Victorian Taxi Drivers Must Turn on Meters to End Fare Gouging Practice

MELBOURNE, AUSTRALIA - SEPTEMBER 10: Taxi cars are lined up as protesters gather on September 10, 2015 in Melbourne, Australia. Tram drivers are striking for over a pay dispute between drivers and employer Yarra Trams, while taxi drivers are walking off the job in protest of the illegal rideshare service UberX. Photo by Robert Prezioso/Getty Images

Victorians will have more assurance about the price they pay when taking a taxi from a rank or hailing one on the street after new regulations by the Andrews government kick start next month.

Starting from September 28th, all taxi drivers in Victoria must use their meters for all unbooked trips in Melbourne, Geelong, Ballarat and Bendigo, preventing taxi drivers from negotiating a price with customers above the regulated maximum fare and essentially ending dodgy behaviour from taxi drivers, particularly at times of high demand and will remove any confusion over fare rules.

The updated regulations require taxi drivers to always use a taxi meter to calculate the maximum regulated fare for all unbooked trips, clearing any confusion over fare rules.

The new regulation, which was made based on feedback from industry and community, comes just before all the major sporting events taking place, such as the AFL grand final, Melbourne Cup Carnival and Australian Open, when the biggest crowd will come to Melbourne.

Public Transport Minister Ben Carroll welcomed the change and said the amended regulations would mean taxi drivers must use their meters for trips from ranks or when hailed on the street.

“These changes will improve taxi services for Victorians—giving passengers certainty they can get home safely, especially during busy major events.”

Mr. Carroll also said that these rules will end people’s frustrations over price jumps.

“We’re making sure the rules are clear and that people travelling by rank and hail taxis will get to where they need to go without frustrating price hikes,” he said.

No changes are being made to pre-booked taxi or rideshare services.

However, when the industry was deregulated in 2018, taxi drivers were allowed to negotiate the price of a ride if it was approached without a booking beforehand, and it was said to accommodate rideshare services such as Uber.

As a result of that deregulation, some taxi drivers demand outrageous high prices for short trips during major Melbourne events such as the Australian Open and Formula One Grand Prix.

Similar things also happened in other states, especially during major events.

In May this year, the NSW state government increased its on-the-spot fines from $300 (US$192) to $1,000 for canny taxi drivers who have not turned on their meters across the state after complaints increased in 2022.

Currently, there are over 5,000 estimated taxi licence holders in Victoria.