Proposed Financial Assistance for NSW Taxi Licence Owners

On 17 November 2022 the NSW Parliament passed the Point to Point Transport (Taxis and Hire Vehicles) Amendment Bill 2022 setting out reforms to the taxi industry and payments to existing taxi licence holders

Scheme eligibility

Financial assistance will be available to:

Owners of a NSW ordinary taxi licence as defined in the Point to Point Transport (Taxis and Hire Vehicles) Act 2016 except for owners of short-term, nexus, paired (wheelchair accessible taxi), or annual licences.
Owners of 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; it is expected that this period will begin in 2023. The date will be determined by Government after the legislation is approved by Parliament.

Proposed Payments

The proposed payments 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. These are grouped into five zones, Metropolitan Sydney plus four zones.

The payment per eligible licence for each zone is:

Metropolitan Sydney – $150,000 per licence up to a maximum payment of $600,000. So if you own more than 6 eligible licences in Sydney you will be paid for only 6.
Regional 1 – $195,000
Regional 2 – $115,000
Regional 3 – $85,000
Regional 4 – $40,000

Note:

Owners of taxi licences jointly held by government and the owner will receive 50 per cent of the approved payment.
Owners of peak availability licences will receive 60 per cent of the approved payment.
Payments are the same irrespective of the amount you actually paid for the licence.
Payments will be taxable, up to individual owner to determine if income or capital.

Operating Areas

Click here to understand what areas are in the regions

What Happens post this Payment

Once these payments have been made, the licence to operate a NSW taxi turns into an annual licence with an associated licence fee. You will no longer own a licence as currently the case for many operators.

Application Process

The application process will open in 2023 for a four-month period.

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

For more information click here

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