Taxi leases crash to $5,000 for ACT taxi owners in 2017 to 2022
ACT Taxi Lease Fees manipulated by Government
The taxi industry in ACT has been in a downhill spiral since the coming of Uber in 2015, which ended the duopoly that the perpetual taxi owners and ACT government mutually shared in the local market. Investments of up to $275,000 were made by licence owners on the undertaking that the ACT taxi industry would continue as BAU. The government has also slashed the price of leasing taxi plates between the taxi operator and the government from $20,000 per annum in 2015, to $5000 per annum in 2017 penalising perpetual plate licence owners at no fault of their own. This in turn has forced plate owners to receive less or the same fees.
Favouritism, not an equal “Level Playing Field”
It is immoral that ACT politicians in power continue to allow commercial rideshare who did not make any major financial investment (i.e. up to $275,000), to not be regulated or pay a licence fee and continue to make excessive profits at the expense of plate owners.
To argue “it is a level playing field” for both the taxi and rideshare industry in the same market is a fallacious one. If one considers the following facts how can it be the same level playing field?
Table hypocritical policy with no restrictions on Rideshare in terms of:
| Rideshare (e.g. Uber) | Taxis |
|---|---|
| No limit on the number of commercial rideshare (e.g. Uber) vehicles on the road in ACT. | Taxis numbers are restricted and regulated by ACT Government |
| Allowance of price surge during peak times. | Taxi fares are fixed and on meter. Surcharging not allowed |
| Low insurance premiums | Very high insurance premiums |
| No requirement for security cameras | All taxis are fitted with security cameras based on set costly specifications |
| No requirement for alarm systems. A safety issue. | Alarm base system to protect both the passenger and taxi driver |
| No requirement to offer fitted wheel chair service to any vehicles for the public | Taxis exist with wheel chair service |
ACT Taxi Insurance is out of Control
The insurance premiums paid in ACT to operate a taxi business is drastically hight and Taxi Insurance (CTP) is out of control in contrast to Rideshare.
Source: https://www.drivenow-magazine.com.au/statistics/act-public-vehicles-industry-september-2022-stats
The continued allowance of price surge by Uber during peak times with excessive fares is viewed as obscene, whereas taxi fares are fixed by the government. Obviously 2 sets of rules for the same industry.
No transitional financial assistance to plate owners
During this time, no financial transitional assistance was given to any mum and dad investors, or retirees relying on their superannuation taxi investments, or those that took out bank loans to pay for these taxi licences. Perpetual plate owners who have made a significant investment, are constantly being discriminated against for no reason whatsoever. In addition, the value of taxi plates in ACT has slashed from over $275,000 down to less than $20K with no consideration of compensation or optional government buyback of perpetual taxi licences.
