Maximum fares for unbooked taxis will increase by 2.8 per cent for a standard unbooked taxi and 2.6 per cent for a high occupancy taxi from 23 September 2025 following an annual fare adjustment.
This adjustment equates to an estimated increase of $0.47 for a three-kilometre trip in Melbourne's central business district (CBD), or $1.70 for a longer trip, such as from the Melbourne CBD to the Melbourne International Airport.
The increase is driven by higher labour and insurance costs but has been slightly offset by lower fuel costs.
The Essential Services Commission reviews the maximum fares for unbooked taxi and commercial passenger vehicle services every two years.
The commission's 2024 unbooked taxi fare determination includes an annual adjustment mechanism. The mechanism allows for an increase or decrease to the maximum fare following an annual assessment of changes in taxi operating costs.
Quotes attributable to Essential Services Chairperson and Commissioner Gerard Brody
"This increase in pricing aims to strike the right balance between protecting passengers from paying too much and ensuring the industry remains sustainable."
"It's essential Victorians can hail a taxi when they need one. This increase will help keep taxis on the road by ensuring fares reflect the cost of doing business."
"This fare increase is driven by higher labour and insurance costs, which are slightly offset by lower fuel costs."
Background
Unbooked taxi fares include trips that were not booked via an app, over the phone or on a website, for example, trips hailed from the street or hired from a taxi rank.
This decision does not apply to fares for booked commercial passenger vehicle services, which are deregulated. Operators set their own fares for booked trips.
Safe Transport Victoria oversees compliance and enforcement relating to taxi and commercial passenger vehicle regulation.
