Detailed information on Financial Assistance
The total value of the financial assistance package is $905 million, which consists of $145 million already paid and a further $760 million to be paid to eligible taxi licence owners in financial assistance. The payment 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.
Financial assistance will be available in relation to the following eligible taxi licences: TX01, TX01A, TX05, TX06, TX06A, TX08, TX13, TXHAP, TX01New, TX01Wol, TX50, TX50A, TXC1, TX04Wol, TX51, TXHAPTR.
To be eligible, an individual owner and a corporate owner must own an eligible licence on 21 September 2022 and continue to own that licence on 1 February 2023.
To be eligible, a joint owner must jointly own an eligible licence on 21 September 2022 and continue to own that licence with the same joint owners on 1 February 2023.
To be eligible, a person who became the owner of an eligible licence under a property settlement or as a beneficiary of a will or probate after 21 September 2022 can apply for financial assistance, provided all other eligibility criteria are met.
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.
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.
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 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.
- Payment will be made for up to six eligible licences per licence owner with the Metropolitan Sydney zone.
- 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 financial assistance for each licence outside of Sydney, and up to six licences in Sydney.
View eligible licence / zone information
Metro – up to six eligible licences per licence owner
One eligible licence : $150,000 (per licence)
$195,000 (per eligible licence, no cap on amount of licences per owner)
$115,000 (per eligible licence, no cap on amount of licences per owner)
$85,000 (per eligible licence, no cap on amount of licences per owner)
$40,000 (per eligible licence, no cap on amount of licences per owner)
Australian Taxation Office – Tax implications
The ATO has published information on the tax implications of the Taxi Licence Financial Assistance payments on their website. For more information, please go the Australian Taxation Office website.
Transport for NSW encourages taxi licence owners considering applying for financial assistance to seek independent tax and legal advice based on their individual circumstances.
Social Security Income Test - Exemption
The Department of Social Services (Federal) has determined that financial assistance payments to taxi licence owners are exempt lump sums for the purpose of the social security income test. The determination regarding this matter can be viewed on the legislation.gov.au website.
It is expected that any ongoing income generated by the lump sum may be assessable under income testing, and any assessable asset produced from the lump sum may be counted under the social security assets test.
The continuing assets and income test treatment may be applicable, dependent on how the lump sum is used by individuals receiving the payment.
People who are receiving a payment can contact Services Australia.
Transport for NSW encourages taxi licence owners to seek financial advice based on their individual circumstances.
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.
Where can I get support?
If you need help to apply for financial assistance please call our contact centre on 131 727.
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.