Annual Report 2018-19

In the face of an industry being transformed by a range of new services, including ride sharing, we worked to ensure taxi users paid reasonable fares that also considered the costs of service provision.

Our taxi decisions in 2018–19

Taxi fares

In 2018–19, we made no change to the maximum fare that can be charged for ‘unbooked’ commercial passenger vehicle services, which include hailing a vehicle from the street or taking a taxi from a rank.

Cleaning fee 

From 1 October 2018, we introduced a new cleaning fee of up to $120 for passengers who make a mess that takes a cab off the road for cleaning.

Non-cash payment surcharges

In May 2019 we proposed reducing the surcharge from five to 4.5 per cent. This will make taxi travel more affordable for Victorian consumers while keeping the industry financially viable.

Maximum fares remained unchanged in 2018–19

In 2018–19, we proposed no change for the maximum fare that can be charged for ‘unbooked’ commercial passenger vehicle services, which include hailing a vehicle from the street or taking a taxi from a rank. Booked services are arranged through an app, online or over the phone. This will keep taxi travel affordable for the many Victorians who depend on taxis for their transport needs.

Director of Price Monitoring and Regulation Marcus Crudden said keeping fares unchanged would provide some stability in a rapidly changing sector.

Mr Crudden added the commission determined that raising maximum fares in a rapidly changing sector could deter customers from using taxis.

Our decision covers fares in metropolitan Melbourne and urban and large regional zones including Geelong, Ballarat, Bendigo, Frankston, Dandenong and the Mornington Peninsula.

How we engaged with taxi users and drivers

As part of our taxi fare review, we used Engage Victoria, a consumer-friendly government feedback portal, to connect with taxi passengers and drivers for the first time. This made it easier for these stakeholders to have their voices heard.

Our decision also broke new ground by introducing an optional ‘time and distance’ tariff, which adjusts how fees are calculated for taxi fares. 

Compensating drivers for passenger mess

In October 2018, we introduced a new cleaning charge of up to $120 for passengers who make a mess that takes a cab off the road for cleaning. 

Passengers who cause mess cost providers time and money, and we determined that it’s only fair for providers to be compensated for that time.

We also considered that other commercial passenger services, including ridesharing services, already charge a cleaning fee. Allowing unbooked taxis to recover these costs will also put our taxis in line with those in other states.

Proposing to reduce the non-cash payment surcharge

In December 2018, we began our review of the taxi non-cash payment surcharge. This review is the first time taxi surcharging has been examined in this level of detail by an Australian regulator.

The draft decision also provides a resource to help Victorians understand the taxi payments system.

We regulate the maximum non-cash payment surcharge for all taxis in Victoria. Rideshare and hire car surcharges are regulated separately by the Reserve Bank of Australia under federal legislation.

‘In the context of all the changes underway in the industry, and noting taxis can already lower their fares as a way of attracting more passengers, the commission decided to leave maximum fares unchanged for now.’
Marcus Crudden, Director, Price Monitoring and Regulation, Essential Services Commission