$1billion package proposed by NSW government to compensate taxi license owners
Under a proposal from the NSW government, compensation payments to NSW taxi license owners, who have been affected by Uber’s introduction into the ride-sharing industry, could be increased from $20,000 to $200,000.
According to The Daily Telegraph, the $1 billion program, developed in consultation with industry, will be reviewed by the powerful Cabinet Expenditure Review Committee
These increased payments would be funded by an extension of the $1 passenger service tax, currently applied to each taxi or rideshare car ride.
READ MORE: The Greek community continues to speak out against proposed taxi licensing reforms in New South Wales.
Early March, The Greek Herald first reported that there was growing momentum for Greek taxi license owners in NSW to receive fair compensation.
NSW Transport Minister David Elliott raised the issue during the budget forecast in Parliament on Friday March 4.
READ MORE: Momentum is building as Greek taxi license owners in NSW continue to fight for fair compensation.
“I am very aware of the fact that they [taxi licence owners]through no fault of their own, have lost the value of a business and in many ways, tragically, this includes families’ life savings,” said Minister Elliott.
“I want to make sure taxi drivers who have put their income and working life into an asset that has now been devalued are compensated.”
READ MORE: The Greek community is mobilizing against proposed taxi licensing reforms in New South Wales.
Transport for NSW held a number of webinars in September 2021 with taxi license owners, where they announced their intention to remove the limit on the number of taxi licenses and remove restrictions on the areas where taxis can operate .
During the webinars, the government agency said taxi license owners could potentially be compensated for these reforms by receiving $50,000 for each license, but it will be capped at two licences. Anything over that amount will not be compensated, representing huge losses for many Greeks who initially paid around $400,000 for a license.
READ MORE: MP Sophie Cotsis signs the NSW Taxi Industry Pledge and calls for fair compensation.
If today’s announcement is accepted by the Expenditure Review Committee, taxi license owners could be better compensated. The NSW government has also decided to remove the two license cap announced as part of the reforms.
READ MORE: Greek community supports NSW Taxi Industry Pledge for fair compensation.
Source: The Daily Telegraph.