Vic govt's $2 levy fee could be halved

An independent upper house MP could have the numbers to slash the Victorian government's planned $2 Uber levy.

Uber signage seen on a vintage car

An independent MP could have the numbers to slash the Victorian government's planned $2 Uber levy. (AAP)

Victorians could still get a proposed Uber $2 levy slashed despite the government rejecting a plan to cut the fee in country areas.

The state Labor government wants to make all ride-sharing legal and plans to fund compensation for existing taxi licence holders with a $2 levy on all commercial vehicle trips.

Earlier this month, an upper house inquiry recommended a lower levy in country Victoria and set a date for the levy to be phased out - both ideas the government rejected.

But Sex Party MP Fiona Patten says she has the numbers in the upper house to get up her amendments to slash the entire levy to $1 and for the Essential Services Commission to review it after 12 months.

"I am confident the amendments will pass but as we know this week is quite a moving feast," she told reporters.

"I think it's very fair, I think it's also far more likely that we'll get a much more compliant situation with a $1 levy than we would with a $2 levy."

The coalition has backed her amendments, however opposition leader Matthew Guy still had some concerns about the compensation scheme.

According to the government response, "it would be both legally and administratively problematic" to have differing levies between country and metropolitan Victoria.

It also said suggestions of an arbitrary sunset on the levy and an increasing compensation because more money might be raised is "fiscally irresponsible."

However, it did flag possible increases to its $50 million fairness fund if the funds needed for approved payments to eligible applications exceeds that amount

The government wants to see its industry reforms pass parliament this week before the winter break so compensation can start in the new financial year.

"The Opposition should stop standing in the way and let us improve services for all Victorians," Public Transport Minister Jacinta Allan said in a statement.


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Source: AAP



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