The Passenger Service Levy and the TTSS

Have you noticed an increase in your taxi fare? From 1 February 2018, taxi service providers and booking service providers have paid a temporary levy of $1 per trip.

The levy is funding a $250 million adjustment assistance package. The package is designed to help taxi and hire car license holders adjust to industry changes, including the rise of 'ride sharing' services like Uber. The levy will be in place until the $250 million is reached or for five years, whichever occurs sooner.

The service provider can choose to absorb the cost themselves, or to pass it onto their customers. If they choose to pass it onto customers, the levy will also be subject to GST. This means customers will pay $1.10.

The levy applies to everyone, including taxis servicing the Taxi Subsidy Transport Scheme (TTSS).

If the service provider chooses to pass the levy onto customers, the TTSS will cover half. So users of the TTSS will pay 55 cents of the levy. Some remote and very remote areas, broadly west of the Newell highway, are exempt from the levy.