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Uber legalised in Victoria

Government to impose $1 levy to drivers

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Photo: AAP via AP/ Seth Wenig

11 August 2017

The bill to legalise Uber in Victoria was finally passed on Thursday after the state government accepted upper house amendments including the halving of the previously proposed $2 levy.

"The reforms create a level playing field for taxis to compete with ride-sharing services and will encourage new operators to enter the market," said Public Transport Minister Jacinta Allan.

The $1 levy on all commercial vehicle trips will come into effect next year, replacing licence fees and helping compensate taxi operators.

From 2018 all ride-share drivers will be required to be accredited, while the government will buy back licences from taxi drivers wanting to exit the industry.

Taxi drivers will receive $100,000 for a first licence and $50,000 each for up to three additional licences, while the $50 million cap has been removed from the government fairness fund to ensure all eligible applications receive payments.

Uber in a statement said it was pleased to see the "important reforms" passed "for the benefit of the travelling public, drivers, and the industry as a whole".

Taxi union representatives, however, are still angered by the government's decision to legalise the app and deem the amount of compensation for their licences unfair and poorly implemented.

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