Victoria is on the cusp of legalising ride-sharing services as the state government and crossbenchers agree to amend the bill before parliament to halve a proposed $2 ride tax support.
The state government on Friday accepted Sex Party MP Fiona Patten's recommendations for a $1 levy, and for the Essential Services Commission to determine when the government had recouped the amount paid in compensation.
The levy funds will be used to compensate existing taxi licence holders.
Ms Patten hailed the passage of the ride-sharing legislation as a win for innovation, more than a year after she put her private member's' bill forward.
"I had to force the government to act, but as a result of this reform, Victorians will now be able to legally access and work within a business model with massive growth and an exciting future," she said on Friday.
"A lower levy is a win for consumers, means full financial assistance can flow and cuts in half the amounts operators will have to pay the government."
Public Transport Minister Jacinta Allan said the per trip levy would start at $1 but could be increased if the revenue was not sufficient to cover the costs of financial assistance to the industry.
"This legislation will regulate ride-sharing, cut fares and provide the most generous industry transition and support package for the existing taxi and hire car industry in Australia," she said.
The government on Wednesday rejected an upper house parliamentary committee recommendation for a smaller levy in country Victoria, and to set a date for the levy to be phased out.
Greens transport spokeswoman Samantha Dunn said they had made the bill fairer by sparing country taxis from a levy on passenger trips
Uber's Victorian manager Lucas Groeneveld said Ms Patten's "sensible amendments" moved the reforms forward.
"We're pleased the Legislative Council has accepted the amendments and trust the Victorian government will pass the bill when parliament resumes," he told AAP on Friday.
But Liberal MP David Hodgett said the government voted to increase taxes on all Victorians, and were slugging regional commuters.
"Because of Daniel Andrews' inaction, taxi license holders have been living and working in limbo, unsure what their assets are worth and unable to sell them in an uncertain market," he said in a statement on Friday.
"The amendments to the bill will be debated by the Legislative Assembly in August because Daniel Andrews continues to delay and play political games with peoples livelihoods."
The state government also agreed to remove the $50 million cap for their fairness fund to ensure all eligible applications receive payments.
The bill also requires ride-share service drivers to undertake police checks and be accredited while a Disability Commissioner will be appointed to expand accessible services.
The amendments will go before the Legislative Council in August.
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