How are taxi and ride share premiums calculated?
The new CTP scheme provides a level playing field for taxis, hire cars and ride sharing vehicles. Taxi premiums have been reduced by an average of 40 per cent.
The introduction of distance-based premiums for the point to point industry in April 2018 has delivered a significant reduction in CTP premiums for the NSW Taxi industry. Additionally in 2018, SIRA implemented a Ministerial Direction from the Minister for Customer Service to reduce the Fund Levy for taxis to the same level as Class 1 passenger vehicles. This Ministerial Direction has saved taxi operators an estimated $500 each year.
Under the distance-based CTP arrangements, which were implemented as recommended by the Point to Point Transport Taskforce in December 2015, taxis and hire vehicles (such as rideshare) pay an equivalent premium based on the distance travelled.
As at 31 December 2020, the average taxi premium in NSW was $3,859. Taxi premiums have reduced by around 50% since the introduction of the 2017 CTP scheme.
SIRA works closely with Transport for NSW and the Point to Point Commission on registration supporting the NSW taxi industry.
A public consultation process was held in March 2021 regarding the proposed CTP solution for the taxis and hire vehicles in the point to point industry.