Regulator releases final decision on maximum taxi fares

The Essential Services Commission has released its final decision on the 2024 taxi review. The final decision approves a 5.5 per cent increase to the maximum fare payable when a taxi is hailed from the street or at a taxi rank and keeps the existing maximum surcharge for non-cash payments on hold. 

The new maximum fare takes effect from 23 September 2024 and will increase the cost of a 3 kilometre trip by $0.84 to $17.70. A trip from Melbourne’s central business district to Tullamarine airport will increase by $3.18 to $67.10 (excluding tolls). 

The fare increase is primarily driven by the increase to the minimum wage foreshadowed in the commission’s June 2024 draft decision. 

The decision covers taxi trips where a taxi is hailed from the street or at a taxi rank in metropolitan Melbourne, Frankston, Dandenong, the Mornington Peninsula, Geelong, Ballarat or Bendigo. 

The decision to increase the maximum fare does not apply to pre-booked taxi fares, Ubers and other rideshare operators. Unlike when a taxi is hailed from the street or a taxi rank, these other sources give customers the option to seek a quote and decide on the timing, transport mode and price that suits their needs. 

The maximum surcharge that applies to non-cash payments will remain steady at 4 per cent for credit or debit cards, and 6 per cent for charge cards like Cabcharge. 

You can learn more about the decision on maximum taxi fares on the Essential Services Commission website.