Department of State GrowthTransport

Taxi and Hire Vehicle Industries Regulatory Review

The taxi and hire vehicle industries in Australia and overseas are undergoing change in response to the rapid rise of on-demand passenger service business models.

The current taxi and hire vehicle regulatory framework needs to be updated to adequately accommodate current and future ride-sourcing requirements.

A regulatory review of the Tasmanian taxi and hire vehicle industries has occurred to ensure that the sector and the community are well positioned to meet the challenges and seize the opportunities arising from new business models and emerging technologies.

Changes to the on-demand transport industry

The new framework has been designed to provide the taxi industry with time to adapt to the changing environment.

As a result there will be no new owner-operator taxi licences issued for five years in order to support those who have invested in the taxi industry.

The framework seeks to deliver a level playing field for all those in the industry. Annual administration fees, safety requirements and accountabilities will be applied fairly across all industry participants.

For consumers the benefits include increased competition and maintaining of safety standards.

Fact sheet – general

In order to ensure the legislation is fit for purpose and meets community expectations, a draft Bill to give effect to the key elements of the new framework has been released for public consultation.

Draft On-demand Passenger Transport Services Industry (Miscellaneous Amendments) Bill 2020.

You are invited to provide feedback on the draft Bill. Submissions must be received by 21 February 2020 and made in writing to or mailed to:

Commissioner for Transport
GPO Box 536
Hobart TAS 7001

Key elements of the framework

A table summarising the framework is available here. Changes to what was proposed in the draft framework, are highlighted in bold.

Please note that not all changes to the framework are included in the draft Bill, as some will be made in regulations and others are administrative changes. Details of where each change will be made is provided in the fact sheets.

Taxi licences will be retained – suspend the issue of new owner-operator taxi licences (OOTLs) for five years, and no change to the number of taxi areas but minor modifications to boundaries to incorporate areas currently not covered by any taxi area.

Electronic map of Tasmanian taxi areas

Reserve prices for new OOTLs – values will be set by the Economic Regulator but for years 1-5 the value of taxi licences determined by the Economic Regulator will be no less than 90 per cent of the previous year.

Maintain the existing luxury hire car and restricted hire vehicle licences – ride-sourcing vehicles will remain unlicensed but services will be captured in the regulatory framework through the accreditation of the booking service provider.

For more information see Fact Sheet – licence and service types.

Regulation of booking service providers – key industry participants who benefit financially from the industry, including ride‑sourcing platforms, such as Uber, and taxi networks, will be regulated and able to be held accountable for any breaches in safety.

For more information see Fact Sheet – operators.

Taxi fares – retain the maximum regulated fare for all taxi trips, and review the regulated fares to ensure that all efficient costs are transparently identified and factored into the regulated tariff.

For more information see Fact Sheet – fares.

Introducing a chain of accountability model – all parties who have control or influence over passenger transport services are responsible for complying with, and for breaches of, these laws.

Introducing a primary duty of care – each party in the chain of accountability will have a primary duty of care to ensure the safety of drivers, passengers and other persons while they are engaged in providing the service.

For more information see Fact Sheet – compliance and enforcement.

Regulation of drivers – to ensure that drivers are suitable to be providing commercial public passenger vehicle services.

For more information see Fact Sheet – drivers.

Regulation of vehicles – to ensure that all vehicles are safe to be transporting passengers.

For more information see Fact Sheet – vehicles.