Taxis in Australia are highly regulated by each Australian state and territory, with each state and territory having its own history and structure. In December 2014, there were 21,344 taxis in Australia.ATIA, State & Territory Taxi Statistics as at December 2014 Taxis in Australia are required to be licensed and are typically required to operate and charge on a fitted taximeter. Taxi fare rates are set by State or Territory governments. A vehicle without a meter is generally not considered to be a taxi, and may be described, for example, as a hire car, limousine, carpool, etc. Most taxis today are fueled by liquid petroleum gas. A2B Australia owns and operates the Cabcharge payment system, which covers 98% of taxis in Australia, and operates one of Australia's largest taxi networks.

Taxi services are particularly valuable to less mobile groups in the community, such as elderly and disabled people. As a result, government intervention has historically ensured that taxi services have assisted in ensuring equity, reliability, quality, and safety. At the same time, regulation has created barriers to entry and limited competition in the sector. In April 1995, the Federal and all State and Territory governments entered into the Competition Principles Agreement that required all jurisdictions to review legislation which restricts competition by the year 2000. As a result of pressures from competition law, the Competition and Consumer Act 2010 (and preceding legislation), and evolving technology, the regulated industry is facing challenges from deregulated vehicle for hire companies including Uber.

Brief history

Australia adopted horse-drawn taxis once cities were established and, in the case of Queensland, Brisbane introduced the first horse-drawn taxis, which plied throughout the city. These also included hansom cabs, a more elaborate type with a closed-in cabin for passengers with two small front doors and glass windows and their driver sitting high at the back. This type of vehicle was a standard type used in England. Hansom cabs were used in Brisbane until 1935, operating from a rank outside the Supreme Court in George Street.

Motor taxis were introduced into Australia not long after they were put into service in the United Kingdom and Europe. In 1906 Sydney inaugurated motorised taxis, followed soon after by the other states.

The taxis of the period included a variety of types, with tourers and sedans. The latter were mainly French built Renaults, which were designed as taxis, not unlike the hansom cabs. Brisbane had a number of them that plied from the ranks outside Parliament House, Brisbane in Alice Street, and the Supreme Court of Queensland building in George Street. As applied to the hansom cabs, the Renaults catered mainly for gentlemen of standing, including judges, barristers and other notables. The drivers wore uniforms with leggings, the same as those worn by chauffeurs of horse-drawn carriages.

Each large taxi company had telephones installed in a steel box type cover at city and suburban ranks, direct to the switch control rooms in the city.

Although motor vehicle taxis were being used at the time, a few horse-drawn taxis continued service in Brisbane until the early 1920s. Country towns had them for a while longer.

The progress through the years included many types of tourers from circa 1910 until the late 1920s, with British and American cars predominating. Makes featured such names as Buick, Dodge, Talbot, Vauxhall, Saxon, Ford, Chandler, Studebaker, Chevrolet, Hupmobile, Whippet, Oldsmobile, Marmon, Pontiac, Hudson, Oakland, Erskine, Rugby, Essex and Chrysler.

Sedans were added during the late 1920s and included similar makes of vehicles. This was the case with all cars being imported into Australia until World War II. American cars proved more suitable to Australian motoring conditions, especially for taxis. General Motors built thousands in Australia, as did the other American companies including Ford and Chrysler.

Current industry structure by state or territory New South Wales

New South Wales is served by around 6,000 taxis, and the industry employs over 22,700 taxi drivers,"Ministerial Inquiry into the Taxi Industry" , NSW Ministry of Transport (5 October 2004) the largest number of taxis and drivers in Australia.

In general, individual taxis are owned by small-scale operators who pay membership fees to regional or citywide radio communication networks. These networks provide branding as well as telephone and internet booking services to operators and drivers.

Fares are set by the Independent Pricing and Regulatory Tribunal of New South Wales (IPART). Other aspects of the industry are regulated by the Transport for NSW. The industry plays a self-regulating role through the New South Wales Taxi Council.

Vehicle operators are represented by the New South Wales Taxi Industry Association and, in country New South Wales, by the New South Wales Country Operators Association. Drivers are represented by the New South Wales Taxi Drivers Association. The New South Wales Transport Workers Union purports to represent taxi drivers. Most regional centers have a local taxi network.

Queensland

There are numerous taxi services throughout Queensland which operate in all main city centers, as far north as Thursday Island off North Queensland.

Prior to a taxi company being formed in Queensland, owners of taxis simply had signs on the vehicles indicating "For Hire" painted on the side, front and rear. Before 1924, all taxis plied for hire without a means of recording the mileage, other than the driver himself calculating the fare according to how far he drove his passengers. There was a fare scale, however, the driver could charge whatever he thought was nearest to the amount specified. This no doubt, brought about the introduction of meters.

The first taxi company in Queensland was Ascot Taxi Service which was formed in 1919 in Brisbane by two motor mechanics, Edmund William Henry Beckman and Edward Roland Videan. In 1924, the Yellow Cab Company imported their taxis from the United States, which were built especially for taxi work by the Yellow Cab Company in Chicago. The vehicle was the A2 Brougham (mustard pots)—a sedan with the driver separated from the passengers by a window with the baggage compartment in front beside him. The meter was alongside the window by the driver's side. The taxis were also the first fitted with meters in Australia. The vehicle was known as a yellow cab, having been built by the company with that name plate on the front of the radiator. The engines were also built especially for the type and were similar to the Willys Knight. The driver's compartment did not have side windows. The Broughams were taken out of service in 1936.

The Yellow Cab Company has now become the largest cab fleet in Brisbane and introduced the first computerized data dispatch from the control room to taxis. The system was designed to increase efficiency and provide a better and safer service for the public and increase drivers' security. The computers have been installed into the fleet of over 580 taxis.

The Taxi Council of Queensland is the trade association and its objective is to expand the total market for taxi services.

Victoria

Taxis and private hire cars are a part of public transport in Victoria. In December 2014, there were 5,778 taxis in Victoria. Each taxi is required to be licensed and one vehicle only is permitted to operate on each license. The number of licenses issued is restricted, but transfers of a license can take place. License fees were abolished in 2018.

Eight taxi license holders own and control more than 10 licenses. The largest license holders are A2B Australia and the Gange Corporation, both of which hold licenses under a variety of names. A2B Australia also operates the 13cabs booking network, and the Gange Corporation operates the Silver Top Taxis booking network. These companies are the two main network service providers in the greater Melbourne area. Taxi operators pay the booking service an affiliation fee.

More than 60% of licenses are assigned (or leased or rented) to taxi operators, who pay the license holder assignment fees. These fees fluctuate, and typically are in the order of $24,000 per annum. The operator owns, maintains and operates the taxi vehicle as well as the taximeter. Taxi operators may drive their taxis or may employ drivers. In June 2016 there were 14,771 active taxi drivers. Taxi drivers are required to be registered, and their registration certificate must be displayed in the taxi. A taxi operator can sell the taxi, comprising the assigned license, vehicle and meter, as a going concern. Besides receiving the assignment fees from the taxi operator, license holders also commonly benefit from capital growth in license values, or carry the risk of a decline in the market value of a license.

Concern about the availability and quality of taxis continues to be a major public issue in Victoria.

Significant reforms were made to the industry in 1994 under the Kennett Government, including taxis being required to be painted canary yellow. In 2002, peak service taxis, which must be yellow and a green top, were introduced to operate at night, between 3 pm and 7 am, and at special events only. In 2013, the taxi regulations were relaxed to allow colours other than yellow.

The taxi industry in Victoria was the subject of a major government inquiry, the Taxi Industry Inquiry in 2011.

The market value of a taxi license fluctuates over time. They were estimated to be valued at around $464,000, in October 2008. In April 2011, metropolitan taxi licenses had an approximate market value of $512,500. In June 2016 the approximate market value of a metro license was $158,688. Taxi licenses were abolished in 2018, and license holders are to be compensated at a cost of $494 million.

In 2008, there were 3,774 licensed taxis in Melbourne, including 235 wheelchair accessible taxis. In 2011, there were 5,045 taxi licenses across Victoria, including 502 wheelchair accessible taxis.Source, Victorian Taxi Directorate – see www.taxi.vic.gov.au. In December 2014, there were 5,778 taxis in Victoria. More recently, the number of taxi licenses were:

+Number of taxi licenses September 2015 June 2016 Metropolitan 4,812 4,660 including 443 wheelchair accessible taxis Urban 488 505 including 85 wheelchair accessible taxis Regional 335 336 including 72 wheelchair accessible taxis Country 162 162 including 35 wheelchair accessible taxis Total 5,797 5,663 including 635 wheelchair accessible taxis

In 2018, Uber, DiDi, Shofer, Taxify, GoCatch, Shebah, and Ola Cabs were legalized in Victoria. Taxi licenses were abolished and license holders are to be compensated by an 8-year A$1 levy on all taxi and ride-booking services in Victoria.

Regulatory scheme Victoria does not have a dedicated industry statute covering the taxi industry. The prime operational statute for the taxi industry is the Transport (Compliance and Miscellaneous) Act 1983. Part 6 of that Act contains the key provisions regulating the taxi industry including provisions relating to licensing, accreditation and compliance. The overarching Transport Integration Act 2010 (TIA) is a key piece of legislation. It both establishes the taxi industry regulator, the Director of Public Transport, and contains a set of high level policy objectives and principles which the regulator must have regard to when exercising functions including licensing and accreditation decisions. In practice, the Director delegates taxi industry functions to the general manager of the Victorian Taxi Directorate. Another key operational legislative instrument is the Transport (Taxi-cab) Regulations 2005.