Transitional Assistance Payments Scheme and Additional Assistance Hire Vehicles Payments Scheme

Transitional Assistance Payment Scheme

The initial Transitional Assistance Payment (TAP) Scheme has now closed. The $98 million allocated for TAP was the initial stage of the NSW Government’s $250 million taxi and hire vehicle industries adjustment package and was to assist eligible taxi licence holders adjust to the point to point transport industry changes.

The TAP successfully distributed over $92 million to eligible taxi licence holders, representing 99 per cent of possible applicants. This equates to some 4,000 eligible licence holders.

The following is a snapshot of the final report on the TAP Scheme:

  • 3,968 applications approved for payment
  • 3,012 (74 per cent) of applications received online
  • 1,047 (26 per cent) manual applications
  • 13 applications declined because of ineligibility

The application verification services provided by Transport Shared Services at Dubbo was an integral part to the success of the TAP Scheme, together with the NSW Taxi Council, NSW Business Connect and the Point to Point Implementation team at Transport for NSW.

Transport for NSW was successful in obtaining a ruling from the Department of Social Services that the TAP is an exempt lump sum payment for the purposes of the social security income test. (Social Security Exempt Lump Sum – Taxi Reform Transitional Assistance Payment Determination 2016).

The Australian Taxation Office deemed TAP payments as income support and as such they are treated as income for tax purposes.

Transport for NSW recommends payment recipients contact the Australian Taxation Office at taxadvice@ato.gov.au or on 13 28 61 if they have any questions relating to the tax treatment of their payment.

Additional Assistance Hire Vehicles Payment Scheme

Up to $10 million was allocated to an Additional Assistance Hire Vehicles Payment (AAHVP) Scheme for eligible hire car licence holders, in recognition that hire car licences are no longer required. This Scheme is part of the broader $250 million industry adjustment assistance package for the taxi and hire vehicle industries.

Applications for the AAHVP Scheme opened on 14 December 2017 and closed on 13 April 2018. All applications were received within the application period and all payments have been made to recipients.

The following are key outcomes of the Scheme:

  • The AAHVP Scheme successfully distributed almost $8.3 million to eligible hire car licence holders.
  • There were 99 successful applications for 150 eligible hire vehicle licences.
  • Four applications for nine licences were declined as they were not eligible for the AAHVP Scheme.

Transport for NSW was successful in obtaining a ruling from the Department of Social Services that AAHVP is an exempt lump sum payment for the purposes of the social security income test. (Social Security (Exempt Lump Sum – New South Wales Additional Assistance Hire Vehicle Payment) Determination 2017).

Transport for NSW recommends payment recipients contact the Australian Taxation Office at taxadvice@ato.gov.au or on 13 28 61 if they have any questions relating to the tax treatment of their payment.