The $1 per trip levy to fund transition payments is an overly burdensome administrative requirement with widespread non-compliance, according to Eastern Metro MP and Transport Matters party leader Rod Barton.
Mr Barton asked the Treasurer today if there were systems and penalties in place to ensure compliance with the levy.
“We are aware of widespread non-compliance of the $1 trip levy requirements. Drivers haven’t been paying,” said Mr Barton.
The $1 Trip Levy was introduced in July 2018 to raise funds to cover transition payments and fairness fund entitlements to taxi and car hire licence holders for compensation after having their licences revoked.
“It is a laborious and overly burdensome administrative requirement to make a quarterly report on the number of trips to the state revenue office and follow through with the payments.
Mr Barton said there had been an explosion in the number of commercial passenger vehicles on the streets of Melbourne since deregulation.
“This is a transient, frustrated and disgruntled workforce, who earn less than a living wage, and they’re very unlikely to be filing quarterly reports to the state revenue office,” he said.
“We now have 11,807 cabs. There are over 50,192 hire cars. The overall number of additional commercial passenger vehicles on the road since deregulation represents an increase of 750% and rising month on month – a more than seven fold increase, so far!
“Competition for rides is fierce and all drivers are feeling the pinch out there. There are too many operators and not enough work to go round.”
In his former role as president of the Commercial Passenger Vehicle Association of Australia Mr Barton lobbied the government for a flat fee payment for all drivers of $2500 per year, which is only $48 per week.
“If the cars on our streets now were all paying that $2500 registration fee we should have collected over $150 million dollars. I am very interested to see how the $1 trip levy collections compare.”