Smartphone apps that enable regular motorists to taxi passengers around for a fee have been ruled out by the NSW transport department.
In a statement on "ride-sharing" apps, Transport for NSW says drivers who offer lifts for money must be accredited in accordance with the Passenger Transport Act, as must their vehicles.
"The law is clear and has not changed," a spokesman said.
"The act requires drivers to be fit and proper persons and vehicles to comply with specific standards."
The statement comes in response to a new, low-cost service offered by an app named Uber, which connects customers with taxi-like services offered by regular drivers.
The law appears to rule out the Uber ride-sharing service, but not apps such as GoCatch which connect customers with authorised taxis or hire cars.
Nor does the law apply to, for instance, a group of friends sharing expenses or car-pooling.
Under the law, drivers must pass a police check and their vehicles must have a duress alarm, GPS tracking and security tracking in order to gain accreditation from Roads and Maritime Services.
Uber's ride-sharing service is limited to licensed drivers aged at least 24 whose vehicle has at least four doors and was made after 2005. Drivers must have comprehensive insurance and no criminal record.
Breaches of the act can lead to prosecution and fines of up to $110,000, Transport for NSW said.
The Victorian Taxi Services Commission is reportedly investigating ride-sharing apps.
