The Essential Services Commission determines the maximum surcharge that can be collected when someone pays for a taxi using any method other than cash. 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 commission reviewed this surcharge from December 2018 to March 2020 and has now published its final decision.
Key facts about the final decision
The commission's decision will:
- reduce the maximum surcharge to four per cent (including GST) for all payment methods except for Cabcharge
- increase the maximum surcharge for commercial passenger vehicle specific payment methods (such as Cabcharge cards) to six per cent (no GST payable).
The commission's benchmarking and bottom-up cost assessment suggest that these maximums are enough for taxi payment processors to recover their reasonable costs.
The final decision sets out in detail our analysis and the basis for our decision.
How we engaged
The commission sought information from stakeholders to inform the final decision and provided stakeholders with extensive opportunities to provide their views throughout the review. Originally the plan was to release a consultation paper in December 2018, a draft decision in April 2019 and a final decision in July 2019. The commission extended its review process by nine months to give taxi payment processors more time to provide it information.
The commission released the consultation paper in December 2018, the draft decision paper in May 2019 and the further draft decision paper in November 2019. There was a consultation period after the release of these papers to allow stakeholders the opportunity to make submissions in response.
The commission also met with stakeholders, issued voluntary information requests, sought to have cost and revenue data audited, and obtained further information using its compulsory information gathering powers.
What we did with your feedback
The commission considered all feedback received from stakeholders through Engage Victoria. Appendix J in the draft, further draft, and final decisions respond directly to many of the matters raised by stakeholders making submissions through Engage Victoria (where those matters were not claimed to be confidential).
Consultation on this project has now closed.
The Essential Services Commission is an independent regulator that promotes the long term interests of Victorian consumers with respect to the price, quality and reliability of essential services. We regulate Victoria’s energy, water and transport sectors, and administer the local government Fair Go Rates system.