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Not Ridesharing Tax Burden

Sep 13, 2023 | News

“The levy imposed on the traveling public, which partially compensates taxi and hire car license holders, has been a topic of much debate and controversy. However, this levy has been marred by flawed application, raising many concerns among the affected parties.

Ex-license holders have refused to accept that the way licenses were compensated was fair or just. The core issue lies in the valuation of licenses. License 1 was deemed to be worth X, while licenses 2, 3, and 4 were valued at only half of X. Surprisingly, licenses 5 or more were considered to have no value at all. This glaring disparity in valuation raised questions about the fairness of the system.

While NSW has improved on what has been compensated in Victoria, NSW has deemed $150k per license up to 6 licenses. For example, if you owned 4 licenses in Victoria, you received $250k, while in NSW, you received $600k. This is why so many Victorian license holders were left with significant debt. This was so unfair!

What exacerbates the situation is the significant non-collection of the levy. While some entities diligently collect and pass it on, many others do not, resulting in a loss of revenue that should be used to compensate ex-license holders.

Despite the undeniable flaws in the system, there is a prevailing sentiment that the levy should be maintained and enforced correctly to address the inadequate compensation that license holders have received. Regrettably, due to a lack of support, we no longer have anyone in Parliament to pursue this injustice.

One potential solution could involve a more effective and equitable means of collecting the levy. One could argue that it would make more sense to increase the levy to $2 and apply it solely to rideshare services, which have benefited significantly from changes in legislation to accommodate companies like Uber.

In summary, the levy imposed on the traveling public has been plagued by valuation discrepancies and inefficient collection methods. The debate continues, but the consensus remains that a fair and effective system must be established to compensate license holders properly.

#betterway #nevertolate #teamtaxi #safetransport #fairnessmatters

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