Uber to be legalised in Victoria with $2 levy charge

Uber is to be legalised in Victoria but drivers will have to be accredited by the Taxi Services Commission after passing police, medical and driving checks.

Source: AAP

Uber will be legalised in Victoria with all commercial passenger vehicle providers to be charged a levy of $2 per trip to fund the transition to the new system, Premier Daniel Andrews has announced.

Existing taxi licences will be removed "to allow for more flexible fares to drive competition and reduce the cost of travel for passengers", the premier said in a statement on Tuesday.

All drivers will have to be accredited by the Taxi Services Commission after passing police, medical and driving history checks and they'll be subject to ongoing criminal data matching.

Over the next two years, the current licencing regime will be replaced by a single registration system that will ensure high standards for all commercial passenger vehicles, including taxis, hire cars and ride share services.

"This is a comprehensive and fair transformation of taxi and hire car services, which responds to new technology that is changing the way people travel," premier Daniel Andrews.

"We're levelling the playing field for the whole industry while ensuring consumers have safe and reliable access to transport services," he added.

Over the next two years, the reforms to the commercial passenger industry will see:

• $378 million made available to provide fair and reasonable assistance to licence holders to help them transition to the new legislative framework.
• A $75 million Fairness Fund to provide targeted support to industry participants experiencing immediate financial hardship as a result of these changes, including $25 million to improve access to convenient, reliable point-to-point transport for people with a disability.
• All commercial passenger vehicle providers charged a levy equivalent to $2 per trip to fund the transition to the new system including support for existing licence holders during the transition.
• All existing licences removed to allow for more flexible fares to drive competition and reduce the cost of travel for passengers.
• All drivers accredited by the Taxi Services Commission which will include passing police, medical and driving history checks and all drivers will be subject to ongoing criminal data matching.
• An Australian first of a dedicated Commissioner for disability services to the Taxi Services Commission.
• Rank and hail work only open to those providers that meet stringent requirements including cameras and fare meters.
• The ineffective, inefficient and costly Knowledge Test abolished and replaced by a simple system of industry accountability for all drivers.