Point to point transport reforms

On 17 November 2022 the NSW Parliament passed the Point to Point Transport (Taxis and Hire Vehicles) Amendment Bill 2022. The Bill provides for a package of reforms to help the point to point transport industry provide more choice and availability of services for customers, in response to the Point to Point Independent Review in 2020. The changes to the law will not take effect immediately, they will start at a future date to be chosen by the NSW Government.

Financial assistance scheme established in regulation

On December 16 2022, the NSW Government published the Point to Point Transport (Taxis and Hire Vehicles) Amendment Regulation 2022. The regulation establishes the detail of the financial assistance scheme for eligible taxi licence owners. 

Please click here to to view the Point to Point Transport (Taxis and Hire Vehicles) Amendment Regulation 2022.

Transport for NSW will open applications for financial assistance for eligible taxi licence owners on 1 February, 2023. Eligible licence owners will be able to submit applications for financial assistance through the Transport for NSW website from 1 February 2023 until 31 May 2023.

Transport for NSW will write to eligible taxi licence owners in January 2023 with detailed instructions on how to apply for financial assistance.

Please ensure that your contact details are up to date by contacting the NSW Point to Point Transport Commissioner

The publishing of the regulation follows the passing of the Point to Point Transport (Taxis and Hire Vehicles) Amendment Act 2022 on 17 November 2022. The Amendment Act provides for a package of reforms to help the point to point transport industry provide more choice and availability of services for customers, in response to the Point to Point Independent Review in 2020. 

Financial Assistance for Taxi Licence Owners 

The total package value of $905 million consists of $145 million already paid and a further $760 million in financial assistance. The introduction of these additional funds will help ordinary taxi licence owners adapt to the deregulation of taxi licence supply.

The final assistance package will be funded by the passenger service levy (PSL), which will be increased by 20 cents to $1.20 (ex GST) from 1 July 2023. The PSL will remain in place until 31 December 2030, unless the full amount of the financial assistance funds is collected earlier.   

Scheme eligibility

Financial assistance will be available to licence owners who:

  1. 1.    Are the owner of a NSW ordinary taxi licence as defined in the Point to Point Transport (Taxis and Hire Vehicles) Act 2016except for owners of short-term, nexus, paired (wheelchair accessible taxi), or annual licences. The eligible licence classes are: TX01, TX01A, TX05, TX06, TX06A, TX08, TX13, TXHAP, TX01New, TX01Wol, TX50, TX50A, TXC1, TX04Wol, TX51, TXHAPTR
  2. Have owned an eligible licence on 21 September 2022 and continue to own that licence at the start of the transition period.

The transition period is when licence owners will transition to the new regulatory framework; this period begins on 1 February 2023.

Owners of taxi licences (TXHAP) jointly held by Government and the owner will receive 50 per cent of the approved payment. Owners of peak availability licences (TX05, TX06, TX06A, TX08) will receive 60 per cent of the approved payment.  

Beneficiaries of a will, probate or property settlement are eligible to apply, provided they or the previous licence owner owned the eligible licence on 21 September 2022 and continue to own the licence at start of the transition period and satisfy all other eligibility criteria. 

Where licence owners own multiple licences as individuals as well as in partnership arrangements, or as bodies corporate, each licence-owning entity will be eligible to apply for financial assistance.

 

IMPORTANT

Owners of short-term, nexus, paired (wheelchair accessible taxi) and annual licences are NOT eligible to apply for financial assistance.

The Minister may determine that a person who engages in improper conduct is not entitled to apply for further financial assistance under the new scheme. Improper conduct includes misrepresenting eligibility, making a false or misleading statements, transferring a licence, or any other transaction involving a licence, for the purpose of changing entitlement to assistance funds.

 

Payments made to eligible applicants to the scheme are based on the operating area of an individual licence; the area of the state in which the taxi is authorised to provide rank and hail services. The more than 100 operating areas have been grouped into five zones, Metropolitan Sydney plus four zones.

Operating areas are allocated to a zone based on the sales price of licences:

  1. Operating areas with a similar median taxi licence sale price during the pre-reform period 2010 – 2015 are allocated to the same zone.
  2. Operating areas with a low number of sales during the pre-reform period 2010 -2015 use sales figures before 2010 in allocating an operating area to a zone.
  3. Operating areas with no taxi licence sales are allocated to a zone using characteristics such as location, total population, and the number of people per taxi licence.

IMPORTANT

1. Payment will be made for up to six eligible licences per licence owner with the Metropolitan Sydney zone.

2. There is no cap on the payment made for eligible licences outside of the Metropolitan Sydney zone.

 

Where a taxi licence owner owns licences in multiple zones, they will be eligible to apply for assistance for each licence outside of Sydney, and up to six licences in Sydney.

Financial Assistance Payments 

Eligible licences 

Metro 

Regional 1 

Regional 2 

Regional 3 

Regional 4 

1 

$150,000 

$195,000 

$115,000

$85,000 

$40,000 

2 

$300,000

$390,000

$230,000

$170,000 

$80,000 

3 

$450,000

$585,000

$345,000

$255,000 

$120,000 

4 

$600,000 

$780,000 

$460,000 

$340,000 

$160,000 

5 

$750,000 

 

$975,000 

$575,000 

$425,000 

$200,000 

6 

$900,000 

$1,170,000 

$690,000 

$510,000 

$240,000 

Maximum 

$900,000 

All eligible licence receive payment (no cap) 

The list of operating areas in each zone can be downloaded here (PDF, 136.19 KB)

Application Process 

The application process will open on 1 February 2023 and close on 31 May 2023. TfNSW will write to all eligible applicants prior to the opening of applications.

Applications will be accepted online. As part of the application process, eligible licence owners will need to provide proof of identity and licence ownership.

Taxi licence owners should ensure their contact details are up to date by contacting the NSW Point to Point Transport Commisioner: www.pointtopoint.nsw.gov.au.

Taxi licence owners considering applying for financial assistance are encouraged to seek tax and legal advice based on their individual circumstances.

Reviewable Decisions

There will only be certain decisions made by Transport for NSW in respect of applications for financial assistance that can be reviewed:

  • a decision that a licence is not an eligible licence 
  • a decision to refuse an application because transfer levy has not been paid

Decisions that will not be reviewable include payment amounts, allocation of operating areas to a region and where ownership requirement dates are not met.

Taxi licence transition 

A transition period will be established to enable eligible taxi licence holders that are currently providing a taxi service to continue to do so without interruption. The transition period will begin on 1 February 2023 and continue for a minimum three month period.

From 1 February 2023, taxi licences will no longer be able to be traded or leased which means that there will only be one entity associated with each licence – the licence holder. Each licence holder will be directly involved in the operation of the business and provision of the taxi service. It will no longer be possible to be a passive investor in a taxi licence.

Before transition 

Eligible taxi licence owners seeking to continue operating will need to hold a taxi licence at the start of the transition period on 1 February 2023. If you are not providing a taxi service with a taxi licence it will not be possible to transition.

During transition 

The transition period is expected to be a minimum of 3 months. From the start of the transition period new taxi licence lease arrangements cannot be put in place. Anyone wanting to put a taxi on the road, who does not own their own taxi licence will need to do so prior to 1 February 2023.

During the transition period current eligible taxi licence holders will be able to exchange their existing licence for a licence issued under the new regulatory framework. Fees will not be charged for this exchange.

All taxi licences will need to be exchanged if the current holder wants to continue providing a taxi service.

New wheelchair accessible taxi licences will continue to be available during the transition period.

After transition 

Any licences that were not exchanged will be cancelled, and anyone can apply to the Point to Point Transport Commissioner for a taxi licence.

Operating area restrictions will be lifted at the end of the transition period.

All new taxi licences will be annually renewable and can not  be traded or leased.

What can I do now?

Taxi licence owners and holders should ensure their contact details are up to date by contacting the NSW Point to Point Transport Commissioner.

You can check the website for regular updates.

Where can I get support?

Free business advice and support for all small businesses including point to point transport providers is available from the NSW Government’s Business Connect program.

Call 1300 134 359 or request a call back to speak with the Service NSW for Business Concierge team who will assist you with connecting to a Business Concierge advisor or provider organisation. More information is available on the Business Connect website.

Information on business support and advice related to the COVID pandemic is available on the Point to Point Transport Commissioner's website.

Information about mental health support programs is available on the NSW Health website.

Background

The latest point to point transport reforms are in response to an independent review of the industry led by Sue Baker-Finch.

The reforms, which will be introduced in stages, include:

  • removing the limit on the number of taxi licences that are available
  • changing restrictions on areas where taxis can operate
  • 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

In September 2021, Transport for NSW consulted with the taxi industry about proposed transitional arrangements and a financial assistance scheme for the taxi industry. This consultation is complete.

There will be a strong focus on maintaining service provision for customers while the industry adjusts, especially in regional communities who rely on point to point transport to access essential services.

Further information can be found below.

These reforms build on government reform of the point to point transport industry since 2015.

Related information

About the reform process since 2015

If you have any questions or feedback for Transport for NSW, please complete the contact form below.

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