WA’s on-demand transport levy lifted

Perth, Western Australia. Photo by Start Digital on Unsplash.

The Western Australian Government has lifted its On-demand Passenger Transport Levy eleven months ahead of schedule.

The 10 per cent levy was introduced in April 2019 to fund the government’s Perth Taxi Plate Buyback Scheme, part of its On-demand Transport Reform.

The reform aimed to modernise the on-demand transport industry, and address what the government characterised as restrictive and out-dated legislation governing taxis and charter vehicles.

The buy-back scheme offered Perth taxi plate owners option to recover losses incurred by the market disruption in the at-the-time highly regulated taxi industry. Owners were eligible for buy-back payments of $100,000 per plate or more, dependent on time of ownership.

The levy applied to trips that started and finished in the Perth metropolitan area, Murray and Mandurah districts. Operators were given the choice of absorbing the cost or passing it on to passengers through increased fares.

The Western Australian Government raised almost $129 million through the levy, which was used to buy back eligible taxi plates. $9 million was also used to fund COVID-19 support measures for the industry.

Rita Saffioti, Transport Minister said the levy had served its purpose, and many customers could now look forward to a reduction in fares.

“We promised to end the levy as soon as possible and we have delivered on that commitment today,” she said.

“Through funds raised by the levy, we have recovered most of the costs for financial support provided to plate owners through taxi plate buyback payments, as well as the $9 million COVID-19 relief package provided to industry in 2020.”

For more information, visit: www.transport.wa.gov.au

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