Taxi and Hire Vehicle Industries Regulatory Review
The taxi and hire vehicle industries in Australia and overseas are undergoing change with new on-demand passenger service business models rapidly emerging.
The key elements of the existing taxi and hire vehicle regulatory framework have been in place since 2008 with some refinements in 2011. The emergence of ride-sourcing was not predicted when the current framework was designed and it does not adequately accommodate ride-sourcing.
The Department of State Growth is leading the Tasmanian Government’s Regulatory Review of the Tasmanian Taxi and Hire Vehicle Industries. The review will ensure that existing and new service providers, consumers and the community more broadly, are well positioned to face the challenges and seize the opportunities that come about as new business models and technologies continue to emerge.
Proposed changes to the on-demand transport industry
On 30 September 2018, the Department of State Growth released a draft regulatory framework for the on-demand passenger transport industry, which is made up of common elements and options for the supply of new owner-operator taxi licences (OOTLs). The release of the draft framework is in line with the Government’s First Year Agenda commitment.
Importantly, the proposed 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 proposed framework will promote better outcomes through increased competition for booked services, while ensuring safety standards are maintained.
The new framework will:
- protect the safety of passengers and drivers;
- promote greater competition and consumer choice;
- ensure the adequate delivery of accessible services with wheelchair accessible taxis;
- be able to respond to respond to emerging technologies and service models; and
- where possible, reduce the regulatory burden on industries.
Consultation on the draft regulatory framework closed in November 2018 and a summary of responses can be found at the bottom of this page.
Key elements of the proposed framework
Deregulate the supply of new OOTLs, with options for the timing and stages.
Two options have been developed in relation to the availability of new OOTLs. Both options support a transitional approach to deregulation.
For more information, refer Fact sheet - taxi licences (PDF).
Deregulation of fares in the booked market will allow taxi operators to set their own fares (if they choose) in taxi areas where there is sufficient competition.
This deregulation will be subject to a range of consumer protection measures.
Regulated taxi fares will still apply for the rank and hail markets, Taxi Subsidy Program fares, and may be used by taxi operators in providing booked services.
For more information, refer Fact sheet – booked fares (PDF).
Opening up the booked class will reduce the significant restrictions that apply to booked services operating under the authority of a luxury hire car licence or restricted hire car licence.
Under the new framework, prescriptive vehicle requirements will be removed and service classes will be simplified into taxis (which includes both rank, hail and booked) and booked services only.
For more information, refer Fact sheet – booked service licences (PDF).
Regulation of booking service providers will ensure all key industry participants who benefit financially from the industry are subject to the same rules.
This includes ride‑sourcing platforms such as Uber and taxi networks.
Under the new framework these entities will be regulated and able to be held accountable for any breaches in safety.
For more information, refer Fact sheet – booking service providers (PDF).
Regulation of drivers to ensure that drivers are suitable to be providing commercial public passenger vehicle services.
For more information, refer Fact sheet – drivers (PDF).
Regulation of vehicles that focuses on vehicle safety, and avoids regulation related to comfort or aesthetics.
For more information, refer Fact sheet – vehicles (PDF).
Proposals Paper and Review Report
To support the release of the Fact Sheets above, State Growth has developed a Proposals Paper which provides a holistic view of the proposed on demand passenger transport sector industry, and the rationale for each measure.
For more information, refer Proposals Paper.
Not all of the proposed changes to the framework are included in the Fact Sheets, nor do the Fact Sheets alone provide sufficient detail for stakeholders to provide informed responses.
State Growth has also developed a Review Report which details the major stages of the review and includes a description of the work undertaken, a summary of analysis and key findings from each tranche of work.
For more information, refer Review Report.
Consultation on the proposed framework was undertaken between Sunday 30 September to Saturday 24 November 2018, with 74 written submissions received and forums held in Hobart, Launceston and Ulverstone.
Submissions received during the consultation period have been published below. The only exceptions are where the author requested their submission be treated as confidential.
In addition to the below individual submissions, a copy of the key themes and feedback is captured in the Consultation Summary available here (540KB PDF).
If your submission has inadvertently been presented incorrectly or you have any questions regarding the above, please contact email@example.com.