Wednesday, 24 June 2015

Taxi and Car hire reform in Melbourne

About Taxi and Car hire reform 

Sourced from taxi.vic.gov.au 


The Victorian Government announced major reforms for Victoria's taxi and hire car industry, following the Taxi Industry Inquiry led by Professor Allan Fels.
The Taxi Services Commission, which took over from the Victorian Taxi Directorate as regulator of Victoria's taxi industry on 1 July 2013, is responsible for the progressive roll out of the reforms. Up-to-date information will be available on this website as changes are implemented.

Key changes

These changes aim to restore trust and confidence in the industry and put the customer first. The changes include:

Better conditions for drivers

Taxi drivers will have better working conditions and pay under a new mandatory driver agreement, which will guarantee them at least 55 per cent of takings.

A Knowledge test for drivers

Taxi drivers will be subject to an independent test that tests them on:
  • driving skills
  • knowledge of sites and routes
  • customer service skills
  • safety awareness.

Fairer fares

Improvements to the fare structure include:
  • lower fares at off peak times and increased fares at peak times, such as Friday and Saturday night
  • cutting the service fee for card payment from 10 per cent to five per cent
  • introducing a flat fee for booking high occupancy vehicles, instead of a variable charge based on the fare
  • regulated fares moving from prescribed fares to maximum fares, providing the ability for customers to be offered discounted rates, such as lower fares to the airport.

A new zoning system

Taxis will operate within the new four-tier system of zones - metro, urban (including large regional centres), regional, and country. Separate licence fees will apply for each of these zones.

Opening the market

  • The Taxi Services Commission will issue new licences as the market demands.
  • There will be a set annual fee for licences to relieve pressure on overheads and fares.
  • This fee will be lower in regional and country areas, and for wheelchair-accessible vehicles.
  • Existing licences will still be able to be assigned and traded, as per current arrangements.
  • A new 'consumer interest test' will apply to regional and country zones to consider the benefits of new licences for customers.

Better information and complaints handling

There will be better access to information that helps customers decide which services to use, and what to do if they experience a problem, including:
  • better information within vehicles, including clearer information about all components of the fare and details of the permit holder
  • a simpler complaint resolution process.

Improved safety

Measures to improve safety for drivers and passengers include:
  • mandatory emergency duress alarms
  • GPS tracking, safety monitoring and emergency response capability in taxis
  • safer and more accessible purpose-built vehicles
  • taxis must use child restraints.
There will no longer be the option for drivers to undertake an independent driving assessment instead of having held a Victorian Driver Licence for a minimum of 12 months. The Knowledge test will include a component that assesses driving ability.

More travel choices

Customers will have more choice of services through the removal of red tape for Pre-Booked Only cabs (hire cars) and more affordable travel, through changes to allow taxis to offer more flexible services such as share rides, discounted fares and set-route services.

Better services for people with a disability

More accessible vehicles will be introduced and driver training will be boosted.
The Taxi Services Commission, in consultation with stakeholders, will also begin development work for a new central booking service in metro areas to reduce wait times and provide more accurate booking information.

Better taxis in country Victoria

Key changes to improve the way taxis operate in country Victoria include:
  • improving the supply of taxis and hire cars
  • enabling taxis and hire cars to compete for contract work to fill the gaps in public transport services
  • allowing permit holders to carry advertising on their vehicles to earn additional revenue
  • removing the requirement to offer taxi services on a continual basis, allowing taxi operators to set hours which better meet community needs
  • the new Taxi Services Commission establishing a stronger regional presence to better understand and address local taxi and hire car service issues.
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