseen a review process that had “frankly dragged on for too long”, but now had a solution that relevels the playing field”.

Most other states and territory jurisdictions have worked out how to make Uber legal, but Queensland and Victoria’s reviews have taken longer.

Mr Hinchliffe said from September 5 ride-sharing services would be legal, with drivers being subject to mandatory health and criminal record checks — a process Uber says its drivers are already subject.

The government will fund a $100m “adjustment package” for taxi licence holders, focused on small operators, including $60m in one-off payments worth up to $40,000 per operator and a $26.7m hardship fund. Some fees and charges will also be waived for taxi drivers to compensate for the additional competition.

Cabcharge chief executive Andrew Skelton said an associated cap on taxi service fees of 5 per cent was disappointing, but not unexpected.

The first tranche of reforms will be done by regulation, but the rest will have to be passed through the state’s hung parliament. Part of the legislative change will be a new “booking service annual licence fee”, to be paid by both Uber and taxi operators, to replace the annual taxi licence renewal fee.

Unlike other jurisdictions, there will be no extra levy imposed on Uber fares.

The QLD government hasn’t issued a new taxi licence for about three years, when a licence cost about $250,000. It’s anticipated no new licences will be issued until at least 2018, for the market to stabilise.