Forty Uber drivers have been issued suspension notices in NSW.
Roads and Maritime Services director of safety and compliance Peter Wells says the government is cracking down on those who allow their vehicles to be used in illegal ride-sharing.
It follows protests calling on state governments to ensure Uber drivers pay the same licence and registration fees as taxi drivers.
Taxi and hire car services must have authorised and accredited operators and a licensed and insured vehicle, an RMS spokesman confirmed on Monday.
"Thousands of dollars in fines have already been issued to drivers offering illegal ride-sharing activities and compliance actions will continue," he said.
"If drivers continue to offer illegal ride-sharing services, they will continue to risk registration suspensions and fines."
The 40 UberX suspensions will take effect from midnight on Wednesday for three months.
If a suspended vehicle is found on the road after 1 October, the vehicle is deemed unregistered and uninsured, with penalties of $637 for each offence, increasing to around $2,200 if heard in court, the RMS spokesman added.
An independent taskforce has been established by the NSW government to assess the future of the taxi, hire car and ride-sharing industry.
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