Taxis with T plates that opt in to pay their premium in installments can reduce their total premium if they travel less than 107,000 km a year.
There is an upfront premium payment, followed by two installments four months apart. At the end of each installment period, there is an adjustment of actual kilometres travelled compared to the pre-paid kilometres.
The upfront payment is one-third of the fixed annual premium. The upfront payment comprises a deposit premium, the total Fund levy, GST and pre-pays for around 22,600 km.
The second and third installments each pre-pay for around 42,200 km.
Any adjustments to the previous instalment based on actual kilometres travelled are either credited or added to the next instalment.
The Fund levy, GST and tax input credit are inclusive.
The metro taxi illustration shows how a taxi that travels 90,000km over a year can save by opting in to pay in instalments.