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Safer, cheaper, more responsive services a step closer

Ground-breaking reforms to regulate rideshare boost competition and improve services is one step closer with the Victorian Government’s taxi hire car reform Bill passing the Lower House of Victorian Parliament.

The Bill passed unamended, despite attempts to remove financial support for the existing taxi industry.

By stripping away complexity and red tape, the reforms will encourage new providers and boost competition – providing more choice, better services and cheaper fares for passengers.

The Bill also introduces $494 million in assistance for the existing taxi and hire car industry – the largest transition and support package in Australia.

Through this package perpetual metropolitan licence holders will receive $100,000 for their first licence and $50,000 per licence for up to three more. Ninety-eight per cent of owners have four licences or fewer.

The package also includes a $50 million Fairness Fund to provide targeted assistance for industry participants experiencing significant financial hardship.

A $2 per trip levy will also be introduced as part of the Bill. The levy, which won’t be introduced until 2018, will fund the industry support package and replace annual licence fees – currently up to $23,000 – considerably reducing the cost of operating a taxi, paving the way for more competition and cheaper fares.

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