The adjustment equates to an estimated increase of $0.61 for a three-kilometre trip in Melbourne’s central business district (CBD), or $2.26 to travel from the CBD to the international airport.
The Essential Services Commission reviews the maximum fares for unbooked taxi and commercial passenger vehicle services every two years.
As part of its 2022 unbooked taxi fare review, the commission introduced an annual adjustment mechanism. The mechanism allows for an increase or decrease to the maximum fare following an annual assessment of changes in labour and fuel costs.
This adjustment is driven largely by increases in labour costs following the Fair Work Commission decision in June 2023 to increase the national minimum wage by 8.6 per cent. The higher labour costs have been offset slightly by a fall in fuel prices in the year to June 2023.
The new maximum fare for unbooked taxis will come into effect on 1 October 2023.
Unbooked taxis fares include trips that were not booked via an app, over the phone or on a website (for example, trips hailed from the street or hired from a taxi rank).
This decision does not apply to fares for booked commercial passenger vehicle services which are deregulated. Operators set their own fares for booked trips.
Safe Transport Victoria oversees compliance and enforcement relating to taxi and commercial passenger vehicle regulation.