New Reforms for Point to Point Industry

Published

A comprehensive package of reforms is set to transform the point to point transport industry, while creating a more competitive taxi sector and cheaper fares for customers.

Minister for Transport and Roads Andrew Constance said the NSW Government reforms are in response to an independent review, led by Ms Sue Baker-Finch, into the sector, which include taxis, hire vehicles and ride share providers.

“We’re cracking on with our plan to deliver important changes to the point to point industry, so providers can come back strong after suffering through drought, bushfires, floods and the COVID-19 pandemic,” Mr Constance said.

“We’ve been listening to customer and industry feedback throughout this entire process and we’ll keep listening. That’s why we’ve generally supported all of the recommendations of the independent review.

“We are taking the next step towards our vision for a more responsive, innovative and dynamic point to point industry, which enables the taxi sector to deliver tailored transport solutions for customers right across the state.”

The NSW Government will be closely consulting key taxi stakeholders to set up an appropriate industry assistance scheme, in addition to the over $145 million already paid to the industry, to balance the effects of the changes made to taxi licensing.

Minister for Regional Transport and Roads Paul Toole said the NSW Government will continue working closely with the industry through the transition to ensure the continued delivery of point to point transport services in regional areas, and that wheelchair accessible services are available and affordable for customers who need them.

“We know how important taxis are in regional communities – not just getting people from A to B but providing critical services that allow less mobile residents to access healthcare, shopping or visit family and friends,” Mr Toole said.

“These changes will also present new opportunities for regional taxi operators, allowing them to expand their offering and provide an enhanced service to their customers.”

Consultation will continue on key reforms, which will be introduced in stages, including:

  • Removing the limit on the number of taxi licences that are available so taxis can operate freely and based on actual demand patterns;
  • Changing restrictions on areas where taxis can operate so operators have more flexibility to design their business model;
  • Removing the maximum fare limit for most rank and hail trips, except at Sydney Airport or for customers with a disability who are eligible for the Taxi Transport Subsidy Scheme;
  • A provider neutral approach to subsidies and incentives to make more point to point transport services available for customers with a disability; and
  • Setting up an appropriate industry assistance scheme to balance the impacts of the reforms.

A bill will be brought to Parliament to enable the reforms to be introduced, which will be complemented by a transitional arrangement to ensure that business operators and others impacted have sufficient time to adjust to the changes.

Transport for NSW will inform customers and industry stakeholders ahead of the changes being introduced.

More information, including the NSW Government response to the report’s recommendations, is available at www.transport.nsw.gov.au/PointtoPoint2021 or via email pointtopoint@transport.nsw.gov.au.