Overview

The Essential Services Commission determines the maximum surcharge that can be collected when someone pays for a taxi using any method other than cash. We are reviewing this surcharge.

Non-cash payment transactions include those made by credit card, charge card, and debit card. Cabcharge cards and dockets are also considered non-cash payment methods.

The current maximum surcharge is five per cent.

More detail on the maximum surcharge and our role can be found on our website.

Our further draft decision is to reduce the surcharge

We propose:

  • to reduce the maximum surcharge to four per cent (including GST) for all payment methods except for Cabcharge
  • to increase the maximum surcharge for Cabcharge cards to six per cent (no GST payable).

Our benchmarking and bottom-up cost assessment suggest that these maximums are enough for taxi payment processors to recover their reasonable costs.

Our further draft decision sets out in detail our analysis and the basis for our recommendations.

Share your views with us

We welcome submissions in response to the further draft decision paper. Submissions are due by 16 December 2019.

To share your views with us, please complete the submission form and/or upload a submission document on this page.

Online submission form

Our benchmarking and bottom-up cost assessment suggest that a maximum surcharge of four per cent is enough for taxi payment processors to recover at least the reasonable costs of accepting and processing most non-cash payment transactions. See chapters one to three of our draft decision for details.

Our bottom-up cost assessment suggest that a maximum surcharge of six per cent is enough for taxi payment processors to recover the reasonable costs of accepting and processing Cabcharge cards. See chapters one to three of our draft decision for details.

We acknowledge that our proposed changes are likely to require modifications to taxi payment processors software. To minimise industry disruption we will delay implementation of the changes to the maximum surcharge until May 2020.

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Privacy statement

As part of making a submission, we need you to provide personal information, such as your name, email address, and postcode. If you request to receive updates on this review, we will use this information to keep you informed.

It is our policy to publish all submissions to price reviews on the Essential Services Commission website.

When we publish a submission, we also include some details about the submitter (your name, not your address). We treat all submissions as public information unless the submitter has asked us not to.

We may also collect personal information when you email us with a query. Aside from any exceptions in relevant privacy legislation, we will not use or disclose the information you provide for any purpose other than to progress and respond to your query.

You have the right to access personal information we hold about you. We may ask you to pay a small fee for this. You can also request that we correct your personal information in our records at no charge.

Requesting anonymity

You can request anonymity by selecting the relevant tickbox below. Depending on the circumstances, requesting anonymity may affect the weight we can give to your submission. Information that influences our decisions generally needs to be disclosed so stakeholders can understand the reasons for our findings.

Read more information about our submission policy.