The McGowan Government is delivering on its promise to remove the On-demand Passenger Transport Levy put in place to support the on-demand transport industry and the travelling public, with the levy to end May 31, 2022.
A stronger than anticipated response for on-demand transport services has led to the recovery of almost $129 million, 11 months earlier than anticipated despite the impacts of the COVID-19 pandemic.
The 10 per cent levy, which is currently applied to trips in taxi and charter vehicles that start and finish in the Perth metropolitan area, Murray and Mandurah districts, was introduced in April 2019 to fund the Perth Taxi Plate Buyback Scheme.
The levy is collected from on-demand booking services who may choose to absorb the charge or recover it from their passengers in the trip fare.
Repeal of the levy means that services booked and taken after May 31 will not attract the levy and customers can expect a reduction in fares from service providers who opted to add the levy to their fares.
The Perth Taxi Plate Buyback Scheme was introduced as part of the McGowan Government's on-demand transport reform to modernise the industry and focus on safety and customer service. The on-demand transport reform program was finalised in 2021.
In July 2019, eligible current and former Perth taxi plate owners received minimum buyback payments through the scheme of $100,000 per plate or more, depending on the length of time they had owned an individual plate.
The almost $129 million expected to be raised by the levy includes $9 million that was redirected back to the industry in 2020, as part of the State Government's COVID-19 relief measures to provide support to operators across Western Australia.
As stated by Transport Minister Rita Saffioti:
"The Government is delivering on its promise to end the levy as soon as possible. The levy is being repealed earlier than expected in support of the on-demand transport industry and the travelling public.
"The repeal of the On-demand Passenger Transport Levy marks an important milestone in our historical reform of the on-demand transport industry.
"Through funds raised by the levy, we've been able to recover most of the $120 million cost of financial support provided to plate owners through taxi plate buyback payments, as well as the $9 million COVID-19 relief package provided to industry in 2020.
"The assistance package for taxi operators in regional areas helped alleviate some of the hardship that was experienced as a result of COVID-19.
"The levy has served its purpose. The time is right to repeal the levy and many customers can expect a reduction in fares as a result."
